One of the defendants involved in MOBE, a massive internet marketing and business coaching scheme alleged to have bilked hundreds of millions of dollars from consumers worldwide, has agreed to settle with the Federal Trade Commission.
In June 2018, the FTC charged the MOBE enterprise and three individuals with orchestrating the “My Online Business Education” program in violation of the FTC Act. According to the complaint, the defendants falsely claimed that their business education program would enable people to start their own online businesses and earn substantial income. Touting a “proven” 21-step system, the defendants preyed on U.S. consumers—including service members, veterans, and older adults—through online ads, social media, direct mailers, and live events held throughout the country, according to the FTC. The complaint further alleged that the MOBE defendants made false or misleading refund guarantees to consumers.
The settling defendant in this case, Susan Zanghi, allegedly helped operate and perform acts crucial to the MOBE enterprise, including opening up bank accounts and merchant accounts in the United States. Under the settlement order, Zanghi is permanently banned from selling or marketing business coaching or investment opportunities. In addition, she is prohibited from making or assisting in the making of any misrepresentations about any product or service.
The settlement order also requires Zanghi to turn over $33,400 in frozen assets under her name and to immediately surrender to the FTC all control over funds held in the name of the MOBE corporate entities.
The Commission vote approving the settlement order against Zanghi was 5-0. The U.S. District Court for the Middle District of Florida entered the order on Dec. 6, 2018. (FTC File No. P063000; the staff contact is Sung W. Kim, Bureau of Consumer Protection, 202-326-2211.)