FTC Shuts Down Multi-Million Dollar Scam Targeting Online Business Opportunities

In recent news, the Federal Trade Commission (“FTC”) has successfully intervened in a fraudulent business opportunity scheme that has defrauded consumers out of over $12 million. This scheme, which operated under several names including Lunar Capital Ventures, Ecom Genie, and Profitable Automation, has been misleading hopeful entrepreneurs with false promises of substantial income from online selling businesses. The FTC’s action has temporarily shut down the operation, putting an end to its years of deceptive practices. The scam first emerged in 2019 under the name Valiant Consultants Inc., and its operators made extravagant claims, luring consumers with promises of earning tens of thousands of dollars a month selling products through major e-commerce platforms such as Amazon and Walmart. Victims were encouraged to invest large sums—sometimes upwards of $30,000 to $35,000—under the guise of starting their own online stores. However, the promised earnings never materialized, and many consumers found themselves empty-handed, having lost their initial investments.