Rather than accept an August 8th ruling denying them $6.3 million in stolen MOBE victim funds, Qualpay and Synovus Bank have filed an appeal. The previously granted TRO directed MOBE’s bank and payment processors to turn over any funds related to the business to the Receivership.
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Following MOBE insiders Russell Whitney and Susan Zanghi consenting to preliminary injunctions, a preliminary injunction has been granted against MOBE and owner Matt Lloyd McPhee.
Since the appointment of the MOBE Receivership, the Receiver has been approached by a wide-range of victims. Virtually all of the consumers with whom the Receiver has communicated did not earn back the amounts they paid to purchase MOBE memberships. One specific example cited in the Receiver’s Initial Report is a Catholic nun, who purportedly [Continue reading…]
A request from Qualpay to keep $6.3 million stolen from MOBE victims has been denied. The TRO in place against MOBE requires all funds related to the fraudulent business be turned over. Rather than hand over the $6.3 million it processed for MOBE, Qualpay instead sought an exemption from the TRO. The processor argued that [Continue reading…]
For his part in scamming consumers through MOBE, the FTC named Russell Whitney as a defendant in their fraudulent business lawsuit. Rather than defend the FTC’s allegations and clear his name, Whitney has instead opted to reach a settlement.
As expected, rather than fight the FTC’s allegation that MOBE was a $125 million dollar fraudulent business, owner and CEO Matthew Lloyd McPhee appears to be heading towards a negotiated settlement. Settlement negotiations between Lloyd and the FTC at this stage are well underway but the outcome is still uncertain. Nevertheless, the FTC appear confident [Continue reading…]
Whenever we see a major regulatory bust, there’s always at least one individual or entity that believes the rules don’t apply to them. For whatever reason, the concept of “funds obtained through illegitimate business activities don’t belong to you” doesn’t ring home. Following the recent FTC shutdown of MOBE, Qualpay have stepped up and demanded [Continue reading…]
A new motion by the FTC has requested the currently scheduled preliminary injunction hearing for June 26th be pushed back to July. The FTC’s motion has consent from all of the named defendants, as well as the court-appointed temporary MOBE Receiver.
The FTC are looking to depose Susan Zanghi, one of three individual defendants in their case against MOBE. In an unusual turn of events, prior to Zanghi’s deposition the FTC have filed an emergency motion to unfreeze $5000. The requested funds are to pay for limited legal representation at Zanghi’s deposition.
On June 5th a Florida District Court Judge appointed a temporary MOBE Receiver. The Receiver has taken control of MOBE’s assets and will work towards an eventual distribution of losses to Matt Lloyd’s victims. In the meantime Lloyd himself appears to be in hiding.