WASHINGTON, D.C. — The Federal Trade Commission (FTC) has reached a settlement with Ecommerce Empire Builders (EEB) and its owner, Peter Prusinowski, over allegations of running a fraudulent business opportunity scheme that misled aspiring entrepreneurs with false promises of substantial earnings. The court-approved settlement not only shuts down EEB’s operations but also imposes significant prohibitions and financial penalties on Prusinowski.
Allegations of a High-Pressure Sales Scheme
According to the FTC’s complaint, EEB promoted itself as a gateway for consumers to build highly lucrative “Ecommerce empires” through online storefronts. The company advertised training programs priced at nearly $2,000 and additional “done for you” services costing as much as $35,000. Consumers were enticed with guarantees of monthly profits exceeding $10,000.
The FTC, however, charged that these promises were baseless. Instead of achieving the advertised financial success, many consumers faced significant losses. The complaint further alleged that Peter Prusinowski used customer payments to fund his personal lifestyle, all while failing to deliver on the claims he made.
“The defendants’ brazen scheme took advantage of would-be entrepreneurs,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “Today’s announcement shows the FTC will shut down these schemes permanently.”
Terms of the Settlement
The settlement, entered by the U.S. District Court for the Eastern District of Pennsylvania, imposes strict measures to prevent Prusinowski and EEB from engaging in similar deceptive practices in the future. Key provisions include:
- A permanent ban prohibiting Prusinowski and EEB from selling any form of business opportunity.
- Strict prohibitions against making earnings claims without substantiating evidence.
- A prohibition against using contracts or other agreements to inhibit consumers from sharing truthful reviews or complaints about their experiences.
- The confiscation of various assets, including rental properties, luxury watches, and account balances, all of which will be used to fund consumer refunds.
The settlement also includes a monetary judgment of $9,786,124. While this judgment is partially suspended due to claims of insufficient resources, Prusinowski and EEB must fully pay the amount if it is determined that they concealed material assets or provided false financial information during the case.
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