Blueprint to Wealth Scheme Shut Down, Imposes Lifetime Bans on Defendants

Blueprint to Wealth Scheme Shut Down, Imposes Lifetime Bans on Defendants

The Federal Trade Commission (“FTC”) has reached a settlement with two individuals responsible for running the fraudulent “Blueprint to Wealth” business opportunity scheme. The defendants, Robert William Shafer and Samuel J. Smith, have agreed to settlements that include lifetime bans on marketing or selling money-making opportunities and investment schemes. This settlement follows a lawsuit filed by the FTC in December 2023, which revealed how the defendants bilked consumers out of millions of dollars with false promises of lucrative online businesses.

The “Blueprint to Wealth” program, which operated under several names, preyed on individuals eager to start their own businesses, offering them what seemed like a golden opportunity. Consumers were promised fully operational online businesses that would generate substantial income with little effort on their part. However, the businesses were little more than a front for recruiting new members into the program, with a focus on selling memberships rather than delivering any real services or products. Participants were charged exorbitant fees, ranging from $3,000 to $21,000, plus additional administrative charges.

The FTC’s lawsuit highlighted the false claims used to lure people into the scheme, including promises of earning thousands of dollars per week. These deceptive marketing tactics, including robocalls and misleading advertisements, were designed to convince consumers to part with large sums of money in exchange for nothing of value. In some cases, the program targeted seniors and others in vulnerable financial situations, further illustrating the exploitative nature of the operation.

As part of the settlement, both Shafer and Smith have been permanently banned from participating in telemarketing or promoting any money-making schemes. Shafer is also banned from selling or marketing investment opportunities, while Smith is additionally prohibited from any involvement with robocalling. Furthermore, the two defendants have been ordered to turn over cash and other assets, including funds from their bank accounts, as part of their financial settlement with the FTC.

While the monetary judgments against Shafer and Smith total over $7.5 million, these amounts have been partially suspended due to the defendants’ inability to pay. However, if it is later determined that either defendant lied about their financial condition, the full judgment would become immediately due. This serves as a stark reminder of the consequences that can arise from fraudulent activities, even when perpetrators try to hide their true financial situation.

Although the settlement concludes the case against Shafer and Smith, the legal proceedings are still ongoing against other parties involved in the scheme, including Charles Joseph Garis, Jr. and Business Revolution Group. The FTC said this development underscores the FTC’s continued efforts to hold those responsible for fraudulent business practices accountable.

For businesses, this case is a warning about the risks of misleading marketing and the importance of ensuring that all business opportunities are legitimate and transparent. Misleading claims and unethical sales tactics not only damage consumer trust but can also result in significant legal and financial consequences. It is vital for businesses to prioritize honesty in their marketing efforts, ensuring that they meet legal standards and protect consumers from fraud.

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This article is for information purposes only. It is not intended to be and should not be relied on as legal advice for any particular matter.