WASHINGTON, D.C. — The operators of Ascend Ecom, an online business scheme accused of defrauding consumers of millions, will be permanently banned from selling business opportunities under a proposed court order filed by the Federal Trade Commission (FTC). The settlement also requires the defendants to surrender significant assets to compensate affected individuals.
The FTC filed suit against Ascend Ecom and its owners, William Michael Basta and Jeremy Kenneth Leung, alleging the operation used deceptive claims about its “cutting edge” AI-powered tools to entice consumers into paying tens of thousands of dollars to open storefronts on major online platforms. The agency reported that the scheme defrauded consumers of at least $25 million while failing to deliver the promised earnings.
“Consumers looking to start a new business should never have to wade through waves of false information and deceptive promises of easy money,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “The FTC is on the lookout for fraudulent actors, and when we find them, we’ll stop them.”
According to the FTC complaint, Ascend operated under multiple aliases, including Ascend Ecommerce, ACV Partners, and Accelerated eCom Ventures, and attempted to prevent dissatisfied customers from filing complaints or public reviews.
The proposed court order imposes several restrictions on the defendants:
- A permanent ban on selling or marketing business opportunities or coaching services.
- A prohibition on making misleading or unsubstantiated earnings claims.
- A requirement to refrain from deceptive practices regarding any product or service.
- A prohibition against enforcing contracts that restrict consumers from filing complaints or reviews.
The settlement mandates the defendants to turn over assets, including bank funds and proceeds from real estate sales, toward partial repayment of the $25 million monetary judgment. However, the judgment is suspended based on the defendants’ inability to pay the full amount. If they are found to have misrepresented their financial status, the full balance would become immediately due.
The FTC’s Commission vote to approve the settlement order was unanimous, and the proposed order was filed in the U.S. District Court for the Central District of California.
Elsie Kappler from the FTC’s Bureau of Consumer Protection served as the lead attorney on the case.
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