Digital Income System, its owners and top promoters have been sued by the FTC.

According to the regulator, Digital Income System is a

fraudulent money-making opportunity scheme that preys on consumers hoping to earn money from home.

The FTC’s lawsuit was initially filed under seal. We became aware of it thanks to a reader tip-off yesterday.

BehindMLM
reviewed Digital Income System
in April 2019. In our review we identified DIS as a $25,000 traffic rotator pyramid scheme.

Reader comments on our review suggest Digital Income System was shut down or collapsed in or around May 2020. The FTC’s lawsuit was filed in November 2020.

Named defendants in the
FTC’s lawsuit
are

Digital Income System Inc.

Derek Jones Foley (owner, Florida resident)

William Foley (owner, Florida resident)

Christopher Brandon Frye (promoter, Arizona resident)

Jennifer Hedrick (promoter, California resident) and

Kaitlyn Scott (promoter, South Carolina resident)

The FTC alleges the above defendants

falsely tell consumers that, through Digital Income System’s program of selling memberships, consumers will or are likely to earn large sums of money.

While Defendants extract steep fees for membership, the vast majority of consumers who pay Defendants never earn substantial income, much less the claimed amounts.

In fact, many consumers never earn anything from the program.

Of the named promoters, Brandon Frye was probably the most prominent.

Digital Income System’s website featured Frye, boasting $224,500 in earnings “since joining”. Frye would personally later claim to have made just over half a million dollars through the pyramid scheme.

Jennifer Hedrick used the COVID-19 pandemic as a marketing tool, telling one consumer

people need to learn to make money from their home because of being laid off or out of a job due to coronavirus.

Frye, Hedrick and Scott all brandied Digital Income System checks as part of their social media marketing.

Digital Income System owner Derek Foley also made fraudulent income representations;

When you see the Free Video I’ve made for you, you’ll realize, maybe for the first time, that you actually can have all the money and the lifestyle you’ve been longing for all these years, because we have taken away the #1 reason people fail in their attempts to make money.

We have put together something that allows complete novices all the way up to the burned out business owner to make money with almost ZERO effort.

After signing up, new Digital Income System affiliates were promised leads through “the system”.

Predictably, “the system” didn’t work.

Consumers have complained to DIS, to the owners, to their coaches and to the promoters that, contrary to (the) defendant’s promises, DIS has generated no sales on their behalf.

The Digital Income System defendants addressed these concerns

by convincing consumers to buy additional leads, or “traffic”, from recommended businesses, claiming the increased traffic will enhance their earning p

🤖 Quick Answer

What is Digital Income System and why was it sued by the FTC?
Digital Income System is a work-from-home money-making scheme that was sued by the FTC for fraudulent practices. The scheme operated as a $25,000 traffic rotator pyramid system, allegedly preying on consumers seeking home-based income opportunities. The platform collapsed around May 2020, with the FTC filing its lawsuit in November 2020 against the company and its owners.

Who are the defendants named in the FTC's lawsuit against Digital Income System?
The named defendants include Digital Income System Inc., Derek Jones Foley (owner and Florida resident), and William Foley (owner and Florida resident). These individuals were identified as the primary operators and promoters responsible for managing and promoting the fraudulent money-making opportunity scheme to consumers.

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