Thousands of college kids paid to work for a viral party kingpin — what could go wrong?
For eight years, a digital media company called I’m Shmacked has posted viral videos of the college party scene. Beer bongs, booze, marijuana and scantily clad women are all featured prominently, in scenes set to upbeat party music. Cinematic shots of college campuses and university landmarks are interspersed with flip cup games and keg stands.
By simply posting videos of parties and other viral antics, many were told, they could gain experience in online marketing and make cash from ads and by selling custom merchandise. This was one of the first widespread digital efforts to capture booze-soaked party culture and package it for the web. In the fall of 2018, Shukes paid $300 to I’m Shmacked, thinking it would be “a decent investment,” and became part of what Toufanian called his “college ambassador program.”
There were some red flags. In 2013, after I’m Shmacked sold hundreds of tickets to University of Delaware students for a party it failed to reserve a site for, police had to be called in to quell the disturbance. “I’m Shmacked did tours on YouTube,” he said, referring to the company’s tendency to sweep through college towns like a rock band. “So I was like, maybe they’d bring the tour to KU or expose me to other opportunities and help me make connections.”Shukes, the brand ambassador for East Carolina, eventually concluded he would never recoup the money he paid to the company. “I was scammed,” he said.
Toufanian had also told students that they would receive a cut of any items sold through college-specific merchandise shops that they could promote on their Instagram accounts; this, many believed, would allow them to quickly recoup the money they had given I’m Shmacked up front. One reads: “You’ll be sued personally and I’m listing your individual name if your website isn’t down in 24 hours. I will pursue you for damages. It is beyond illegal.”
In December 2018, after the website 5orry published an article that was suspicious of another of Toufanian’s ventures — a stock trading scheme, operating under the Instagram handle @stocks — 5orry’s owner received many emails from Toufanian threatening legal action if the articles were not removed. In 2018, Madison Louch, a DJ and Instagram influencer with whom Toufanian had a personal relationship, filed a restraining order against him.From 2016 to 2018, Toufanian ran his company from a pair of rental houses in Los Angeles with a rotating cast of associates, many of whom were working without contracts or job titles.
Some were promised bonuses if they performed well. When people quit or ran out of money, Toufanian scouted new workers by posting job listings to Instagram Stories.
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