Digital Income Systems defendants reach settlement with FTC
Following an April 15th mediation conference, all of the Digital Income System defendants have reached a settlement with the FTC.
The FTC sued the Digital Income System late last year, describing the MLM business as a “fraudulent money-making opportunity scheme”.
A preliminary injunction was granted against the DIS defendants in early January.
Two defendants, Brandon Frye and Kaitlyn Scott, had default orders entered against them last month.
As per an April 26th filed mediation report;
On April 15, 2021, all parties and counsel in the above-referenced case convened for a mediation conference.
The Mediation has resulted in a proposed settlement between the FTC and the parties.
The use of “all parties” suggests Frye and Scott might also have reached settlements. We won’t know for sure until settlement filings are made.
On April 27th the court accepted the report and ordered “all papers related to the settlement” be filed by May 27th.
I’ve scheduled our next DIS case docket check for May 28th.
Update 28th May 2021 – The FTC has filed two proposed settlements with the Foleys and Jennifer Hedrick.
Brendan Frye and Kaitlyn Scott have been held jointly liable via their previously granted default judgments.