Hopes that Digital Altitude may be able to continue its business operations have been dashed, following a declaration by the court-appointed Receiver.
In his Second Interim Report, the Receiver bluntly states he
has not resumed operations, and has no plans to do so, as he has not determined a feasible means of resuming operations in a lawful and profitable manner.
This implies that Digital Altitude not operating as a pyramid scheme is not viable, strengthening the FTC’s case against the company.
The Receiver’s conclusion is based on collected evidence, most of which he claims is digital.
The Receivership Entities are believed to have conducted their enterprise almost entirely in the digital world using web-based
On the recovery side of things, an additional $444,481 has been recovered from entities related to Digital Altitude.
These include Advance Management Systems LLC ($87,965), Apex Systems and Enterprise, LLC ($214,843), B Reed Enterprises Inc & Online Growth Studio, LLC ($105,000), Distance Makings LLC ($9,047), Kutting Jetty LLC (Achieve Your Great Self, $27,503) and Misted Harps LLC ($121).
$190,000 was also recovered from “two joint venture sales partners”.
Identified merchants and payment processors Digital Altitude worked with are mostly playing ball, with the exception of a processor in Mexico.
The Receiver is currently considering whether he has recourse to redress this processor’s recalcitrance (mindful that there are potential jurisdictional hurdles to overcome), and is assessing and considering the practicalities involved as well.
In 2016 John Souza partnered his Social Media Marketing University company with Digital Altitude.
The details are unclear, but recently Souza got into a contractual dispute with Digital Altitude.
What was supposed to be a $600,000 settlement instead saw Souza paid over $1.1 million.
For some strange reason nobody at Digital Altitude seems to have picked up on this. Or if they did, weren’t concerned.
The Receiver meanwhile has demanded Souza return his $600,000 overpayment.
Souza however is disputing the Receiver’s claim, which might lead to legal action further down track.
Filings by the Receiver back in April have so far only identified Souza and Andrew Gordon for clawbacks.
As of May 31st, 2018, the Digital Altitude Receivership is sitting on $1.87 million.
The FTC has pegged Digital Altitude as a $54 million dollar pyramid scheme, meaning additional clawbacks are almost a certainty.