A federal judge in Nevada has issued a preliminary injunction against the operators of IM Mastery Academy, effectively freezing their assets and halting business operations. This legal action comes as regulators investigate allegations of a massive investment training scheme that reportedly defrauded consumers of more than $1.2 billion. The order, issued on August 21, 2023, specifically targets various companies affiliated with IM Mastery Academy, including IYOVIA, iMarketsLive, and IM Academy, as well as its founders, Chris and Isis Terry.
The injunction was the result of a joint complaint filed in May by the Federal Trade Commission (FTC) and the State of Nevada. According to the complaint, the defendants falsely marketed costly investment training programs by making deceptive earnings claims. Additionally, they encouraged participants to join a multi-level marketing (MLM) structure, which involved reselling the same training services to others.
The court order mandates that the defendants must preserve all assets and critical business records. A court-appointed monitor will oversee their compliance with the injunction. The ruling includes several provisions that the defendants are prohibited from engaging in, including:
– Making earnings claims without clear, accurate, and substantiated proof.
– Misrepresenting material facts, such as the required level of experience or capital.
– Concealing important terms related to refund, cancellation, or exchange policies.
– Violating the FTC’s Telemarketing Sales Rule.
The FTC alleges that the defendants misled consumers by promoting exaggerated income potentials associated with their services, creating a false narrative around the profitability of trading or recruitment. As a result, thousands of participants reportedly faced substantial financial losses.
This development follows recent settlements with three other entities connected to the scheme: Global Dynasty Network, LLC, along with individuals Jason Brown and Matthew Rosa, who agreed to resolve claims regarding their involvement in promoting the program.
The current case is part of the FTC’s broader initiative aimed at curbing deceptive marketing practices and safeguarding consumers from fraudulent investment schemes. The commission continues to actively pursue measures to protect individuals from similar misconduct in the investment training sector.
As this situation evolves, regulators are likely to increase scrutiny on similar organizations to prevent further consumer harm.
