Retirees Scammed by Online Store Scheme – Ecom Genie/Profitable Automation

A Sarpy County, Nebraska couple lost $36,000 to an online investment scheme promoted by Profitable Automation, also known as Ecom Genie, after responding to a Facebook advertisement. The Federal Trade Commission (FTC) has shut down the company and secured a $20 million judgment against its owners, but recovering lost funds remains uncertain.

The Promise of Effortless Income

Greg and Lois Koehn, retirees, were enticed by the prospect of owning an online brand store without the typical costs associated with brick-and-mortar businesses, such as rent and inventory. “Since we sold our home and we had money set aside, we thought, well, OK, we can invest in this store and everything made sense — it looked solid,” Greg Koehn stated.

Red Flags and Regulatory Action

The Better Business Bureau (BBB) gave Cleveland-based Profitable Automation an F rating, citing unsubstantiated claims of high profits. Josh Planos of the BBB explained, “They have promised customers that they can make more than six figures in the first 10 months. We have asked them to back that up with real data and they have not responded.”

The FTC intervened, shutting down Profitable Automation and obtaining a $20 million judgment against the company’s owners. However, the process of recovering funds is proving to be sluggish and complex.

Impact on the Koehns

The financial loss has significantly impacted the Koehns, who rely heavily on Social Security. Lois Koehn noted the hardship, stating, “He was always in the ministry, he never took much money for anything. I worked at Central High School for 30 years, so it’s not like we have a big retirement.” The couple is now unable to afford a newer vehicle, with their current car having 160,000 miles.

Uncertain Recovery

The Koehns, along with other victims, are waiting for the FTC to manage and distribute any recovered funds from the settlement. “There’s no way of finding out what the status is on the case, so it’s been pending,” Greg Koehn said. “Nobody communicates with us. We’re at our wits’ conclude on what we can do.”

Key Takeaways

• Be wary of online investment opportunities promising high returns with little effort.
• Check the Better Business Bureau rating of companies before investing.
• Understand that FTC judgments do not guarantee full recovery of lost funds.
• Exercise caution when responding to advertisements on social media platforms.