‘Egg’-Themed HYIP Domains Pitched By Surf’s Up Poster Registered In Last Name Of Man Dubbed A ‘Co-Conspirator’ In Scheme To Defraud Prepaid Wireless Company; Government Of Belize Issued Warning About HYIP Site

UPDATED 2:22 P.M. ET (U.S.A.) A poster using the handle “joe” at the Pro-AdSurfDaily Surf’s Up forum advertised four egg-themed domain names that redirected to four high-yield investment programs yesterday, saying in all-caps, “ALL MY EGGS ARE NOT IN ONE BASKET.

“I MAKE $2000.00 A WEEK.”

It is unclear if the poster has a license to sell securities or act as an investment dealer or broker. The domains to which the .info domains redirected were for programs titled “Gold Nugget Invest” (7.5 percent a week); “Genius Funds” (6.5 percent a week); “Cash Tanker” (2 percent a day); and “Saza Investments” (9 percent a week).

The domains — all of which used .info extensions, the word “egg” and a numeral in their URLs — are registered to a man with the last name of  “Stablein” in Erie, Pa. The spelling of the owner’s first name in domain-registration data was “Jeffrery.”

An Erie man named “Jeffrey Stablein” — note the slightly different spelling of the first name from the domain-registration data — was sued in U.S. District Court for the Western District of Pennsylvania in June and identified by attorneys as a co-conspirator in a scheme to defraud TracFone Wireless Inc., a prepaid cell-phone provider.

The Erie street address associated with Stablein in the TracFone lawsuit is the same address listed in registration data for the egg-themed .info domains. Stablein was enjoined by a federal judge from a practice TracFone attorneys described as “cell-phone trafficking.”

Cell-phone trafficking involves the “unauthorized resale and hacking” of prepaid mobile phones, TracFone attorneys said. Future violations by Stablein could result in a $5 million judgment being enforced against Stablein, according to court filings.

Attorneys described how the scheme works after a buyer acquires prepaid phones in volume.

“The phones are then passed to middlemen who alter or remove the prepaid software and resell the altered phones as new, often in counterfeit packaging, at a significant profit to unsuspecting customers domestically and abroad in Latin America, Asia and the Middle East,” according to attorneys James B. Baldinger and Steven J. Brodie of the Carlton Fields law firm.

In September, U.S. District Judge Sean J. McLaughlin handed down a stipulated judgment against Stablein and his Erie-based firm, 1st Premier Communications, banning them “from continuing to engage in the bulk purchase, sale, or unlocking/reflashing of TracFone’s wireless phones,” the attorneys said in a news release.

TracFone aggressively litigates against cell-phone traffickers, according to the company.

In 2008, Muhammad Mubashir, 28, of Sugar Land, Tex., was sentenced to 57 months in federal prison for trafficking in cell phones.

“TracFone will continue to aggressively pursue those who participate in prepaid mobile phone trafficking because it undermines our ability to provide affordable wireless phone service to our customers,” said F.J. Pollak, president and CEO of TracFone Wireless, in a statement.

The U.S. Customs Service seized a shipment of 1,300 TracFones that Mubashir was exporting to a known trafficker in Hong Kong, the company said. TracFone obtained documents proving Mubashir sold approximately 9,000 TracFones, representing more than $1 million in losses to the company.

“Schemes like those organized by Mubashir exist across the country and involve groups of ‘runners’ who purchase prepaid mobile phones from major retail outlets,” TracFone said. “The phones are then passed to middlemen who alter or remove the prepaid software and resell the altered phones as ‘new,’ often in counterfeit packaging, at a significant profit to unsuspecting customers domestically and abroad in Latin America, Asia and the Middle East.”

Some Surf’s Up posters criticized the post by “joe,” saying it was in poor taste given the serious allegations against AdSurfDaily. Tens of millions of dollars were seized from ASD President Andy Bowdoin in August 2008, amid allegations of selling unregistered securities and operating a $100 million Ponzi scheme.

Despite the allegations, some Surf’s Up posters continued to pitch autosurfs and HYIP programs, often using phrases such as “offshore” or “I got paid” as evidence of legitimacy.

One Surf’s Up poster agreed with “joe” that the programs he advertised by using the egg-themed URLs that redirected to HYIP sites were excellent.

“Your intentions are good but you are dead wrong about those particular four programs!” a Surf’s Up member exclaimed in a post directed at a member who had been critical of “joe’s” post advertising the HYIP programs.

“I also make a lot of money from those four and your remarks tell me you don’t know anything about them…..they are very reputable [companies] who have been around for years….and the money is NOT made from ‘new’ people’s money….google them and look at various forums and see what others have to say about them….I don’t even know Joe, but I can vouch for the programs!”

The government of Belize issued a warning Nov. 12 about the Gold Nugget Invest HYIP advertised by “joe” on Surf’s Up.

Surf’s Up eventually deleted “joe’s” egg-themed HYIP thread.

It is not clear if “joe” is Jeffrey Stablein, but the stipulated judgment entry in the TracFone case includes Stablein’s signature and the same address used in the domain-registration data for the egg-themed HYIP domains.

Read the lawsuit against Stablein.

Read a document that shows that a Stablein street address in the lawsuit is the same Erie address used in the domain registration data for the egg-themed HYIP domains.

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17 Responses to “‘Egg’-Themed HYIP Domains Pitched By Surf’s Up Poster Registered In Last Name Of Man Dubbed A ‘Co-Conspirator’ In Scheme To Defraud Prepaid Wireless Company; Government Of Belize Issued Warning About HYIP Site”

  1. That would be GNI Holdings S.A. operating as Gold Nugget Invest which claims to be registered in Belize and is subject of this warning issued by the International Financial Services Commission on November 9:

    International Financial Services Commission,
    Sir Edney Cain Building,
    Belmopan,
    Belize, C.A.

    12 November 2009

    WARNING NOTICE

    GNI HOLDING S.A. aka GOLDNUGGET INVEST

    It is notified for general information that GNI HOLDING S.A., an international business company (operating under the name ‘Goldnugget Invest’) is not licensed by the Gaming Control Board or any other competent authority in Belize to provide online gaming or any other international financial services.

    All persons concerned are asked to take note and exercise caution.

    GIAN C. GANDHI

    DIRECTOR GENERAL

    International Financial Services Commission of Belize

    http://www.ifsc.gov.bz/notices.html

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  2. Hi LRM,

    Thanks for sharing that link. Tony H also mentioned the Belize info on Gold Nugget Invest in this thread about eight U.S. Senators who have called for
    banking sanctions against Antigua for the alleged Allen Stanford Ponzi scheme.

    http://patrickpretty.com/2009/12/01/senators-ask-for-sanctions-against-antigua-for-stonewalling-receiver-in-alleged-allen-stanford-ponzi-case/

    It’s amazing, really: Law enforcement is arresting Ponzi schemers for racketeering. The SEC is shutting down schemes left and right, including a scheme in which an alleged principal bought a submarine with part of the proceeds — and some ASD members still are promoting Ponzi schemes.

    Patrick

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  3. Some will never stop promoting these ponzi programs. I said a long long time ago to watch and keep an eye on GNI. I saw it promoted to high heaven on the ASA forum by the usual suspects. Clearly, its a scam but many have drank the koolaid. I was banned from there trying to warn others so ASA does not want anybody to mess up their gig.

    Those that promote these programs need to be locked up and that is all there is to it. I cant tell you how angry it makes me to see people taken advantage of. GNI is run by someone known only as “Robert”.

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  4. Could it be Robert Lee Guether scammer extraordinaire or maybe its one of his many look-a-likes that keep getting in trouble and blaming it on him.

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  5. The admin of GNI is Robert Spearman. He and his partner, Jurgen Wilkens, are the two behind GNI. Robert did an interview with an online money blog that was an incredible read of mumbo-jumbo spamspeak. It did work for a short time, but of late their numbers are dropping drastically. At the rate they are going, they will be toast by the end of January. In short, they will pull a Houdini and disappear. Of course there are all the usual suspects as a part of this, as previously pointed out. It will be fun to watch all the “excuses” they have to come up with to explain why it “failed.”

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  6. You raise an interesting point, Lynn,

    Those new to the HYIP ponzi and “autosurf” scene may be unaware as to why usual suspect “playas” call the month we’re in “Black December”

    December is the month where “true believers” and newbies traditionally seek to cash out their “earnings” from HYIPS and autosurfs to finance their celebrations.

    It is therefore also traditionally the month when a far larger than normal number of HYIP ponzi and “autosurf” shut down and their owners disappear with the money as they avoid having to payout funds to those people unfortunate enough to have rolled over their accounts as a form of saving for the Festive season.

    All four of the “egg themed” HYIPs are current darlings of the “usual suspect” HYIP forums like Talkgold and MMG.

    History tells us at least 2 of them will have disappeared (with the money) before Christmas.

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  7. That’s funny. It’s come down to ‘eat your own’.

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  8. There’s a “Jeffrey Stablein” who has promoted a snake-oil fuel thingy:
    http://www.fuelclub.biz/d.cgi/js2025/news2.html
    Fuel additives are a favourite of the MLM/ponzi promoters.

    The same email address is used on this page:
    http://startupspace.ning.com/profile/jeffstablein
    which is also promoting GNI as well as others. This page gives his location as Erie.

    When “joe” was posting here I asked him several times if he was in the downline of TeamAaronShara – I had noticed that he seemed to be promoting the same scams that TAS were. I never did get an answer.

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  9. Hi LRM,

    littleroundman: Those new to the HYIP ponzi and “autosurf” scene may be unaware as to why usual suspect “playas” call the month we’re in “Black December”

    As I recall, the great “offshore” miracle and “fool proof” MegaLido — pitched as a cure for what ailed ASD members after the seizure — began to tank around November 2008 and failed in the days leading up to Christmas.

    One of MegaLido’s pitchmen earlier tried to weaponize ASD’s attorneys in a bid to chill critics on forums, using the threat of lawsuits. There was a post that featured the lyrics from the TV program “COPS,” implying ASD’s critics might soon be on TV in handcuffs.

    “I think we should start collecting ALL the negative types in here so we can FORWARD their posts to the ASD Attorney’s Office,” said the soon-to-be MegaLido pitchman, on Aug. 19, 2008.

    Seems the pitchman never read the part of the forfeiture complaint that cited a racketeering statute or noticed that Bowdoin risked getting sued by members under the racketeering statute for being at the helm of an “Enterprise” as it is defined under RICO.

    Bowdoin’s attorneys noticed it, though. They also noticed the wire-fraud and money-laundering allegations, which is why Bowdoin and Juan Fernandez took the 5th Amendment at the evidentiary hearing last fall.

    So, the MegaLido promoter’s particular approach was to create a fantasy that the Feds had nothing on ASD and that Andy Bowdoin’s lawyers would seek to dispossess his critics. The promoter never explained why he highlighted the “offshore” angle if the Feds had nothing on ASD.

    Here is a story from December 17, 2008, noting the disappearance of MegaLido.

    http://patrickpretty.com/2008/12/17/megalido-autosurf-pushed-by-asd-members-vanishes/

    On Oct. 4, 2008, the pitchman exclaimed, MegaLido was “as good as ASD & [GOLDEN PANDA] BUT OFFSHORE!!!”

    MegaLido appeared to have a tie to the instant2u surf, which also failed prior to Christmas last year:

    http://patrickpretty.com/2009/01/26/megalido-is-there-an-instant2ucom-tie/

    Other failures nestled roughly around the holidays last year included Frogress:

    http://patrickpretty.com/2009/01/13/frogress-autosurf-apparently-doa/

    And DailyProfitPond:

    http://patrickpretty.com/2008/12/18/dailyprofitpond-another-autosurf-offline/

    Of course, the AdViewGlobal forum set up by some of the Surf’s Up Mods gleefully announced that “Happy Days Are Here Again!” with the launch of AVG, which officially occurred after Bowdoin had been named a defendant in a racketeering lawsuit:

    http://patrickpretty.com/2009/02/03/asd-adviewglobal-autosurf-offshore-disconnect/

    AVG later tanked, of course.

    Some of the AVG shills spent part of the spring/summer threatening AVG members and critics. Seems they missed the racketeering mentions, too.

    This week alone there were three major racketeering prosecutions brought by state or federal prosecutors in Ponzi scheme cases:

    http://patrickpretty.com/2009/12/03/michigan-woman-charged-with-racketeering-in-alleged-real-estate-ponzi-scheme-rita-gosselin-arrested-jailed-early-this-morning/

    Patrick

    P.S. Juan Fernandez, according to ASD members, also was involved in a later surf called qbusinesssolution. References to Fernandez appear to have been deleted from the goldenpandaadzone forum on ning.com. That forum now is called the “online success zone.”

    But I noticed that an ASD/Surf’s Up member who spoke approvingly of the programs to which “joe’s” egg-themed URLs redirected also promoted qbusinesssolution.

    I saw a number of promos for qbusinesssolution. Not a one of them mentioned the ASD litigation or the fact Bowdoin and Fernandez both took the 5th.

    Seems as though those promoters missed the section of the forfeiture complaint that noted Bowdoin didn’t disclose his past felony convictions in securities cases and that Clarence Busby of Golden Panda didn’t disclose his previous run-in with the SEC while GP was gearing up for launch. Only after critics pointed out that Busby had a previous run-in with the SEC did GP say anything about it — and then Bowdoin suddenly distanced himself from GP.

    They must have missed the racketeering lawsuit against Bowdoin, too — the one he never responded to or informed the members about. He seemed to be more interested in informing them about his pro se pleadings to get the money back after he surrendered it, signed a proffer letter and acknowledged ASD was operating illegally and fudged numbers.

    Despite all of these things, some of the troops are still promoting surfs/HYIPs.

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  10. What’s truly incredible is the complacency with which the promoters of these ponzis move from one program to another. They dont seem to be concerned on iota about the consequences of their actions. They seem to be blissfully unaware of the real risks they are taking.

    The number of ponzi schemes the US Government have stopped recently indicates that they no longer sitting on their backsides and letting this type of crime continue unhindered. Madoff has done a great favor to the fight against financial fraud. He has made the word “ponzi” one that is now well known to the general public.

    It appears that we are going to see more and more agressive persecutions of these scheme and that there will be prosecutions of more than just the owners. “Accomplices” are already being sentenced. However, the promoters of online ponzis continue as if they are untraceable or untouchable. Amazing!

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  11. Most of the “usual suspects” have been rather quiet lately. Not much seems to be gaining traction as of late. Perhaps the promoters are still at it but in a less visible fashion. Perhaps they are waiting to see what shoes drop when the criminal charges are announced in the ASD case. Or perhaps they are taking a break and planning their next scams. If the pattern holds, there will be a slew of new “programs” after the holidays.

    Personally, I hope that criminal charges in the ASD case are revealed in short order and that many of the top promoters are included. That would send a chill up the “industry’s” collective spine (not that one exists) and hopefully cause even die hard Ponzi pimps to take notice.

    Is it just Patrick’s reporting or does it seem like the authorities are stopping scams in droves lately?

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