A federal court has frozen Matthew Lloyd McPhee's assets and banned him from running MOBE, the online business opportunity scheme that the FTC says bilked consumers out of millions with false promises of easy money.
The preliminary injunction, granted on September 5th, came after Lloyd agreed to the terms in negotiations with federal regulators. Two other MOBE insiders, Russell Whitney and Susan Zanghi, had already consented to similar injunctions.
The court's decision included a stark finding: the FTC is likely to prevail in its lawsuit against MOBE and Lloyd. That June lawsuit alleged the company and its insiders violated the FTC Act by deceiving customers about earnings potential and refund policies.
"Immediate and irreparable harm will result from the ongoing violations," the FTC argued in court documents. The judge agreed, ruling that freezing assets served the public interest.
The injunction prohibits Lloyd and MOBE from claiming that customers will earn substantial income from the company's products or services. The company also cannot falsely advertise that purchases are refundable without conditions. Any other material misrepresentations about cost, restrictions, or performance are now forbidden under the order.
Lloyd is barred from accessing MOBE's affiliate and customer databases. He must hand over complete financial statements to the FTC and court-appointed receiver, with every figure verified under oath.
The asset freeze covers everything connected to MOBE under Lloyd's control—direct or indirect ownership. The order includes no loopholes for assets hidden behind other entities or shell companies.
A court-appointed receiver overseeing MOBE has already concluded the company cannot operate legally or profitably. That assessment gave weight to the FTC's argument that stronger measures were necessary to protect victims.
The injunction's most immediate impact is practical: with assets frozen and financial records now required, identifying what Lloyd owns or controls becomes far simpler for authorities pursuing victim restitution.
The receiver is expected to develop a claims process, though the court set no timeline for that work. Victims seeking compensation should not expect quick resolution.
If Lloyd attempts to launch another business venture, the injunction requires him to notify the FTC first and provide complete details of the operation. Violating that condition would constitute contempt of court.
The preliminary injunction marks a significant step forward in the case, securing assets while the FTC pursues the full lawsuit against Lloyd and MOBE. The court's finding that regulators are likely to win on the merits suggests the outcome may have already been decided—the question now is how much money authorities can recover for the people MOBE defrauded.
🤖 Quick Answer
What is the preliminary injunction granted against Matthew Lloyd McPhee?A federal court froze Matthew Lloyd McPhee's assets and prohibited him from operating MOBE, an online business opportunity scheme. The injunction, granted September 5th following negotiations with federal regulators, prevents continued alleged violations of the FTC Act involving deceptive earnings claims and refund policy misrepresentations that harmed consumers.
Who else received similar injunctions related to MOBE?
Russell Whitney and Susan Zanghi, both MOBE insiders, previously consented to similar preliminary injunctions. These coordinated legal actions targeted multiple company leaders involved in the alleged scheme to defraud consumers through false promises of easy money and earnings potential.
What was the court's assessment of the FTC's case?
The federal court made a significant finding that the FTC is likely to prevail in its lawsuit against MOBE and Lloyd
🔗 Related Articles
- Clawback amount process for Zeek Rewards net-winners approved
- Voltage Partners Review: Crowdsourced app ideas?
- Arego Life Review: Modulating serotonin = happiness on demand?
- Why Vemma hasn’t restarted business operations yet
- Jeunesse RICO lawsuit moved to Florida, Alex Morton evading service?