Case Summary
The FTC took action against a business opportunity scheme that allegedly falsely promised consumers that they would make guaranteed income through online storefronts that utilized AI-powered software. According to the FTC, the scheme, which has operated under the names Passive Scaling and FBA Machine, cost consumers more than $15.9 million based on deceptive earnings claims that rarely, if ever, materialize.
As a result of the FTC’s complaint, a federal court issued an order temporarily halting the scheme and putting it under the control of a receiver. The case against the scheme is still under way and will be decided by a federal court.
In June 2024, the FTC filed suit against FBA Machine and Bratislav Rozenfeld (also known as Steven Rozenfeld and Steven Rozen) alleging that, in a business opportunity scheme, they falsely guaranteed that consumers could make money operating online storefronts using AI-powered software. The defendants allegedly failed to deliver on the promised earnings claims and defrauded consumers out of over $15 million.
As a result of the FTC’s complaint, a federal court issued an order temporarily halting the scheme and putting it under the control of a receiver.
The FTC later added Amanda Peremen, Rozenfeld’s wife, as a relief defendant in the case. The amended complaint alleged that, though not directly involved in the scheme, she received proceeds from it.
In July 2025, the FTC announced that Rozenfeld will be permanently banned from selling business opportunities in settlement of FTC’s allegations and will be required to turn over the contents of multiple financial accounts and any funds realized upon the sale of real estate property. The proceeds will be used for consumer redress.