The “AI-Powered” Dream That Became A Nightmare

Empire Holdings Group, operating as Ecommerce Empire Builders, and its CEO Peter Prusinowski sold a fantasy. They targeted people stuck in nine-to-five jobs, existing business owners struggling to make ends meet, and anyone who felt overwhelmed by the promise of online business. Their pitch was simple and seductive: a “proven, secure and scalable system” that was “inflation resistant” and offered a “secondary income stream that’s 90% hands off.”

The company aggressively marketed its “Done For You Services” and “Business In A Box” programs across social media platforms like TikTok, Instagram, and Facebook. Prusinowski, the public face of the operation, claimed his team of “seven figure” experts would build clients their “very own cash-flowing online business” in as little as thirty days. The secret sauce, they claimed, was artificial intelligence. This AI would supposedly handle everything from writing ad copy to customer service, saving clients money and skyrocketing their profits.

“In truth, the promised profits never materialize, and Defendants enrich themselves while leaving their clients with failed businesses that generate little, if any, profit.”

The business model they taught was dropshipping: find cheap products from Chinese suppliers and sell them at a markup. The reality for customers was a world away from the slick marketing. Instead of automated income, they found a complex, labor-intensive business that required massive and consistent effort. The promised profits were a mirage. After accounting for the high, often undisclosed costs of marketing and other fees, many online stores built by Ecommerce Empire Builders actually lost money.

Inside the Deception Funnel

The path to losing thousands of dollars started with a social media ad. Peter Prusinowski’s accounts flooded feeds with posts like “Get An AI-Powered Ecom Store Built and Launched For You By Our 7-Fig Team.” Videos featured Prusinowski claiming consumers could “copy and paste a million-dollar ecommerce business” while sales figures like “$17,269,718.29” floated behind his head.

These ads funneled potential victims to a “free training” video. In it, Prusinowski held himself out as a master of e-commerce, showcasing screenshots of supposedly successful clients in his “$10,000 a month club.” He claimed their system was for anyone who wanted to capitalize on AI and make “predictable money.”

The final step was a high-pressure sales call. Representatives made more unsubstantiated claims, promising profit margins of “50 to 80 percent” and stating it was “definitely, definitely… feasible” to make $60,000 a year with only five to ten hours of work per week. Convinced by the hype, consumers paid anywhere from $10,000 to $35,000 for a business opportunity that was designed to fail them.

The Non-Financial Ledger: Betraying The American Dream

This was not just a financial scam; it was an attack on hope. Empire Holdings Group preyed on the desire for a better life, for an escape from the daily grind. They sold the dream of self-sufficiency and financial freedom to people who were willing to risk their savings to achieve it. The loss of $14.3 million is only part of the story. The true ledger includes the lost time, the accumulated debt, and the profound sense of betrayal.

Imagine draining your savings account or taking on a loan for what you believe is a legitimate, life-changing investment, only to find you were sold a system that was never meant to work for you. The complaint states clients reported poor communication and inadequate explanations for why their expensive, “done-for-you” stores were failing. When they sought refunds, they were met with resistance and complex requirements, often receiving nothing back.

Legal Receipts: The Illegal Gag Order

To protect their scheme, the FTC alleges that Empire Holdings Group included an illegal non-disparagement clause in their contracts. This clause was a gag order, designed to intimidate and legally threaten customers into silence. It prohibited them from posting truthful, negative reviews about their experiences. This violates the Consumer Review Fairness Act, a federal law created specifically to stop this kind of corporate censorship.

“Not to publish, repeat, utter and/or report any statement or observation… that would negatively comment and/or reflect on, disparage, defame, impugn and/or call into question any other Party and/or any other Party’s business operations, policies, practices and/or conduct…”

This contractual language reveals a deep-seated awareness of their product’s failure. A company confident in its services does not need to threaten its customers to keep them quiet. This was a calculated move to ensure the stream of new victims would not be warned by those who had already been burned.