April 12, 2023: Grant Cardone’s twin brother Gary Cardone and his ex-wife Monica Eaton Cardone were sued by the US Federal Trade Commission and the State of Florida. The complaint alleges the two engaged in fraudulent business practices in their jointly-owned company Chargebacks911.
1. Chargesback911 filed >165,000 chargeback disputes on behalf of its three main clients who were online scammers. These disputes amounted to $233 million in consumer purchases who were induced to purchase by misleading and fraudulent low-price trial offers. We have the FTC/Florida lawsuit posted on our blog. Scroll down to read it here.
2. Two of Chargebacks911’s main customers had to pay $135 million in monetary fines and judgements (AH Media Group and Apex Capital.)
3. Chargebacks911’s largest customer was F9 Advertising. The owner of F9, Gopalkrishna Pai, pled to a criminal charge. The US DoJ went after Pai for $98 million in monetary fines and judgements.
4. The screenshots Chargebacks911 submitted to credit card companies were, in many cases, misleading and fraudulent.
5. Chargebacks911 aided and abetted online scammers who sold “free trial” scams that were based on negative option schemes.
6. Chargebacks911 engaged in “load balancing” and “Value Added Programs” (VAP) for its three major clients.
Chargebacks911 just filed a motion to dismiss the entire lawsuit. Scroll down to read it.
What we noticed is that Gary Cardone and Monica Eaton hired Washington DC lawyer Corey W. Roush of the law firm Akin. Mr. Roush’s webpage claims that he has been successful getting cases dismissed and obtaining summary judgements:
In our view, Cardone and Eaton are throwing a Hail Mary pass here in asking for the case against them to be dismissed because the evidence against them is so strong. However, we cannot blame the defendants for trying every legal move in the book.
As we covered in a previous article, Cardone and Eaton sued a former employee who managed Chargeback911’s facility in India. This employee alleged that Chargeback911’s biggest income stream was porn websites.