Author: PatrickPretty.com

  • Did Narc That Car Slap ‘Jah’s’ Check-Waving Videos On YouTube? Promo That Said Working For Narc Like Working For ‘Census Bureau’ Now Labeled ‘Private’

    Can’t get enough of Narc That Car promoter “Jah’s” check-waving videos on YouTube? Need a “Jah” fix to ensure NTC actually pays its members?

    It looks as though you’ll now have to get your fix in private. Jah’s check-waving videos have been removed from YouTube’s public site.

    “Jah” explains why in a new YouTube video, dated March 4.

    “Here’s the situation,” the video says. “Our company has a public advertising policy that does not allow us to openly advertise income specifics.”

    The video does not explain whether “Jah” was asked by NTC to remove the videos from public viewing or whether he arrived at his own decision to do so.

    It appears as though three CashForCarPlates videos by “Jah” that waved checks or focused on money in other ways have been made private-only.

    One of the videos was placed on YouTube March 1, just three days ago. While public, it showed two checks issued by National Automotive Record Centre Inc.. The checks  were drawn on NewBridge Bank to demonstrate that Narc That Car pays.

    “We’re [going] to show you some real, solid video proof of the money that’s being made here and where you can go with this business,” the video said. “This is awesome.”

    Whether Narc That Car pays has not been an issue, however. The issues have centered on how the company pays, whether it is operating a pyramid or Ponzi business model and the propriety, safety and legality of Narc That Car.

    The two checks in the video were for $45 and $452.10.  Both appeared to have been drawn Feb. 23.

    In the video, the $45 check was used as proof of payment — and the check for $452.10 is used as proof of the type of payments that could come later for Narc That Car members.

    “This may be one of our last . . .  videos, because this is the real deal,” the video said. “We can’t go any further. We’re not going to be out here flashing, you know, five-figure checks.”

    The video also claimed that recording license-plate numbers for NTC was like working for the “Census Bureau.”

  • BLECHMAN: Problems Apparent In DNA 3 Weeks Into His Tenure As CEO; Company Email Tuesday Was ‘Bull’ From ‘Backdoor Guy’

    EDITOR’S NOTE: Clarity did not emerge in a phone interview Wednesday with former Data Network Affiliates’ CEO Dean Blechman. Blechman was candid at times and guarded at times. His guardedness, however, seemed largely involuntary. It was as though Blechman, who was courteous throughout the interview, would have chosen full-throttle openness had a handler not been on the line. Indeed, Blechman seemed eager to answer questions — and occasionally interrupted the handler to make an emphatic point.

    Although the Blog anticipated a far-ranging interview with Blechman at an agreed-upon time of 2:30 p.m., the sweeping interview did not come off. Blechman himself scheduled the interview and provided information to the Blog prior to the session.

    At 12:15 p.m., however, the Blog was notified electronically by the handler, who described himself as a conflict-management strategist between Blechman and DNA, that the interview would not occur.

    Blechman, he said, had decided to issue a news release by the end of March — as opposed to participating in an interview yesterday — because he needed more time to assemble facts. The handler previously had not been a part of any communication between Blechman and the Blog, and the Blog was surprised by his sudden presence.

    It is not unusual for a third party such as an attorney or a PR specialist to be present in interviews with journalists. What was unusual about the handler’s presence was that he served as a sort of mediator between Blechman and DNA, which the Blog believed set the stage for the level of candor to be reduced significantly.

    The Blog responded by phoning the handler, saying that, unless Blechman himself canceled the interview, the Blog was proceeding as though it would take place as scheduled at 2:30. At 2:31, the handler — with Blechman on the line — called the Blog. After civil banter among the parties, the Blog began to ask Blechman a question to clarify events.

    Several minutes of contentiousness then ensued between the Blog and the handler, with the Blog questioning why a third party had become involved at the 11th hour and whether the handler was speaking for Blechman. During the early contentiousness, Blechman mostly remained silent. He eventually spoke — sometimes speaking over the handler.

    From the Blog’s point of view, the presence of the handler — and this is NOT a comment on the handler as a person — added a layer of clumsiness and contributed to an unclear situation becoming even more unclear. In the Blog’s view, the purpose of the interview was to let Blechman explain his involvement in DNA and the reasons he decided to leave. People are interested in that information, including DNA members who read this Blog’s coverage of the upstart firm, which Blechman conceded has a considerable PR problem.

    Only hours before the interview, in preliminary remarks and in a back-and-forth with the Blog, Blechman said the “real truth” would come out during the interview. We continue to believe that Blechman was sincere. Our analysis now is that events intervened after Blechman’s initial contact with the Blog yesterday and that he was less open than he intended to be. Still, some information emerged from the session.

    The handler did not speak for attribution during the call, which lasted for 58 minutes. There were other periods of contentiousness during the call, owing — from the Blog’s point of view — to the handler’s attempt to shape the session and limit its scope.

    Because many questions remain unanswered and no party has emerged to answer them authoritatively, the DNA story may find itself percolating on Blogs and forums for weeks.  Speculation that Phil Picollo is involved in DNA is apt to continue. Piccolo is a lightning rod for MLM critics.

    At the same time, concerns about the propriety, safety and legality of DNA continue to build.

    Many issues — and an air of mystery — swirl around DNA, an upstart MLM company that is recruiting members to record the license-plate numbers of cars for entry in a database. Blechman, a longtime businessman , has found himself the center of unwanted attention even though he spent only a few weeks at the firm.

    But an effort is under way to get to the truth of what’s driving events at DNA, Blechman said.  Yesterday morning, prior to the afternoon’s phone session and before the handler became involved, Blechman described the events as “bizarre.”

    Why DNA has not been able to get a handle on events remained a mystery — even after the interview. Blechman, though, asked that anyone who has evidence of any wrongdoing by anyone associated with DNA to email him at dbi5@optonline.net

    Now, the incomplete story . . .

    Dean Blechman painted a picture yesterday that Data Network Affiliates (DNA) was a company not in control of its own message, including the message it issued to announce his departure.

    That message, authored by person Blechman did not identify by name but described as a “back door guy,” misspelled his name as Bleckman, the former DNA chief said. It was unclear if Blechman knows the person’s name.

    And Blechman complained that DNA had butchered the departure announcement, which the company withheld from the membership for nearly a week, in other ways.

    Blechman made it clear that he left DNA for good on Feb. 24. The company announced the news March 2, six days after the departure. Blechman questioned yesterday why the company had waited so long.

    He faulted himself for not recognizing unspecified problems at DNA earlier, conceding that “I should have done a bit more responsible [job of] due diligence.”

    “There’s no way I’d get involved in something” that was not above-board, Blechman said. He acknowledged that it “took me three or four weeks to see the light about this.”

    In the end, he said, the only thing to do was to leave.

    Among the issues, he said prior to the interview, were communications from the company that he described as “bizarre” and misleading.

    During the interview, Blechman said the announcement by DNA of his departure was a case in point. Two days ago, the company announced that Blechman had left “[d]ue to the fact that Mr. Blechman is a Director and High Equity Owner of a high visibility network marketing company” and that there was potential for “a conflict of interest.”

    There is “no conflict of interest,” Blechman said flatly. “The press release that came out of DNA support was incorrect. It was bull, and I’m very upset [about] it.”

    Blechman said the “back door guy” was putting out “stuff that I don’t even see to cover his [behind] and tail.”

    For weeks, multilevel-marketing (MLM) aficionados have speculated that Phil Piccolo, a notorious figure in MLM circles, somehow had become involved in DNA.

    Blechman did not rule out yesterday that Piccolo was involved. When pressed for a definitive answer, Blechman suggested that one could be forthcoming.

    Piccolo is the subject of considerable scorn online. Whether he is part of the company remains unclear, and rumors of his involvement continue to swirl.

    A source told the PP Blog that DNA’s support operation denied that Piccolo was involved with the company. Piccolo’s critics have said he has been known to use aliases, and researchers have suggested there is a digital footprint that links Piccolo to the firm, based on an IP address and a domain name associated with Piccolo.

    A DNA affiliate URL that begins with the word “topposition” resolves to a page dubbed “The Corporate Team.” The gmail address that DNA uses for support is listed in the upper-right corner of the page. It appears that no other affiliate page at DNA includes the support address in that position.

    The information suggests that one or more members of the “Corporate Team” are using DNA’s support email address to field inquiries from members of the “Corporate Team” downline group. The Blog viewed the affiliate sites of three ordinary members of DNA yesterday. None of the sites had DNA’s support address in the upper-right corner, which suggests — but does not demonstrate conclusively — that DNA support has its own downline team.

    DNA added the gmail support address to its “Contact Us” tab only days ago — after Blechman’s departure — and has not explained why it is describing itself in emails to members as a leading-edge company while at once using Google’s free gmail service for support.

    A bizarre autoresponder message titled “Top 16 Customer Service Issues” was sent from DNA’s support address Tuesday, according to a source who provided a copy of the message to the PP Blog.

    Item No. 16 on the Top 16 list provided an explanation for why DNA’s domain used an address in the Cayman Islands. The reason, according to the autoresponder message, was that the company chose “privacy” protection by paying a registrar $5 in a bid to prevent management from having to “put up with 100 stupid calls a day.”

    Whether such a bizarre message had the approval of DNA’s company officers is unclear. Also unclear is why DNA’s emails to members do not list a street address. The lack of a street address leads to questions about transparency and potentially brings compliance issues into play.

    Item No. 5 on the Top 16 list, meanwhile, claimed that “D.N.A. Management is Aware of many FALSE Rumors…The D.N.A. Legal Department is on top of such and is taking Legal Action…You can not become the #1 record breaking company in THE WORLD… Without people taking cheap shots at you…  In the mean time keep on keeping on…”

    Prior to the numbered items, the autoresponder message claimed: “The D.N.A. company is signing a MEGA MILLION DOLLAR DEAL with a publicly known industry giant. Between this agreement being sign (sic) and the D.N.A. Top Secret Product being announced on March 27th, 2010. (sic)  D.N.A. is positioning itself to be (sic) Global Giant.”

    On Tuesday, the PP Blog reported that a domain titled DeanBlechman.com listed the same Cayman Islands address as DNA’s domain and redirected to DNA’s website.

    “That was a surprise,” Blechman said yesterday.

    On another matter, Blechman described DNA President Arthur Kurek, who remains with the company, as a “good man.”

    Nonetheless, Blechman said, “There’s no way you’re going to see me affiliated with DNA.”

    “My name — and my family’s name — has an impeccable reputation for integrity,” Blechman said.

  • BULLETIN: Former Data Network Affiliates’ CEO Will Answer Questions In Interview Today; Says Company Is Engaging In ‘Bizarre’ Conduct And Campaign Of ‘Misinformation And Lies’

    The former chief executive officer of an upstart multilevel-marketing (MLM) firm said this morning that the company was lying to members.

    Dean Blechman, the former CEO of Data Network Affiliates, said that members deserved to know the truth and that he will make it plain in an interview with the PP Blog later today.

    In preliminary comments, Blechman described DNA as a company that did not have a clue about what it is doing.

    “This is the most bizarre, amateur, unprofessional, and continuation of misinformation and lies,” Blechman said.

    He pointed out that the company had misspelled his name in an announcement to members about his departure. DNA waited nearly a week to tell members that Blechman had stepped down, a practice grossly at odds with corporate norms.

    “You would think that the man behind DNA support would at least know how to spell my last name by now,” Blechman said.

    The “real truth” will come out later today, he said.

  • Data Network Affiliates (DNA) Issues Bizarre Announcements; Meanwhile, Narc That Car Promoter Says Repping For NTC Like Working For ‘Census Bureau’

    UPDATED 1:57 P.M. ET (March 5, U.S.A) Data Network Affiliates (DNA) announced via email that Chief Executive Officer Dean Blechman has stepped down, according to a member. The announcement came six days after Blechman’s departure — and one day after the company said it launched a “Beta Test” of its ability to gather license-plate numbers.

    DNA’s website previously implied the company would be in full launch yesterday, after two previously advertised launch dates in February were postponed.

    Why DNA, which lists a Cayman Islands address in its domain registration and lists no address at all in email communications sent to members, chose to wait nearly a week to announce Blechman’s departure to the membership was unclear.

    Important news such as the departure of a CEO or top executive normally is announced in advance of the departure as a means of quelling rumors and maintaining continuity and stakeholder trust.

    Also unclear is why a domain titled DeanBlechman.com, which uses the same Cayman Islands address as DNA’s website and a DNA-related website known as TagEveryCar.com, redirects to the DNA website.

    A person believed to be Blechman contacted the PP Blog Sunday, saying by email that “I am no longer the CEO of DNA. I have no affiliation with the company whatsoever.” The sender’s identity could not be verified immediately, but the Blog believes it was Blechman, owing to follow-up correspondence it received.

    It is anticipated that Blechman will contact the Blog later this week to answer questions, although no formal interview has been scheduled. It is unclear if Blechman knows about the DeanBlechman.com domain or approved of its creation.

    DNA, which previously had neither a contact form nor a contact email address on its website, now lists a gmail address. gmail is Google’s free email service. A source said tonight that the gmail address was on an autoresponder that sends a message titled “Top 16 Customer Service Issues.”

    Item No. 5 on the Top 16 list reads: “The D.N.A. Management is Aware of many FALSE Rumors…The D.N.A. Legal Department is on top of such and is taking Legal Action…You can not become the #1 record breaking company in THE WORLD… Without people taking cheap shots at you…  In the mean time keep on keeping on…”

    Meanwhile, Item No. 16 provided an explanation for why the DNA domain was registered in the Cayman Islands. The reason, according to the autoresponder message, was because the company chose “privacy” protection for $5 in a bid to prevent management from having to “put up with 100 stupid calls a day.”

    Prior to the numbered items, the autoresponder message claimed: “The D.N.A. company is signing a MEGA MILLION DOLLAR DEAL with a publicly known industry giant. Between this agreement being sign (sic) and the D.N.A. Top Secret Product being announced on March 27th, 2010. (sic)  D.N.A. is positioning itself to be Global Giant.”

    The announcement by DNA of Blechman’s departure was ungrammatical, bizarre — and also at odds with information previously released by the company. It even misspelled Blechman’s name.

    “Intentions On Going Public,” the email began. “Say Good Bye To Naysayers.

    “A public company has to answer to a HIGHER POWER than an AG,” the email said. “A publicly traded company has to answer to the SEC. No messing with them. Ask Martha Stewart.

    “Dean Bleckman (sic) on 02/24/2010 stepped down from being the future CEO and any affiliation with D.N.A…” the company email said. “Due to the fact that Mr. Blechman is a Director and High Equity Owner of a high visibility network marketing company could create a conflict of interest. We believe Mr. Blechman to be a very good man and wish him well in any future endeavors.

    “There are some who will try to turn the above information against us,” the email continued. “But the truth be known with the intention of taking D.N.A. public it is in our best interest to have management dedicated and with experience on taking companies public.

    “DNA is currently interviewing high level marquis executives for the role of CEO,” the company said. “We will keep all our D.N.A. Affiliates informed. All other management is 100% in place and very dedicated and excited about the future of D.N.A.”

    Why DNA would say Blechman stepped down from being the “future” CEO is unclear. Only days ago Blechman identified himself as the current CEO, and the company promoted him as such in marketing materials and on conference calls.

    Narc That Car Update

    A new YouTube video by a Narc That Car (NTC) promoter says that collecting data for NTC is like working for the U.S. Census Bureau. Checks issued by the firm bear the name “National Automotive Record Centre,” the video reveals.

    Despite the use of the word “national” in its name and the YouTube video that uses the name of the Census Bureau, NTC is not a government agency.

    The video, by NTC promoter “Jah” of the Cash For Car Plates Blog, focuses exclusively on money and does not address any propriety, safety, legal or privacy concerns, defining license-plate numbers as “public” information available for the taking for entry into the NTC database.

    “We’re like Census Bureau workers,” the video claims. “We’re collecting public data.”

    Some critics have raised myriad concerns about NTC, which is the subject of an inquiry by the BBB in Dallas and the office of the district attorney of Henderson County, Texas.

    Among the concerns raised by critics is whether the company could use the license-plate data it collects to create profiles on the movement of people — battered wives living in secret shelters, federal judges, politicians, celebrities, patients of psychiatrists and other medical professionals, members of religious groups and ordinary citizens from coast to coast in the United States.

    Some promoters of Narc That Car and DNA have argued that people who have nothing to hide have nothing to fear, raising the specter of a sort of private Big Brother.

    Narc That Car promoters routinely suggest that no license-plate numbers are off-limits for entry in the database, which purportedly is being created for companies in the business of repossessing automobiles.

    At least one You Tube video promoting Narc That Car — a video that featured footage from a Public Service Announcement by a group of celebrities that had been spliced into the video as though they were promoting Narc That Car — has been removed from YouTube for Terms of Use violations.

    That video, by a Narc That Car downline group known as Team Trinity International, formerly existed at this URL:

    http://www.youtube.com/watch?v=XgLFHH6TaaA&feature=related

    Jah’s Cash For Car Plates video for NTC, meanwhile, shows two checks issued by National Automotive Record Centre Inc.  and drawn on NewBridge Bank to demonstrate that Narc That Car pays.

    “We’re [going] to show you some real, solid video proof of the money that’s being made here and where you can go with this business,” the video says. “This is awesome.”

    Whether Narc That Car pays has not been an issue, however. The issues have centered on how the company pays, whether it is operating a pyramid or Ponzi business model and the propriety, safety and legality of Narc That Car.

    The two checks in the video are for $45 and $452.10  — both of which appear to have been drawn Feb. 23.

    In the video, the $45 check is used as proof of payment — and the check for $452.10 is used as proof of the type of payments that could come later for Narc That Car members.

    “This may be one of our last . . .  videos, because this is the real deal,” the video says. “We can’t go any further. We’re not going to be out here flashing, you know, five-figure checks.”

    The video was placed on You Tube March 1.

    In a Jah video placed on YouTube Feb. 12, a check featured in the video is written in the name of a different entity: Narc Technologies Inc. The check appears to be drawn on a different bank than the check in the March 1 video, although the video was grainy.

    National Automotive Record Centre Inc. was registered as a corporation in Nevada Jan. 12.

  • Spokesman For Renner-Related Company Did Not Disclose Tie In Opinion Piece That Attacked Star-Tribune Newspaper; Name Is Referenced In Secret Service Affidavit; Declines To Answer Questions From PP Blog

    UPDATED 2:25 P.M. ET (March 2, U.S.A.) The vice president and director of public relations for V-Newswire — a company in Steve Renner’s INetGlobal family — authored an opinion piece lambasting a Minnesota newspaper’s coverage of a Secret Service raid at INetGlobal’s Minneapolis offices last week on his personal Blog, but did not disclose his tie to the firm.

    Donald W.R. Allen II operates a Blog known as The Independent Business News Network (IBNN). Allen did not disclose his INetGlobal tie when authoring an editorial titled, “Minneapolis’ Star Tribune newspaper’s bias reporting causes defamatory speculation at Internet marketing firm.”

    The piece began, “If the Star Tribune newspaper can use its ‘power’ to taint a company’s image prior to investigation by authorities, whose (sic) to say the news you get is true and accurate?”

    The Star-Tribune was among the first media outlets to report that federal agents believed INetGlobal was operating a Ponzi scheme.

    Information gleaned during the federal probe led to allegations that INetGlobal also was engaging in wire fraud and money-laundering.

    Allen, whose name is referenced in a search-warrant application in the INetGlobal case, now says he should have disclosed the tie in the IBNN editorial.

    “I will give full disclosure on the iNetGlobal piece today because I have 3 more follow up stories,” he said this morning. He asserted that the IBNN domain, which is registered in Renner’s name under the organization of V-Webs LLC, “has nothing to do with iNetGlobal other than being registered by the company as part of my employment agreement.”

    Allen defined the IBNN Blog as a “Civil Rights, Politics and News Blog for mostly the Twin Cities area.” IBBN’s site content includes an endorsement of the Tea Party Movement in the United States and a “Declaration of Tea Party Independence.”

    Allen emailed the PP Blog Sunday after appearing at the Blog, posting comments and using the IBNN URL, not a URL associated with the Renner companies. He dismissed the Blog as “minor league,” writing it was engaging in a “witch hunt.” The Blog responded to Allen’s email by asking him to comment on a number of issues concerning INetGlobal and inquiring why he was using the IBNN URL if he was a spokesman for a Renner entity.

    Later in the day, Allen responded to the Blog’s questions by saying he would answer questions about his role at V-Newswire, but he did not address the questions the Blog asked previously.

    The Blog then resubmitted the questions, adding several more questions to a list of four it previously had asked. Allen responded to the email, but chose not to answer a number of questions.

    Among the questions Allen declined to answer was whether INetGlobal, in the aftermath of the Ponzi scheme allegations, believed it should inform members about Steve Renner’s December conviction on four felony counts of income-tax evasion. Allen also declined to answer a question on whether INetGlobal had a duty to inform members that Cash Cards International (CCI) — a payment processing firm once operated by Renner — could not return money to Ponzi scheme victims in a case brought by the SEC against a California company known as Learn Waterhouse because Renner had spent the customers’ money.

    Allen did say he saw “nothing illegal with V-Newswire or the V-News Network.”

    The Blog asked Allen whether he was the “Donny Allen” referred to in an INetGlobal news release and the “Donald Allen” referred to in a Secret Service affidavit that alleged “Donald Allen” provided confusing information to a person who attended an INetGlobal function in New York.

    Allen did not answer the question, which the Blog posed twice.

    Undercover Secret Service agents also attended the New York function, according to the affidavit.

    The PP Blog also asked Allen whether he believed he should disclose his tie to INetGlobal when responding to Blog and forum posts. He declined to answer the question, which was posed twice.

    He also declined to answer a question about how it served INetGlobal’s PR ends to dismiss as “minor league” Blogs that report the serious allegations against the company.

    AdSurfDaily, a Florida company implicated in a $100 million Ponzi scheme, employed a similar PR approach. The ASD case is referenced in the Secret Service affidavit, amid allegations that an ASD member described INetGlobal as a wink-nod enterprise and attempted to have an undercover Secret Service agent participate in a three-way call with the ASD members’ sponsor for the purpose of recruiting the agent into INetGlobal.

    Allen also declined to answer a question on whether he was the author of an INetGlobal news release after the raid that said federal agents had arrived at Renner’s offices “looking for something to substantiate their claim that illegal activity was occurring in the business.”

    The news release used Allen’s email address, which he described as temporary in an email to the PP Blog, but did not mention Renner’s income-tax conviction and the allegations that Renner had spent money belonging to CCI customers.

  • Data Network Affiliates Now Says Launch Is ‘Beta Test’; Adds ‘JK Wedding Entrance Dance’ Video To Sales Pitch; Former CEO May Make Statement This Week

    After delaying its launch twice in February and finally settling on a March 1 launch date, Data Network Affiliates (DNA) now describes tomorrow’s launch as a “Beta Test.”

    Meanwhile, the company has added a hugely popular YouTube video known as “JK Wedding Entrance Dance” to its website, using the video to promote DNA.

    On the YouTube site, the video and a related webpage that solicits donations for the Sheila Wellstone Institute are are used to create awareness about domestic violence. Because the video is is miniaturized on DNA’s site, the violence-prevention message is not visible unless viewers expand the size.

    At the same time, a person who identified himself as Dean Blechman, DNA’s former chief executive officer, has emailed the PP Blog, saying he no longer is affiliated with DNA in any way.

    “I am no longer the CEO of DNA,” the email said. “I have no affiliation with the company whatsoever.”

    The email could not immediately be confirmed as authentic, but the PP Blog believes the sender was Blechman. The sender did not respond immediately to a request to explain matters pertaining to DNA, saying via email  he was on vacation with his wife until Tuesday and adding that he would contact the Blog again after he returns home.

    DNA does not explain Blechman’s departure on its website, which lists an address in the Cayman Islands. Nor does the company explain why it now is describing the launch date as a “Beta Test.”

    The company, which says it is in the business of recording license-plate numbers for entry in a database, repeatedly has advertised various launch dates. Critics have raised questions about privacy matters and the propriety, safety and legality of DNA.

    Some critics have said that Phil Piccolo, a notorious figure in multilevel marketing, is associated with the firm.

    It was not immediately clear if DNA was authorized to post the “JK Wedding Entrance Dance” video on its website and use it in the context of advertising DNA. The video has received more than 43.7 million views on YouTube. Its producers created the video to share the joy of their wedding, and also to create awareness about domestic violence, according to a message linked to their YouTube website.

    An email to the producers — Jill and Kevin Heinz — by the PP Blog was not immediately returned. Among other things, the couple has appeared on the Today Show to explain their joyous, music-rich video, which features the entire wedding party dancing to the altar and has been a spectacular hit on YouTube — one with a serious message attached.

    In a page that accompanies the couple’s video, Jill is described as a PhD candidate whose work focuses on breaking cycles of violence in society. Kevin is described as a law student with a passion for social justice. The site includes a link to donate to the Sheila Wellstone Institute.

    Sheila Wellstone was a human-rights advocate. She and her husband, Sen. Paul Wellstone, D-Minn., were killed in a plane crash in 2002. Their daughter, Marcia, died in the same crash.

    DNA’s site does not reference the serious message associated with the YouTube video. Instead, it uses the video to promote DNA, under a headline of “WARNING: What happens when The Wedding Party found out about D.N.A. 5 minutes before THE WEDDING WAS TO TAKE PLACE…”

  • DEVELOPING STORY: Blogger In Czech Republic Who Called INetGlobal A ‘Scam’ Last Summer Says She Was Threatened With Lawsuit; Blogger’s Name Means ‘Prophetess’ Or ‘Oracle’

    EDITOR’S NOTE: Sybille Yates, the subject of the story below, contacted the PP Blog Feb. 26 and Feb. 27  from an IP in the Czech Republic, after reading our coverage of the Ponzi scheme allegations against INetGlobal. The PP Blog asked Yates questions in follow-up emails, and this story is based on her responses and the PP Blog’s own reporting.

    A woman who described herself as a Blogger in the Czech Republic says she was threatened with a lawsuit after calling INetGlobal a “scam” in a post in September 2009 and after owner Steve Renner was convicted of federal income-tax evasion in a case that alleged he had converted customers’ money in a separate company to his own use.

    Sybille Yates, who said she runs a Blog at hospitalera.com, called INetGlobal a scam in a post on Sept. 3, 2009.

    Ironically, the name “Sybille” means “prophetess” or “oracle,” according to ThinkBabyNames.com, a website that provides a dictionary on the meaning of names.

    About three months later — on December 8, 2009 — Renner was convicted of four felony counts of income-tax evasion. Last week, federal agents raided his offices in Minneapolis, amid allegations that INetGlobal was operating a Ponzi scheme and engaging in wire fraud and money-laundering.

    Although Yates said paperwork directed at her appears to have originated in the United States on or around Dec. 18 — about 10 days after Renner’s conviction — Yates added that she did not know she was the target of a prospective lawsuit until on or around Feb. 25, about two days after the Feds raided INetGlobal.

    Yates said she was summoned to a Czech court to retrieve the papers, adding that “I think [INetGlobal] tried to silence me, but didn’t count on the amount of time it would take to serve them overseas.” She noted that she was puzzled by the paperwork because “I never received a cease and [desist] email or letter.”

    The Czech court appeared not to be the venue from which any lawsuit would be heard. Rather, the court contacted Yates to let her know that “that legal papers were waiting for me [since the] middle of January.”

    “This notice didn’t state what the papers were all about, just that they were legal and from the USA and that the courts here in the Czech Republic are not involved,” Yates said. “I kind of felt paralyzed, I lead a pretty law obedient life and didn’t have any experience with such situations.”

    INetGlobal’s website was offline early this morning, throwing an error message that said “Our Web Servers appear to be experiencing technical difficulties.”

    Yates, who described English as one of four languages she speaks, said she was not a member of INetGlobal.

    “I toyed with the idea for a second to sign up for free /[or the] minimum fee in order to get better insider info, but only for a second,” she said. “I would not have felt comfortable enough to give them even the most basic personal information, not to speak of my debit card details.”

    INetGlobal went to the time and expense of translating the documents sent from the United States into Czech, Yates said.

    “[T]hat was completely wasted on me as I don’t speak Czech!” she said. “I live here, because my husband works here.”

    Yates said she believed INetGlobal perceived her “as a pain in the backside” because of the “scam” reference and because she has a high search-engine ranking for terms associated with INetGlobal.

    “I don’t concentrate on scams, but I am convinced that it is perfectly possible to make money online without scamming and ripping people off, so if I come across something that I think is a scam, I say so,” Yates said.

    On Sept. 3, Yates wrote, “Inetglobal is a scam and a really bad one. Stay away from them and save your money!”

    Her Sept. 3 post suggested INetGlobal had a “daily re-purchase,” program in place, which she interpreted to mean “your credit card will get continuously charged and drained until you are in deep debts.”

    In an affidavit for a search warrant in the INetGlobal case last week, the U.S. Secret Service described an “automatic repurchasing” program that the firm allegedly employed by default and prevented customers from overriding.

    It was not immediately clear if Yates and the Secret Service were referring to the same repurchase program.

    Visit the hospitalera.com Blog to read Yates’ Sept. 3 post. See Yates’ Feb. 25 post that announced she had been targeted in a prospective lawsuit.

  • BBB ‘Remains Concerned,’ Still Has Questions About Narc That Car After Firm Says Only 1 Percent Of Commissions Stems From Sale Of Data To Third Parties

    Narc That Car has told the Dallas Better Business Bureau that only “1% of total commissions paid out to independent consultants are for the sale of license plate information to third parties,” the BBB said today.

    That 1 percent, which Narc That Car referred to as “client share,” is the “only repeatable form of compensation which does not involve the recruitment of others into the opportunity,” the BBB said.

    Although the BBB said Narc That Car has provided “some” information since the organization opened an inquiry Jan. 18, the BBB added that it “remains concerned as to whether the business model, in practice, truly provides any significant method of compensation which would not require sponsorship of additional program participants.”

    “The BBB warns consumers to be wary of participating in business opportunities that primarily derive compensation through the recruitment of other participants rather than through the sale of a product or service,” the BBB said.

    Critics have raised concerns over privacy and the propriety, safety, and legality of Narc That Car, which says it is building a database of license-plate numbers for sale to companies that repossess automobiles.

    Longtime MLM aficionados have questioned whether Narc That Car  affiliates are selling a product or a business opportunity. The BBB’s interim report — and Narc That Car’s 1 percent assertion — is apt only to fuel the concerns.

    A note on the BBB’s website says the inquiry remains open and that it still is awaiting responses on Narc That Car’s advertising claims. Visit the BBB site to read the updated report, which includes a list of “other facts” it has learned during its inquiry.

  • BULLETIN: CFTC Shuts Down Alleged Ponzi Scheme That Pitched Itself On YouTube; Ronald W. Smith Jr. Charged With Operating Forex Fraud; Judge Orders Video To Be Preserved

    Ronald W. Smith used YouTube to promote a Ponzi scheme, according to CFTC.

    In a case that may spread a chill among fraudsters who use YouTube to promote bogus money-making schemes, the Commodity Futures Trading Commission (CFTC) has charged a Virginia man with fraud.

    Ronald W. Smith Jr. of Vansant used a YouTube video to promote a Forex Ponzi scheme that gathered more than $800,000 from 34 investors, CFTC said. In the video, Smith claimed that more than 95 percent of his trades in the “Safeguard 3030 Investment Club” were winning trades and that Safeguard “made a whopping 298 percent in just a mere 17 trading days.”

    The CFTC transcribed the YouTube video and presented it and other investigative materials to a federal judge, who ordered Smith’s assets to be frozen, as well as the assets of Smith’s wife, Angela Smith, and the assets of a company known as Tigre Systems Inc.

    In reality, “Smith used little, if any, of the funds to trade forex,” CFTC said. “Instead, he used customer funds for personal expenses, such as for a pool service, carpeting and furniture.”

    Customer funds also were used for “purported profit payouts” and for business expenses, CFTC said.

    At least one “third party solicitor or marketer” helped Smith sell the scheme, which operated between January 2009 and December 2009, CFTC said. The unnamed person who assisted Smith received more than $157,000.

    Smith also marketed the scheme in Florida, CFTC said.

    Investors’ money was used for personal purchases such as eyewear, clothing, roofing, flooring, furniture and swimming-pool expenses. It also was used for purported business expenses such as payments for hotels, a car and a limousine service.

    Smith issued false account statements, which prompted some customers to give him more money, CFTC said.

    The scheme began to collapse in October 2009, and Smith told customers he could not pay them because of a “purported on-going investigation by the SEC,” CFTC said.

    That claim was false, CFTC said.

    In December, Smith told customers he had been cleared of any wrongdoing in the “purported” SEC probe.

    That claim was false, CFTC said.

    In January 2010, CFTC said, Smith told customers their payments were being held up by a bank.

    That claim, too, was false, CFTC said.

    Smith had never been registered with CFTC in any capacity, the agency said.

    U.S. District Judge James P. Jones issued the asset freeze and an order prohibiting the destruction of documents, including the YouTube video and other evidence.

  • SECRET SERVICE: INetGlobal Forced Members To Keep Money In The Company With ‘Automatic Repurchasing’ Scheme; Undercover Agent Sent Email To Support, Which Verified Repurchase Was Mandatory

    UPDATED 11:07 A.M. ET (U.S.A.) One of the undercover Secret Service agents who joined INetGlobal discovered that the company had implemented an “automatic repurchasing” program by default and that the program could not be switched off, thus distancing participants — many of whom may not have understood English — from their money.

    Although it is unclear when the automatic-repurchasing program began, it was in operation in the weeks after INetGlobal owner Steve Renner was convicted on Dec. 8, 2009, of four felony counts of income-tax evasion, according to court filings.

    Other filings show that another Renner company — Cash Cards International (CCI), a money-transmission business  — was upside down by more than $2.5 million when a court-appointed receiver in a Ponzi scheme case sought to convert electronic credits to cash to compensate victims of the scheme.

    Beginning on Feb. 1, the Secret Service agent — a woman — repeatedly tried to turn off INetGlobal’s automatic-repurchasing feature, but it “came back on” each time. The agent, who speaks and writes in English, attempted to disable the feature “several times on different days,” failing each and every time, according to an affidavit for a search warrant filed in the case.

    INetGlobal had a high concentration of Chinese members who did not speak English, according to the affidavit. How they even could understand the automatic-repurchasing scheme or fully comprehend INetGlobal’s operations and English-language website is far from clear, and has led to questions about whether the company deliberately was targeting members who could not understand what they were purchasing and would have both a language and a geographic disadvantage when seeking explanations or filing complaints with authorities.

    The company generated “at least” 87 percent of its revenue from the sale of memberships to members “residing in China,” according to an analysis referenced in the affidavit. The analysis was performed by an unnamed INetGlobal employee.

    On Feb. 17, the undercover agent sent an email to INetGlobal customer service, asking if the feature could be turned off.

    “Customer service replied in the negative,” the agent said, suggesting that the automatic-repurchasing feature was forcing participants to keep at least 40 percent of their money in the company.

    In the affidavit, the Secret Service said a “high level iNetGlobal member” from Nevada was becoming increasingly frustrated by an inability to withdraw funds. The member complained to management that “for over one week [in January] they had been unable to get a money order payment from the company for value they are owed.”

    “The victim contacted iNetGlobal’s customer service on several occasions only to get excuses,” the Secret Service said.

    Eventually, the victim spoke with former InetGlobal CEO Steven Keough.

    Keough, according to the Secret Service, told the victim on Jan. 11 to “cash out” of the system.

    “We can’t cash out,” the victim said. “[I]t is not possible, due to mandatory repurchasing built into the system.”

    On the very next day — Jan. 12 — Keough, an attorney and former naval officer, met with the Secret Service. He had contacted federal prosecutors Jan. 8 to express concerns about the company’s business practices. His first contact occurred only two months after he was appointed CEO on Nov. 7, 2009, according to the affidavit.

    Steve Renner’s Tax Convictions, Link To Previous Ponzi Scheme

    Renner was found guilty Dec. 8 of four felony counts of federal income-tax evasion.

    Prosecutors said he “diverted substantial funds” from CCI between 2002 and 2005 to pay his personal living expenses as well as to make personal investments in coins, oil wells, art, stamps, and vintage musical instruments.

    CCI, which once served as a money-transmitter for a California Ponzi scheme known as “Learn Waterhouse,” used the same office facility in Minneapolis as INetGlobal, the Secret Service said.

    When a court-appointed receiver in the Learn Waterhouse case attempted to get Renner to return money due Ponzi scheme victims, he explained that he could not do so because it had been “invested,” according to the affidavit.

    Thomas Lennon, the receiver in the Learn Waterhouse case, met with Renner, who “provided . . . financial statements indicating that the assets of Cash Cards and Renner are insufficient to cover all outstanding vcredit balances and obligations to other creditors.

    “Specifically, the statements show that Cash Cards and Renner have assets with an estimated value of $2,946,000 and an outstanding v-credit liability of $5,450,000,” Lennon said in court filings in 2007. “Renner has also informed the Receiver that he is currently being audited by federal and state taxing authorities which may result in large additional liabilities and liens on his property.”

    Lennon’s name is well-known among victims of financial crimes. He also was the court-appointed receiver in the 12DailyPro autosurf Ponzi scheme.

    Repurchasing programs, which autosurf operators employ to minimize the outflow of cash, are one of the oldest tricks in the Ponzi book. “Trainers” for Florida-based AdSurfDaily, implicated in a $100 million Ponzi scheme, routinely pushed a so-called “80-20” program whereby members would remove no more than 20 percent of money they were due and plow 80 percent back into the surf.

    In June 2009, AdViewGlobal, an autosurf with close family, management and promotional ties to ASD, announced it was ceasing payouts and making an 80/20 program mandatory should payouts ever resume. AdViewGlobal promptly crashed and burned.

    In January, according to the affidavit, Keough told investigators that he could not make sense out of what was going on inside INetGlobal and had observed instances in which Renner appeared to be gaming the payout system.

    “Keough said he was concerned that large amounts of money were flowing through bank accounts related to iNetGlobal and that unusual system manipulation was being conducted by . . . Renner,” the Secret Service said. “Keough had recently been fired by Renner. Keough believed he had been fired because he continually questioned iNetGlobal’s business practices.”

    On Jan. 20, according to the Secret Service, the agency received information that TCF National Bank was closing the accounts of a Renner entity known as Inter-Mark Corp. after an investigation by the bank led to “suspicions that the activity in the accounts might be money laundering,” according to the affidavit.

    “TCF Bank had given notice to Renner that the accounts were going to be closed,” the Secret Service said. It is unclear if Renner ever advised INetGlobal members that the bank had closed the accounts, citing suspicions they were being used to commit crimes.

    TCF prepared a cashier’s check for “for a little over $5 million,” presenting it to a Renner employee.

    Later that day, the check was deposited into Bremer Bank, which also held Renner-connected accounts, according to the Secret Service.

    Balances in Renner-connected accounts began “moving up sharply in August 2008,” the Secret Service said.

    August 2008 was the month in which the Secret Service raided the headquarters of ASD — and the month in which Renner’s autosurf was coming onto the stage. Golden Panda Ad Builder, a surf that is part of the ASD litigation, positioned itself as a company that sought to cater to Chinese members.

    Golden Panda’s operator — Clarence Busby — was implicated by the SEC in a prime-bank investment scheme in the 1990s, the same sort of scheme that engulfed Learn Waterhouse and later resulted in the determination that Renner’s CCI money-services business was impossibly upside down because he had used customers’ money to make personal purchases.

    INetGlobal issued a statement yesterday that acknowledged the Secret Service probe, but did not mention Renner’s tax conviction in December or the trouble he encountered when he could not fund a payment to the Learn Waterhouse receivership estate in the Ponzi case.

    “iNetGlobal offices will remain open to provide support to our 1,000’s of customers from around the world,” the company said. “iNetGlobal will continue to provide the level of quality service our customers have come to expect now and into the future.

    “We would like to thank all of our Members and Customers for their support and well wishes in this trying time,” the company said.

  • BULLETIN: Receiver In Affiliate Strategies Inc. (ASI) Case Asks Federal Judge To Add Noobing Autosurf To Receivership Probe After Inquiries By ‘Tax Authorities’

    The court-appointed receiver in the fraud case against the parent company of the Noobing autosurf has asked a federal judge for the authority to add Noobing to the receivership probe.

    Larry Cook, the receiver, said that Noobing and 14 other companies under the Affiliate Strategies Inc. (ASI) umbrella have become the subjects of “numerous inquiries” from “tax authorities,”  creditors and “former independent contractors.”

    Cook did not identify specific parties that made inquiries, but noted that “each of the Subsidiaries used the same post office box as the Receivership Defendants.”

    Noobing targeted people with hearing impairments in its promotions. It is known that some Noobing members have contacted the Federal Trade Commission, which is spearheading the ASI probe, along with the attorneys general of Kansas, Minnesota, North Carolina and Illinois.

    At least one deaf member of Noobing says she has contacted a sheriff’s department in California about the company.

    News that Cook is seeking judicial approval to add Noobing to his receivership probe came on the same day that the U.S. Secret Service said it was conducting an intense probe of INetGlobal, which operated a Minneapolis-based autosurf.

    In an application for a search warrant in a Ponzi case against INetGlobal, the Secret Service referenced the AdSurfDaily Ponzi scheme case, saying a member of ASD had attempted to recruit an undercover Secret Service agent into the INetGlobal scheme.

    ASD members and members of a closely connected surf known as AdViewGlobal also promoted Noobing, as did INetGlobal members, according to web records.

    Steve Renner, the owner of INetGlobal, was convicted in December of four felony counts of income-tax evasion for his conduct with other companies earlier this decade.

    Autosurfs are notorious for keeping poor records or no records at all, and autosurf participants are notorious for engineering schemes to milk tax-free income.

    Cook said tax reporting is required, and is seeking an order that pertains to Noobing and 14 other ASI umbrella companies. Cook listed Noobing’s name at the top of the list.

    “In order to complete the tax reporting requirements and otherwise address the creditors’ and other claims, the Receiver seeks a clear order that he is the Receiver for the Subsidiaries,” Cook said.

    And, he added, “Counsel for the [FTC] has reviewed this Motion and concurs.”

    ASI and a number of companies were sued last year in a scheme involving government grants. Noobing went offline in the immediate aftermath of the FTC probe.