Author: PatrickPretty.com

  • Promoter Tries To Prove Point Narc That Car Not A Scam By Registering Domain Saying It IS One: Welcome To NarcThatCarIsAScam.info

    Jah of the CashForCarPlates team shows postmark on YouTube of check received from NarcThatCar as proof the company pays. The video also displays a check in the amount of $70.

    UPDATED 2:30 P.M. EDT (March 5, U.S.A.) NarcThatCar promoter Ajamu Kafele announced that his downline team has launched a website to refute claims that the Dallas-based multilevel-marketing (MLM) program is a scam.

    The announcement was made last night, during a Valentine’s Day conference call hosted by Kafele, who uses the nickname “Jah” and is an independent affiliate of Narc That Car.

    The domain name chosen to refute claims that Narc That Car is a scam actually states the company is a scam:

    NarcThatCarIsAScam.info (Emphasis added.)

    Kafele, who operates a website and Blog known as Cash For Car Plates to promote Narc That Car, recorded the conference call, which is posted online. Kafele did not say in the conference call whether he and his 132-member downline group had obtained permission from NarcThatCar to use its name in a branded domain title that states the company is a scam and then attempts to refute the assertion by posting contrary information on the NarcThatCarIsAScam.info website.

    His hope, he said during the call, was that by suggesting NarcThatCar was a scam, the website could be used to prove the opposite.

    One of the participants in the call was a man who said he was “eighty and a half” and was working to introduce other senior citizens to Narc That Car. Kafele said during the call that there was “no substance” to critics’ concerns that Narc That Car is structured like a Ponzi or a pyramid scheme.

    Kafele dissed critics who have raised privacy concerns about Narc That Car. After paying a $100 up-front fee and spending an additional $24.95 a month, Narc That Car “independent consultants” are encouraged to write down the license-plate numbers of cars and enter them in a database.

    Narc That Car promoters have identified the parking lots of major retail chains, libraries, schools and universities as sources of license-plate numbers. Some promoters have encouraged their downline members to carry notebooks and pens in retailers’ parking lots and the parking lots of educational facilities. Others have encouraged participants to take photos of license plates or record them on video cameras, perhaps hundreds at a time.

    “Some of these guys are just mad because they think there is a privacy issue, ” Kafele said, arguing that automated technology exists that is used to collect license-plate data.

    Some critics have questioned whether NarcThat Car promoters are selling an actual product or simply an income opportunity.

    “For lack of a better word, the product is the gathering of the data,” Kafele said during the call, which mostly featured Kafele’s remarks. He suggested that Narc That Car had an “apparent client” that “already is backing up” the company, but did not name the client.

    Two third-party audio snippets recorded previously by other Narc That Car promoters were played back during the call as evidence that “due diligence” had been conducted on the company, which is the subject of inquiries by the BBB in Dallas and the district attorney of Henderson County, Texas.

    The BBB has asked Narc That Car to explain advertising claims and the company’s compensation plan.

    The audio snippets played back during Kafele’s conference call claimed Narc That Car was “very well-funded” and the product of the imagination of a “child prodigy.” A specific source of the funding was not disclosed.

    “They have a proven model,” Kafele said during the call.

    An application for “Narc That Car” as a “Service Mark” is on file in the U.S. Patent and Trademark Office, according to the government’s TESS computer system. Information in the government database says the mark was applied for in July 2009.

    Narc That Car is engaged in “Business services in the nature of collateral locator services, namely, tracking and management of lien related collaterals on behalf of lien holders” and also performs “Security services, namely, collateral locator services in the nature of theft recovery,” according to TESS.

    Gerald P. Nehra, an MLM attorney, assisted Narc That Car in registering the brand, according to the TESS database.

    Among the headlines on NarcThatCarIsAScam.info:

    • Narc That Car Opportunity: Distinguishing Fact From Fiction
    • Are The Naysayers Against Narc That Car Really Credible?
    • What Is The Truth About Narc That Car and the Texas Atty General
    • “Who Dat” Saying Narc That Car Is A Scam?
    • Video: Data Network Affiliates vs. Narc That Car Compensation Plans
    • Narc That Car Payment Proof Video

    Kafele’s Cash For Car Plates Blog repeatedly uses the word “scam” in the context of Narc That Car.

    At the moment, the word “scam” in the context of Narc That Car appears on the front page of the Cash For Car plates Blog 13 times, including the current feature story. The current feature story uses the word “scam” in a headline — “Is Narc That Car Really A Scam? — and in the first paragraph of the feature post.

    “Scam” also is used in other posts and labels on the Cash For Bar plates Blog, which is hosted by Blogspot.com, Google’s free hosting site for its Blogger platform. Among the labels on the Blog are “narc that car scam,” “make money from home scam” and “home business scam.”

    Internet marketers who promote MLMs and other money-making opportunities often use the word “scam” — deliberately associating the word “scam” with companies they are recommending — on the theory it drives traffic to their websites when prospects perform online searches.

    Some companies take a dim view of such practices by promoters, believing they can damage brands and confuse the public.

    Listen to the conference call in which Kafele announces the NarcThatCarIsAScam.info website and defines the site as a “counterintelligence” effort.

  • FTC To Announce Major ‘Law Enforcement Sweep’; Justice Department, Postal Inspectors Will Be Present At News Conference Wednesday

    Assistant Attorney General Tony West will be on hand at a FTC news conference Wednesday in Washington, D.C.

    Still pushing work-at-home schemes on the Internet? The Federal Trade Commission has a message for you.

    On Wednesday, the FTC will announce a major “law enforcement sweep cracking down on job and work-at-home fraud fueled by the economic downturn,” the agency said.

    Investigators will release “[s]till shots from the Web sites of some of the operators charged in this law enforcement sweep,” as well as a consumer-protection video.

    The FTC disclosed few details about the sweep, but it is known that officials from the the U.S. Department of Justice and the U.S. Postal Inspection Service will attend the news conference.

    Speaking on behalf of the Justice Department will be Assistant Attorney General Tony West of the Civil Division. West was appointed to the post by President Obama in January 2009.

    Ohio Attorney General Richard Cordray also will be present at the news conference.

    West, a law-enforcement veteran knowledgeable about high-tech crimes, is a graduate of both Harvard and Stanford . He has served as a prosecutor on both the state and federal levels, including a five-year stint as an Assistant U.S. Attorney for the Northern District of California.

    As a state Special Assistant Attorney General, West advised former California Attorney General Bill Lockyer on high-tech crime, identity theft, antitrust litigation, civil rights, police-officer training and police misconduct.

    Although the FTC did not release specific details about the crackdown, work-at-home schemes come in many forms. Fraudsters, for example, often use high-traffic Internet sites operated by famous companies to post “job” listings for jobs that don’t actually exist.

    In some instances, the “jobs” have proven to be multilevel-marketing “opportunities” in which participants must pay a fee to become a sales rep and to recruit others for a chance to increase “earnings.” In other cases, the “jobs” have proven to be scams such as stuffing envelopes, entering data and labeling postcards.

    Such scams frequently target people of limited means.

    “Work-at-home scams prey on some of the most vulnerable in our society — the economically disadvantaged, the unemployed, the disabled, and the elderly — who are trying to supplement their income by working from home,” U.S. Attorney Preet Bharara said earlier this month.

    Bharara is U.S. Attorney for the Southern District Of New York. On Feb. 3, Bharara and postal inspectors announced the arrests of Philip Pestrichello, 38, and his wife, Rosalie Florie, also 38, in a work-at-home scheme that operated in New Jersey.

    In the alleged Pestrichello/Florie scheme, participants were targeted in advertisements that assured them the companies were ethical and “NOT a gimmick or some shady ‘get rich quick scheme.’”

    Participants further were told “Our company has a rock-solid reputation,” prosecutors said.

    A check revealed that Pestrichello had spent three years in federal prison for operating a previous scheme and had repeated run-ins with regulators dating back to the early 1990s.

  • NEW NARC THAT CAR SHOCKER: License-Plate Numbers Recorded On UNLV Campus; In ‘Training’ Video, Promoter Tells YouTube Audience That ‘Libraries’ And ‘Schools’ Good Places To Capture Data

    You Tube video shows the street address of the University of Nevada, Las Vegas, as the site from which a license-plate number was recorded and entered into the Narc That Car database.

    EDITOR’S NOTE: The PP Blog contacted the office of Sen. Harry Reid, D-Nevada, late tonight for a comment on the practices of NarcThatCar promoters. Reid’s office did not respond immediately.

    UPDATED 2:34 P.M. ET (March 5, U.S.A.) A YouTube video promotion for Narc That Car gives a tour of the promoter’s secure back office, displays the names of downline members and advises viewers that the parking lots of libraries, schools and universities provide a steady stream of license-plate numbers to be harvested and entered into a database.

    “So, carry a pen and paper with you,” the narrator instructs. “You can go to parking lots. You can go to libraries. You can go to schools. My wife goes to the university, and just goes through the parking lot and collects license-plate numbers.”

    An address in the video suggests plate data was recorded in or around the University of Nevada, Las Vegas. The address is the same street address as the UNLV campus. Among the facilities that share the address are sports complexes such as the Thomas & Mack Center and Cox Pavilion, which have large parking lots and a combined seating capacity of at least 21,248, and the Harry Reid Center for Environmental Studies.

    Harry Reid, a U.S. Senator, is the Senate Majority Leader. His office did not respond immediately late Saturday night to a request for comment. (Reid’s voicemail box was full, so the PP Blog contacted Reid’s office via email.)

    The video, which has a headline of “NarcThatCar Training Video” on the YouTube site, provides no instruction on the propriety, safety or legality of entering either public or private property for the purpose of recording plate numbers of students, faculty, employees or visitors.

    No mention is made in the video about whether Narc That Car prospects or members were required to obtain permission from library, school and university administrators, students, employees, campus police or other security forces before recording license-plate data from cars parked at such facilities.

    Narc That Car does not screen promoters. U.S. residents who pay a $100 fee to the company

    Screen shot: A Narc That Car promoter provided prospects a YouTube video tour of his secure back office. Frames in the video showed the names of his downline members. (The PP Blog added the red lines to the screen shot to block the identities of the downline members, which are publicly available on YouTube.)

    become “independent consultants” and are encouraged to begin to record license-plate numbers. For an additional fee of $24.95 a month, members can enter the information directly into a Narc That Car database through a website the firm provides.

    The YouTube video is 8:48 in length. The Narc That Car back-office tour begins at the 2:42 mark; the promoter’s comments on schools, universities and libraries begin at the 3:49 mark. UNLV’s address appears at the 4:21 mark, and the names of the promoters’ downline members appear at the 5:12 mark.

    NarcThatCar is a Dallas-based firm that says it is building a database for financial companies and firms in the business of repossessing automobiles. The company is the subject of inquiries by the BBB and the district attorney of Henderson County, Texas.

    In the video, the narrator said he hoped to ascend to the rank of Narc That Car “director.”

    There are several tabs in the back office, including a tab labeled “Clients.” The narrator did not press the “Clients” tab.

    “Don’t worry about that right now,” he said. He did not explain why members should not concern themselves about the tab.

    The video suggests that the Narc That Car system checks to see if plate numbers entered by members are valid. A member must enter the address at which the plate was spotted. It appears, however, that any address can be entered, and that Narc That Car cannot tell if the car was observed at the reported address or not.

    In a separate YouTube video, a Narc That Car promoter said he recorded 100 license-plate numbers in a Walmart parking lot, noting that he had enough plate numbers to give some away to incoming members, thus qualifying the members for compensation without leaving their homes.

    NarcThatCar pays members $55 after reporting their first 10 plate numbers. If the Walmart promoter recorded 100, he could give away 90 to induce new recruits to join the program and receive $55 each. If the promoter lived in say, Florida — and if he recruited a member from Alaska — the Alaska member would appear to have the capacity to fabricate an address at which the car was spotted.

    The Walmart promoter, however, appears to have soured on Narc That Car, and now has joined a similar company — Data Network Affiliates. (See reference in earlier story.) A DNA email to members suggested that Jeff Long, who published the Narc That Car Walmart video on YouTube, is now the top recruiter for DNA, which uses a domain registration in the Cayman Islands.

    Long reportedly has recruited 628 DNA members.

    “GO JEFF GO – JEFF WILL BE THE 1st PERSON IN THE WORLD TO EVER SPONSOR 1000 OR MORE ON HIS 1st LEVEL IN ANY MLM OR V.A.M. KIND OF COMPANY,” the DNA email said, according to a DNA member.

    In yet another Narc That Car video on YouTube, a camera operated by a promoter in an automobile pans cars in the parking lot of a mall or shopping center.

    Narc That Car promoters cruising a mall or shopping-center parking lot looking to record license-plate numbers say they did not want to appear "suspicious" while making their YouTube video.

    At roughly the 0:38 mark in the video, a message pops on the screen that the promoters did not want to look “suspicious” while recording the video. At roughly the 1:10 mark, a reddish Chevrolet Camaro comes into view. At roughly 1:18 mark, the couple recording the video pulls in behind the Camaro. In the following frames, the car’s plate number is recorded in a notebook.

    “And when you get your 10, what they do is send you back 50 bucks immediately,” the narrator says. “And all you gotta do to get your other $75 is just find three people that’s willing to go in and do the same thing you’re doing.”

    The narrator concludes the video by saying it’s “the New Age parking-lot” business.

    See the video dubbed “training” that includes the address of UNLV, and tells prospects that libraries, schools and universities are fine places to write down the plate numbers of automobiles.

  • Ohio Attorney Charged In Ponzi Scheme And Tax Case Indicted For Failure To Show At Trial; Dale Zucker On The Lam Since Jan. 26; U.S. Marshals Investigating

    A Cleveland attorney with ties to Texas and Florida has been indicted for failure to appear at his trial in a Ponzi scheme case, federal prosecutors said.

    Dale P. Zucker, a medical-malpractice and personal-injury attorney who practiced in Cleveland and Chagrin Falls, was indicted in August 2009 for mail fraud and filing false tax returns. The FBI said Zucker “fraudulently induced approximately 19 current or former clients of his law practice and other acquaintances to invest in businesses that did not exist.”

    Zucker’s trial was scheduled to begin Jan. 26 in Cleveland, but he did not show. Prosecutors now say he has been indicted for failing to appear.

    Zucker “knowingly and intentionally failed to appear,” prosecutors said, adding that the indictment was handed down after an investigation by the U.S. Marshals Service.

    Losses in the Ponzi scheme case totaled more than $702,000, prosecutors said. Zucker’;s law firm was known as Dale P. Zucker L.P.A.

    Zucker, prosecutors said, “lulled investors into a false sense of security by mailing them promissory notes that guaranteed the return of their initial investment at an interest rate of 10 percent to 25 percent, depending on the investor.”

    He also tricked investors by “providing them with post-dated checks for their principal investment and interest,” prosecutors said.

    In the Ponzi case, Zucker was charged with filing false tax returns for the years 2003, 2004 and 2005, and not reporting income of $588,000 in those tax years..

  • ANOTHER BIG FRAUD IN FLORIDA: Racecar Driver Henri Zogaib Arrested In Alleged $5 Million Ponzi Scheme

    Henri Zogaid: Source: Lake County Sheriff's Office

    Former Grand-Am racecar driver Henri Zogaib has been arrested and jailed in Florida for the felony crime of organized fraud, the Florida Department of Law Enforcement (FDLE) said.

    Once known for living large, Zogaib, 36, of Longwood, Fla., is listed as an inmate in the Lake County Jail. His bail was set at $100,000.

    He is accused of stealing “approximately $5.1 million from 19 different victims across the country who had invested their money with Zogaib through his company, Executive Investment Group,” police said.

    Among the victims were fellow racecar drivers.

    The crime of organized fraud, also known as the Florida Communications Fraud Act, is a felony in Florida that may carry a maximum prison term of 30 years.

    “Zogaib would convince potential investors to commit funds to the investment with the promise of large returns,” authorities said. “[He] supplied investors with documentation that demonstrated significant financial growth on their investments with the suggestion that the funds be reinvested for further financial gain. Investors eventually discovered that their money had never been invested and Zogaib had instead taken the money for his own personal use.”

    The arrest culminated a joint investigation by FDLE, the Volusia County Sheriff’s Office and the Daytona Beach Police Department into allegations that Zogaib operated an organized Ponzi scheme, authorities said.

  • While Asking Members To Input License-Plate Numbers And Citing U.S. Based AMBER Alert In Promos, Data Network Affiliates Lists Domain-Registration Address In Cayman Islands

    UPDATED 2:37 P.M. ET (March 5, U.S.A.) If the United States or any U.S. based police agency were to purchase database entries from Data Network Affiliates (DNA), the government and the agencies would be purchasing information from a company that uses a Cayman Islands address.

    Even as it suggests the U.S.-based AMBER Alert program is wasting taxpayers’ money and encourages U.S. residents to write down the license-plate numbers of their neighbors for entry in a database, DNA is using a service in the Cayman Islands to keep the registration data of its domain name hidden.

    The street address in the registration data is used by an untold number of businesses, including porn sites and malware sites, according to Google search results. On May 4, 2009, President Obama specifically cited the Cayman Islands in remarks on his initiative to combat offshore tax fraud.

    Using capital letters on its website, DNA said the U.S.-based AMBER Alert system had recovered “ONLY” 492 abducted children, saying “DNA could help in such safe recoveries at a fraction of cost of Amber Alert.” Meanwhile, a DNA pitchman in a conference call questioned AMBER Alert’s effectiveness, even as DNA was using an address in the Cayman Islands.

    “I’m pretty sure you heard of AMBER Alert,” he said. “It saved over 497 people. But guess what? AMBER Alert, I think, costs about over $100 million a year or some kind of astronomical number.”

    The same pitchman also has suggested that U.S. church parking lots and the parking lots of giant retailers such as U.S.-based Walmart were places DNA members could harvest license-plate numbers for entry in DNA’s database.

    Why the company chose a Cayman Islands address for its website is unclear. Also unclear is why DNA would at once criticize AMBER Alert while repeatedly using its name to generate business for a company that lists its address as George Town, Grand Cayman, the capital city of the Caribbean nation in the British West Indies.

    AMBER Alert is managed by the U.S. Department of Justice. Its secondary program is managed by the U.S.-based National Center for Missing & Exploited Children.

    Like Narc That Car — another company that is urging members to write down license-plate numbers — the DNA pitchman implored prospects to view the company as an excellent tool for “law enforcement.”

    “We’ll be able to reunite families,” he said. He did not reference the Cayman Islands domain registration in his pitch.

    DNA says it has an “Executive Power Team,” identifying Dean Blechman as its chief executive officer, board chairman and founder.

    “In the early 1990’s Mr. Blechman served as Director and Board Member of the National Nutritional Foods Association (NNFA),” DNA says on its website. “Mr. Blechman was a key strategist and lobbyist for the NNFA and was influential in the team that was responsible for the passage in 1994 of the Dietary Supplement Health and Education Act through the United States Congress and Senate. This bill still stands today as one of the most important pieces of legislation in the Health Food and Natural Food Supplement Industry.”

    Troy Dooly, a multilevel-marketing (MLM) aficionado who runs the MLM Help Desk website, issued a Scam Alert on DNA yesterday. Dooly’s Scam Alert followed on the heels of an earlier one he issued for Narc That Car, which is the subject of an inquiry by the BBB in Dallas and an inquiry by the district attorney of Henderson County, Texas.

    “Data Network Affiliates aka DNA makes Narc That Car look like saints,” Dooly said on the MLM Help Desk website.

    Meanwhile, MLM aficionado Rod Cook, who was threatened with lawsuits for publishing information on AdSurfDaily, which later was implicated in a $100 million Ponzi scheme, also has labeled Narc That Car a scam.

    Narc That Car is “one of the cutest pyramid tricks ever pulled!!!!” Cook exclaimed on his MLM Watchdog website.

    Separately, a You Tube site featuring a Jeff Long video for Narc That Car in which Long informs viewers that he recorded 100 license-plate numbers for Narc That Car on his iPhone as he strolled though a Walmart parking lot, now says that he has jumped ship to DNA.

    In the Narc That Car video, Long said he collected so many license-plate numbers at Walmart that he could give some way to Narc That Car prospects, perhaps even enough for them to qualify for a $55 payout without leaving home.

    Long, though, now has turned sour on Narc That Car, according to a screaming message on the YouTube site.

    “This video talks about NARC That Car,” a message on the YouTube site says. “IF YOU ARE PLANNING ON MARKETING THIS BUSINESS ON THE INTERNET DO NOT JOIN!!!!! NarcThatCar CANCELED AND DISABLED My distributorship because I put this video YouTube…I’m now the #1 leader and sponsor in their BIGGEST COMPETITOR’S BUSINESS…DataNetworkAffiliates. Again…don’t join NarcThatCar if you plan on marketing on the internet!!!!!! JOIN DNA WITH ME FOR 100% FREE!”

    Long’s name was referenced in a recent DNA conference call.

    In other Narc That Car news, promoter “Jah” says he has received a check for $70 from Narc That Car.

    Jah, who says he has a Narc That Car team of 100 members, posted a video of the check on YouTube.

    In May 2009, Obama announced a crackdown on offshore fraud. On the same date — May 4 — the AdViewGlobal autosurf announced it had secured a new international wire facility. AVG crashed and burned in June 2009. The company it identified as its facilitator — KINGZ Capital Management Corp. (KCM) — later was banned by the National Futures Association (NFA) amid allegations that it failed to uphold high ethical standards and failed to supervise its operations.

    NFA’s specific ban on KCM centered on Minnesota Ponzi scheme figure Trevor Cook, who allegedly managed a KCM investment pool. Cook is one of two central figures in an alleged Ponzi scheme and financial fraud involving at least $190 million. The other central figure is Pat Kiley, a former host on Christian radio.

    Promotions for Narc That Car have appeared on the former Golden Panda Ad Zone forum, now known as the Online Success Zone. A pitch for DNA also appears on the site, as well as a promoter’s link to DNA conference calls.

    Golden Panda was implicated in the alleged AdSurfDaily Ponzi scheme.

    At least three promos for Narc That Car and DNA have appeared on the former Golden Panda forum in recent days. One of the promos for Narc That Car was deleted. Two remain: one for Narc That Car, another for DNA.

    “UPDATE: D.N.A – FREE Method of Earning GOOD Money…Just surpassed 19,000 Members and Climbing,” says the headline in the DNA promo on the former Golden Panda site.

  • EDITORIAL: Private Big Brothers Meet The Stepford Children; Armed With Paper, Pen And Video Cameras, MLM Army Coming To A Neighborhood Near You

    The probability of a public-relations backlash with Narc That Car and Data Network Affiliates (DNA) is high. Promotions for the companies have been both bizarre and reckless. The cheerleading has been downright creepy. Some local media outlets are beginning to pay attention. It quickly could become fodder for Larry King, Bill O’Reilly, Jay Leno, David Letterman and Oprah.

    A Story With Worldwide Interest Born For TV And Tabloids

    Few things make better TV fodder than a real-life “Big Brother” story, perhaps especially if Big Brother’s Army isn’t led by the government and consists of thousands and thousands of civilian commanders and Stepford children.

    This particular MLM story also is born for newspapers, including the tabloids. If the story makes its way into Europe, the headlines will suggest Americans would sell their grandmothers into hucksterism if it meant trading in the reliable old Ford for a flashy BMW.

    People in the news business know that news is man bites dog, not the other way around. The story of Narc That Car and DNA is man bites dog — and perhaps man bites himself. The man is interesting simply because he’s American. Man bites himself is one of the great themes of literature and tabloid journalism. Tabloid editors love it when the man biting himself is an American.

    MLM, which already has a bad reputation, has hit a new low. Internet marketing, which already has a bad reputation, has hit a new low. Ladies and Gentlemen, the private Big Brothers of America have met the Stepford Children. Together they’re coming to a neighborhood near you.

    Here, in italics (below), is the promoters’ cheerleading strategy — in condensed form. Whether or not it’s condoned at the corporate level is virtually meaningless. Why? Because the Stepford army already is in motion, and it is doing what the Stepford army does: Recruiting other Stepfords — money Stepfords — Stepfords who behave reflexively on cue, have no sense of PR or propriety and will do anything if money is involved. The Stepfords are biting themselves at this very moment.

    Narc That Car and DNA are coming to a neighborhood near you. Drop whatever you’re doing. Start writing down the license-plate numbers of your neighbors. Go to the supermarket parking lot or the Walmart parking lot and start writing down the plate numbers of store patrons (your neighbors).

    Don’t seek the express consent of the retailers to use their parking lots and the plate numbers of their patrons as your information goldmine and secret pathway to personal riches. No one has to know what you’re doing. Enter the information in a web-accessible database the companies provide for a fee or put it in the mail and let the companies enter the information.

    “You write them (license-plate numbers) down,” said a Narc That Car promoter on You Tube. “You take pictures of them, which is what I just did on my iPhone. I just walked down the aisle at Walmart and snapped like 100 cars, literally, on my way into Walmart.

    “And I parked in the very back, and I just walked and snapped a bunch of pictures as I was walking. I was already going in anyway, so it didn’t take me any more time and effort, and I got a little bit more exercise than I [would] have,” the promoter said. “So, it’s a win-win. So, hey, you got a weight-loss opportunity here, too. [Laughing.] You’ll walk and you’ll lose weight, and you’ll have lots of money.”

    Now, back to the cheerleading strategy . . .

    Recruit people (your family, friends, neighbors and online contacts) to do the same. Suggest they are helping AMBER Alert or law enforcement by joining these MLM companies. Tell them how bad the economy is and how bad the bad guys are. Tell them you have the solution for the bad economy and a tool that gives the bad guys a one-way ticket to jail. Imply that joining Narc That Car or DNA is like performing a public service. Perhaps put an ad on craigslist that suggests you’re part of a community “watchdog” program.

    “Get Paid to be a watchdog in your community . . .” a craigslist ad for Narc That Car prompted last week.

    One Narc That Car promoter claimed the purpose of the program was “To help The US Dep’t of Homeland Security find terrorists.” Another claimed, “We are backed by the better business bureau, the F.B.I., and the Amber Alert system . . . ” Yet another claimed, “A company out of Dallas needs to grow a data base of license plates to use for Amber Alerts and other reasons.”

    The U.S. Department of Justice, which oversees AMBER Alert, said Narc That Car was in “no way affiliated” with the AMBER Alert system. So did the National Center For Missing & Exploited Children, which administers AMBER Alert’s secondary distribution program. The Better Business Bureau has opened an inquiry into the company’s business practices and compensation plan. The FBI, an arm of the Justice Department, has not endorsed Narc That Car.

    Now, back to the cheerleading strategy . . .

    Make sure you emphasize that there are no “barriers” to entering the “business.” Startup costs are low or nonexistent. This will help you get poor people or people in the shackles of poverty in your downline. Suggest the programs are the cure for the high unemployment rate and that you’re doing your part for America by helping put people to work. Appeal to the patriotism of your prospects. Tell them they’re helping the Department of Homeland Security find terrorists.

    Drop a few names of prominent people — living or dead — in your promos or conference calls. Names such as Tim Russert, Donald Trump and Oprah work well, even if they are not involved in the programs. By namedropping, you can leech off the brands of famous people and companies and create credibility by osmosis.

    In recent DNA conference calls, the names of Russert, Trump and Oprah all were dropped. So was AMBER Alert’s name. So was the name of “law enforcement.” One promoter suggested AMBER Alert was wasting taxpayers’ dollars.

    “I’m pretty sure you heard of AMBER Alert,” he said. “It saved over 497 people. But guess what? AMBER Alert, I think, costs about over $100 million a year or some kind of astronomical number. Don’t quote me on the figures here, but it saved some lives. But the system we have in place. I want you to imagine if your daughter . . .”

    The DNA promoter then asked listeners to imagine loved ones being “kidnapped” and “molested” and “raped” — with Data Network Affiliates providing the tool to track down the kidnappers and molesters and rapists.

    In a separate DNA call, the promoter suggested that church parking lots were good places for DNA members to record license-plate numbers. Walmart, too.

    Major retailers put the address of their stores “right on the receipt,” making it easy for DNA members who are shopping in the stores to enter the information in DNA’s database after they write down plate numbers in the parking lot,” the promoter said.

    “You walk into the parking lot,” he said. “Guess what? You have vehicles all over the place. You can easily jot down 20 or 30 of them, literally in five or 10 minutes.”

    He did not say if DNA members were required to obtain the permission of church pastors to record the plate numbers of congregants or retailers such as Walmart to record the plate numbers of patrons.

    The promoter, however, did say that 100 million license plates entered into the DNA database could become “the equivalent of just about $1 billion” in potential revenue for DNA.

    Meanwhile, on DNA’s website, the company was saying this:

    “ONLY 492 children Since (sic) 1997, has the AMBER Alert program been credited for safe recovery. DNA could help in such safe recoveries at a fraction of cost (sic) of Amber Alert… If DNA help (sic) save ONE MORE CHILD it’s worth it? (sic).”

    The same sales message said, “Our mission is to turn data into dollars.”

    Now, back to the cheerleading strategy . . .

    Create an “exciting” atmosphere. Talk about how “excited” you are. Suggest people can get rich, then backpedal, explaining that you wouldn’t want people to get the wrong impression. Throw your line in the water, but reel it back quickly. You don’t want people to see themselves as the fish; you want them to see themselves as the fishermen.

    Create (perhaps) some boilerplate language that explains all Narc That Car and DNA members are independent contractors required to follow the law. Don’t let your downline give the practical realities a moment of thought — things such as whether permission to record plate numbers needs to be obtained, what to do if a store manager or patron calls the police, whether promoters need solicitors’ licenses from local jurisdictions, whether a promoter working as an independent consultant should increase his or her insurance protection or secure a bond against potential claims, what to do if promoters are confronted by retail managers, patrons or police, whether the paper on which they’re recording license numbers needs to be preserved, whether the video on which they’re recording plate numbers needs to be preserved and how they’re supposed to behave if challenged.

    Keep them focused on the money and how excited you are. Tell them you barely can sleep. Don’t mention Big Brother. Don’t even suggest other people would be apt to view acquisition of plate numbers on private property as an untenable invasion of privacy. Keep them focused on the money and on AMBER Alert.

    And, by all means, don’t even suggest there is anything Stepfordian about doing what you’re told without asking any questions: Just do it. Explain that the people who ask questions and raise issues of propriety, safety and legality are naysayers and malcontents and “haters.”

    Never imagine that a TV reporter or a newspaper reporter or a tabloid reporter is going to stick a microphone in your face and ask why you’re writing down license-plate numbers in a supermarket parking lot and trading off AMBER Alert’s name to build a database for the repo man or another customer who could monitor the whereabouts of your car and your neighbor’s car even if you aren’t suspected of murder, kidnapping, molestation or rape. Don’t concern yourself with mundane issues such as who has access to the database and whether any of your fellow plate-number recorders are criminals themselves.

    Whatever you do, don’t imagine your neighbors expressing shock and outrage and having bitter expressions on their faces. If confronted, tell them you’re writing down license-plate numbers to make America a better, safer place.

    And tell them they’re free to join, and might even want to consider registering a .org domain with a pitch that begins, “Help us.”

  • DATA NETWORK AFFILIATES: Pitchman For License-Plate Database Cites AMBER Alert, Walmart, Church; Company Website Suggests AMBER Alert Falling Short On Child-Recovery Mission

    EDITOR’S NOTE: We have been experiencing intermittent website disruptions this morning and are working to resolve the problem. It’s not immediately clear how long it will take to fix the problem, which is causing the site to go down periodically and the database connection to time out. Our apologies.

    A pitchman for Data Network Affiliates (DNA) suggested church parking lots, supermarkets and Walmart were rich targets for members of the multilevel-marketing (MLM) company, which is soliciting prospects to write down license-plate numbers for entry in a database.

    Meanwhile — in a sales message on DNA’s website — the company suggested AMBER Alert was falling short in its efforts to recover abducted children and that DNA could help the famous national and state alert system recover abductees for less money.

    “ONLY 492 children Since (sic) 1997, has the AMBER Alert program been credited for safe recovery,” the DNA website said on its main page. “DNA could help in such safe recoveries at a fraction of cost (sic) of Amber Alert… If DNA help (sic) save ONE MORE CHILD it’s worth it? (sic).”

    The same sales message said, “Our mission is to turn data into dollars.”

    DNA, which says it is launching Feb. 16 and already has recruited thousands of people to record plate numbers, operates a business similar to Narc That Car, another MLM that recruits prospects to write down plate numbers while using AMBER Alert’s name.

    The DNA pitchman said famous retailers such as Walmart put the address of their stores “right on the receipt,” making it easy for DNA members who are shopping in the stores to enter the information in DNA’s database after they write down plate numbers in the parking lot.

    “You walk into the parking lot,” the pitchman said in a DNA conference call recorded Monday. “Guess what? You have vehicles all over the place. You can easily jot down 20 or 30 of them, literally in five or 10 minutes.”

    He did not say if DNA members were required to obtain the permission of retailers such as Walmart to record the license-plate numbers of its patrons.

    The pitchman, however, did say that 100 million license plates entered into the DNA database could become “the equivalent of just about $1 billion” in potential revenue for DNA.

    Another voice on the call said that “the press is going to pick up on this sooner or later.” Earlier, the man predicted a “million or 2 million” people would join DNA by the end of the year. He added that he was so excited that he was having trouble sleeping.

    Like Narc That Car promoters, the DNA pitchman in the conference call referenced the AMBER Alert program, imploring prospects to view DNA as an excellent tool for “law enforcement.”

    “We’ll be able to reunite families,” he said.

    The URL for the DNA was published on the old Golden Panda Ad Zone forum, now known as the Online Success Zone. Narc That Car also was promoted from the old Golden Panda Forum.

    Golden Panda is part of the AdSurfDaily Ponzi scheme investigation.

    Narc That Car charges a fee of $100 to join and requires members to submit 10 license plates monthly. DNA charges no fee and requires members to submit 20 license plates monthly. Web records suggest that some people promoting Narc That Car also are promoting DNA.

    Listen to the DNA conference call.

    See this report on Narc That Car on NBC 5 in Dallas/Fort Worth.

  • Receiver In Allen Stanford Ponzi Case Says Politicians Have Not Returned More Than $1.8 Million In Tainted Contributions

    Political groups and politicians have not returned more than $1.8 million in tainted campaign donations received from entities and individuals linked to the alleged Allen Stanford Ponzi scheme, according to the court-appointed receiver in the civil case against Stanford.

    Ralph Janvey, the receiver, said only $87,800 had been returned by politicians. Letters requesting the money be returned went out 11 months ago.

    The donations were linked to Stanford personally, Stanford International Bank Ltd., Stanford Group Co., Stanford Capital Management LLC, and Stanford executives James M. Davis and Laura Pendergest-Holt and certain entities they own or control, Janvey said.

    Here is a list of donations that have not been returned. (The numerals are dollar amounts):

    950,000 Democratic Senatorial Campaign Committee
    238,500 National Republican Congressional Committee
    202,000 Democratic Congressional Campaign Committee
    128,500 Republican National Committee
    83,345 National Republican Senatorial Committee
    25,000 Rangel Victory Fund
    10,000 New Jersey Democratic State Committee
    10,000 Representative Pete Sessions (R-TX)
    6,600 Representative Gregory Meeks (D-NY)
    6,100 Senator Bill Nelson (D-FL)
    5,000 Americans for a Republic Majority PAC
    5,000 Delegate Donna Christensen (D-USVI)
    5,000 Representative Charles Gonzalez (D-TX)
    5,000 KPAC (affiliated with Senator Kay Bailey Hutchinson of Texas)
    5,000 Lone Star Fund
    5,000 Representative Charles Rangel (D-NY)
    5,000 Senator Roger Wicker (R-MS)
    4,600 Senator Barack Obama (D-IL) (presidential campaign)
    4,550 Representative Dan Maffei (D-NY)
    4,000 Senator John Cornyn (R-TX)
    4,000 Senator Patty Murray (D-WA)
    4,000 Representative Richard Neel (D-MA)
    4,000 Senator Charles Schumer (D-NY)
    3,300 Representative Pete Olson (R-TX)
    3,300 Representative Charles Rangel (D-NY)
    3,000 Representative James E. Clyburn (D-SC)
    3,000 Representative Rahm Emanuel (D-IL)
    3,000 ERICPAC
    3,000 Leadership PAC 2006
    2,550 Representative Eric Massa (D-NY)
    2,550 Representative Mike McMahon (D-NY)
    2,500 Senator Richard J. Durbin (D-IL)
    2,500 Freedom Fund
    2,500 Representative Timothy Johnson (R-IL)
    2,500 Representative Paul Kanjorski (D-PA)
    2,500 Senator Mary Landreiu (D-LA)
    2,500 Representative John Lewis (D-GA)
    2,500 Senator Mitch McConnell (R-KY)
    2,500 National Leadership PAC
    2,500 Representative Adam Putnam (R-FL)
    2,500 Senator Gordon Smith (R-OR)
    2,500 Former Senator John Sunnunu (R-NH)
    2,500 Representative John Tanner (D-TN)
    2,500 Representative Bennie Thompson (D-MS)
    2,300 Representative John Boccieri (D-OH)
    2,300 Representative Deborah Halvorson (D-IL)
    2,300 Senator John McCain (R-AZ)
    2,300 Olson-Texas Victory Committee
    2,300 Senator Roger Wicker (R-MS)
    2,100 Senator Orrin Hatch (R-UT)
    2,000 Representative Spencer Bachus (R-AL)
    2,000 Senator Evan Bayh (D-IN)
    2,000 Reprsentative Kevin Brady (R-TX)
    2,000 Representative Vern Buchanan (R-FL)
    2,000 Representative Dave Camp (R-MI)
    2,000 LEADPAC
    2,000 Representative Ileana Ros-Lehtinen (R-FL)
    2,000 Representative Lamar Smith (R-TX)
    2,000 Representative Patrick Tiberi (R-OH)
    1,500 Representative Charles Boustany (R-LA)
    1,500 Representative Sam Johnson (R-TX)
    1,500 Representative Peter King (R-NY)
    1,500 Representative Kendrick Meek (D-FL)
    1,000 Representative Joe Barton (R-TX)
    1,000 Senator Max Baucus (D-MT)
    1,000 Senator Maria Cantwell (D-WA)
    1,000 Representative Shelley Moore Capito (R-WV)
    1,000 Representative Steve Cohen (D-TN)
    1,000 Former Senator Elizabeth Dole (R-NC)
    1,000 Senator Byron L. Dorgan (D-ND)
    1,000 Representative Michael McCaul (R-TX)
    2,000 Representative Donald Payne (D-NJ)
    1,000 Senator Pat Roberts (R-KS)
    500 Representative Steve Cohen (D-TN)

    TOTAL NOT RETURNED: $1,825,495

    Here is a list of donations that have been returned. (Dates returned included. Numerals are dollar amounts):

    03/24/09 14,000 Shelby for US Senate
    03/24/09 1,000 Barney Frank for Congress Committee
    03/24/09 4,000 Arcuri for Congress
    03/24/09 2,000 Neugebauer Congressional Committee
    03/24/09 1,000 Marsha Blackburn for Congress
    03/24/09 8,000 Friends for Harry Reid
    03/24/09 1,500 David Scott for Congress
    03/24/09 1,000 Freedom Funds – Mike Crapo, Honorary Chairman
    03/30/09 11,500 Chris Dodd for President
    03/30/09 16,000 Friends of Chris Dodd
    03/30/09 2,500 Friends of Mark Warner
    04/03/09 2,300 Minnick for Congress
    04/03/09 2,000 Lloyd Doggett for Congress
    04/07/09 3,000 Alexander for Senate 2014, Inc.
    04/08/09 2,500 Collins for Senator
    04/23/09 5,000 Friends of Jay Rockefeller
    05/07/09 2,500 Campaign Account of Robert Wexler
    06/18/09 3,000 Mel Watt for Congress
    06/18/09 5,000 Friends of John Boehner

    TOTAL RETURNED AS OF JAN. 21, 2010: $87,800

    Stanford is accused of multibillion-dollar fraud. He is jailed in Texas.

    Campaign contributions tainted by Ponzi money also are an element of the $1.2 billion Scott Rothstein case in Florida. Records suggest that AdSurfDaily President Andy Bowdoin, implicated in an alleged $100 million Ponzi scheme, also gave political donations with tainted funds.

  • Narc That Car Promoter Sets Sights On Critics, Says He Is In ‘Real Know’ And Can Help Prospects Conduct ‘Real Legitimate Due Diligence’

    A Cash For Car Plates ad for Narc That Car was videotaped in a parking lot of the Giant Eagle supermarket chain, but did not say whether Narc That Car participants needed permission from Giant Eagle to record the license-plate numbers of patrons.

    After describing people who question the Narc That Car multilevel-marketing (MLM) program as “haters” and clever wordsmiths bent on publishing misinformation about the “opportunity,” a Narc That Car promoter now says a conference call will be held to “share the actual facts.”

    The call will be conducted on Feb. 14 — Valentine’s Day, according to Jah, who runs the Cash For Car Plates Blog and reports he has a Narc That Car downline “team” of more than 100 members.

    Jah posted the URL for his Cash For Car Plates pitches on the PP Blog. Ownership data for the Cash For Car Plates web domain, an affiliate site that promotes Narc That Car, suggests the site is owned by Ohio resident Ajamu Kafele.

    A man by the same name, in the same Ohio county and city and at the same street address listed in the Cash For Car Plates domain-registration was charged civilly earlier this decade with practicing law without a license. Jah has neither confirmed nor denied he is the same person.

    The Ohio Supreme Court ruled in 2006 that Ajamu Kafele had engaged in the unauthorized practice of law in a banking and mortgage-foreclosure case involving a third party, and assessed him a $1,000 civil penalty.

    Kafele was enjoined by the Supreme Court from further unauthorized practice of law.

    “Respondent’s misguided attempts to represent Divine Endeavors, L.L.C., illustrate why the practice of law must be strictly limited to licensed attorneys,” the Supreme Court ruled. “The practice of law is exacting even with the required legal and ethical training, and the legal system cannot adequately safeguard the public’s interest unless it assures a core level of professional competence and integrity.”

    Cash For Car Plates argued on the PP Blog that the Narc That Car program was perfectly legal.

    “The fact is that if google maps can establish a video feed of your public information address and zoom in to your front door, one can definitely obtain open public display of license plates for the purpose of building a national database for multiple beneficial purposes,” Cash For Car Plates said. “Heck we are all being filmed in our cars by video cameras around the cities of America, some that can get snap shot of your face while in the car.”

    After asserting he provided Narc That Car “training” and claiming to “Truly Know” the Narc That Car program, Cash For Car Plates declined to answer several questions posed by the PP Blog about the propriety, safety and legality of the Narc That Car program.

    Cash For Car Plates said he was not “getting into back and forth meaningless arguments,” accusing critics of  “spreading clear ‘hate’ for this business.”

    Here are some of the questions we posed:

    • Do Narc That Car members need the permission of store managers [such as managers of Walmart, Best Buy and Giant Eagle] to record the plate numbers of patrons?
    • How should Narc That Car promoters behave if confronted by a store manager or patron?
    • Who posts bond for a Narc That Car “independent consultant” if he or she gets arrested for defying a private-property owner’s policies, procedures or orders?
    • Should Narc That Car consultants refuse to turn over the paper on which the license numbers are recorded or the video camera or the cell phone on which the license numbers were recorded if approached by the store manager or a concerned patron?
    • What should a Narc That Car promoter do if a store manager or store patron observes license-plate numbers being recorded and says, “Stop that! I’m calling the police?”
    • What should a Narc That Car promoter do if a store manager or patron asks for identification? Flee? Provide it? Argue? Insist they’re authorized to appear on private property and in parking lots maintained by retailers such as Giant Eagle because they’re authorized to do so by Narc That Car or a Narc That Car downline group?
    • Should Narc That Car promoters destroy the papers on which they’ve recorded the plate numbers after entering them into the Narc That Car database? How about the videos? Should they be destroyed?
    • What if the papers and the videos later are needed for evidence and have been destroyed? Should Narc That Car promoters preserve records of all the license plate numbers they record?
    • Does your opinion about Google cover all contingencies? Can it beat back all potential challenges? Is it even valid?

    The Cash For Car Plates Blog now says a conference call will be conducted.

    “There are a several apparent network marketing would be scam alert sites and blogs spreading incomplete, inaccurate and/or mis-information, and seemingly slanderous claims about the Grand Narc That Car opportunity,” according to the Cash For Car Plates Blog.

    “We want to share the actual facts and provide you with Real legitimate due diligence answers to your questions to make it clear that this is the Right opportunity to be involved with here and now!”

    The Cash For Car Plates Blog does not explain how it is possible to conduct “real due diligence” on a company that does not publish financial data.

    Still, the Cash For Car Plates Blog insists it’s important that Narc That Car members “Get information from people who are in the real ‘know’ about Narc That Car and not those that want to just drive traffic to their sites in an attempt to claim to be ‘helping’ people.”

    Visit the Cash For Car Plates Blog. See our earlier story on a Cash For Car Plates video for Narc That Car made in the parking lot of a Giant Eagle supermarket. Visit a Scam.com discussion thread on Narc That Car. Visit a Work-At-Home-Forum thread on Narc That Car.

  • Feds Charge Husband And Wife In Alleged Work-At-Home Scheme; Philip Pestrichello Is Recidivist Offender

    EDITOR’S NOTE: Recidivism, the tendency to continue committing crimes or breaking laws even after getting caught and perhaps even going to prison, is a common theme in the scam universe. It has been an element in many recent cases we’ve written about, including the AdSurfDaily Ponzi scheme case (principals Andy Bowdoin and Clarence Busby had previous run-ins with securities regulators); the Frank Constantino securities-fraud case (Constantino had previous run-ins with securities regulators in Georgia and Missouri); the Edmundo Rubi foreclosure-rescue case (Rubi had a previous conviction in a Ponzi/pyramid case and spent time in federal prison).

    Meanwhile, it has been an element in the Philip R. Lochmiller Ponzi scheme case (Lochmiller previously was sentenced to three years in a California state prison for a fraud scheme); the Kenneth W. Lee Ponzi scheme case (Lee spent five years in a Texas prison in a previous fraud scheme and also had a $3 million judgment against him); the Thomas L. Labry securities-fraud case (Labry had been ordered by five states to cease and desist from selling unregistered securities); the Brian David Anderson Ponzi scheme case (Anderson was linked to multiple fraud schemes and clashed with law enforcement in the United States and Canada); the Bruce Namenson mortgage-fraud case (Namenson, formerly an attorney, already was in jail for an insurance scam when charged in the mortgage case); the Troy A. Titus Ponzi scheme case (Titus, a former attorney, was disbarred for writing bad checks for huge amounts before his Ponzi scheme conviction).

    At the same time, recidivism has been an element in the Trevor Cook Ponzi and financial-fraud case (Cook had a run-in with the National Futures Association before his spectacular run-in with the SEC and the CFTC);  and the Arthur Nadel Ponzi scheme case (Nadel, a former attorney, was disbarred decades ago amid allegations he raided client funds to pay off loan sharks).

    There are other recent examples, of course.

    Here is a new one . . .

    A New Jersey man implicated in fraud schemes dating back to the early 1990s has been arrested in a new, work-at-home fraud scheme, federal prosecutors said.

    Part of the scheme centered on telling participants that the companies involved had good reputations and weren’t shady, “get-rich-quick” schemes, prosecutors said.

    Philip Pestrichello, 38, of Bayville, N.J., is a recidivist offender who served three years in federal prison after being convicted in 2003 of mail fraud in a work-at-home scheme known as “IMXT & Co.”

    Pestrichello was on supervised probation when he hatched his new scheme — for which his wife, Rosalie Florie, 38, also was arrested. Prosecutors said the husband-and-wife team collected more than $1 million, operating the scheme through entities known as “Preferred Platinum Services Network LLC” ;”PPSN LLC”; “Home Based Associate Program;” and “Postcard Processing Program.”

    “Work-at-home scams prey on some of the most vulnerable in our society — the economically disadvantaged, the unemployed, the disabled, and the elderly — who are trying to supplement their income by working from home,” said U.S. Attorney Preet Bharara.

    Bharara assigned the Complex Frauds Unit to the case. The FTC and the U.S. Postal Inspection Service also are playing pivotal roles.

    Pestrichello’s post-prison scheme began in June 2007, prosecutors said.

    Consumers were duped into sending money to Pestrichello and Florie “under the pretense that the consumers were enrolling in a program that would allow them to earn income at home,” prosecutors said. “In fact, the consumers typically got nothing in return for their payment.”

    The scheme operated though the U.S. mail, the Internet and classified ads. Participants
    were charged what they believed to be “one-time” enrollment fees of up to $90 and promised “the opportunity to earn a ‘weekly paycheck’ by labeling postcards that advertised a product called the ‘Mortgage Accelerator Program,’” prosecutors said.

    Consumers were told they could earn $1 for each postcard they labeled, but the story changed after they sent their money.

    “[A]fter consumers paid their enrollment fee, they were asked for more money to remain in the program,” prosecutors said. “Typically, consumers learned for the first time after paying the enrollment fee that they had to pay an additional fee, usually $40, for a new batch of 100 postcards for processing.”

    To keep the scheme churning, prosecutors said, the scammers pressured participants “to return their first set of labeled postcards ‘within 5 days’ or risk delays with their paychecks.

    “This caused many consumers to send in money for second and third batches of postcards before they received payment for the first batch,” prosecutors said. “By the time they realized they were not receiving any paychecks at all from PPSN, many consumers had already sent PPSN between $150 and $350.”

    Among the advertising claims were (italics added):

    “Would you like an opportunity to earn a $475 check from home processing Mortgage Products Postcards for our company?”

    “EARN $1.00 PER POSTCARD”

    “Rest assured, this is NOT a gimmick or some shady ‘get rich quick scheme.’ Our company has a rock-solid reputation . . . As one of our Home Based Associates you could earn $1.00 (one-dollar) for each Postcard you process and we conveniently offer you weekly
    compensation directly by Company Check each Friday.”

    “The vast majority of consumers ultimately received no money at all, after paying the up-front fee and labeling and returning the postcards as instructed,” prosecutors said. “Even those few individuals who were paid did not receive anything near the promised payments of $1.00 per postcard.”

    And, prosecutors asserted, the rules continued to change, thus putting consumers in the impossible position of clinging to the program in an effort to get back the money they paid in.

    “After consumers complained to PPSN that they did not receive the weekly paycheck, they either received no response from the company or were then told, contrary to PPSN’s earlier representations regarding the operation of the program, that the program was a ‘commission’ program, and that they would receive a commission only if and when the postcards they sent out generated a sale on the ‘Mortgage Accelerator’ product advertised in the postcards,” prosecutors said.

    “In fact, the Mortgage Accelerator Program itself appears to have been a sham, non-existent product,” prosecutors continued. “Although the work-at-home program was marketed as offering a ‘100% Satisfaction Policy’ guaranteeing consumers a refund in the event they are not fully satisfied with the program, refunds were rarely, if ever given. If a refund was in fact given, it was typically only after a consumer had complained to law enforcement authorities.”

    Pestrichello was in repeated trouble even prior to his 2003 criminal conviction, prosecutors said.

    “Between 1992 and 2002, Pestrichello was the subject of numerous enforcement actions by the New Jersey Division of Consumer Affairs, the Office of the Attorney General in the State of Florida, and the FTC, in connection with his operation of other consumer fraud schemes. Those actions resulted in permanent injunctions barring Pestrichello from engaging in the type of conduct and business alleged in the Complaint.”