Business ProfileforDigital Income System, Inc.

As of June 1, 2022:

The Federal Trade Commission is sending 1,064 checks totaling more than $542,000 to consumers who were harmed by a bogus business and investment scheme known as Digital Income System.

Consumers who receive checks should cash them within 90 days, as indicated on the check. Recipients who have questions about their refund, or who didn’t receive a check and believe they may be eligible for a refund, should call the refund administrator, Rust Consulting, Inc., at 833-539-2840. The Commission never requires people to pay money or provide account information to get a refund.

The FTC sued Digital Income System in 2020 as part of the Operation Income Illusion sweep, alleging that the Florida-based scam falsely told consumers that by selling memberships in the defendants’ programs, they were likely to earn large sums of money. The defendants claimed on their website that participants would “earn between $500 and $12,500 per sale,” and “Every time one of our professionals closes a sale on your behalf, we will send you a huge commission check right to your doorstep.”  According to the FTC’s complaint, though, the vast majority of consumers who paid the defendants never earned substantial income, and in fact, many consumers earned nothing.

LINK: https://www.ftc.gov/news-events/news/press-releases/2022/06/federal-trade-commission-returns-more-542000-consumers-harmed-bogus-money-making-scheme-digital?utm_source=govdelivery

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As of December 14, 2020, in the matter of the

FTC Matter/File Number: 2023074
Civil Action Number:20-cv-24721-UU

Federal Court: Southern District of Florida
and
Federal Trade Commission,
v.
Digital Income System, Inc., a Florida corporation;
Derek Jones Foley, as known as Derek Jones, individually and as an owner, officer, and/or manager of Digital Income System, Inc.;
William Foley, individually and as an owner, officer, and/or manager of Digital Income System, Inc.;
Christopher Brandon Frye, individually;
Jennifer Hedrick, individually; and
Kaitlyn Scott, individually,
Defendants.

Case Summary
Issued Temporary Restraining Order and Complaint for Permanent Injunction and other Equitable Relief

The FTC alleged that the Florida-based scam falsely told consumers that by selling memberships in the defendants' programs, consumers were likely to earn large sums of money.

For example, the website stated, "Consumers will earn between $500 and $12,500 per sale," and "Every time one of our professionals closes a sale on your behalf, we will send you a huge commission check right to your doorstep."

The defendants allegedly charged consumers a substantial amount of money, ranging from $1,000 to $25,000.

The complaint states, however, that the vast majority of consumers who paid the defendants never earned substantial income, and in fact many consumers earned nothing.

For further assistance please contact
Federal Trade Commission
600 Pennsylvania Avenue, NW
Washington, DC 20580
Telephone: (202) 326-2222
https://www.ftc.gov

LINK: https://www.ftc.gov/enforcement/cases-proceedings/2023074/digital-income-system