Online Education Academy is ceasing operations after admitting its role in the fraudulent "8 Figure Dream Lifestyle" scheme. The company, led by Mark Schwartz, filed court documents on September 16th announcing its suspension of operations and dissolution. This action follows a federal fraud lawsuit initiated by the Federal Trade Commission (FTC).
The FTC's complaint details a pattern of deception. Online Education Academy allegedly employed a wide range of tactics, including robocalls, live calls, text messages, internet advertisements, emails, social media, and even in-person events. These methods were used to promote programs that falsely promised consumers substantial income.
During legal depositions, representatives from Online Education Academy conceded that the company had promoted its products with illegal earnings claims that lacked substantiation. The company reported generating approximately $600,000 since its inception in late 2018. However, a court order had previously frozen between $100,000 and $110,000 of these funds.
Earlier in August, Online Education Academy had attempted to secure the release of some of the frozen assets through a motion for an asset-freeze carveout. Both the FTC and the court-appointed monitor overseeing the case opposed this request. The FTC argued that Online Education Academy had made significant misrepresentations about earning potential and that consumer funds needed protection.
Rather than continuing to contest the FTC's opposition, Online Education Academy opted to cease operations. The company's September filing indicated its intention to wind down operations and cooperate with the FTC to resolve the lawsuit. This decision appears to be a pragmatic response, as other defendants in the same lawsuit had already failed in similar attempts to gain access to frozen funds.
The broader "8 Figure Dream Lifestyle" scheme targeted individuals seeking financial independence. The scheme's strategy involved broad marketing across numerous channels to reach a large audience. Those who purchased courses and programs often found them to be worthless, leading to financial disappointment.
The dissolution of Online Education Academy marks the first significant consequence stemming from the FTC's enforcement action. It demonstrates how quickly a company, even one earning hundreds of thousands of dollars, can collapse once fraudulent practices are exposed in court.
In March 2020, Online Education Academy agreed to a settlement with the FTC, totaling $600,000. This amount represented the total revenue the company had generated since its launch. The company paid back the full amount it had obtained from consumers.