Following a
preliminary injunction being granted
against Digital Income System promoters Brandon Frye and Kaitlyn Scott, the FTC has now moved for default judgment.
As per the FTC’s January 13th court filing;
The FTC’s Complaint alleges that Frye, Scott, and the remaining Defendants—Digital Income System, Inc., Derek Jones Foley, William Foley, and Jennifer Hedrick — have bilked consumers of millions of dollars by deceptively marketing membership in a scam business opportunity called “Digital Income System” or “DIS.”
Scott and Frye were personally served with the FTC’s Complaint and failed to answer or otherwise respond to it.
The Court accordingly entered default against Scott and Frye under Fed. R. Civ. P. 55(a) on December 23, 2010, and ordered the FTC to move for final default judgment.
The FTC is seeking a $600,000 judgment against Frye and $171,500 against Scott.
Additional relief is also sought,
‘to prevent (Scott and Frye) from participating in future deceptive enterprises.’
Christopher Brandon Frye was personally served the FTC’s Digital Income System lawsuit on November 18th. He failed to file an answer and was absent for the preliminary injunction hearing.
Frye has touched his social media accounts since October 2020. His current status is unknown.
Kaitlyn Scott stipulated to the granted preliminary injunction, but otherwise has made no appearances. Neither Frye or Scott have retained legal counsel.
Pending default judgment being awarded to the FTC, stay tuned…
Update 3rd April 2021 –
Default judgment has been
granted
against Frye and Scott.
🤖 Quick Answer
What allegations did the FTC make against Brandon Frye and Kaitlyn Scott?The FTC alleged that Frye, Scott, and co-defendants defrauded consumers of millions of dollars through deceptive marketing of "Digital Income System" membership, misrepresenting it as a legitimate business opportunity when it constituted a scam designed to extract money from participants.
Why did the court enter default judgment against the defendants?
The court entered default against Scott and Frye because they failed to answer or respond to the FTC's Complaint following personal service. Under Federal Rule of Civil Procedure 55(a), failure to respond within the required timeframe results in automatic default judgment.
What preceded the FTC's motion for default judgment?
A preliminary injunction was granted against Digital Income System promoters Brandon Frye and Kaitlyn Scott. Following this injunction, the FTC subsequently filed
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