Federal Trade Commission v. Grant Connect, LLC

Kyle Kimoto (Kimoto) appeals from the district court’s grant of summary judgment to the Federal Trade Commission (FTC), and its order permanently enjoining Kimoto from engaging in a variety of marketing tactics, and ordering him to pay restitution. The district court found that Vertek — Kimoto’s wholly controlled company — had committed multiple violations of the FTC Act, 15 U.S.C. §§ 41-58 , through its misleading advertising, and further found that Kimoto was both personally involved im the practices and knew that the advertising was misleading or was recklessly indifferent as to that possibility. On this basis the district court permanently enjoined Kimoto personally from engaging in a variety of advertising practices and ordered him to pay restitution.

On appeal, Kimoto argues that the FTC presented insufficient evidence of his involvement in Vertek’s violations of the FTC Act to personally enjoin him or require him to pay restitution. Specifically, Kimoto argues that he cannot be held liable for Vertek’s schemes related to the marketing of what are styled the Line of Credit scheme, the Grant Connect scheme, the Work From Home scheme, and the Acai Total Burn scheme,…