The Federal Trade Commission (FTC) filed a complaint on January 29 against Digital Altitude LLC and its founder, Michael Force, accusing them of operating a fraudulent scheme. The lawsuit seeks over $14 million in damages, alleging that the enterprise preyed on consumers through deceptive marketing and illegal chain-recruitment practices.
The FTC complaint specifically named Digital Altitude LLC, based in Delaware, alongside its UK counterpart, Digital Altitude Limited, both controlled by Force. The agency described the operation as a pyramid scheme where participants paid fees for "membership levels." Commissions were primarily earned by recruiting new members who also purchased these high-priced levels, not through the sale of legitimate products or services to retail customers. This structure meant that most participants ultimately lost money.
Digital Altitude's marketing strategy relied heavily on deceptive tactics. Operators created numerous "spam blogs" that plagiarized content from other multi-level marketing (MLM) companies. These blogs then engaged in bait-and-switch advertising, luring individuals searching for legitimate business opportunities into Digital Altitude's system. The FTC identified specific individuals associated with these promotional efforts, including Jesse Singh, Nicholas Pratt, Aaron and Shara Andrews, and Rory Singh, who allegedly ran these misleading sites.
The complaint detailed a complex web of associated companies, many designated as "alter egos" of Digital Altitude. This corporate structure, spanning multiple states and the United Kingdom, facilitated the scheme's operations, particularly credit card processing and the payment of affiliates. For example, Aspire Processing LLC, a Nevada company, and Aspire Processing Limited, a UK entity, were primarily used for opening merchant accounts. Similarly, Disc Enterprises in Nevada and Rise Systems & Enterprise in Utah served similar functions under the management of individuals like Sean Brown.
Mary Dee also held management roles across several entities, including Aspire Processing LLC and The Upside LLC, a California company involved in merchant account operations. Thermography for Life LLC, doing business as Living Exceptionally Inc. in Texas, was identified as the vehicle used to pay Digital Altitude employees and affiliates. Michael Force, in addition to Digital Altitude, managed Soar International Limited, another Utah-based company within the scheme's framework. The use of multiple entities and shifting management obscured the true nature of the business and its financial flows.
Following the complaint, the FTC moved quickly to secure a Temporary Restraining Order (TRO) against Digital Altitude and Michael Force. This order froze their assets, preventing further dissipation of funds and ensuring that money could be preserved for potential restitution to victims. The FTC's action shows the agency's intent to pursue companies that masquerade as legitimate business opportunities while operating as illegal pyramid schemes, causing significant financial harm to consumers seeking to improve their financial situations.
The FTC's lawsuit against Digital Altitude and Michael Force represents a significant effort to combat online business opportunity fraud, with the agency seeking substantial financial redress for the many consumers affected by the alleged scheme.
