Nebraska Attorney General Mike Hilgers has initiated legal action against social media influencer Elizabeth "Liz" Friesen and WiFi Money, a Florida-based company. The lawsuit, filed in the District Court of Lancaster County, Nebraska, involves several other entities and individuals accused of promoting misleading "passive income" schemes that resulted in significant financial losses for Nebraska residents.
The defendants are alleged to have enticed Nebraskans into purchasing automated e-commerce stores managed by so-called "dropshipping gurus" on platforms like Amazon and Walmart.com. These ventures promised financial returns with claims such as "paid to live" and offered "money-back guarantees." However, the operations frequently violated platform policies, leading to account suspensions and substantial consumer losses. Despite these issues, the schemes continued to be marketed aggressively.
Attorney General Hilgers stated, “This group of influencers manufactured lavish lifestyles on Instagram to lure consumers into a stream of ‘passive income’ schemes that were doomed to fail, then divvied up the money they took amongst themselves despite the schemes’ total failures.” He emphasized that such deceptive practices will not be tolerated under his watch.
The complaint alleges violations of multiple laws including the Consumer Protection Act and Uniform Deceptive Trade Practices Act. The Attorney General seeks full refunds for affected consumers, cessation of these business practices by the defendants, reimbursement for legal fees incurred by the state, and civil penalties.
Consumers who wish to file a complaint related to this case can contact the Nebraska Attorney General’s Office through ProtectTheGoodLife.Nebraska.gov.