The case is the latest example of the Federal Trade Commission cracking down on deceptive e-commerce consultancies that target consumers and fledgling online businesses. The Cresto brothers also took 35% of any profits from their "partners'" e-commerce stores, the complaint says. The suspensions left Empire's clients deeply in debt, the FTC alleged, "because Empire typically had its clients pay for inventory on credit cards." The scheme is ongoing and defrauding consumers of tens of thousands of dollars, according to the FTC. Amazon and Walmart did not immediately respond to CNBC's requests for comment.

---

Persons: John, Roman Cresto, Ecommerce Organizations: Amazon, Walmart, Federal Trade Commission, FTC, Southern, Southern District of Locations: U.S, Southern District, Southern District of California, Italy