Nebraska Attorney General Sues Social Media Influencer and Florida Company Over Deceptive "Passive Income" Schemes.

Nebraska Attorney General Mike Hilgers has filed a lawsuit against Elizabeth “Liz” Friesen, a Nebraska-based social media influencer, and Florida company WiFi Money, along with several other individuals and entities involved in a deceptive "passive income" scheme. The lawsuit, filed in Lancaster County District Court, accuses the defendants of exploiting Nebraska residents with false promises of easy income through automated e-commerce stores.

The legal action aims to recover funds from consumers who lost money due to these fraudulent practices, and to halt the defendants' ongoing deceptive activities. According to the lawsuit, consumers were encouraged to invest in "automated" online stores managed by so-called "dropshipping experts" on platforms such as Amazon and Walmart.com. The scheme promised effortless earnings and money-back guarantees but ultimately led to widespread financial losses as these "experts" violated Amazon and Walmart's policies, resulting in suspensions and account deactivations.

False Promises and Financial Losses for Nebraska Consumers

The lawsuit alleges that the scheme's promoters misled consumers with assurances of high returns and easy profits, exploiting their trust through slick marketing tactics. Influencer Liz Friesen, who allegedly played a key role in promoting the scheme, used social media platforms to advertise the “passive income” opportunities, showcasing a luxurious lifestyle funded by the funds of Nebraska consumers. Rather than fulfilling promises or issuing refunds, the defendants reportedly used the proceeds to fund extravagant purchases, including luxury vehicles, private jets, expensive vacations, and multimillion-dollar residences.

"This group of influencers manufactured lavish lifestyles on Instagram to lure consumers into a stream of ‘passive income’ schemes that were doomed to fail, then divvied up the money they took amongst themselves despite the schemes’ total failures," said Attorney General Hilgers. "These highly deceptive ‘passive income’ schemes will not be tolerated in Nebraska under my watch. Our Office will fight hard to get Nebraskans’ hard-earned money back and hold bad actors to account."

Legal Action and Consumer Protection

The lawsuit accuses the defendants of violating Nebraska's Consumer Protection Act and the Uniform Deceptive Trade Practices Act. Attorney General Hilgers is seeking full refunds for affected consumers, an order to cease all deceptive practices, and penalties for the defendants. Additionally, the lawsuit seeks reimbursement for the state's legal costs and civil penalties.

"These deceptive schemes preyed on Nebraska residents with promises of quick and easy money, but in the end, all they left consumers with were financial losses," Attorney General Hilgers added. "We are committed to protecting Nebraskans from scams and ensuring that those responsible face justice."

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