After the FTC busted Digital Altitude earlier this year, inevitably people began asking “What about MOBE?”

So similar are MOBE’s and Digital Altitude’s “high-ticket marketing education” business models, that MOBE actually sued Digital Altitude in 2016.

Having won an injunction against Digital Altitude and the scam all but shut down, now the FTC have filed a similar lawsuit against MOBE.

Named as defendants in the
FTC’s complaint
are

Matt Lloyd McPhee, owner of MOBE

Susan Zhangi, an officer, member and/or manager of MOBE

Russell W. Whitney, Jr., an officer, member and/or manager of MOBE

Mobe Ltd., a Malaysian limited liability company

Mobe Processing, a Delaware corporation

Transaction Management, a Delaware corporation

Mobe Training, a Delaware corporation

9336-0311 Quebec Inc. (dba Business Education Training), a Canadian corporation

Mobe Pro Limited, a UK limited liability company

Mobe Inc., a Panama corporation

Mobe Online Ltd., a Mauritius limited liability company

Matt Lloyd Publishing Pty Ltd. (dba Matt Lloyd Publishing and Home Business Builders), an Australian limited liability company

The FTC allege Lloyd operated MOBE through over three hundred registered website domains.

The regulator filed its complaint under seal on June 4th.

The FTC begin with a break down of MOBE’s “21-step system”;

Although the initial entry fee for MOBE’s 21-Step System is relatively modest—typically $49 or less—as consumers proceed through the steps, they are bombarded with sales pitches for various MOBE membership packages costing thousands of dollars that consumers must buy in order to continue through and complete the 21-Step System.

Despite claims by affiliates that retail is possible, the FTC doesn’t acknowledge retail within MOBE’s business model.

Defendants eventually reveal, as consumers progress through the steps, that the way to make money through MOBE is by luring other consumers into the MOBE program and earning commissions when these consumers buy the same costly memberships.

During the course of the program, Defendants have attempted to sell five different membership packages in the MOBE program at different prices: Silver Masterclass for $2,497; Gold Masterclass for $4,997; Titanium Mastermind for $9,997; Platinum

Mastermind for $16,667; and Diamond Mastermind for $29,997.

Reaching the Diamond Mastermind membership level costs a typical consumer approximately $60,000.

In fact, the vast majority of consumers who join the MOBE program and purchase the costly MOBE memberships lose money.

In our 2014
Mobe review
, BehindMLM concluded it was highly unlikely retail customers were forking out $60,000 for MOBE’s education courses.

MOBE representing that consumers of its course “will earn substantial income”, but thousands instead losing money is what ultimately triggered the FTC’s investigation.

After consumers pay, MOBE require these consumers to sign post-purchase agreements that seek to impose onerous conditions for obtai

🤖 Quick Answer

What is the FTC's claim against MOBE?
The FTC alleges MOBE operated a $125 million fraudulent business education scheme, filing a lawsuit against the company and its operators including owner Matt Lloyd McPhee. The case follows the FTC's earlier action against Digital Altitude, which operated a similar high-ticket marketing education business model, with MOBE having previously sued Digital Altitude in 2016.

Who are the named defendants in the FTC complaint against MOBE?
The defendants include Matt Lloyd McPhee (MOBE owner), Susan Zhangi and Russell W. Whitney Jr. (officers/managers), Mobe Ltd. (Malaysian company), Mobe Processing, Transaction Management, Mobe Training (all Delaware corporations), and 9336-0311 Quebec Inc. The complaint targets the corporate entities and individual leadership involved in the alleged scheme.

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