A significant federal crackdown on deceptive online business ventures has culminated in a decisive victory for consumer protection, as the operator of a vast fraudulent e-commerce scheme faces a permanent ban and asset forfeiture. This enforcement action underscores the Federal Trade Commission’s unwavering commitment to dismantling illicit operations preying on unsuspecting individuals seeking genuine business opportunities.
At the heart of this sprawling deception was Bratislav Rozenfeld, also known as Steven Rozenfeld or Steven Rozen, and his company, FBA Machine, previously operating as Passive Scaling. They lured countless consumers with baseless promises of substantial income through purportedly AI-powered online storefronts, painting a deceptive picture of effortless wealth in the digital marketplace.
The reality, however, was a stark contrast to the lucrative prospects advertised. The FTC’s investigation revealed that these promises were entirely unsubstantiated, leading to a staggering betrayal of trust and the defrauding of participants out of more than $15 million. This constitutes a severe instance of online fraud that exploited the burgeoning interest in e-commerce.
The legal reach of the enforcement action extended to Amanda Peremen, Rozenfeld’s wife, who was named as a relief defendant. While not directly involved in the operation’s day-to-day activities, the FTC alleged that she had received proceeds directly traceable to these deceptive practices, further highlighting the extent of the illicit gains.
This firm resolution stems from a June 2024 lawsuit filed by the FTC, which initially accused Rozenfeld and his firm of gross misrepresentation. A federal court swiftly responded by issuing an order that temporarily halted the scheme, placing it under the meticulous oversight of a court-appointed receiver, preventing further financial damage to consumers.
The recent settlement solidifies this injunction, imposing sweeping and permanent restrictions. Rozenfeld and FBA Machine are now expressly prohibited from engaging in a broad spectrum of commercial activities, ensuring they can no longer promote or sell any business opportunity fraud schemes or related ventures. This demonstrates robust FTC enforcement against such illicit activities.
Accompanying these permanent bans is a substantial $15.7 million monetary judgment levied against the defendants. While this judgment will be partially suspended based on their financial disclosures indicating an inability to pay in full, the FTC retains the critical provision that the entire amount would become immediately due if any misrepresentation of their financial condition is later discovered, emphasizing accountability.
This successful action by the Federal Trade Commission significantly reinforces its ongoing mission of consumer protection against fraudulent online enterprises. The unanimous 3-0 Commission vote to approve the final order sends a clear and unequivocal message: deceptive income schemes masquerading as legitimate entrepreneurial opportunities will be met with resolute legal action to safeguard the integrity of the digital marketplace.
