Federal Trade Commission (FTC) and Nevada Attorney General have filed a complaint to stop an extensive investment training and business venture fraud that has defrauded consumers of over $1.2 billion. According to the complaintfiled both by the FTC as well as the Nevada Attorney General the scam is currently operating under the name IYOVIA, but has also been known by other brand names such IM Mastery Academy, iMarketsLive, and IM Academy.
In the complaint, it is alleged that IML and its operators have made false or unsubstantiated claims about earning potential to encourage consumers to buy training in financial topics. They have used similar claims to persuade consumers to buy into IML’s multi-level-marketing business venture, which involves marketing IML’s training services to others. The lawsuit also claims that IML intentionally targeted young people through social media, such as college pages.
Christopher Mufarrige is the Director of FTC’s Bureau of Consumer Protection. He said, “The scope of this scam, from the brazen claims of earnings to the fact that the so-called investment instructors are nothing more than mere salespeople, is astounding.” “The harm to consumers–especially young people seeking to earn a living–is immense, ongoing, and we are glad to work with our partners in Nevada to bring it to an end.”
IML’s salespeople usually share social media posts that feature alleged successful trades using IML training. This is how consumers first learn about IML. IML’s salespeople will invite consumers to events or call them if they respond. They may also offer programs that cost up to $400 per month. Salespeople flaunted luxury travel products and services, and made claims about being able to retire in their 20s.
The complaint states that, contrary to these bold claims, IML’s “trainers” or “educators” are often simply salespeople without any formal training, credentials or trading records backing up their claimed success. Defendants’ claims of earnings are false or unfounded, because:
- The defendants did not keep records on the success or failures of customers who purchased their products and services.
- IML’s data indicates that 60% of customers drop their trading training service within a month and 90% within six months.
- IML’s data shows that few MLM participants make significant money, and many, if they are not all, lose money.
The complaint names the company as defendants, along with its owners Chris Terry and Isis Terry and IML officers and top salespeople Jason Brown and Alex Morton; it also alleges that both the Terrys and IML violated Nevada state laws, the FTC Act and the Telemarketing Sales Rule.
The Commission voted 3-0 to authorize the staff to file a complaint. The complaint was filed at the U.S. District Court for the District of Nevada.
NOTE The Commission files a formal complaint when there is “reasonable belief” that named defendants have violated or are about the violate the law, and the Commission believes that an action in the public’s interest would be justified. The court will decide the case.
Tom Biesty and Laura Basford of the Bureau of Consumer Protection are the FTC staff lawyers on this case.
