Thursday, September 4, 2025

Latest

Fake Amazon Automation Gurus Settle FTC Case For $21.7 Million

The people behind the “Amazon automation” scam have agreed to settle the case of the Federal Trade Commission (FTC) for millions in assets, the FTC announced on Tuesday. Two of the owners and all of the businesses involved will also be permanently banned from selling business opportunities or coaching programs involving e-commerce stores.

Brothers Roman and John Cresto, Andrew Chapman along with multiple companies they controlled, including Automators AI, Empire Ecommerce, and Onyx Distribution were accused of deceiving consumers with unfounded promises of “passive investment income” in online storefronts supposedly powered by AI. 

According to the FTC, the defendants falsely offered high returns from profitable e-commerce stores on platforms like Amazon and Walmart, claiming to possess a “proven system” enhanced by artificial intelligence for setting up and managing these stores. 

However, the regulator contended that the majority of clients did not achieve the advertised earnings, with many incurring significant financial losses. The clients’ stores were also frequently subjected to suspensions or terminations by Amazon and Walmart due to policy violations.

The settlement includes several stipulations: a permanent ban against offering business opportunities or coaching related to e-commerce platforms for all defendants except Chapman and his company, Pelenea Ventures, LLC; a ban on making deceptive earnings claims; and a requirement for the defendants to support future earnings claims with evidence. The defendants are prohibited from including clauses in contracts that prevent customers from posting negative reviews.

The defendants are ordered to relinquish various assets, including bank and cryptocurrency accounts, valued at millions of dollars, to facilitate refunds to defrauded consumers. The total monetary judgment is set at $21,765,902.65 – which is partially suspended due to the defendants’ reported inability to pay the full amount.

“If the defendants are found to have lied to the FTC about their financial status, the full judgment would be immediately payable,” the FTC wrote.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

Cormark Lifts Northern Superior Target To $2.00 On Drilling Success

Afghanistan Quake Deaths Pass 1,400

Related News

FTC and 17 States Sue Amazon, Alleging Monopoly Practices That Inflate Prices

The Federal Trade Commission (FTC) and 17 states have filed a lawsuit against Amazon (NASDAQ:...

Wednesday, September 27, 2023, 03:08:00 PM

Albertsons CEO Accused of Destroying Key Evidence Ahead of $24.6-Billion Kroger Merger Trial

The proposed $24.6 billion merger between grocery giants Kroger Co. (NYSE: KR) and Albertsons (NYSE:...

Thursday, August 22, 2024, 12:35:56 PM

Biden Endorses FTC Proposed Rule To Ban Junk Fees

US President Joe Biden unveiled a significant move on Wednesday, as the Federal Trade Commission...

Thursday, October 12, 2023, 12:12:00 PM

Courts Stop $24.6B Kroger-Albertsons Deal, Citing Consumer and Worker Harm

Two significant court rulings have halted the proposed $24.6 billion merger between grocery giants Kroger...

Wednesday, December 11, 2024, 11:19:00 AM

Meta Faces Breakup Over Alleged ‘Colossal Cover-Up’

A federal judge will decide in the coming months whether to break up Meta Platforms...

Tuesday, July 1, 2025, 11:34:00 AM