FTC Secures Settlement Banning Growth Cave Executives from Marketing Business Opportunities

USA: FTC Secures Settlement Banning Growth Cave Executives from Marketing Business Opportunities

Settlement Overview

The Federal Trade Commission announced a settlement that permanently bars the co‑CEOs of Growth Cave and related parties from marketing or selling business opportunities and credit‑repair programs, following allegations that the scheme cost consumers nearly $50 million.

Allegations and Lawsuit

The FTC filed a suit in February 2025 alleging that Growth Cave deceived consumers with false promises of significant income, offering numerous business opportunities that often failed to deliver and left consumers out‑of‑pocket by thousands of dollars while providing limited customer support.

Court Orders and Judgments

Two separate orders were issued: one against Lucas Lee‑Tyson and his entities, and another against Osmany Batte, Apex Mind, LLC, and relief defendant Friendly Solar, Inc. Both orders impose identical conduct bans and judgments of $48,597,538, which will be partially suspended based on the defendants’ ability to pay.

Asset Liquidation Requirements

Lee‑Tyson must liquidate a multimillion‑dollar house, investment accounts, and bank holdings, with proceeds directed to the Commission for consumer redress. Batte is required to surrender a Rolls‑Royce, a Ferrari, and additional assets, while Friendly Solar must transfer $43,000 for its role in the alleged conduct.

Prior Enforcement Action

In August 2025, the FTC secured a stipulated order against Operations Manager Jordan Marksberry, banning him from marketing or selling business opportunities, engaging in credit‑repair activities, or making misleading earnings claims. That order included a $48,597,538 judgment, partially suspended after Marksberry paid $35,000 to the Commission.

Agency Comment

“On day one, the Trump‑Vance FTC reprioritized combatting fraud that harms American markets. Today’s successful resolution demonstrates that the Commission is focused on protecting our markets from dishonest actors,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection.

Legal Proceedings

The orders were filed in the U.S. District Court for the Central District of California. The Commission’s vote approving the prior order was unanimous (3‑0), and the vote approving the new orders was 2‑0.

Restrictions on AI Use

Both orders expressly prohibit the defendants from using artificial intelligence to make misleading representations related to earnings claims, testimonials, or other marketing materials.

Future Consumer Redress

Proceeds from the required liquidations will be transferred to the FTC and applied toward compensating consumers harmed by the Growth Cave scheme.

This report is based on information from Federal Trade Commission, licensed under Public Domain (U.S. Government Work). Source: Official U.S. Government release.