I've read into this story before and this guy is a scumbag. The really sad part in all of this is that he's pulling another scam by trying to make it seem like he's the victim and the FTC is destroying small businesses.
http://news.ycombinator.com/item?id=1761410
Now observe that the FTC's complaint references email from Jason arguing with the rest of his team that they should continue doing this, because the account represents "all the margin" for his company.