Consumers lost over $1B to worldwide business scam
“The breadth of this scam is remarkable, from brazen earnings claims to the fact that their so-called investment trainers are often nothing more than salespeople. The harm to consumers – especially young people seeking to earn a living – is immense, ongoing, and we are glad to work with our partners in Nevada to bring it to an end.”
So said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, in announcing a joint action with the State of Nevada against a company they say bilked consumers out of more than $1.2 billion worldwide over a five-year period, including $535 million in the U.S.
There were over 2 million victims.
The company used the brand names IM Mastery Academy, iMarketsLive, and IM Academy (collectively, “IML”). It most recently rebranded as IYOVIA.
IML peddled an investment training program in which participants would learn how to make significant income trading in the foreign exchange, binary options, cryptocurrency, and stock markets. Consumers often heard about it in social media posts touting successful trades by participants. Interested consumers were invited to sales events or received calls from IML salespeople promoting programs that cost as much as $400 per month. Some were persuaded to buy into a multi-level marketing (MLM) venture in which they sold the training services to others.
IML targeted young people, particularly Black and Latino consumers, with claims about retiring in their 20s, making money “in minutes” or “in your sleep, and enjoying luxury travel and products. The FTC complaint quoted one of the principals as saying, “That’s the great thing about network [marketing]…They keep making new 18 year olds everyday.”
An IML trainer posted the following on Instagram: “TODAY MY TEAM AND & I WILL BE HAVING A FREE 1 DAY TRIAL/MASTERCLASS ON ZOOM TO SHOW YOU EXACTLY HOW WE MAKE MONEY IN MINUTES CLICKING BUTTONS ONLINE FOR 30-60 MINUTES DAILY TRADING HFX & HAVE THE REST OF OUR DAY TO DO THE THINGS WE ACTUALLY WANT TO DO AFTER MAKING A DAYS WAGES IN JUST A FEW MINUTES! INCLUDED IN THE FREE TRIAL SESSION WILL ALSO BE HOW TO COPY, PASTE & PROFIT FROM OUR DAILY CRYPTO SIGNALS!!”
According to the regulators, IML’s trainers or educators were often simply salespeople with no formal training, credentials, or trading records to back up their success. IML’s own data showed that 60% of their customers stopped paying for the training services within one month and 90% dropped the services within six months. Very few consumers made substantial money as MLM participants, with many, if not most, losing money.
IML has an F rating with the BBB. One consumer filed a complaint saying, “I put $1,625.00 into this business. The leaders involved lied and came up with beautiful dreams for me to continue investing in this pyramid scheme. They promised that I would start seeing profit within 90 days of joining the program which never occurred.”
The company’s website says it’s suspended operations and is winding down.
Research any business opportunity with the BBB and online to see what other people say about it. Be skeptical of glowing testimonials and promises of big profits. Discuss the opportunity with trusted advisors or other successful businesspeople.
Randy Hutchinson is president & CEO Better Business Bureau of the Mid-South.