Amazon automation scammer indicted by FTC for false claims, death threats | Wilnesh News

Last May, Jamaal Sanford received a disturbing email. The message, sent by a sender claiming to be a member of the “Russian shadow team,” included Sanford’s home address, Social Security number and his daughter’s college. It poses a very specific threat.

The sender said Sanford, who lives in Springfield, Missouri, would only be safe if he deleted the negative comments online.

“Don’t play the tough guy,” the email read. “You gain nothing by withholding comments, and you lose everything by not cooperating.”

A few months ago, Sanford left a scathing review on a ratings website for an e-commerce “automation” company called Ascend Ecom. Trust pilot. Ascend’s purported business is to launch and manage Amazon Set up a storefront on behalf of a client, who will pay for the service and promise to earn thousands of dollars in “passive income.”

Sanford invested $35,000 in such a plan. He never got the money back and is now deeply in debt, according to an FTC lawsuit unsealed Friday.

His experience is a key part of a Federal Trade Commission lawsuit that accuses Ascend of violating federal law by making false statements related to earnings and business performance and threatening or punishing customers for posting honest reviews, among other violations. The FTC is seeking financial relief for Ascend customers and to prevent Ascend from doing business permanently.

This is the latest sign that the Federal Trade Commission is cracking down on e-commerce money-making schemes in some of the Internet’s leading markets, such as Amazon and Airbnb. Since mid-2023, the agency has prosecuted at least Four automation companyalleging deceptive marketing practices and falsely telling customers they could produce Passive income.

The FTC isn’t just concerned about e-commerce automation businesses. On Wednesday, the agency said Strengthen law enforcement Oppose companies that use artificial intelligence “as a way to enhance deceptive or unfair practices that harm consumers.” The agency noted Ascend as one company it took action against in part because it claimed to use artificial intelligence to “maximize the business success of its clients.”

Federal Trade Commission Also committed It comes as part of new rules on fake reviews released this year, aimed at cracking down on companies trying to suppress negative comments online.

Automation businesses like Ascend advertise their opportunities to make easy money on Instagram, TikTok and YouTube. But their promises mostly go unfulfilled, and stores are often closed for violating direct sales policies (i.e. selling products to customers without stocking them) or for counterfeit goods.

The FTC complaint against Ascend accuses co-founders Will Basta and Jeremy Leung of defrauding consumers of at least $25 million through their scheme. Founded in 2021, Ascend does business under multiple entity names and is registered to operate in states including Texas, Wyoming and California.

Documents show the threats against Sanford became more sinister. Two days after the initial email, Sanford’s wife’s phone lit up with a text message that included an image of a severed head, again urging the unflattering comment to be removed.

“Your husband’s ignorance has angered some people,” the text message read. “He’s the type he doesn’t want to anger.”

Sanford quickly purchased a security system for his home.

Sanford said in an interview that Ascend promised his Amazon storefront would generate enough revenue to cover the cost of the inventory the company purchased on his behalf every month. As the months went by, Sanford said, his store was filled with a “hodgepodge” of merchandise, from LED lights to vitamins, that Ascend purchased from other retailers like Macy’s and Home Depot and then sold on Amazon. Sales on. Sanford said the company uses a direct sales model, which often results in stores being suspended on Amazon.

Amazon Merchant delivery is prohibited Unless they identify themselves as the seller of record, meaning their name is listed on invoices, packing slips and other materials.

As Sanford’s sales declined and debt ballooned, he filed a series of complaints against Basta and Liang. When they didn’t get an answer, he left a negative comment. sanford says Ascend eventually offered to refund the $20,000 if he took down the review, but he declined.

“I think I’ve accepted the fact that I won’t get my money back and now I just want to take responsibility,” he said.

Ascend’s lawyer Karl Kronenberger said in a statement that the company denies ever threatening customers and attempts to resolve any disputes “in good faith.”

“We are investigating whether Ascend’s competitors may be behind some of the allegations in this case,” Cronenberg said.

Ascend’s marketing claims that customers can quickly earn thousands of dollars from sales generated on Amazon, Walmart and other platforms. The company said it has developed proprietary artificial intelligence tools to identify top-selling products.