LAS VEGAS (Legal Newsline) — A defendant who allegedly helped defraud $280 million from consumers as part of the IWorks scheme agreed to settle, the Federal Trade Commission (FTC) has announced.
In the IWorks case, 11 defendants were charged with defrauding customers by making deceptive “trial” memberships for fake government grant and moneymaking schemes.
Two defendants settled in 2013 and a third settled in 2014. Lloyd Johnston is the latest to settle. The deal bars Johnston from engaging in similar business in the future. He cannot advertise or sell products as forced up-sells or be an officer, director or manager of any business unless he has knowledge of the daily operations of said business.
Additionally, Johnston cannot make false claims about any of his products or misrepresent them in any way.
The settlement includes a judgment of $7 million that will be suspended due to Johnston’s inability to pay. If it is found he misrepresented his financial condition, the full judgment will be due immediately.
The FTC voted 4-0 to approve the final stipulated order.