Short answer: yes. The Federal Trade Commission shut MOBE down in June 2018, a federal court froze its assets, and the court-appointed receiver concluded the business could not be operated legally. This post is the full story — what MOBE was, how it collapsed, and what happened to the money — compiled from my original reporting as the case unfolded.
What Was MOBE?
MOBE (“My Online Business Education”) sold itself as a business education program run by founder Matt Lloyd. The pitch was simple: a “proven” 21-step system for making money online. Entry cost just $49 — but that was the top of a very expensive funnel. Members were pushed toward escalating “license rights” packages starting at $2,497 and climbing into the tens of thousands of dollars, each sold with the promise of bigger commissions and faster returns.
The model looked attractive for the same reasons every online business opportunity does: work from home, no storefront, no inventory. But the income came almost entirely from recruiting other people into the same expensive packages — not from any real product or service.
June 2018: The FTC Steps In
In June 2018 the FTC filed suit against MOBE Ltd, Matt Lloyd, and related entities, alleging the operation had taken more than $125 million from consumers. All MOBE websites were seized and business was halted overnight. Affiliates initially protested and hoped for a quick resolution at the June 26th hearing — it never came. From the FTC’s complaint:
“Once consumers are lured into joining the program for a modest entry fee of $49, Defendants apply a series of high-pressure tactics to induce consumers to buy their various membership level packages – starting at $2,497 and progressively becoming more expensive – with the false promise that consumers will reap substantial returns on these ‘investments.’”
The Shutdown Was Permanent
The court-appointed receiver, Mark Bernet, investigated whether MOBE could be reformed and operated legally. His conclusion: it could not. MOBE was completely and permanently shut down. His investigation confirmed the core allegation — virtually all of the consumers he communicated with never earned back what they paid for their MOBE memberships.
Following the Money: The $6.3 Million Reserve Raid
One of the more dramatic chapters was the fight over MOBE’s payment processing reserves. Payment processor Qualpay Inc. and Synovus Bank held over $6.3 million in MOBE reserve accounts and argued their merchant agreements let them keep it. Judge Dalton disagreed: the money belonged to MOBE, so it belonged to the receivership. The companies were ordered to turn over $6,314,342.09 by August 16, 2018. All told, the receiver recovered more than $14.3 million in the early phase of the case, with additional lawsuits against third parties on the table.
Did MOBE Victims Get Refunds?
Eventually, yes — through the FTC, not through any “claims service.” In 2020 the FTC began returning money to MOBE victims, ultimately distributing more than $23 million in refunds. Two lessons from that process are still worth repeating:
- Real refunds never require an upfront request or fee. After the shutdown, scammers targeted MOBE victims a second time with fake “refund processing” offers. The FTC identified eligible customers from MOBE’s own database.
- Report, don’t wait. Filing a complaint at ftc.gov/complaint is what builds these cases and gets people paid.
How to Spot the Next MOBE
MOBE wasn’t the first program of its kind and it won’t be the last. The warning signs are consistent:
- Income claims based on selling the same opportunity to others, rather than a real product or customer
- A cheap entry point that funnels into “levels” costing thousands
- Pressure to upgrade before you’ve earned anything
- Testimonials about lifestyle instead of verifiable business results
A legitimate business education program makes its money teaching skills that work whether or not you ever buy another thing from them.
Building Something Real Instead
If the reason you looked at MOBE in the first place was to build income on your own terms, the honest path is a real business with real customers — and capital when you need it. If you own a business and need working capital, equipment financing, or funding to grow, start at Funding-Advisor.com and I’ll tell you straight what you qualify for.