Former top Iyovia promoter Alex Morton has consented to a preliminary injunction.

Morton, one of nine defendants sued by the FTC and State of Nevada in May, stands accused of misappropriating over $76 million through Iyovia (formerly iMarketsLive and IM Mastery Academy).

As per Morton’s June 26th proposed Iyovia preliminary injunction;

[The FTC and Nevada] assert there is good cause to believe that Alex Morton has engaged in and is likely to engage in acts or practices that violate Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), the Telemarketing Sales Rule (“TSR”), 16 C.F.R. Part 310, and Chapter 598 of the Nevada Revised Statutes and that [the FTC and Nevada] are therefore likely to prevail on the merits of this action.

[The FTC and Nevada] assert there is good cause to believe that immediate and irreparable harm will result from Alex Morton’s ongoing violations of the FTC Act, the TSR, and Nevada Revised Statutes, unless Alex Morton is restrained and enjoined by order of this Court.

[The FTC and Nevada] assert there is good cause to believe that immediate and irreparable damage to the Court’s ability to grant effective final relief for consumers – including monetary restitution, rescission, or refunds – will occur from the sale, transfer, destruction, or other disposition or concealment by Alex Morton of his assets or records, unless Alex Morton is immediately restrained and enjoined by order of this Court.

[The FTC and Nevada] assert that good cause exists for requiring preservation of Alex Morton’s assets, and permitting the [The FTC and Nevada] to take expedited discovery.

This Order is in the public interest.

As per the terms of the preliminary injunction order, Morton is prohibited from

  • making misleading  and/or unsubstantiated earnings claims (substantiation must be provided to the FTC and/or consumers on request);
  • misrepresenting or assisting others to misrepresent experience, time and amount of capital required to use a good or service (attached to an MLM opportunity);
  • misrepresenting an MLM opportunity by suggesting “any government entity” is auditing or reviewing an attached good or service;
  • offering a good or service with a “negative option feature” (whereby a consumer’s inaction is deemed consent to continue billing the consumer), without fully disclosing said negative option feature;
  • assisting others will violating the Telemarketing Sales Rule;
  • selling, leasing, renting, transferring or disclosing collected consumer data in relation to Iyovia;
  • destroying evidence that pertains to Morton’s time at Iyovia (and previous iterations);
  • transferring more than $75,000 in assets without prior court approval; and
  • transferring any assets outside of the US

Morton will also provide the FTC with financial statements, tax documents and a full accounting of any assets held outside of the US. If the FTC or Nevada wishes to depose him, Morton will have to attend a deposition with a minimum 48 hours notice.

The court approved Morton’s Iyovia preliminary injunction on June 30th.

It’s expected Morton’s Iyovia preliminary injunction will put a damper on his promotion of Jifu. Morton and a large component of his Iyovia downline migrated to Jifu prior to the FTC’s lawsuit.

At Jifu Morton is believed to be replicating the same alleged fraud the FTC has accused him of at Iyovia. To that end Morton is required to disclose his Jifu business activities to the FTC.

And on that note, sixteen hours ago Morton made this time-based success guarantee on his personal Instagram account:

As above, on July 8th Morton represented to consumers that if they “work 20 hours a day for a season” they “have a pretty good shot” at “guaranteed success”.

With respect to Jifu, Iyovia or any other MLM opportunity, “guaranteed success” typically equates to financial earnings.

Morton provided no substantiation for his claim on the post. It is unclear whether Morton provided the FTC with substantiation prior to making the earnings claim.

Morton is the first Iyovia defendant to consent to a preliminary injunction. As of July 8th, Morton has until July 21st to file his answer to the FTC’s lawsuit.