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Back in December 2015, MOBE Ltd. sued the owners of Wealthy Affiliate, Kyle & Carson, and their company Niche Marketing Inc. for defamation with an article Kyle wrote back in January 2014 called “Another Obvious Scam“.
Basically, MOBE wanted to shut Kyle up for telling the TRUTH about their scam which was of course found just that in June 2018 when the FTC shut down the entire MOBE business for fraud.
According to the FTC, MOBE had taken $125 million dollars from unsuspecting consumers who were just trying to find a way to make money online and better their lives, but instead, they lost thousands of dollars into this scam.
This article will summarize the tireless efforts that the Wealthy Affiliate owners have taken to defend their principles, the truth, and ultimately prevails at the end.
Not only that, you will learn that they were awarded only a fraction of what they had spent in this almost 3 year case but still will be donating HALF of that to the victims of MOBE in an effort to help them get back on their feet and start rebuilding somehow.
- The MOBE Lawsuit Against Wealthy Affiliate
- Wealthy Affiliate Prevails
- So Proud To Be A Super Affiliate of Wealthy Affiliate
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THE MOBE LAWSUIT AGAINST WEALTHY AFFILIATE
There has been so much misinformation out on the internet about this case that Kyle decided to write a detailed recount on everything that happened in their case with MOBE Ltd on the Wealthy Affiliate platform.
You can read his full article here (click image):
The information he included in his post is incredibly detailed and the lengths they had to go at every step to fight for the truth was stacked against them.
They had a judge that sided with MOBE from the start, not based on facts of the case, and never once sided with Wealthy Affiliate no matter how many affidavits or applications were filed, all were denied.
Wealthy Affiliate was also being sued for OTHER PEOPLE’s content about MOBE which is quite astounding how this can be when some of those other articles were written BEFORE Kyle’s post.
How are Kyle & Carson responsible for other people’s content is really mind boggling and allowed to be added to their case is absurd.
Wealthy Affiliate also filed an application to tell the court that MOBE Ltd was not even formed yet when Kyle’s post was written so how can MOBE Ltd be the one suing? That was also denied too.
At one point MOBE even added a criminal component to what they were suing Wealthy Affiliate for.
In response, Wealthy Affiliate did this:
We argued the criminality of MOBE Ltd on the basis that they weren’t abiding by the Competition Act laws in Canada.
MOBE quickly removed the criminal portion of the case, just so they can file a SECOND lawsuit for calling MOBE Ltd a “fraud” and a criminal organization in Kyle’s article.
Because this second lawsuit was much more serious allegations, Wealthy Affiliate’s team go right to work and took an entire year to prepare to defend these allegations with nothing but the TRUTH.
But guess what, after more hundreds of thousands spent preparing these more serious allegations, the judge allowed them to just withdraw the second lawsuit as explained by Kyle in his own words:
Unfortunately, a year later on August 4th of 2017, the judge allowed the removal of the more serious meanings. There were no repercussions for their pirouette after an ENTIRE year of us working hard setting up our defense on this. The Judge in essence stripped us of our entire defence, on those serious allegations, and the incredible sum of money we spent setting up for this, hiring experts, and ongoing legal fees (multi 6 figures).
MOBE Ltd withdrew as they realized that Wealthy Affiliate was about to prove their company was acting unlawfully under Canadian laws and also refused to divulge any financial information.
On that same day, Wealthy Affiliate tried to file several applications about the judges decision but everything they filed were denied and never got any real explanations as to why 9 of their applications were denied.
A month after that, the judge struck Wealthy Affiliate’s defense so the case was lost which Kyle & Carson expected since absolutely nothing was going their way so they were ready to appeal.
They lost the case because they were deemed “reprehensible” because they didn’t provide documents that were not specified.
The judge claimed Wealthy Affiliate only handed over 8 pages of documents when in fact they submitted thousands and thousands of pages of documents.
At one point, the Plaintiff wanting Wealthy Affiliate to just hand over a large portion of their customers’ private data but Wealthy Affiliate defended this to the bitter end and did not reveal their customers’ private data without any purpose or merit for providing such info.
It’s been already a long, one-sided fight but Wealthy Affiliate wasn’t going to stop just yet and just give up on the TRUTH as the TRUTH still needed to be told.
They prepared more work for the next year to build their appeal case and, in the meantime, guess what happens?
MOBE Ltd., Matt Lloyd McPhee and all entities/persons involved were all shut down by the FTC in June of 2018.
FTC’s charges were way more harsh than what Kyle’s article was towards MOBE but man I loved it when MOBE got shut down!!
It’s like the dark clouds just lifted and there is light and justice in the world again.
Here’s a summary of FTC’s summary of their Complaint against MOBE:
Since 2013, Defendants have used online advertisements, social media, and live events held throughout the United States to promote a fraudulent business education program called “My Online Business Education” or “MOBE.” Through their program, Defendants claim to reveal a simple 21-step system that will show consumers how to quickly and easily start their own online business and make substantial income.
Although the initial entry fee for Defendants’ 21-Step System is relatively modest—typically $49 or less—as consumers proceed through the steps, they are bombarded with sales pitches for various MOBE membership packages costing thousands of dollars that consumers must buy in order to continue through and complete the 21-Step System.
Defendants eventually reveal, as consumers progress through the steps, that the way to make money through MOBE is by luring other consumers into the MOBE program and earning commissions when these consumers buy the same costly memberships.
In fact, the vast majority of consumers who join the MOBE program and purchase the costly MOBE memberships lose money. In income disclosures buried on their website, Defendants acknowledge that the average “active consultant” makes only a few hundred dollars a year from their program—far less than the thousands of dollars consumers pay for their MOBE memberships.
In addition to their false and unsubstantiated claims that consumers will earn substantial income by joining the MOBE program and purchasing these costly memberships, Defendants also make false and misleading refund and money-back guarantees to induce consumers to purchase MOBE memberships. After consumers pay, however, Defendants require these consumers to sign post-purchase agreements that seek to impose onerous conditions for obtaining a refund, or that claim in other instances that the purchases are nonrefundable and final. Defendants often cite to the language in these post-purchase agreements to deny refund requests or dispute chargebacks.
In sum, Defendants’ scheme has defrauded thousands of consumers who collectively have paid over $125,000,000 to Defendants based on their misrepresentations – 3 – about how much money they will earn by purchasing the MOBE program and memberships. Numerous consumers have individually lost more than $20,000 from Defendants’ scheme.
What’s MOBE’s response?
Matt Lloyd McPhee decided not to defend himself or contest the case made by the FTC, which is basically admitting to everything that is stated in FTC’s case.
FTC has such a solid case though, they even sent in moles to MOBE’s conferences to find evidence and where MOBE put heavy sales pressure on people to make them “invest” more money into their system.
There is nothing better than a big take down like that.
MOBE was always a SCAM and all the reviews ever written about them were TRUE.
WEALTHY AFFILIATE PREVAILS
Since MOBE’s shut down, FTC assigned a Receiver for the MOBE case who has started the repatriation process to recover as much assets from their companies to return to the victims who lost money to their scheme, sometimes as much as 5 figures.
This Receiver, Mark Bernet, also became the Plaintiff in the case against Wealthy Affiliate by MOBE and, in September 2018, when Wealthy Affiliate submitted a Consent Order to appeal the case, he made some very interesting remarks in the hearing:
I became aware of this particular lawsuit, which as I understand was — is some sort of a defamation lawsuit, and that the unique procedural posture of this case is that we are to proceed to a trial which largely would be limited to the damages which MOBE would demonstrate were caused by virtue of allegedly defamatory statements made concerning the company.
That is very problematic for me, because the — quite frankly, this lawsuit should not have been brought. MOBE was operating unlawfully. That is my opinion. I have filed a written report so stating, and certainly, more importantly, it is the opinion of the district judge here in Florida.
How awesome is that for Wealthy Affiliate?!!! JUSTICE!
You can read the details of the Consent Order here but it basically says that all that Kyle said in his article “Another Obvious Scam” were justified.
The case DISMISSED!!!
TRUTH wins. HONESTY wins.
Wealthy Affiliate was awarded the $130,000 that MOBE Ltd put into the case to get it started, but by then, they have spent well over half a million on this case already.
But, that doesn’t stop Kyle & Carson to donate HALF of the $130,000 to the FTC case against MOBE to contribute to the recovery of the losses to help the victims of this horrible scam by MOBE.
I literally started crying when I read their headline “And About the $130,000 Awarded to Us? We Donated Half of it Back to MOBE Customers.”
I couldn’t believe the level of kindness that Kyle & Carson exudes.
They not only confirm once again what incredible people they are but they are truly fighting for good, protecting the innocent, protecting our right to tell the truth, and standing up to bullies like MOBE.
They are simply amazing Canadians!
SO PROUD TO BE A SUPER AFFILIATE OF WEALTHY AFFILIATE
I really couldn’t be more proud to be an affiliate of Wealthy Affiliate. I will absolutely keep bringing them business as one of their Super Affiliates for as long as I can.
Think about all that was stacked against them for 3 long years of deny, deny, deny and then strike! All the time, money, and resources spent on their case, all while still making the Wealthy Affiliate platform improving year after year during this time.
The owners themselves still as active as ever on the platform, answering our questions, and motivating us, while all this is going on behind the scenes.
I find that just incredible. I have seen the vast improvements in my 2 years+ there and after reading Kyle’s post I couldn’t believe they did all that work on the platform and STILL had this B.S. to deal with.
Kyle & Carson are just incredible people, honorable, compassionate, and truth seekers.
To have these kind of owners behind a platform where I go to learn and earn, I really couldn’t be more proud to be associated with them, even just as an affiliate.
I already get to meet them in January 2019 in Vegas because I achieved Super Affiliate status this year all because of their wonderful training that obviously works, but now I wish I could meet them even sooner because I want to give them a hug for what they are doing for the victims of MOBE.
I want nothing more than to have those victims get their money back from that horrible, deceiving MOBE scheme.
If you have been thinking about joining Wealthy Affiliate, I hope this post has shown you how awesome the owners are and that you can trust that they will provide you with the BEST affiliate marketing training on their platform.
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Allow me to help and guide you throughout your new, exciting online journey. With my 2 years+ experience, I know I can show you the ropes and make sure you stay on the path to success.
If you want to see a comparison of their membership options first then click here or if you want to see the real cost of this kind of online business click here.
Otherwise, I will be sending you a welcome message on your Wealthy Affiliate profile so be sure to look out for a “littlemama”, which is me of course! 🙂
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