Two former promoter of the 8 Determine Dream Way of life pyramid scheme have been sued by the FTC.
A Criticism filed by the FTC on December eighth, 2023, names three defendants:
- Bob Shafer, aka Robert William Shafer, Coach Bob, Bo Corridor, Bo Small, Bo Wealthy and Beau Wealthy, a resident of New York;
- Samuel James Smith, a resident of Idaho; and
- Charles Joseph Garis Jr., aka Joe Gaines, a resident of Pennsylvania
The FTC has accused Shafer, Smith and Garis of violating the FTC Act and Telemarketing Gross sales Rule (TSR).
As per the FTC’s lawsuit, filed on December eighth, 2023, Shafer, a resident of New York, and Smith, a resident of Idaho, operated
a sprawling enterprise alternative scheme that has taken in hundreds of thousands of {dollars} from customers with bogus guarantees of big returns.
BehindMLM got here throughout Shafer’s pyramid scheme in 2022. Advertising was imprecise and there was no particular firm identify marketed.
Along with his personal rip-off, Shafer additionally promoted different scams.
8 Determine Dream Way of life was a gifting scheme that relied on pyramid recruitment to remain afloat.
The FTC sued 8 Determine Dream Way of life for telemarketing fraud in 2019. The case was settled for $31.9 million in 2020.
Shafer and Smith weren’t defendants within the 8 Determine Dream Way of life lawsuit, however the FTC does acknowledge their position throughout the scheme.
Defendant Shafer participated in a money-making scheme often called 8 Determine Dream Way of life (“8FDL”), which induced greater than $31 million in hurt to customers.
Defendant Shafer took a minimum of $68,000 in membership charges from customers as an 8FDL vendor.
Defendant Garis, like Defendant Shafer, additionally participated within the 8FDL money-making scheme.
Defendant Garis took a minimum of $424,000 in membership charges from customers as an 8FDL vendor.
Shafer’s, Smith’s and Garis Jr.’s scheme glided by a number of names, certainly one of which was Blueprint to Wealth.
The alleged rip-off operated in a lot the identical method 8 Determine Dream Way of life did; pseudo-compliance rubbish was bundled with membership charges, and recruitment of recent victims the one option to earn cash.
With membership, customers purportedly acquire two methods to earn cash.
First, they acquire the proper to obtain commissions from the sale of memberships in the identical moneymaking scheme that they’ve simply paid Defendants hundreds of {dollars} to affix.
Second, they get hold of a license to resell e-learning supplies on private and enterprise improvement (“Digital Merchandise”) from the scheme’s so known as “e-learning library.”
Some or all of those Digital Merchandise include the acquisition of a membership, and Defendants characterize them as worthwhile and in demand.
No viable market exists for his or her purportedly worthwhile Digital Merchandise. The merchandise are merely incidental to membership.
Blueprint to Wealth membership value between $3000 to $21,000.
Though Shafer and Smith marketed their scheme as a “accomplished for you” cash machine, in actuality
They (paid) few customers any commissions, not to mention the hundreds of {dollars} in month-to-month commissions they painting as typical of their advertising.
None of that is shocking given Shafer’s and Garis Jr.’s prior contain in 8 Determine Dream Way of life. Garis was additionally beforehand sued for TSR violations in 2012.
Garis Jr. was fined $1 million and had an injunction entered in opposition to him, prohibiting additional TSR violations.
With respect to the FTC Act, the FTC alleges BluePrint to Wealth violated the Act by deception.
As soon as customers turn into Blueprint to Wealth members, few earn cash, not to mention recuperate their investments or see the regular stream of revenue that Defendants’ advertising portrays as a corollary of membership.
The TSR comes into play by use of telemarketing to lure new victims into the scheme.
Defendants have constructed and use gross sales funnels designed to entice and lead customers to pay hundreds of {dollars} for Blueprint to Wealth memberships.
Defendants name those that market and promote the Blueprint to Wealth money-making scheme by way of telemarketing and different means “Success Coaches.”
Blueprint to Wealth Success Coaches are purportedly topflight entrepreneurs and earners within the scheme.
Defendants depend on inbound and outbound telemarketing, YouTube advertisements, web ads, web sites, and different means to market and promote Blueprint to Wealth by the dissemination of false or unsubstantiated earnings claims.
Blueprint to Wealth’s telemarketing efforts particularly goal aged victims.
Their advertising has emphasised Blueprint to Wealth’s purported worth to these seeking to earn cash for retirement or earn cash in retirement.
On one phone gross sales name, Defendant Garis urged a septuagenarian client to buy on the highest Blueprint to Wealth membership degree in order that she may “get out of debt faster” and start making a revenue.
Defendant Garis made this suggestion whereas realizing that the patron was a retiree in want of additional cash.
Various firm names used as a part of these advertising efforts included Retire Wealth Community, Earnings to Retire System and Retire Wealth System.
Since 2020, Blueprint to Wealth’s telemarketing efforts have attracted over 230 complaints from customers.
Particular alleged violations of the FTC Act and TSR embrace:
- misrepresentations relating to earnings
- means and instrumentalities
- false or deceptive statements to induce individuals to pay for items or providers
- misrepresentations relating to materials facets of an funding alternative and
- illegal prerecorded messages
In asking the court docket for an injunction in opposition to Shafer, Smith and Garis Jr., the FTC argues;
Shoppers are struggling, have suffered, and can proceed to undergo substantial harm on account of Defendants’ violations of the FTC Act and the TSR.
Absent injunctive reduction by this Court docket, Defendants are more likely to proceed to injure customers and hurt the general public curiosity.
The FTC case was filed underneath seal on December eighth, 2023. Primarily based on proof filed with the FTC’s Criticism, the court docket granted an ex-parte TRO and asset-freeze later the identical day.
As of December thirteenth, Shafer, Smith and Garis Jr. had all been served. The case was subsequently unsealed on December fifteenth.
Presently, the TRO is in impact until January thirty first, 2024. On the identical date a preliminary injunction listening to has been scheduled.
I’ve added the FTC’s Blueprint to Wealth case to BehindMLM’s calendar. Keep tuned for updates as we proceed to trace the case.