Penalty Amount
$795,800,000
The FTC and State of Nevada settled charges with lead defendants of the IM Mastery Academy MLM scheme, including Chris and Isis Terry and their affiliated companies, over false earnings claims used to promote financial training programs and a multi-level marketing venture. The stipulated order imposes a $795.8 million judgment, with defendants surrendering nearly $90 million in assets including luxury real estate, vehicles, jewelry, and a yacht, totaling over $100 million with prior judgments from other involved defendants. The order also bans defendants from selling trading-training services, prohibits false earnings claims, and restricts deceptive practices including negative-option misrepresentations and telemarketing violations.
The stipulated order imposes a $795.8 million judgment, partially satisfied by surrender of nearly $90 million in assets including luxury homes, vehicles, jewelry, and a yacht, with total payments from all defendants exceeding $100 million. Defendants are permanently banned from selling trading-training services and investment opportunities, prohibited from making false or unsubstantiated earnings claims, and barred from deceptive misrepresentations regarding goods/services, refunds, and negative-option features. Defendants must obtain express informed consent and provide simple cancellation mechanisms for negative-option sales, and are prohibited from violating the Telemarketing Sales Rule. The remaining judgment is suspended pending truthful financial disclosures, with full amount due if defendants misrepresent their finances.
In-house teams should review all vendor agreements with marketing firms, MLM service providers, and financial training vendors for clauses related to earnings claims, ensuring all representations have reasonable basis and prohibiting false or baseless statements. Contracts involving negative-option features (e.g., subscription services) must include express informed consent requirements, simple cancellation mechanisms, and clear refund/cancellation policy disclosures. Telemarketing service provider agreements should require strict compliance with the Telemarketing Sales Rule, and MLM distributor agreements must ban false earnings claims, misrepresentations about consumer experience requirements, and undisclosed product restrictions. All customer-facing agreements should include clauses prohibiting deceptive misrepresentations and mandating required disclosures for negative-option sales.
Entity
Chris Terry, Isis Terry, IM Mastery Academy, IYOVIA, iMarketsLive, IM Academy
Industry
Financial ServicesOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/05/lead-defendants-im-mastery-academy-mlm-scheme-turn-over-tens-millions-dollars-assets-settle-ftc
IMMastery Order
https://www.ftc.gov/system/files/ftc_gov/pdf/IMMastery-Order.pdf
immastery order emergencyinjunction
https://www.ftc.gov/system/files/ftc_gov/pdf/immastery-order-emergencyinjunction.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Chris and Isis Terry and their companies"
"five individual and corporate IM Mastery Academy defendants, including ringleaders Chris and Isis Terry"
"imposes a $795.8 million judgment"
"surrender assets valued at nearly $90 million"
"bars the defendants from violating the Commission’s Telemarketing Sales Rule"
"used false or baseless earnings claims to persuade people to pay for financial training programs and a multi-level-marketing business venture"
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$1.9M
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