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FTC settlement bars Growth Cave operators from selling business opportunities and credit‑repair programs

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Key takeaways

Follow Up Questions

Who exactly are the defendants and who were the Growth Cave co‑CEOs?Expand

Defendants named by the FTC: Growth Cave co‑CEOs Lucas Lee‑Tyson and Osmany Batte; Operations Manager Jordan Marksberry; corporate defendants including Growth Cave, LLC, LLT Research LLC, Apex Mind, LLC; and relief defendant Friendly Solar (Inc.). Lee‑Tyson and Batte were identified as Growth Cave’s co‑CEOs.

Did the settlement include monetary judgments, restitution to consumers, or asset seizure in addition to the ban?Expand

Yes. The FTC’s orders impose a $48,597,538 judgment against the defendants (partially suspended based on inability to pay), require liquidation/transfer of assets (Lee‑Tyson to sell a multimillion‑dollar house and liquidate accounts; Batte to liquidate luxury cars), and require relief defendant Friendly Solar to transfer $43,000 — proceeds to be used for consumer redress.

How did the FTC calculate or document the nearly $50 million figure alleged to have been taken from consumers?Expand

The public FTC press releases state the nearly $50 million figure and the $48,597,538 judgment but do not disclose a line‑by‑line calculation in the press materials. The FTC’s complaint and final court orders (filed in the U.S. District Court for the Central District of California) would contain the underlying sales/receipts and accounting the agency used to arrive at that figure; that level of detail is not in the press release itself.

What does the FTC mean by “business opportunities” in this context?Expand

Under the FTC and its Business Opportunity Rule (16 CFR Part 437), a “business opportunity” generally covers offers to sell a plan, program, or marketing system that promises to help a buyer start or operate a business (including work‑at‑home programs), and that often includes required purchases or earnings claims; sellers must provide specific disclosure documents and may not mislead buyers.

What qualifies as a “credit repair” program under FTC rules and why are such programs regulated?Expand

A “credit repair” program is a service marketed to improve a consumer’s credit record, history, or rating. Such businesses are covered by the Credit Repair Organizations Act (CROA) and FTC enforcement: CROA bans upfront payment for credit‑repair services, requires written contracts and cancellation rights, and bars deceptive claims about what can be removed from credit reports.

How will the FTC monitor or enforce the permanent ban on marketing and selling these services?Expand

The FTC will monitor compliance through court‑supervised orders and standard enforcement tools: the settlement and final orders are filed in federal court (Central District of California), include injunctive terms and monetary judgments, and the FTC’s Bureau of Consumer Protection enforces violations and can seek contempt or additional relief if defendants breach the orders.

If I bought services from Growth Cave, how can I find out if I am eligible for relief or report harm to the FTC?Expand

If you bought Growth Cave services, report it at ReportFraud.ftc.gov and check the FTC case page/press release for information about consumer redress. The FTC press release says proceeds from liquidated assets will be used for consumer redress; the FTC’s ReportFraud site and the court docket will list any claims process if the court or Commission establishes one.

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