WASHINGTON, D.C. — A federal crackdown on deceptive online business ventures has resulted in a permanent ban and asset forfeiture for the operator of a fraudulent e-commerce scheme that exploited consumers with false income guarantees. The Federal Trade Commission (FTC) announced that Bratislav Rozenfeld—also known as Steven Rozenfeld or Steven Rozen—along with his company FBA Machine (formerly known as Passive Scaling), has agreed to a settlement that permanently bars him from promoting or selling any business opportunities.
The enforcement action stems from a June 2024 lawsuit filed by the FTC, which accused Rozenfeld and his firm of falsely promising consumers they could earn substantial income through AI-powered online storefronts. According to the agency, those promises were baseless, and the scheme ultimately defrauded participants of more than $15 million.
As part of the settlement, Rozenfeld must surrender the contents of multiple financial accounts and any proceeds from the sale of real estate. These funds will be used to compensate the consumers who were misled by the company’s false advertising and unfulfilled income claims.
The agency also named Amanda Peremen, Rozenfeld’s wife, as a relief defendant. Although she was not directly involved in the business activities, the FTC alleged she received proceeds that originated from the deceptive practices.
Following the FTC’s complaint, a federal court issued an order that temporarily halted the scheme and placed it under the control of a court-appointed receiver. The proposed final order now solidifies that injunction with permanent restrictions, prohibiting Rozenfeld and FBA Machine from engaging in a range of commercial activities, including:
- Selling, promoting, or offering business opportunities;
- Making deceptive income claims or material misrepresentations in connection with any product or service; and
- Enforcing contract terms that violate the Consumer Review Fairness Act.
The order also imposes a $15.7 million monetary judgment against the defendants. That judgment will be partially suspended due to financial disclosures indicating their inability to pay in full. However, if the FTC later determines that Rozenfeld or his company misrepresented their financial condition, the full amount would become immediately due.
The proposed order was filed in the U.S. District Court for the District of New Jersey and awaits judicial approval. Once signed by the court, it will carry the force of law.
The FTC’s action underscores its continued focus on protecting consumers from fraudulent online enterprises and reinforcing accountability in the digital business marketplace. The unanimous 3-0 Commission vote to approve the final order further signals the agency’s firm stance against deceptive income schemes masquerading as entrepreneurial opportunities.
The case was led by FTC staff attorneys Frances Kern and Colleen Robbins.
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