Federal prosecutors say a company run by CEO Michael Brown quietly siphoned millions of dollars from more than 160,000 people, using bogus rental listings and "free" credit-report offers to reel them in, according to U.S. Attorney Jay Clayton in a post on X. The update revisits a long-running federal case that regulators and prosecutors have been pushing forward for years, centered on a classic online trick: low-dollar subscription charges that quietly auto-renew while many customers do not notice for months. Authorities say those tiny debits are engineered to slip past consumers' radar while racking up serious money in the aggregate.
CEO Michael Brown’s company made millions from over 160,000 online victims, said U.S. Attorney Jay Clayton. "Mass online fraudsters try to hide by hitting each victim for a small amount. That will not work."
- U.S. Attorney SDNY (@sdnynews) March 31, 2026
How Prosecutors Say The Scheme Worked
According to federal prosecutors, Brown and a co-conspirator allegedly planted fake rental ads on classified sites, then funneled would-be renters to MyScore-branded webpages. Those pages dangled a "free" credit report but actually enrolled users in a recurring credit-monitoring membership. As described by the U.S. Attorney's Office for the Southern District of New York, the indictment says the operation drew roughly 2.7 million visits and generated about $6.8 million in revenue from approximately 169,000 customers. Brown and an associate are charged with conspiracy to commit wire fraud and wire fraud, counts that carry significant potential prison time if prosecutors prove their case at trial.
FTC Judgment And Refunds
The Federal Trade Commission also went after the operation in civil court, winning a judgment that ordered Credit Bureau Center (formerly MyScore) and Brown to return more than $5.2 million to consumers, with refunds later distributed by the agency. According to the Federal Trade Commission, many customers only spotted the recurring fees when they appeared on bank or card statements, and some reported difficulty cancelling the memberships. Together, the civil case and the criminal prosecution show regulators and federal prosecutors zeroing in on the same pattern of allegedly deceptive "free trial" marketing that quietly converts into paid subscriptions.
Why Clayton Is Talking About It Now
Clayton used the U.S. Attorney’s Office X account to spotlight the scope of the alleged fraud and to send a message that small, repeated debits will not shield online operators from scrutiny. His post arrives as SDNY promotes a broader push for clearer corporate self-disclosure and stronger accountability for individuals, a shift that legal observers say the business community has been watching closely. Commentators at Morgan Lewis have described the office's updated stance as one that offers more predictable outcomes to companies that quickly self-report misconduct, while reserving more aggressive enforcement for those that do not cooperate.
What Potential Victims Are Advised To Do
For anyone who suspects they were signed up for a service without clear consent, the FTC advises reporting the charge through ReportFraud.ftc.gov and contacting their card issuer to dispute unauthorized billing. Consumers are also urged to review their free annual credit reports and consider placing fraud alerts if they think their identity has been misused. The FTC's case page includes details on refunds in this matter, and people with questions about possible restitution or the criminal case can track filings and updates from the U.S. Attorney’s Office as the SDNY prosecution continues.
