Day: March 23, 2011

  • ‘TWO FOR ONE’ CASE UPDATE: New Charges Lodged Against Alaskans Accused In Plot To Murder Judge, State Troopers; IRS Employee Also Was Targeted, Feds Say

    A federal grand jury has returned a superseding  indictment against an Alaska man accused earlier this month of threatening to kill a federal judge. The grand jury lodged additional charges against Lonnie G. Vernon, while also indicting Vernon’s wife, Karen L. Vernon, along with Francis Schaeffer Cox and Coleman L. Barney.

    Each of the defendants has purported ties to the so-called “sovereign citizen” and “militia” movements. Karen Vernon, Cox and Coleman initially were charged only under state law in a case that alleged a state judge and state troopers were targeted for murder or kidnapping.

    In addition to accusations that he plotted the murder of U.S. District Judge Ralph R. Beistline, Lonnie Vernon, 55, of Salcha, now also is accused of plotting the murder of an IRS employee.

    Beistline, Alaska’s chief federal judge, was presiding over a civil tax case involving the Vernons, according to court records. Like her husband, Karen Vernon also now has been indicted on charges of plotting the murder of Beistline and an IRS employee.

    In addition, the Vernons are charged with threatening to murder Beistline and his family, and conspiracy to possess an unregistered firearm silencer and grenades.

    On March 10, according to the indictment, the Vernons “purchased and received a pistol equipped with a silencer.” They also bought three hand grenades “not knowing at the time that they were inert.”

    Lonnie Vernon also is charged with illegally possessing a machine gun and possessing a firearm equipped with a silencer in furtherance of a federal crime of violence.

    Francis Schaeffer Cox: The Feds now say he possessed a siliencer and a machine gun.

    Cox, 27, of Fairbanks, initially was charged only under state law. He now has been indicted under federal law for conspiracy to possess unregistered destructive devices and possession of unregistered destructive devices. Four additional federal firearms charges were lodged against Cox, including “the illegal manufacture and possession of a silencer and the illegal possession of a Sten machine gun,” prosecutors said.

    Barney, 36, of North Pole, was indicted on federal charges of conspiracy to possess unregistered destructive devices and possession of unregistered destructive devices.

    He initially faced only state charges.

    Lonnie Vernon, Cox and Barney acquired weapons because they believed “at some undetermined point in the future they would have to take up arms against the government,” according to the federal indictment.

    In February, according to the indictment, Cox instructed Lonnie Vernon to go to “Anchorage to acquire hand grenades” and “obtain C-4 explosive.”

    On March 10, according to the indictment, Cox and Barney “met with the person with whom they had placed their order for a pistol equipped with a silencer and grenades so that they could purchase these items.”

    Cox and Barney “each received a pistol with a silencer,” according to the indictment. “They also received four hand grenades, not knowing that the grenades were inert. Barney carried $6,000 in cash on his person for the purpose of purchasing additional guns and destructive devices.”

    See earlier story.

  • PRIMING THE PUMP: TalkGold, MoneyMakerGroup Publish String Of ‘I Got Paid’ Posts From Club Asteria Members; ‘It’s No Scam Now,’ Poster Declares

    Two forums listed in federal court documents as places from which Ponzi schemes are promoted have published a series of “I got paid” posts from commentators who say they are members of Club Asteria (CA).

    The “I got paid” posts on MoneyMakerGroup and TalkGold appeared after CA members had complained publicly about not getting paid and fretted about the firm’s slow-loading website.

    Both the complaints and the “I got paid” posts lead to questions about whether CA’s revenue stream is polluted by Ponzi proceeds.

    “It’s no scam now,” a poster on MoneyMakerGroup confidently opined after the “I got paid” posts began to appear. A link under the comment led to the affiliate’s CA registration page,  which implied prospects were receiving guidance from an “Investment” company or professional financial adviser.

    This Club Asteria affiliate's sign-up page is accessible from a link on the MoneyMakerGroup Ponzi forum. The registration page implies that CA prospects are receiving guidance from a professional "Investment" company or adviser. In May 2010, the U.S. Postal Inspection Service identified MoneyMaker group as a site from which the alleged Pathway To Prosperity Ponzi scheme was pushed. Pathway To Prosperity gathered more than $70 million, creating about 40,000 victims from "all of the permanently inhabited continents of the world," according to federal court filings in the Southern District of Illinois.

    Separately on MoneyMakerGroup, another CA poster declared, “I am in over 35 forums and everyone is posting paid.”

    In July 2010, the Financial Industry Regulatory Authority (FINRA) issued an alert about investment scams and how they spread on the Internet.  Separately, court filings from May 2008 in the SEC’s case against an alleged $70 million Ponzi scheme known as Legisi include a handwritten note from a Legisi enrollee.

    “Money Maker Group.com,” the note read in part. The note was part of a 267-page evidence exhibit the SEC presented a federal judge. The SEC alleged that Legisi created thousands of victims.

    On both MoneyMakerGroup and TalkGold, posters have repeatedly noted that CA payments come from “Asteria Holdings Limited (Hong Kong).”

    CA says it accepts money through SolidTrustPay and AlertPay, both of which are Canada-based payment processors. Both companies are referenced in federal court filings in the alleged AdSurfDaily Ponzi scheme, which the U.S. Secret Service said gathered at least $110 million and created as many as 40,000 victims.

    ASD also was promoted on MoneyMakerGroup and TalkGold. Solid Trust Pay and AlertPay also are referenced in court filings in the Pathway To Prosperity Ponzi case.

    CA also notes that it conducts business with CashX, another Canadian firm. When the ASAMonitor Ponzi scheme and criminals’ forum mysteriously vanished in October 2010, the site’s landing page initially redirected to CashX.

    Some CA members are selling the “program” by describing what it is not. It is not a Ponzi scheme, and it is not an investment, they claim.