FTC and Connecticut Sue State-based Operation

The Federal Trade Commission (FTC) and Connecticut are seeking to shut down a Connecticut-based operation that allegedly used fake news websites to promote its products and made deceptive weigh-loss claims.

The FTC and state filed a lawsuit in federal court in November seeking to end the operation’s illegal conduct. In the meantime the parties have agreed to a court order temporarily halting the illegal conduct of Boris Mizhen, LeanSpa LLC, and two other companies Mizhen controls; continuing an asset freeze; appointing a temporary receiver; and giving the receiver, the FTC, and the state access to the business premises.

The 34-page complaint alleges, among other things, that the defendants told consumers they could receive free trials of acai berry and “colon cleanse” products for only the cost of shipping and handling, but that many consumers wound up paying $79.99 for the trial period and receiving recurring monthly product shipments that were hard to cancel. The defendants allegedly collected more than $25 million from U.S. consumers.