WiFi Money Lawsuit: Nebraska AG Case, Florida Fraud, and Investor Losses

The WiFi Money lawsuit landscape centers on two major cases: a November 2024 enforcement action by the Nebraska Attorney General accusing the company and its promoters of running a deceptive “passive income” scheme, and a 52-plaintiff civil fraud and racketeering case in Sarasota County, Florida, set for trial in May 2026. Neither has produced a verdict or public settlement, and the allegations remain unproven in court.¹²

What WiFi Money Was Selling

WiFi Money, the trade name of Florida-based Gatsby LLC, marketed “Amazon automation”: for an upfront fee of roughly $35,000 to $37,500, investors were promised a custom-built e-commerce store on Amazon or Walmart.com that would be managed on their behalf by virtual assistants, generating passive income from the markup on each sale.³⁴⁵

The lawsuits allege the stores rarely worked. Store managers ran up high order-defect rates, sold counterfeit goods, and used fake tracking numbers, which triggered Amazon and Walmart account suspensions. Investors were left with large credit-card balances they had opened at the company’s direction to fund inventory, and no revenue coming in.⁴

The Nebraska Attorney General Case

On November 12, 2024, Nebraska Attorney General Mike Hilgers filed a civil complaint in the District Court of Lancaster County (case D02CI240003953) against the WiFi Money operation and a separate group of dropshipping-company defendants who managed the stores.¹ The complaint alleges violations of Nebraska’s Consumer Protection Act and the Uniform Deceptive Trade Practices Act.

The WiFi Money-side defendants include Gatsby LLC (d/b/a WiFi Money), founders Alex Moeller-Erazo and Christopher Frederick, Chief Operating Officer Christopher Casey, Nebraska influencer Elizabeth Friesen, Jonathan David Sawyer, Mitch Holt, and their affiliated LLCs (Inspired Freedom LLC d/b/a iSocial Marketing, AEFriesen LLC). The dropshipping defendants include DBC Limited Inc., NxtLvl Services LLC, Kyncey Investments LLC, J&K Capital Investments LLC, ACE Automation Group LLC, and individuals Kyle McDougal, Michael Byars II, Kyle Mallien, Michael Walding Jr., and Carlos E. Colon de la Rosa.⁴

The state alleges the two sides operated as a coordinated scheme in which WiFi Money’s “affiliates” funneled consumers into buying dropshipping services from the partner companies. Money-back guarantees, according to the complaint, were structured to be unclaimable: refunds required an active store, and the defendants’ mismanagement virtually guaranteed suspensions.⁴ The complaint also alleges that DBC Limited operated as an “alter ego” of other entities in the scheme, with consumer funds diverted to luxury goods, vacations, and vehicles rather than store operations. Nebraska is seeking injunctive relief, full restitution for victims, civil penalties, and reimbursement of legal fees.¹

Elizabeth Friesen’s Role

The complaint identifies Elizabeth “Liz” Friesen, a 34-year-old Nebraska influencer who holds the title of Mrs. Nebraska 2024, as a central recruiter.⁶⁴ After the lawsuit was filed, Friesen made her Instagram account private.⁷

The Florida Investor Fraud Case

A separate civil suit is pending in Sarasota County, Florida. Originally filed in December 2023 by about 30 plaintiffs and now grown to 52, the case alleges civil fraud, conspiracy, and RICO violations against Christopher Casey, Christopher Frederick, and their affiliates. The plaintiffs, mostly LLCs the investors formed to hold their stores, are seeking $1.1 million in damages.⁸

Circuit Judge Hunter Carroll denied class-action status, requiring each plaintiff to pursue individual claims with client-specific filings. That ruling, combined with extended discovery and a missed mediation session attributed to a “personnel oversight” by the plaintiffs’ attorneys, pushed the trial date to May 6, 2026. A pretrial conference is scheduled for November 2025.²

Kyncey Investments, the WiFi Money’s original dropshipping partner run by Kyle McDougal out of Odessa, Florida, has been named in at least nine separate lawsuits alleging fraudulent inducement, deceptive trade practices, and unjust enrichment. McDougal failed to respond to several of those filings, saying legal papers were sent to old addresses. In one case where a plaintiff obtained a judgment and raided Kyncey’s bank account, the investor recovered only $13,000 of a $35,000 investment. Kyncey has since been dissolved.⁵

Defamation Suits Filed by the Founders

Litigation also runs in the other direction. Christopher and Ashley Casey filed a libel suit in May 2023 against Christopher and Francis Costello, seeking $50,000 and alleging the Costellos defamed the company through an anonymous Reddit account, a public Instagram account, and a website aggregating grievances from investors.⁹ Frederick and Moeller filed their own separate libel suits against the Costellos in June 2023, and Gatsby LLC filed another.

A trial in the Casey v. Costello libel case was set for December 9, 2024, but a court filing indicated the parties were not ready, and no action was taken at the appearance.¹⁰ The Frederick and Moeller libel case is scheduled for trial in August 2026, and the Casey libel case for December 2026.²

Investor Losses Documented in the Filings

In Nebraska alone, the Attorney General’s complaint identifies at least 60 consumers who collectively lost more than $3 million. Every one of those consumers lost at least $15,000, and several lost more than $100,000. Some refinanced their homes or drained retirement accounts to cover debts.⁴¹ Nationally, nearly 100 complaints have been filed with the Federal Trade Commission concerning WiFi Money, Kyncey, or DBC.⁵

Individual claims tracked in reporting include Jasmine Sadry and Joey Martin, who invested over $100,000 and ended up in bankruptcy, and former NFL linebacker Avery Williamson, who sued Moeller and Kyle McDougal in November 2023, alleging he was defrauded out of more than $400,000 invested in a separate WiFi Money cryptocurrency project called Nobility.⁵

Where the Cases Stand

The Nebraska enforcement action, filed November 12, 2024, is in early stages. The Florida civil fraud case involving 52 plaintiffs is set for a jury trial on May 6, 2026, with a pretrial conference in November 2025. The founders’ defamation cases against the Costellos are scheduled for August 2026 (Frederick and Moeller) and December 2026 (Casey). No defendant has been found liable or convicted of any crime in connection with WiFi Money’s operations, and none of the major cases has produced a public settlement.

1
Nebraska Attorney General. Nebraska Attorney General Hilgers Files Lawsuit Against Social Media Influencers
2
Your Sun. WiFi Money Lawsuit Pushes Trial Out a Few Months
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Sarasota County Circuit Court. Complaint, WiFi Money Plaintiffs v. Gatsby LLC et al.
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Nebraska Attorney General. State of Nebraska v. Gatsby LLC d/b/a WiFi Money et al., Complaint
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Business Insider. WiFi Money Instagram Finance Influencers Angry Investors Lawsuits
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The Independent. Beauty Queen Liz Friesen Nebraska Income Scam
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3 News Now. Followers Trust Them: Influencer Liz Friesen Accused of Involvement in $3M Scam
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Your Sun. Civil Trial WiFi Money Allegations Won’t Go Into Court Until 2026
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Your Sun. Lawsuit: Dozens Lost Money Through Fraudulent Inducement
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Your Sun. Court Cases: WiFi Money Libel Case May Be Delayed