BULLETIN: Quebec Regulators Reference Cherryshares And Mega Pension Plan — Two ‘Programs’ Pushed On Ponzi Boards — In Freeze And Cease-Trade Orders Against 3 Canadian Promoters, 2 Companies

BULLETIN: The Autorité des marchés financiers (AMF) has obtained freeze and cease-trade orders against three Quebec residents and two business entities — and has shut down at least one website amid allegations that an international marketing scam was under way.

At least two of the programs referenced in AMF’s action were promoted on the TalkGold and MoneyMakerGroup Ponzi forums: Cherryshares, an HYIP darling that collapsed last year, and Mega Pension Plan.

Cherryshares was a paid advertiser on the Ponzi forums. It vanished under mysterious circumstances in December.

AMF described the scams as insidious because the promoters didn’t ask for big money from individual investors, instead relying on relatively small sums to add up to a larger sum.

“These seemingly modest amounts add up to anything but,” according to an AMF news release.

Named in the AMF action are Warren English of Laval, and Alain-André Desarzens and Michèle Amiot of Rimouski. Desarzens and Amiot are married, AMF said.

“Messrs. English and Desarzens had issued a mass e-mailing to thousands of potential investors with promises of pocketing a lot of money fast,” AMF said.

Using different email addresses, English and Desarzens promoted “numerous investments,” including Cherryshares and Mega Pension Plan, AMF alleged.

“They offered thousands of investors around the world, including two Quebeckers, the opportunity to generate possible returns ranging from U.S.$1,000 to $90,000 on a minimum investment of between U.S.$10 and $300,” AMF alleged.

Even as he was soliciting  new prospects, English was under a cease-trade order issued by the Ontario Securities Commission in 2003, AMF said.

Desarzens, meanwhile, was under a cease-trade order issued by the Pennsylvania Securities Commission in 1999, AMF said.

English used some of the funds from the Mega Pension Plan scam to acquire a “luxury condominium” in Laval, AMF said.

“Based on the data gathered by the AMF, Mr. English moved nearly $525,000 between his accounts and those of his company, Méga International Business,” AMF said.

All in all, Desarzens allegedly acquired $875,000 as a result of scamming.

No breakdown of which scam was more profitable was provided, but some of the cash ended up with Desarzens’ spouse — and some of it ended up with a Desarzens-controlled entity known as Institut des médecines universelles, AMF said.

A website linked to Desarzens — www.myleads.8k.com — was ordered shut down.

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4 Responses to “BULLETIN: Quebec Regulators Reference Cherryshares And Mega Pension Plan — Two ‘Programs’ Pushed On Ponzi Boards — In Freeze And Cease-Trade Orders Against 3 Canadian Promoters, 2 Companies”

  1. I think this is just the beginning of Warren’s legal problems. I hope the authorities now go after all of his “Other” accomplices in MPP, HSH, and his other scams not mentioned in their press release. One can hope. It has been a long two+ years to get this guy, but well worth it.

    I hope all of his “other” friends are now shaking in their collective boots he might give them up. This time I don’t think he will get a slap on the wrist like before. He violated what he was told he couldn’t do when he got the slap on the wrist in 2003. Hopefully this time he will see prison time.

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  2. Quick note: I called AMF today to try to get some additional details, specifically how much money allegedly came in from the Cherryshares promo and how much came in from the Mega Pension Plan promo.

    The switchboard answered with a French recording and I couldn’t figure out how to leave a message, so I followed up with an email to see if those and other details are available.

    This case reminds me of the SEC’s Imperia Invest IBC case — small amounts from individual investors adding up to a large amount. Club Asteria also seems to be operating in a similar fashion: relatively small amounts, flogged on the Ponzi forums, international in scope, etc.

    There seems to be some commonality among promoters, too.

    Back in December, a Cherryshares member complaining about the Cherryshares site being offline and also flogging Club Asteria said this on TalkGold:

    “also no access right now. bad…

    “the only good thing is that my main investment was into club asteria.
    after getsgain and cherryshares i think that club asteria is the only way to generate a real long income. lost not so much with cherryshares but i hoped that it will live a little bit longer. i had 15 days left to break even.”

    Patrick

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  3. Quick note: I may or may not do a full story on this, so I’ll mention it here:

    In the December 17, 2010 forfeiture complaint against assets tied to AdSurfDaily “Web Room Lady” Erma Seaubaugh, there is an allegation that she was using ASD to hawk something called StreamlineGold.net — after using portable “ad packs” from LaFuenteDinero to fund two of her ASD accounts. She is alleged to have had at least three ASD accounts.

    The U.S. Secret Service described StreamlineGold.net as appearing to be a pyramid scheme that sold “memberships.”

    That company appears to have collapsed. Like ASD, it was registered in Nevada.

    StreamlineGold.net also was hawked on the Ponzi forums, including TalkGold:

    “Welcome to StreamLine Gold!
    Timing is Everything when it comes to choosing a business!

    “You are here at the right time, and the time is right for this business.

    “Our market is set to explode and you can be a part of the growth and share in the massive profits that will be created.
    “StreamLine Gold” is literally what it says; it can provide you with an unlimited income through the combination of Precious Metals and Cash with a business model whose time has come PLUS the most advanced and lucrative pay plan ever devised.

    “Start now for FREE and see for yourself.
    Gold, Silver, Platinum, and CASH in your pocket every month!

    “Accepting ONLY 350 more Founding members right NOW!
    Hurry Up and Get your pile of GOLD!”

    Just more evidence of the interconnectivity of these schemes.

    Patrick

    P.S. The Mega Pension Plan named in the Quebec action today appears to have accepted e-Bullion. If that’s the case, it speaks of more interconnectivity between and among these schemes/players.

    In the December 2010 forfeiture complaint against Seabaugh’s assets, she is alleged to have funded one of her ASD accounts with $10,510 from E-bullion, whose operator, James Fayed, faces the death penalty for the murder of his estranged wife, a possible witness against him.

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  4. Yep, sure enough, he pimped his wears thru e-bullion account number # B91290

    http://www.rolclub.com/general-talk/20707-the-mega-pension-plan-opportunity.html

    Are they going to be investigating his “Oil Venture” and “Southern Star Private International Bank” also? Interestingly, when the Banking website became live, the banking software company used for security was based in Boras, Sweden, which was another location for past businesses for Roger Karlsson and Tom sornes. Warren was heavily involved with GPP, HCI25 & SNGINVEST.

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