Upon being appointed one of the first tasks the Digital Altitude Receiver undertakes is to determine whether the business can continue legally and profitably.
As per BehindMLM’s
Digital Altitude review
, the company’s business model consists of getting people to hand over increasing amounts of money.
Those recruited and convinced to pay thousands of dollars in fees earn commissions by recruiting others who do the same.
Or as the Receiver puts it;
The primary enticement and benefit offered to consumers in exchange for them doing business with the Receivership Entities is the representation that they may make $100,000 or more in 90 days.
Once consumers are enticed to do business with Digital Altitude, it appears that the entire structure of Digital Altitude is to disguise sales activities designed to pull greater and greater amounts of funds from consumers under the guise of “coaching”.
Not surprisingly, the Digital Altitude Receiver has thus concluded
he cannot operate the Receivership Entities in their current form lawfully and profitably, and thus, in accordance with his responsibilities under the TRO, he has suspended operations pending the Preliminary Injunction hearing and further investigation.
The decision was made on or around March 1st and took effect immediately.
Following the FTC’s revelation that Digital Altitude’s “coaches”
operated in what was essentially a boiler room
, the Receiver has provided additional information as to Digital Altitude’s working environment.
The premises were unusual for office use and had previously been used to breed and house snakes and other reptiles.
The premises had reportedly been the subject of a prior FBI raid arising from illegal possession of certain snakes and were run down and covered with graffiti on the interior walls.
Approximately a dozen cubicles had been haphazardly installed.
Digital Altitude had agreed to pay $2000 to rent the run-down space, however the lease had yet to be executed.
While the Receiver was attending Digital Altitude’s offices, several employees requested unpaid commissions.
The requests were denied.
Pending a decision on the preliminary injunction, defendants Michael Force (right), Alan Moore, Mary Dee and Sean Brown each received $5000 for personal expenses.
An initial request for $137,000 payable to Michael Force for “unpaid pay and owner’s distributions” was also denied.
Of Digital Altitude founder Michael Force’s business presentations, the Receiver observed he provided
general advice of an anecdotal nature, rich in cliché, but with no real educational content; only the benefits of selling high ticket “top tier’ products, with little effort.
The Receiver’s break down of Digital Altitude’s business model, which lead to the decision to cease business operations, isn’t much better.
The “coaching” session seems to be merely an avenue to entice consumers to purchase the next level which allows them access to the next steps and, importantly, a higher co
🤖 Quick Answer
What was the primary finding of the Digital Altitude Receiver regarding the company's operational viability?The Receiver determined that Digital Altitude could not operate lawfully and profitably. The investigation revealed the business model relied on recruiting participants who paid escalating fees, with earnings dependent on recruiting others in a similar structure rather than legitimate product sales.
How did Digital Altitude attract consumers to participate in its business model?
Digital Altitude enticed consumers through representations of substantial income potential, specifically promising earnings of $100,000 or more within 90 days. Once participants invested, the company's structure allegedly functioned to obscure the nature of sales activities and recruitment-based compensation mechanisms.
What was the core mechanism of Digital Altitude's compensation system?
The company operated through a recruitment-based model where participants paid thousands in fees to join and earn commissions primarily by recruiting additional members who would also pay fees. This structure prioritized recruitment
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