The FTC’s lawsuit against Randon Morris over a work-from-home scheme ended in March 2021 with a permanent ban on selling business opportunities or making robocalls, plus a $2,027,295.31 judgment against Morris and four companies he controlled. The agency had sued in November 2020, alleging the operation used millions of illegal robocalls and a fake Amazon affiliation to sell worthless income programs to people worried about working outside the home during the pandemic.1FTC. FTC Obtains Court Order Banning Work-From-Home Scammer From Selling Business Opportunities, Using Robocalls
What the Scheme Sold
Morris, also known as Randy Morris, ran the operation through four limited liability companies: National Web Design; B2B Website Design (doing business as Affiliate Web Design); Amazon Affiliate Program (doing business as The Affiliate Consultants); and R&C Consultation (doing business as R&C Consulting).2FTC. FTC v. National Web Design, LLC, et al. The pitch promised consumers they could earn hundreds of dollars a day promoting and selling products from home.3Consumer Reports. Rogues Gallery of Robocallers What buyers actually received, according to the FTC, were defective storefront websites that failed to generate the promised income.4FTC. Operation Income Illusion Cracks Down on Illusory Income Claims
Names like “Amazon Affiliate Program” and “The Affiliate Consultants” were built to suggest a connection to Amazon.com. No such affiliation existed.5FTC. FTC Complaint, FTC v. National Web Design, LLC, et al.
The defendants reached consumers through millions of prerecorded telemarketing calls placed nationwide, without the written consent or opt-out mechanisms federal rules require. The FTC said the operation specifically targeted people anxious about working outside their homes during the coronavirus pandemic.1FTC. FTC Obtains Court Order Banning Work-From-Home Scammer From Selling Business Opportunities, Using Robocalls
What the FTC Charged
The complaint, filed November 30, 2020, in the U.S. District Court for the District of Utah, alleged violations of Section 5(a) of the FTC Act, which bars unfair or deceptive acts or practices, and the Telemarketing Sales Rule, which requires written consent before delivering prerecorded messages.5FTC. FTC Complaint, FTC v. National Web Design, LLC, et al. The specific counts covered false or unsubstantiated earnings claims, the fake Amazon affiliation, and the illegal robocalls.
The FTC estimated the scheme caused more than $2 million in consumer harm and alleged Morris had drained nearly $850,000 from the corporate bank accounts.6FTC. Ex Parte Temporary Restraining Order, FTC v. National Web Design, LLC, et al.
The Asset Freeze and Receiver
On December 1, 2020, the court granted an ex parte temporary restraining order that froze the defendants’ assets, barred transfers or concealment of funds, and stopped further misleading earnings claims or Amazon-affiliation misrepresentations. A temporary receiver was appointed to take control of the companies’ assets, records, and bank accounts so funds might remain available for consumer restitution.6FTC. Ex Parte Temporary Restraining Order, FTC v. National Web Design, LLC, et al.
The March 2021 Settlement
Chief Judge Robert J. Shelby signed a stipulated order for permanent injunction and monetary judgment on March 12, 2021. Two lifetime bans apply to Morris and his companies: no selling or promoting business opportunities, and no robocalls.1FTC. FTC Obtains Court Order Banning Work-From-Home Scammer From Selling Business Opportunities, Using Robocalls
The court entered a monetary judgment of $2,027,295.31 against all defendants jointly and severally. As part of the settlement, the defendants were required to surrender:
- All reserve funds associated with the Esquire Bank merchant account ending in 0001.
- All funds in the Zions Bancorporation National Web Design account ending in 5450.
- All reserve funds associated with the Mission Valley Bank merchant account ending in 1390.
Once those assets were turned over, the rest of the judgment was suspended based on sworn financial statements showing an inability to pay. That suspension is conditional: if the court later finds the defendants misrepresented their finances or hid assets, the full $2,027,295.31 becomes immediately due.7FTC. Order Granting Stipulated Motion for Permanent Injunction and Monetary Judgment, FTC v. National Web Design, LLC, et al.
The receivership was terminated as part of the settlement, with any remaining receivership funds directed to the FTC to reduce the judgment.7FTC. Order Granting Stipulated Motion for Permanent Injunction and Monetary Judgment, FTC v. National Web Design, LLC, et al.
The case was announced on December 14, 2020, as part of Operation Income Illusion, an FTC sweep with 19 federal, state, and local partners that produced more than 50 actions against income-claim scams.4FTC. Operation Income Illusion Cracks Down on Illusory Income Claims An FTC staff report later described the Morris operation as one that “hounded consumers with robocalls and used concerns about the health risks from working outside the home during the pandemic to get consumers to enroll.”8FTC. Protecting Consumers During the COVID-19 Pandemic: A Year in Review