Background

Michelle Ballesteros, a veteran special education administrator, saw the need for an app to help parents navigate the IEP (Individualized Education Program) process. Many families relied on costly, unqualified “advocates” during IEP meetings. Michelle and her husband, Chris, used a modest inheritance to fund development of a solution: IEPPros, a parent-facing and administrator-supporting app designed to improve special education outcomes.

The Scheme

In early 2021, the Ballesteroses found Brainy Apps, a Florida-based app development firm. Its website showed strong reviews and sample projects. Michelle spoke with Gus Irizarry, who claimed his team could build the app. She paid $448 for a “brainstorming” phase. That led to a rough “mindmap,” which Michelle rejected. The revised version was merely her own notes rephrased.

Despite doubts, she moved forward. She paid $4,081 for a “blueprint” phase and $26,000 more for coding. Brainy Apps’ team, including John and Carmen Lakatis, became unresponsive. Promised deliverables like a functioning app, promotional video, and press release never materialized. By late 2021, all communications ceased. The company filed for bankruptcy soon after.

The Harm

Plaintiffs lost $30,678. They also lost time, effort, and faith