Penalty Amount
$22,865,008
Consumers Affected
1,659
Consumer fraud enforcement action where the FTC is distributing $23 million in refunds to investors defrauded by the Sanctuary Belize and Kanantik real estate schemes. The defendants deceived consumers about luxury amenities and resale potential, resulting in losses of over $100 million. This is the second round of refunds following a court judgment.
The FTC is sending $22,865,008.34 in refunds to 1,659 consumers, with average checks of $16,462 for Sanctuary Belize investors and $6,346.39 for Kanantik investors.
In-house legal teams should review all vendor, customer, and investment-related agreements—particularly those involving real estate development, overseas property sales, or investment opportunities. Focus on clauses governing representations and warranties about property features, resale value, and luxury amenities; marketing and advertising commitments; and any guarantees related to investment returns or property appreciation. Given the allegations of deceptive marketing about amenities and resale potential, contracts should be audited for accuracy in descriptive language, and consider adding explicit disclaimers or verification requirements for promotional claims, especially for projects still in development or located offshore.
Entity
Sanctuary Belize
Industry
Real EstateOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/02/ftc-sending-nearly-23-million-consumers-who-invested-deceptive-sanctuary-belize-kanantik-real-estate
1377 1 opinion of fourth circuit
https://www.ftc.gov/system/files/ftc_gov/pdf/1377-1_-_opinion_of_fourth_circuit.pdf
1446 order implementing next phase of redress plan
https://www.ftc.gov/system/files/ftc_gov/pdf/1446_order_implementing_next_phase_of_redress_plan.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Sanctuary Belize"
"sending a total of $22,865,008.34 to consumers"
"deceived consumers who invested in Sanctuary Belize by promising they were investing in a luxury development and resort. The defendants, however, failed to deliver on the promised amenities"
The FTC sent warning letters to 12 companies offering 'nudify' tools that generate nonconsensual intimate images, for failing to comply with the TAKE IT DOWN Act (TIDA) by not providing a mechanism for victims to request removal of such content. The letters urge immediate compliance with TIDA, which requires platforms to remove nonconsensual intimate images within 48 hours of a valid request. Noncompliant companies may face future legal action and civil penalties of up to $53,088 per violation.
The FTC began enforcing the TAKE IT DOWN Act on May 19, 2026, a law requiring covered platforms to establish a process for victims to request removal of nonconsensual intimate images and delete such content within 48 hours of a valid request. The agency launched a consumer complaint portal, issued compliance guidance for businesses and consumers, and sent reminder letters to major platforms including Meta, TikTok, and X about their obligations under the law. No specific penalties or enforcement actions against individual companies were announced in this release.
$6.5M
A federal court held Cliq Inc. and its executives Andrew Phillips and John Blaugrund in civil contempt for multiple violations of a 2015 FTC order requiring the payment processor to prevent enabling consumer fraud. The court found the defendants facilitated fraud by processing transactions for high-risk merchants, avoiding fraud monitoring, failing to conduct required underwriting, and ignoring chargeback thresholds. The court imposed $6.5 million in civil contempt sanctions against the defendants.
$795.8M
The FTC and State of Nevada settled charges with lead defendants of the IM Mastery Academy MLM scheme, including Chris and Isis Terry and their affiliated companies, over false earnings claims used to promote financial training programs and a multi-level marketing venture. The stipulated order imposes a $795.8 million judgment, with defendants surrendering nearly $90 million in assets including luxury real estate, vehicles, jewelry, and a yacht, totaling over $100 million with prior judgments from other involved defendants. The order also bans defendants from selling trading-training services, prohibits false earnings claims, and restricts deceptive practices including negative-option misrepresentations and telemarketing violations.
The FTC and State of Illinois, via the Department of Justice, filed a complaint against B.E.S.T. GDR LLC (d/b/a Premium Home Service) and its owner Yosef Bernath for creating thousands of fake home repair business listings with fabricated five-star reviews to deceive consumers. The defendants allegedly routed consumer calls to unqualified representatives, arranged for unlicensed technicians, and violated the FTC Act, Reviews and Testimonials Rule, Gramm-Leach-Bliley Act, and Illinois consumer protection laws. No monetary penalty has been imposed yet as the case is in initial filing stages.
Federal Trade Commission Chairman Andrew N. Ferguson sent letters to over a dozen major technology companies reminding them of their obligation to comply with the Take It Down Act (TIDA) by May 19, 2026. TIDA requires covered platforms to establish a process for victims, including children, to request removal of nonconsensual intimate images, with takedown of content and all identical copies required within 48 hours of a valid request. The FTC also issued supplemental guidance to help companies prepare for compliance and warned that it will monitor and enforce violations of the law.