**Cybersecurity Expert Loses $56,000 in Suspected Ecommerce Fraud**
Branden Lathan, a cybersecurity specialist with a flair for entrepreneurship, had cultivated a diverse investment profile in real estate and ecommerce ventures. Self-assured in his financial expertise, he never expected to fall prey to a scheme that would result in a loss of $56,000. Yet, that is precisely what transpired when he found himself involved in a suspected ecommerce fraud linked to Ascend CapVentures Inc., a firm alleged by the Federal Trade Commission (FTC) to have defrauded customers of at least $25 million.
### A $25 Million Fraud Under Review
In September, the FTC initiated legal action against Ascend CapVentures Inc., which has since changed its name to ACV. The agency claims that the company’s founders exploited customers’ funds for personal benefit rather than investing in their clients’ ecommerce businesses as promised. This lawsuit forms part of a wider crackdown on companies falsely asserting to utilize artificial intelligence for market advantages.
A spokesman for Ascend CapVentures, Jonathan D. Herpy of Hart David Carson, communicated to *Law.com* that the organization is dedicated to adhering to FTC regulations. However, when *Mashable* reached out, the company’s legal representatives did not respond to inquiries. In October, Ascend CapVentures submitted a response in federal court, refuting all claims.
### Tempted by the Allure of Passive Income
Lathan’s troubles began in 2022 when he started exploring methods to create passive income amid the ecommerce surge driven by the pandemic. He discovered Ascend CapVentures Inc. through the *Business with Beers* podcast, where co-founder Will Basta presented a persuasive narrative of the firm’s achievements. The podcast’s host, Brian Beers, even asserted that he had purchased his own store through the company—a statement he later retracted upon realizing issues existed. Beers later removed the episode in late 2022.
After performing his own due diligence, examining the company’s website, social media presence, and reviews, Lathan felt reassured. He even sought advice from a lawyer, who evaluated the contract and noted a buyback clause promising to reimburse clients if their stores did not recuperate costs within two years. Confident in these protections, Lathan signed a contract and transferred $40,000 to Ascend CapVentures to initiate an Amazon store under their management.
### The Truth: Imitation Products and Broken Promises
Lathan’s hope quickly diminished. Ascend CapVentures did not meet deadlines for inventorying his store and shifted from Amazon’s “Fulfilled by Amazon” model to “Fulfilled by Merchant,” which placed shipping responsibilities on the company. Sales were disappointing, and communication with the firm became progressively challenging. Despite assurances of generating six-figure profits within a year, Lathan’s store faltered in producing significant income.
By December 2022, Amazon flagged Lathan’s store for noncompliance with shipping regulations. More troubling, the FTC claims that Ascend CapVentures filled clients’ stores with counterfeit merchandise. Lathan corroborated this in his testimony to the FTC, indicating that his store was shut down after Amazon identified counterfeit items. The minimal profit he made—bringing his losses down from $59,000 to $56,000—came from selling these counterfeit goods.
### A Cautionary Tale for Aspiring Ecommerce Entrepreneurs
Reflecting on his ordeal, Lathan warns others against entering ecommerce partnerships without comprehensive due diligence. “This industry is so overcrowded,” he remarks. “There’s too much saturation in the market… then you have individuals trying to exploit that, like all these scammers.”
### The Aftermath: Financial and Emotional Strain
Lathan has faced severe financial repercussions. He borrowed against his home equity to finance the venture and subsequently utilized his savings to settle the $35,000 loan balance after the interest rate surged to 10 percent. Those funds had been allocated for home repairs, which now remain indefinitely postponed. The emotional toll has been equally taxing, leaving Lathan feeling both furious and disheartened. “I’ve worked very hard my entire life to achieve everything I have,” he states.
### Taking a Stand
In June 2023, Lathan left a negative review of Ascend CapVentures on Trustpilot, only to encounter legal threats from the company, which claimed he breached their terms of service. Under pressure, he modified the review but ultimately deleted it entirely after the company pledged to rectify the situation. Nonetheless, matters only deteriorated. Ascend CapVentures filled his store with additional counterfeit products, prompting further warnings from Amazon. By September, Amazon permanently shut down his store.
In October, Lathan sought a full refund, which Ascend CapVentures refused. Determined to hold the company responsible, he united with other victims in a private Facebook group and hired legal representation to pursue a mass arbitration claim.