Kevin David is a marketing “guru” I’ve never heard of myself but he’s just been busted by the FTC for scamming his customers out of about $53,000,000.
He sold Amazon Seller and Cryptocurrency investment courses through his DK Automation website, probably for years, while he defrauded his customers.
His real name is actually Kevin David Hulse.
David Shawn Arnett seems to have been his lacky and is also named in the lawsuit as being responsible for fraud.
Kevin David Hulse (left) and David Shawn Arnett
Both were prosecuted for using unfounded claims of big returns to entice consumers into money-making schemes involving Amazon business packages, business coaching, and cryptocurrency.
The FTC’s complaint alleges that the defendants promised consumers that they could “generate passive income on autopilot” when the truth was that few consumers ever made money from these schemes.
“DK Automation ripped off consumers by manipulating reviews and making empty promises of big returns on cryptocurrency investment schemes and bogus business programs,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “They ignored warnings that these practices were illegal, and now they are paying the price.”
The FTC’s complaint notes that the defendants continued to use deceptive earnings claims even after they received Notices of Penalty Offenses regarding money-making opportunities and endorsements from the agency.
Hulse and Arnett sold their Amazon programs under a number of different names, including “AMZDFY”, “Amazon Done For You”, and “Amazon Done With You”.
According to the complaint, they promised consumers a “100% turnkey” business selling products on Amazon and charged consumers as much as $100,000 for the program.
Their marketing and sales pitches were filled with fake consumer reviews touting huge profits.
In addition to the Amazon business packages, the defendants also pitched supposed cryptocurrency investment services that included their “#1 secret passive income crypto trading bot,” which they claimed could “generate profits for you even while you sleep.”
The complaint alleges that they charged consumers thousands of dollars for the supposed service.
This video goes more into depth on what Hulse and Arnett were up to:
A June 2022 FTC data spotlight showed that in one 15-month period, consumers reported losing $575 million to cryptocurrency investment scams.
The FTC’s complaint alleges that the defendants in the case harmed consumers by:
- Deceiving them about potential earnings
- Suppressing Negative Reviews
- Not providing required disclosures
Hulse and Arnett have agreed to a proposed court order that would require them to:
- Back up their claims
- Stop deceiving consumers
- Stop interfering with reviews and complaints
- Provide money for refunds (this is the big one)
They would be required to provide at least $2.6 million to the FTC to be used to refund consumers (this seems to be about the current net worth of Hulse).
The order includes a total monetary judgment of nearly $53 million, which was partially suspended due to an inability to pay.
If they are found to have lied about their financial condition, then the full amount of the judgment would be immediately due.
You can read the full FTC Press Release here.
These guys aren’t the only fake gurus out there.
Be careful who you give your money to when buying courses and mentorship.
Shark-infested waters out there!
Do your due diligence on whoever you’re willing to hand your money over to.
Check my How Do You Find a Good Affiliate Marketing Mentor? post for some tips on what to look for and avoid when choosing a coach/mentor.
Did you buy any courses from these guys?
All the best,
Gary Nugent
Check out my Instagram posts and reels here:
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P.S.: Don't forget, if you want to create an internet income of your own, here's one of my recommended ways to do that:
