Russell Whitney, a top MOBE affiliate, died on November 20th. His lawyers revealed the death while requesting extra time to respond to an FTC lawsuit. The court granted the extension, postponing Whitney's formal response while the parties work out next steps.

Whitney's death comes just four months after he settled with the FTC. That settlement barred him from defrauding consumers and forced him to surrender profits he made through MOBE, the online business coaching scheme under federal investigation.

Meanwhile, Susan Zanghi has wrapped up her own settlement with the agency. A federal judge approved her stipulated settlement, resolving all disputes between Zanghi and the FTC.

The FTC identified Zanghi as Matt Lloyd's "right-hand person" inside MOBE. She admitted to deceptive practices and violations of the FTC Act. The settlement permanently bans her from participating in any business coaching program or investment opportunity.

The judgment against Zanghi totaled $318 million. But she'll only pay $33,400—a fraction of what she owes. The dramatic reduction hinges on her financial documentation: a statement submitted June 11th, her sworn deposition from June 21st, and additional documents her attorney provided to the FTC via email.

Zanghi must also hand over an undisclosed amount from any MOBE corporate accounts she controls. Going forward, she faces strict compliance obligations. She must cooperate fully with the FTC and the MOBE Receivership. Within twelve months and again at ten years from the order date, she must file compliance reports. For the next two decades, she must provide a copy of the settlement order to anyone involved in any business she owns or controls.

The Whitney case appears headed toward its own settlement. On December 13th, FTC staff and Whitney's lawyers filed a joint notice saying they'd reached an agreement in principle on a proposed final order. Whitney's counsel said it would soon appoint a representative with authority to sign the agreement. Once that happens, the FTC plans to request a stay of all litigation deadlines so the Commission can consider the proposed order.

🤖 Quick Answer

Who was Russell Whitney in relation to MOBE?
Russell Whitney was a prominent affiliate of MOBE, an online business coaching scheme under federal investigation. He had previously settled with the FTC, which barred him from defrauding consumers and required him to surrender profits obtained through MOBE before his death in November.

What was Susan Zanghi's role within MOBE?
Susan Zanghi served as Matt Lloyd's "right-hand person" within MOBE. The FTC identified her as a key figure in the organization who engaged in deceptive practices against consumers during her involvement with the online business coaching scheme.

What was the outcome of Susan Zanghi's settlement with the FTC?
A federal judge approved Susan Zanghi's stipulated settlement agreement with the FTC, which resolved all disputes between the parties. The settlement concluded her legal proceedings with the agency regarding her involvement

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