I Was There When IM Mastery Academy Ignored the Red Flags: A Cautionary Tale of Fraud and Greed
By Troy Dooly, The Beachside CEO, for TalkGigs.News
As I sit in my situation room, reflecting on the recent Federal Trade Commission (FTC) and Nevada Attorney General’s lawsuit against IM Mastery Academy (formerly IM Markets Live, now IYOVIA), I can’t help but feel a mix of vindication and sorrow. I was there, serving as an outside compliance advisor, working directly with Chris Terry, the executive team, and at times acting Director of Compliance from 2016 to January 2019, trying to steer the company away from the very practices that have now led to allegations of a $1.2 billion consumer fraud scheme. This isn’t just another network marketing scandal—it’s a wake-up call for the entire direct sales and financial education industry.
The FTC’s Case: A Massive Fraud Targeting the Vulnerable
On May 1, 2025, the FTC and Nevada filed a 70-page complaint against IYOVIA, its founders Chris and Isis Terry, and top earners like Jason Brown, Alex Morton, Matthew Rosa, and Brandon Boyd. The allegations are staggering: since 2018, the company has allegedly defrauded consumers, particularly young Black and Latino teens and adults, by promising easy wealth through forex and crypto trading education. The FTC claims IYOVIA’s deceptive practices, including false income claims and luxurious lifestyle marketing, violated laws like the FTC Act, the Restore Online Shopping Confidence Act, and Nevada’s consumer protection statutes.
The numbers are jaw-dropping. The complaint suggests IYOVIA took in over $1.2 billion, with potential penalties under the FTC’s Penalty Offense Rule reaching $53,088 per claim per defendant. With possibly hundreds of claims, the financial liability could exceed half a million dollars per offense, potentially wiping out the defendants’ assets. The FTC also intercepted dark web communications, alleging a coordinated effort—a “common enterprise”—that could escalate this to a RICO case, drawing scrutiny from the Department of Justice.
My Time at IML: Fighting a Losing Battle
I took on Chris Terry and IML as clients in 2016, initially impressed by Chris Terry’s trading prowess. I spent hours in his Vegas condo, watching him navigate six screens, teaching forex trading with passion. But as the company grew, that authenticity faded. By 2018, IML shifted to “hiring educators” who admitted to knowing little about trading. According to the FTC complaint, some used mirror accounts—fake trading platforms—to simulate success, misleading recruits. I pushed for transparency, implementing an income disclosure statement that revealed a harsh truth: 99% of IML participants made no money. Less than a handful of top earners, dubbed “Chairman 500” or “Chairman 750,” claimed monthly earnings of $500,000 to $750,000—often from recruiting, not trading.
We issued risk mitigation reports, flagging issues like income claims and lifestyle enticements. I vividly recall suspending reps for posting about private jets, Rolls-Royces, and Rolexes, only for top leaders, including Chris Terry, to override us and reinstate accounts with a “give them another chance” excuse. As the FTC alleges, this culture of greed and ego led to a “common enterprise” of deception, targeting vulnerable demographics with promises of wealth that never materialized.
The Fallout: A Global Scandal
The complaint details how IML’s marketing exploited fear during COVID, used slang to target college students, and even promoted to minors. Posts boasted of 15-year-olds earning six-figure incomes—claims with no substantiation. Internationally, the fallout was severe: 21 government agencies, from France to Luxembourg, issued warnings or arrested IML promoters. In Spain, police targeted IML for marketing to adolescents. Yet, the company did little to address these issues, even as top earners like David Imonitie and Ivan Tapia left to launch their direct sales companies. Other top income earners left, taking their teams to competitors like My Daily Choice, JIFU, and NELO Life.
The FTC notified IML of violations as early as October 2021, sending notices to individuals like Morton and Rosa by December 2022. Yet, the deceptive practices continued. Social media posts from 2019 to 2023, cited in the complaint, show Morton claiming he turned his yearly income into weekly earnings, Rosa flaunting eight-figure wealth, and Brown boasting of retiring his parents—all without disclaimers about the hard work or alternative income sources (like Rosa’s music career) that fueled their lifestyles. These enticements, the FTC argues, weren’t protected free speech but commercial fraud.
A Warning to the Industry
This case isn’t just about IML—it’s a red flag for every company in network marketing, affiliate marketing, or financial education. Companies like My Daily Choice, JIFU, NELOLife, and the up-and-coming Zater Capital, which offer trading platforms, financial education, or bots, must heed this warning. If your educators are also field reps, you’re flirting with disaster. You’re vulnerable if your income claims lack substantiation or your compliance team is overruled. Even if your business operates internationally, U.S.-based founders or offices can face liability for illegal practices abroad.
I’ve seen this before. In 2014, I faced an SEC sanction for consulting with what was found to be, at that time, one of the world’s largest Ponzi schemes, a humbling lesson I don’t hide. It’s why I left IML when my compliance efforts were ignored; I terminated my agreement and posted a public resignation video. The industry’s trust deficit—evident in the struggles of companies like Tupperware and Modere—stems from, in my opinion, prioritizing greed over integrity. When top earners are celebrated at generic events for “abundance” while consumers lose millions, we’re not building wealth but perpetuating a post-trust era.
Protecting the House: What Companies Must Do
The FTC’s complaint is a playbook for compliance teams. Invest in robust monitoring beyond tools like FieldWatch, which IML’s leaders circumvented by avoiding branded hashtags and company names. Ensure educators have verifiable trading histories, not fake accounts. Disclose income sources clearly—don’t let reps imply trading funded their yachts when recruiting did. Empower your compliance team. When I worked with IML, we documented violations, but executives ignored us. Companies that override compliance risk everything. It’s never “if” regulators will come, it’s “when” they come!
Through my own case, and as an expert witness, I have studied over 20,000 case documents and reviewed over 7,000 hours of videos to learn what regulators look for when they charge a company or individual with fraud. Today’s FTC isn’t led by out-of-touch bureaucrats but by young, tech-savvy advocates who know every trick used by marketing companies and marketing professionals. If your ego outpaces your ethics, no amount of money will save you. IML’s leaders allegedly knew the risks, with Terry himself warning to “go underground.” Instead, they doubled down, and now face a reckoning.
The Path Forward
I don’t doubt that some IML educators were genuine; and a few participants learned enough to trade successfully. But the majority, lured by images of Caribbean cruises and cash stacks, were left empty-handed. As the FTC and Nevada pursue justice, I urge every direct sales company to read this complaint. Learn from IML’s mistakes. Work with regulators, not against them. Critics like Truth in Advertising aren’t the enemy—they spotlight issues that can save your business if addressed.
For me, this is personal. I tried to fix IML’s culture, bringing in top compliance talent, like DonnaMarie Serritella, only to see her fired. I left to protect my integrity, and now I consult with companies to avoid these pitfalls. The cost of compliance is steep—my retainers skyrocket when regulatory issues arise—but the cost of failure is devastating. Let’s rebuild trust in direct sales by doing it right. Live well, finish strong, and protect the house.
About the Author: Hey there! I’m Troy Dooly, the Beachside CEO, and I’m all about living life to the fullest, both personally and professionally. My proudest achievement? Marrying my high school sweetheart, Paige, a bestselling author with nearly 40 books, including four bestsellers. We’re raising nine incredible kids (ages 16 to 42, four boys, five girls) and two spunky granddaughters (12 and 9). Our home is a whirlwind of love, laughter, and a little chaos, but I wouldn’t trade it for anything!
On the professional side, I’m a passionate advocate for main-street entrepreneurs, known as a leading voice in network marketing and wisdom journalism. As the founder of Deep South Companies Inc., I guide individuals and organizations to craft trust-inspired, purpose-driven communications with all people they do business with. I’m a proud founding member of the Association of Network Marketing Professionals and the Social Networking Association. I’m honored to be recognized in the Network Marketing Hall of Fame for my contributions to the industry.
Currently, I serve on the boards of several private, for-profit, and non-profit organizations, editor of TalkGigs.News and co-publisher of Income Opportunity Magazine. Whether mentoring entrepreneurs or championing community initiatives, my mission is simple: empower others to live well, lead with integrity, and finish strong. Let’s connect and make a difference together!
