FTC settles with e-commerce scheme operators in massive fraud case

The Federal Trade Commission announced on August 22, 2025, the finalization of settlement agreements permanently banning multiple defendants from the e-commerce business opportunity industry while securing millions in monetary judgments for consumer redress in a case that exposed systematic fraud across the online retail sector.

According to court documents filed on August 22, 2025, in the U.S. District Court for the Southern District of Florida, the enforcement action targets defendants who operated under various business names including Click Profit, FBALaunch, PortfolioLaunch, and Automation Industries. The scheme defrauded consumers of at least $14 million by promising lucrative returns through purported AI-powered online storefronts on platforms like Amazon, Walmart, and TikTok.

The settlement encompasses two separate monetary judgments totaling over $20 million. Jason Masri, along with affiliated entities Automation Industries LLC and Click Profit Distribution, LLC, faces a $7,304,885 judgment. A separate group including Craig Emslie, Patrick McGeoghean, and their associated companies received a $13,625,783 judgment.

Deceptive earnings promises exposed

The complaint filed on March 3, 2025, details systematic deception where defendants promised consumers they could earn substantial "passive income" through e-commerce stores. Marketing materials featured earnings claims of $100,000 to $150,000 in sales with "100% guarantee" language. The scheme required upfront payments of at least $45,000, with some packages exceeding $75,000.

In reality, data from Amazon showed stark contrasts to the promised returns. According to the complaint, approximately 14% of Click Profit's 230 stores earned no sales at all, while around one-third earned less than $5,000 in gross lifetime sales. After deducting Amazon's fees and Click Profit's charges, around 21% of stores earned nothing, with the median store generating only about $7,200 during its entire lifetime.

Federal regulators found that Amazon had blocked, suspended, or shut down around 95% of Click Profit's stores at some point due to policy violations. The average operational period for stores was merely 6.7 months, far short of the promised long-term passive income streams.

False technology and partnership claims

The defendants made extensive false claims about proprietary artificial intelligence technology and exclusive brand partnerships. Marketing materials claimed relationships with major companies including Nike, Disney, 3M, Colgate, Dove, and Yeti. Craig Emslie, identified as the company's co-founder and CEO, promoted a purported "AI-backed bot" that analyzed "over three and a half years of real-life e-commerce data."

The complaint states that defendants claimed to employ sixteen developers who spent over three years and nearly $5 million developing this "super computer," which allegedly generated around $100 million in sales. Investigation revealed that defendants had no actual affiliation with the claimed brand partners and did not employ the advanced AI technology described in their marketing materials.

Consumer intimidation tactics

Beyond the financial deception, the enforcement action addressed defendants' systematic suppression of negative reviews. Settlement documents reveal the use of non-disparagement clauses in consumer contracts that prohibited truthful negative reviews. When consumers posted complaints online or with the Better Business Bureau, defendants threatened litigation.

One documented case involved attorney threats on behalf of Craig Emslie, where a consumer was told the company would "take everything he and his wife owned, including their home and pensions." The intimidation tactics proved effective, with multiple consumers removing online reviews under threat of legal action.

Settlement terms and industry ban

The settlement agreements impose permanent bans preventing defendants from any involvement in business opportunity sales, marketing, or operations. They also prohibit false earnings claims, misrepresentations about business affiliations, and restrictions on consumer reviews.

The monetary judgments have been partially suspended based on defendants' claimed inability to pay full amounts. However, if defendants are found to have made false financial disclosures, the full judgment amounts become immediately payable with interest.

The settlement requires defendants to surrender various assets, including multiple real estate properties in Florida, luxury vehicles including a 2021 Ferrari F8 Spider and 2021 Audi R8, and high-value watches. Cash assets from numerous bank accounts at major financial institutions are also being transferred for consumer redress.

Pattern of business opportunity fraud

The Click Profit enforcement reflects broader regulatory attention to online business opportunity fraud. The defendants operated through a complex network of eight limited liability companies across multiple states, with shared office locations, bank accounts, and personnel.

According to the complaint, defendants held themselves out as e-commerce experts with "years of specialized experience" and "dozens of employees." Marketing materials claimed success helping "hundreds of consumers run profitable e-commerce businesses." The reality showed most consumers lost their entire investments while dealing with unresponsive customer service once payments were made.

Technical violations and regulatory oversight

The enforcement action encompasses multiple legal violations. Beyond basic fraud charges, defendants violated the Business Opportunity Rule requiring disclosure documents and substantiated earnings claims. They also violated the Consumer Review Fairness Act through unlawful review suppression tactics and the Impersonation Rule by misrepresenting business affiliations.

The case demonstrates coordinated regulatory oversight across federal agencies, with court-appointed receiver Maria Yip managing asset liquidation and business wind-down procedures. The receivership ensures systematic collection and distribution of available assets for consumer redress.

Consumer impact and industry implications

Consumer testimonials detailed in court filings describe financial devastation, with individuals losing life savings and retirement funds. Some consumers took on significant credit card debt to participate in the scheme, only to receive no returns while facing additional inventory purchase demands.

The enforcement action provides insight into the mechanics of modern business opportunity fraud, particularly the use of social media marketing, purported AI technology, and false celebrity endorsements to create perceived legitimacy. The scheme's multi-state corporate structure and use of various business names illustrates sophisticated efforts to obscure accountability.

Ongoing enforcement priorities

The settlement represents part of the FTC's broader focus on business opportunity fraud, particularly schemes targeting consumers seeking alternative income sources. The agency's press release noted that "Click Profit misled consumers by falsely promising them guaranteed passive income using cutting-edge AI technology and exclusive brand partnerships."

The enforcement demonstrates regulatory attention to emerging fraud patterns in the digital economy, where legitimate-sounding technology claims and social media marketing can quickly reach large consumer audiences. The case also highlights the importance of review authenticity, as defendants' suppression of negative feedback prevented potential victims from accessing accurate information about the scheme.

Timeline

• March 3, 2025: FTC files complaint and obtains temporary restraining order against Click Profit and defendants
• March 5, 2025: Court enters temporary restraining order halting business operations
• March 18, 2025: FTC announces enforcement action stopping Click Profit scheme
• April 21, 2025: Court enters preliminary injunctions against defendants and appoints receiver
• August 22, 2025: Final settlement orders entered against Jason Masri group
• August 25, 2025: FTC announces final settlements with all defendants and permanent industry ban

Summary

Who: Jason Masri, Craig Emslie, Patrick McGeoghean, William Holton and their associated companies operating business opportunity schemes

What: Massive fraud scheme promising passive income through AI-powered e-commerce stores, resulting in over $20 million in monetary judgments and permanent industry bans

When: Operations conducted since at least 2021, with FTC enforcement beginning March 2025 and final settlements announced August 25, 2025

Where: Primarily operated from Florida and other states, targeting consumers nationwide through online marketing on platforms like Amazon, social media and search engines

Why: Defendants systematically deceived consumers with false earnings promises, fake AI technology claims, and non-existent brand partnerships to collect upfront fees while providing worthless services

PPC Land explains

Business opportunity scheme

A business opportunity scheme represents a commercial arrangement where sellers solicit prospective purchasers to enter new businesses requiring upfront payments, typically promising to provide outlets, customers, or buyback guarantees. Under federal regulations, these arrangements trigger specific disclosure requirements and consumer protections. The Click Profit case exemplifies how modern schemes exploit digital platforms and AI-related marketing claims to attract consumers seeking alternative income sources, while failing to deliver promised returns.

Consumer redress

Consumer redress encompasses the legal mechanisms through which harmed consumers recover financial losses from fraudulent schemes. In enforcement actions, regulatory agencies secure monetary judgments that fund reimbursement programs for affected consumers. The Click Profit settlements demonstrate how asset forfeiture, including real estate, luxury vehicles, and bank accounts, creates pools of funds for victim compensation, though full recovery remains challenging when defendants have dissipated significant proceeds.

Monetary judgment

A monetary judgment represents the court-ordered financial obligation imposed on defendants found liable for consumer harm. These judgments often exceed defendants' apparent ability to pay, serving both punitive and deterrent functions. The Click Profit case features over $20 million in combined judgments, with partial suspension based on claimed financial inability, creating incentives for complete asset disclosure while preserving enforcement options if hidden assets emerge.

FTC enforcement

FTC enforcement encompasses the federal agency's authority to investigate, prosecute, and resolve cases involving unfair or deceptive business practices. The Commission employs various tools including complaints, temporary restraining orders, preliminary injunctions, and settlement agreements to halt harmful conduct and secure consumer relief. The Click Profit action demonstrates coordinated enforcement involving multiple regulatory violations and sophisticated asset recovery techniques.

Asset forfeiture

Asset forfeiture involves the legal seizure of property obtained through or used to facilitate illegal activities. In consumer protection cases, forfeited assets including real estate, vehicles, and financial accounts are liquidated to fund consumer redress programs. The Click Profit case required defendants to surrender luxury properties in Florida, high-end vehicles, and cash holdings across multiple financial institutions, demonstrating comprehensive asset tracing and recovery efforts.

Permanent injunction

A permanent injunction constitutes a court order prohibiting specific future conduct by defendants, typically issued after liability determination. These orders prevent defendants from engaging in similar schemes and often include industry-wide bans. The Click Profit settlements impose permanent prohibitions on business opportunity involvement, false earnings claims, and consumer review suppression, with contempt of court penalties for violations.

Artificial intelligence claims

Artificial intelligence claims in fraud cases involve false representations about sophisticated technology capabilities to justify premium pricing or guaranteed results. The Click Profit defendants claimed proprietary AI systems analyzing billions of data points to select profitable products, when no such technology existed. These misrepresentations exploit consumer fascination with emerging technologies while masking traditional fraud mechanisms.

Earnings claims violations

Earnings claims violations occur when businesses make unsubstantiated promises about potential consumer income without proper documentation or disclosure requirements. The Business Opportunity Rule mandates specific substantiation and disclosure protocols for income representations. Click Profit's promises of six-figure returns with "100% guarantee" language violated these requirements, as actual consumer outcomes showed widespread losses rather than promised profits.

Review suppression tactics

Review suppression tactics involve systematic efforts to prevent or remove negative consumer feedback about business practices. These methods include contract clauses prohibiting criticism, legal threats against review authors, and conditioning refunds on review removal. The Click Profit case exposed how defendants used non-disparagement agreements and attorney intimidation to silence consumer complaints, violating the Consumer Review Fairness Act.

Receiver appointment

Receiver appointment involves court designation of independent parties to assume control of defendant assets and business operations during litigation. Receivers liquidate assets, maintain business records, and ensure orderly wind-down procedures while preserving value for consumer redress. In the Click Profit case, receiver Maria Yip managed complex asset recovery across multiple states and business entities, demonstrating the sophisticated infrastructure required for major fraud case administration.