FTC Case Leads to Order Banning Ascend Ecom and Its Owners from Business Opportunity Marketing

The operators of Ascend Ecom, an online business opportunity that allegedly cost consumers millions of dollars, will be banned from selling business opportunities and required to turn over assets to the Federal Trade Commission under the terms of a proposed court order.

The FTC sued Ascend Ecom and its owners William Michael Basta and Jeremy Kenneth Leung, charging that the operation falsely claimed its “cutting edge” AI-powered tools would help consumers quickly earn thousands of dollars a month in passive income. According to the complaint, the operation defrauded consumers of at least $25 million.

“Consumers looking to start a new business should never have to wade through waves of false information and deceptive promises of easy money,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “The FTC is on the lookout for fraudulent actors, and when we find them, we’ll stop them.”

According to the complaint, Ascend charged consumers tens of thousands of dollars to open storefronts through major online retailers, but failed to deliver on the promised income, and attempted to stop the consumers they harmed from filing complaints or reviews about the operation. Ascend operated under several different names, including Ascend Ecom, Ascend Ecommerce, Ascend CapVentures, ACV Partners, ACV, Accelerated eCom Ventures, Ethix Capital by Ascend, and ACV Nexus.

The proposed settlement order would:

• permanently ban the defendants from selling or marketing any business opportunity or business coaching products and services;
• prohibit them from making any misleading or unsubstantiated earnings claims;
• prohibit them from deceiving consumers about any product or service they sell;
• prohibit them from including or enforcing any part of a contract that restricts a consumers’ ability to file complaints or reviews; and
• require them to turn over assets, including the contents of bank accounts and the proceeds from the sale of real estate properties, which will be used to compensate affected consumers.

The proposed order includes a total monetary judgment of $25 million, which is partially suspended based on the defendants’ 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 Commission vote approving the stipulated final order was 3-0. The FTC filed the proposed order in the U.S. District Court for the Central District of California.

NOTE: Stipulated final orders or injunctions have the force of law when approved and signed by the District Court judge.

The staff attorney on this matter was Elsie Kappler in the FTC’s Bureau of Consumer Protection.