United States v. Zaken Corp.

ORDER GRANTING PLAINTIFF’S MGTION FOR SUMMARY JUDGMENT

Presently before the court is Plaintiffs Motion for Summary Judgment. Having considered the submissions of the parties, the court is inclined to grant the motion and adopt the following order.

I. Background

Defendants (collectively, “Zaken”) offer a ‘Wealth Building Home Business Plan” to consumers. 1 (Declaration of Dani Stagg, Ex. D at 44.) For $148.00, plus shipping, purchasers become Associates of QuikSell Liquidations and receive a “kit” including instructions on how to locate excess inventories, “‘[ijnsider’ secret techniques,” “powerful and proven strategies,” “a simple seven-word phrase that instantly pays [purchasers] cash profits,” and other information. {Id. at 57-58, 97.) Zaken also offers purchasers additional “tools” for an additional charge. (Stagg Dec., Ex. E. at 85-86.)

Under Zaken’s plan, consumers identify businesses seeking to liquidate excess inventory. Consumers then notify Zaken, which may proceed to negotiate an acquisition of the excess merchandise. If Zaken is successful in 1) buying the products identified by the consumer and 2) reselling the products at a profit, then Zaken pays purchasers…