A trial date is taking shape in the MOBE case. The FTC has penciled in April 7th, 2020, though settlement talks continue to linger in the background.

But the real story emerging from a May 10th Case Management Report involves Matt Lloyd McPhee's sudden refusal to answer basic questions—and what that refusal might signal.

On a May 3rd conference call, the FTC pressed McPhee about electronically stored information, or ESI. McPhee balked. He asked the FTC to submit their questions in writing instead. The FTC obliged, firing off a list on May 7th.

Two days later, McPhee's response arrived. "I'm not comfortable testifying or answering questions at this stage," he wrote. "I may assert my fifth amendment privilege, and / or the act of production privilege where applicable."

That's significant. The Fifth Amendment protects individuals from self-incrimination. When someone invokes it, they're essentially saying their answers could be used against them in a criminal case. Invoking Fifth Amendment protection in a civil proceeding like the FTC's case is unusual. It suggests McPhee expects criminal charges may be coming.

Here's the legal wrinkle: if the FTC challenges McPhee's assertion, he would need to produce evidence that criminal proceedings are actually pending or imminent. Right now, there's no public record of any indictment against him.

A similar situation played out in the USFIA case. Steve Chen, the company's owner, refused to hand over financial records to the SEC and tried to invoke similar protections. A judge rejected his argument because Chen couldn't point to concrete evidence that criminal prosecution was coming. McPhee now faces a comparable test.

The FTC and McPhee will keep talking about the ESI question as he decides whether to formally assert his Fifth Amendment privilege. If he does, expect the FTC to push back hard, demanding he prove that criminal charges are actually in the pipeline.

Meanwhile, the rest of the case moves forward. Mediation is tentatively set for September 23rd, the same day as the discovery deadline. Both the FTC and McPhee have agreed that settlement before trial remains likely.

Russel Whitney, once one of MOBE's top earners and a co-defendant, passed away in November 2018. His mother was appointed to represent his estate in March 2019. Her settlement with the FTC is still pending court approval. Negotiations between the FTC and Lloyd appear to be ongoing, despite earlier indications they'd broken down.

The April 2020 trial date suggests this case is moving toward resolution—one way or another. But McPhee's sudden legal posturing hints that bigger problems may be brewing behind the scenes.

🤖 Quick Answer

What is the significance of Matt Lloyd McPhee's refusal to answer FTC questions in the MOBE case?
McPhee's invocation of Fifth Amendment privilege and production privilege represents a strategic legal position that typically suggests concerns about potential self-incrimination. This refusal during discovery proceedings, documented in the May 10th Case Management Report, indicates anticipated criminal exposure beyond civil FTC enforcement actions regarding allegedly deceptive business practices.

When is the trial date scheduled for the MOBE case?
The Federal Trade Commission has scheduled April 7th, 2020, as the trial date in the MOBE litigation. However, settlement negotiations continue simultaneously, suggesting both parties maintain options for resolving the dispute without proceeding to full trial proceedings before the established deadline.

What prompted McPhee's assertion of legal privileges during the discovery process?
The FTC's May 7th written interrogatories regarding electronically

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