Charles Esther
The Federal Trade Commission (FTC) has filed a federal complaint accusing IYOVIA, a financial training platform formerly known as IM Academy, of operating a “multi-level marketing scheme.”
The Scope of the Alleged Scam
According to the complaint, IYOVIA has scammed consumers out of more than 1.2 billion dollars since its inception in 2018.
The company primarily targeted young people and individuals looking to achieve financial freedom through trading in various markets, including foreign exchange, cryptocurrency, futures, and stocks.
IYOVIA marketed itself as a platform that could teach individuals how to make substantial profits through financial training. Promoting a luxurious lifestyle and six-figure incomes, the company lured many hopeful subscribers.
However, the FTC claims that most of the people who joined IYOVIA ended up losing significant amounts of money. This includes the money spent on the platform’s training courses, which cost anywhere from a few hundred to several hundred dollars per month.
Misleading Marketing Tactics
The marketing of IYOVIA emphasized promises of wealth and success.
One salesperson allegedly wrote on Instagram in October 2023, “Trading can be your ticket to wealth and success.” Despite these enticing claims, the reality was far from what was promised.
Many consumers reportedly lost substantial sums of money trading financial instruments, on top of the significant fees they paid for the training.
The company’s founder, Christopher Terry, described IYOVIA as “a cutting-edge online educational platform” aimed at introducing customers to financial markets. However, the FTC asserts that the instructors who taught the financial courses often lacked formal financial training or accreditation. Instead, they were often salespeople with little to no real-world experience in the field.
The Multi-Level Marketing Scheme
In addition to the financial training, IYOVIA allowed its members to participate as salespeople.
They were encouraged to recruit others into the platform and earn commissions.
The FTC describes this model as a “multi-level marketing scheme” that was highly profitable for a few at the top, but not for the majority of those involved.
According to the FTC’s complaint, around 80% of IYOVIA’s salespeople made less than $500 a year.
Furthermore, 90% of customers who subscribed to IYOVIA’s trading services dropped out within six months.
Legal Actions and Consumer Harm
The FTC claims that the company operated a massive scam, negatively impacting hundreds of thousands of consumers globally.
Despite knowing that many consumers were losing money, IYOVIA continued to promote its services using misleading and dishonest claims.
The company focused heavily on recruiting young people, particularly young Black and Latino individuals.
In 2017, France’s financial markets regulator issued a public warning about IYOVIA’s tactics, highlighting its targeting of high school students.
Warnings from Government Agencies
At least 21 international government agencies have issued warnings about IYOVIA, and law enforcement in Canada has taken legal action against the company.
The FTC also notes that some salespeople involved with the company were arrested in Spain for attempting to recruit minors.
The Financial Windfall for the Founders
The complaint alleges that Christopher Terry and his wife, Isis Terry, who is also the company’s CFO, received at least $20 million from the business.
Conclusion: A Deceptive Scheme Exposed
The FTC’s lawsuit against IYOVIA has shed light on what is being described as a massive scam that harmed countless individuals seeking financial independence.
The company’s deceptive practices have resulted in widespread consumer losses, with young and vulnerable populations being disproportionately affected.
IYOVIA’s future remains uncertain as the case progresses, with many questioning the ethics of such marketing schemes in the financial education space.
