Is United Wealth Education violating the FTC Act?

Back in August BehindMLM covered
Financial Education Services’ $324 million FTC settlement
.

The settlement pertained to the FTC alleging FES “scam[med] consumers out of more than $213 million”.

On September 27th I received an email from Sue Griffin, representing herself to be VP of Agent Support for United Wealth Education Services, formerly FES.”

As per Griffin’s email;

Hello,

I am the VP of Agent Support for United Wealth Education Services, formerly FES. Please note, the FTC has not ordered the company to close.

Two defendants who have not been associated with the company since May of 2022 were banned from credit repair and operating an MLM.

The company continues to operate on an MLM platform. I would like the opportunity to share some additional information about the settlement with you.

I sent back the following reply later the same day;

FES doesn’t exist anymore, so discussion around it closing is moot. It’s gone.

I had a look on United Wealth Education’s website for BehindMLM’s pending review. I noted UWE fails to disclose company ownership or compensation details to consumers. Both are potential violations of the FTC Act.

Seeing as you’ve offered to share “additional information”, can you please confirm who owns and runs UWE and a copy of UWE’s compensation plan.

Over two weeks have passed and Griffin has failed to reply.

Today United Wealth Education (UWE) came up for review. Unfortunately UWE still fails to provide consumers with basic due-diligence information, leaving them unable to make informed decisions about the company.

Within the context of FES’ recent FTC settlement, today I thought we’d approach UWE’s potential FTC Act violations.

UWE launched following a
$1.75 million pyramid fraud fine by the US state of Georgia
in 2019, and the lead up to the
FTC’s FES fraud lawsuit
in 2022.

Today UWE essentially operates as a reboot of FES, minus FES’ co-founder Mike Toloff.

UWE operates from the domain “myuwe.net”, privately registered on February 23rd, 2021.

A visit to UWE’s website reveals the company fails to disclose ownership and executive details.

This by itself is a potential FTC Act violation, but with UWE is 
crucial
given the FES pyramid fraud fine in Georgia and subsequent FTC fraud settlement.

As a potential UWE retail customer, a visit to UWE’s website homepage redirects me to its MLM opportunity.

On this page UWE urges website visitors to “enroll as an Agent”, “start growing your business today” and “learn how to change your financial future forever”.

On face value, UWE’s lack of retail focus on its website is a strong indication the company operates a pyramid scheme. The FTC has previously warned
MLM companies without significant retail activity are operating illegally
.

It was only be chance and due to BehindMLM’s coverage of the FES settlement, that I spotted Parimal Naik for a brief second in an autoplayed UWE website marketing video.

Naik co-founded FES with Mike Toloff. Beyond an uncredi

🤖 Quick Answer

What was Financial Education Services (FES) ordered to do by the FTC?

Did the FTC order United Wealth Education Services to close its operations?
No. According to Sue Griffin, VP of Agent Support, the FTC did not order the company to cease operations. United Wealth Education Services continued functioning on an MLM platform after the settlement was finalized.

Who were the defendants banned from MLM activities in the FTC settlement?
Two defendants were prohibited from credit repair and MLM operations. These individuals had not been associated with the company since May 2022, predating the settlement announcement in August.

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