FTC Suit Against E-Commerce Business Opportunity Scam Leads to Permanent Bans for Operators

The Federal Trade Commission is requiring operators of a deceptive business opportunity to pay hundreds of thousands of dollars to settle allegations they misled consumers with false promises of big returns selling goods through Amazon and Walmart.

Under the settlement orders entered by the court, Trevor Duffy Young and Wessam Baiz, along with two companies associated with Baiz, will turn over the profits they made from the alleged scam, which operated under the names Lunar Capital Ventures, Ecom Genie and Profitable Automation, and before that as Valiant Consultants.

“Young, Baiz, and Baiz’s companies were part of a deceptive operation that took advantage of consumers looking to invest their hard-earned money, only to learn that promises of successful e-commerce stores were a total sham,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “Today’s action holds these defendants accountable by banning them from marketing or selling business opportunities and requiring payments to defrauded consumers.”

The FTC filed suit in October 2024, alleging that the companies and their operators made false claims that consumers could earn large profits from online e-commerce stores that the defendants would establish and operate for them. For example, they promised that consumers would generate sales of “$100K+ per month” and that their stores could become “million-dollar” operations. These promises rarely, if ever, materialized, and most consumers lost the tens of thousands of dollars they each invested in the business opportunity.

The court orders ban Young, Baiz, and Baiz’s companies from any involvement with the sales, marketing, or operations of any business opportunity. The orders also prohibit them from deceiving consumers about any good or service they sell or market.

The order against Baiz and his companies, Baiz Sales and Salespreneurs, requires them to turn over assets held by the court-appointed receiver in the case along with the contents of numerous bank accounts to the FTC. The order contains a total monetary judgment of $13,988,712, which is largely suspended based on an inability to pay.

The order against Young requires him to turn over the contents of several bank accounts to the FTC. The order contains a monetary judgment of $6,024,211, which is largely suspended based on an inability to pay.

If any of the defendants are found to have lied to the FTC about their financial status, the full monetary judgment against them would be immediately payable.

The FTC’s case against the remaining defendants, who are currently subject to preliminary injunctions issued by the court that shuttered their operations, is ongoing.

The Commission vote approving the stipulated final orders was 4-0. The FTC filed the proposed order in the U.S. District Court for the Southern District of Florida. The Court approved the final orders on March 19.

The staff attorneys on this matter are Sara Tonnesen and Molly Rucki of the FTC’s Bureau of Consumer Protection.