Millions of U.S. consumers who clicked ads for “free” cannabidiol (CBD) and keto-related products were defrauded out of more than $200 million by two groups, the Federal Trade Commission (FTC) alleges in a complaint unsealed in a central Florida court on Monday.
Consumers across the United States were unwittingly added to a continuity plan for products they did not sign up for and charged on an ongoing basis.
The consumers were deceived by ads for “free” CBD and personal care products, such as keto diet and cosmetic products touted as promoting weight loss, clear skin, and pain relief, among other things. The consumers had money debited from their accounts unknowingly.
The FTC also alleged that some defendants laundered credit card payments by setting up bank accounts for shell companies using straw signers.
The complaint names the defendants as UK resident Harshil Topiwala, Florida resident Kirtan Patel, and their companies—Legion Media, LLC; KP Commerce, LLC; and Pinnacle Payments, LLC; and Florida resident Manindra Garg and his company, Sloan Health Products, LLC.
The Epoch Times has contacted the attorney for Mr. Garg and Mr. Patel, who is also representing KP Commerce and Pinnacle Payments.
No attorney was listed for Harshil Topiwala, named as an owner and officer of Legion Media and KP Commerce, at the time of publishing. The Epoch Times has contacted the court-appointed receiver.
The FTC alleged the Legion Media defendants marketed health products claiming benefits like weight loss and clear skin, Then overcharged consumers and enrolled them in unwanted continuity plans.
The defendants also allegedly conducted business impersonation scams, sending consumers messages that appeared to come from known companies, offering a “free” gift for a small shipping fee. After paying, consumers faced ongoing unauthorized charges. The defendants are accused of facilitating these scams using shell companies to process payments.
The FTC alleges that Sloan Health collaborated by labeling and shipping the deceptive products, managing returns, using the generic name “Fulfillment Center” to conceal its identity, and sharing the profits.
The eight-count complaint charges the defendants with violating the law by misrepresenting free product offers, making unauthorized charges, laundering credit card payments, and engaging in business impersonation. It also accuses them of failing to clearly disclose terms, billing without consent, making cancellation difficult, and debiting bank accounts without authorization.
