Three Defendants in the IM Mastery Academy Scheme Agree to Pay $2.5 Million to Settle FTC Allegations

Three of the defendants involved in the IM Mastery Academy scheme will pay $2.5 million to settle Federal Trade Commission allegations that they used false or baseless earnings claims to persuade people to pay for financial training programs and a multi-level marketing business venture.

In their complaint, the FTC and the state of Nevada allege that the scheme—which operated most recently as IYOVIA, but has also branded itself as IM Mastery Academy, iMarketsLive, and IM Academy—used false or baseless earning claims to entice consumers to purchase training on investment in financial markets. The scheme has used similar claims to persuade consumers to buy into defendants’ multi-level-marketing business venture, which involves marketing defendants’ training services to others. The defendants focused their deceptive marketing on young people and used social media posts flaunting luxurious and expensive lifestyles, purportedly funded by trading profits and multi-level-marketing commissions. The FTC alleged that, since 2018, the total harm to consumers exceeds $1.2 billion.

Three of the defendants named in the FTC’s complaint, Global Dynasty Network, LLC, Jason Brown, and Matthew Rosa, have agreed to settle the allegations. The FTC and Nevada charged in their complaint that Brown and Rosa were two of the most highly compensated salespeople for the IM Mastery Academy scheme, made deceptive earnings claims, and instructed salespeople on how to make such claims without being detected. As detailed in the complaint, Brown was also a corporate officer of IM Mastery Academy and hired a third party to post fake positive reviews about IM Mastery Academy under a pseudonym. According to the complaint, Brown and Rosa collectively earned more than $36 million from the scheme; most of those funds were channeled through Brown and Rosa’s company, Global Dynasty Network.

The proposed order with Global Dynasty Network, Brown, and Rosa imposes a $36 million judgment, which will be suspended after they pay $2.5 million. The total amount will be due if they are found to have lied about their finances.

The proposed order permanently prohibits Global Dynasty Network, Brown, and Rosa from:

• making any representations about potential earnings without having written evidence that those claims are typical for consumers;
• misrepresenting or assisting in the misrepresentation of any good or service they market or sell;
• violating the Telemarketing Sales Rule, including by making any misrepresentations about earnings potential or profitability; and
• offering any good or service on a negative option basis without clearly and conspicuously disclosing and obtaining consumers’ express consent before charging their credit card, debit card, bank account or other financial account.

The Commission vote approving the stipulated final order was 3-0. The FTC filed the proposed order in the U.S. District Court for the District of Nevada. Litigation with the other defendants is ongoing.

NOTE: Stipulated final orders have the force of law when approved and signed by the District Court judge.