PatrickPretty.com

Category: Ad Surf Daily

  • 2 Days After Judge Cites Specific Web Domain And Declares Kenneth Wayne Leaming Filing ‘Undecipherable,’ PP Blog Receives Would-Be Comment With Link To Page That References Same Domain And Case Against Different Purported ‘Sovereign’

    ponziblotterOn Feb. 13, the PP Blog reported that a federal judge who was quoting from a pleading by AdSurfDaily figure and purported “sovereign citizen” Kenneth Wayne Leaming had referenced a domain styled peoplestrust1776.org.

    U.S. District Judge Ronald B. Leighton declared Leaming’s filing, which apparently cited the Uniform Commercial Code (UCC), “undecipherable.” The judge exempted prosecutors from responding to a series of recent bizarre pleadings from Leaming, who is jailed near Seattle on charges of filing false liens against public officials in the AdSurfDaily Ponzi case. Leaming, 57, also is accused of other crimes.

    Like other purported “sovereigns,” the judge observed, Leaming is “fascinated” by capital letters.

    Some “sovereign citizens” appear to believe that pleadings that include capital letters or make UCC claims provide defenses or remedies for everything from murder charges to charges of targeting public officials in harassment campaigns.

    Less than two days after the PP Blog published its most recent story about Leaming’s strange defense efforts in the Western District of Washington, the Blog received a would-be comment it is treating as spam because it purported to be in response to a reader who left a comment on the PP Blog nearly two years ago on a different subject. Received at 2:55 a.m. ET today, the unpublished, would-be comment included a link to a post on a Blog whose URL was formed in part with the words “the-full-details-of-kidnapping-of.”

    One had to visit the site to determine who allegedly was kidnapped.

    The PP Blog visited the link and found a post about Patrick Cody Morgan, a purported Texas “sovereign” who was convicted last year of conspiracy and nine counts of bank fraud in a real-estate swindle involving repeated bids to scam residential mortgage lenders and FDIC-insured banks between 2004 and 2007. The scam involved “trust accounts” and “straw buyers,” prosecutors said. The PP Blog wrote about the Morgan convictions on Nov. 2, 2012. No readers left comments in the thread below the story.

    In any event, the would-be commentator apparently wants to generate discussion about the Morgan case and to enlist support for Morgan. Notably, the spammed link received by the PP Blog includes references to the same peoplestrust1776.org domain Leaming cited in an apparent defense bid in his criminal case.

    Content on the site whose post link was spammed to the PP Blog overnight appears to be designed to paint government officials or agencies involved in the Morgan case as “the Accused.” Apparently among the purported “Accused” are U.S. Attorney General Eric Holder, FBI Director Robert Mueller, U.S. District Judge Lynn N. Hughes of the Southern District of Texas and others. The site also published florid legalese attributed to Morgan that, like Leaming’s prose, made liberal use of capital letters.

    Legalese attributed to Morgan asserts he is “Patrick-Cody: Family of Morgan”; Leaming’s legalese asserts he is “Kenneth Wayne, born free to the family Leaming.”

    Some “sovereigns” appear to believe that using exceptionally formal prose, capital letters and/or specific forms of punctuation in court filings somehow provide for a winning defense.

    Leighton characterized Leaming’s prose as “gobbledygook.”

    Morgan — in his apparent defense — appears to claim he was the victim of criminals working for the government. Leaming has made similar arguments in Washington state.

    Precisely what role, if any, peoplestrust1776.org is playing in the Morgan and Leaming cases is unclear.

     

  • JUDGE: ‘All The Fancy Legal-Sounding Things’ ASD Figure Kenneth Wayne Leaming ‘Has Read On The Internet Are Make-Believe’

    “The Court therefore feels some measure of responsibility to inform [Kenneth Wayne Leaming] that all the fancy legal-sounding things he has read on the internet are make-believe. Defendant can call himself a ‘public minister’ and ‘private attorney general,’ he may file ‘mandatory judicial notices’ citing all his favorite websites, he can even address mail to the ‘Washington Republic.’ But at the end of the day, while sovereign citizens and Defendant cite things like ‘Universal Law Ordinances,’ they are subject to both state and federal laws, just like everyone else.” —  U.S. District Judge Ronald B. Leighton, Feb. 12, 2013

    Kenneth Wayne Leaming
    Kenneth Wayne Leaming

    A federal judge in the Western District of Washington has issued an order exempting prosecutors from responding to wild assertions made by AdSurfDaily figure and purported “sovereign citizen” Kenneth Wayne Leaming.

    Like other purported “sovereigns,” Leaming is “fascinated by capitalization,” Judge Ronald B. Leighton said in the Feb. 12 order.

    In a recent filing, the judge said, Leaming used the word “REGISTRY” in all uppercase in a pleading that was “undecipherable.” On at least five occasions during the course of the case, Leaming has filed documents that used the phrase “Mandatory Judicial Notice,” including one in which Leaming asserts he “relies in good faith on the public/commercial REGISTRY entries as published at
    www.peoplestrust1776.org, inclusive of Universal Law Ordinance, UCC #2012096074 . . . .” the judge said.

    “For lack of a better term, this is gobbledygook,” the judge said.

    Leaming also recently argued that “the REGISTERED FACTS appearing in the above Paragraph evidence the uncontroverted and uncontrovertible FACTS that the SLAVERY SYSTEMS operated in the names UNITED STATES, United States, UNITED STATES OF AMERICA, and United States of America . . . are terminated nunc pro tunc by public policy, U.C.C. 1-103 . . . .,” according to the judge.

    “He appears to believe that by capitalizing ‘United States,’ he is referring to a different entity than the federal government,” the judge said. “For better or for worse, it’s the same country.”

    And Leighton quoted again from Leaming’s filings:

    “COMES NOW, Kenneth Wayne, born free to the family Leaming, 20 December 1955, constituent to The People of the State of Washington constituted 1878 and admitted to the union 22 February 1889 by Act of Congress, a Man, ‘State of Body’ competent to be a witness and having First Hand Knowledge of The FACTS . . . .”

    Purported sovereign citizens, “like Mr. Leaming, love grandiose legalese,” the judge said, ordering that “no response is required by the Government.”

    Leaming, 57, is detained near Seattle on charges of filing false liens against government officials involved in the ASD Ponzi case. He also is accused of other crimes, including harboring fugitives, assisting others in the filing of false liens, being a felon in possession of firearms and attempting to pass a bogus “Bonded Promissory Note” for $1 million. He was arrested in November 2011 by an FBI Terrorism Task Force.

    “Sovereigns” have been known to engage in what has been described as “paper terrorism” to try to hamstring law enforcement. Some “sovereigns” have been linked to various forms of securities fraud and tax fraud.

    On Sept. 5, 2012, the PP Blog reported that an “opportunity” known as “Wealth Creation Alliance” was using a strange mix of capital letters in its communications with prospects. Whether WCA has any “sovereign” ties is unknown.

    In September, a judge in Canada deconstructed some bizarre arguments from “sovereigns” and others.

     

  • Convicted Ponzi Schemer Andy Bowdoin Of AdSurfDaily Now Listed As Inmate In Florida Federal Prison [UPDATED FEB. 8]

    EDITOR’S NOTE: This post originally was published Jan. 24 at 7:33 p.m. It was updated Feb. 8 to include this editor’s note reflecting that Andy Bowdoin now is listed as an inmate at the federal prison camp in Pensacola, Fla. (Pensacola FPC.)  The original story published Jan. 24 appears below and includes some edits to reflect the latest information . . .

    ** ____________________________________ **

    UPDATED 9:08 A.M. ET (JAN. 27, U.S.A.) Thomas Anderson “Andy” Bowdoin, the 78-year-old AdSurfDaily Ponzi patriarch, is listed today as an inmate at the Federal Correctional Institution in Tallahassee. His estimated release date is Feb. 7, 2018. [New on Feb. 8: Bowoin has been transferred to Pensacola FPC.)

    In August 2008 — after federal prosecutors in the District of Columbia initially filed civil allegations of Ponzi fraud against Bowdoin and ASD after an investigation by the U.S. Secret Service — Bowdoin was defiant. The government was “Satan,” he claimed. And he compared the Secret Service to the 9/11 terrorists.

    Bowdoin was described as a head of a “flock,” a man who had “followers.” What transpired in the years that followed was the stuff of fiction — but it was very, very real. After initially demanding an evidentiary hearing and insisting ASD’s online “program” was not a Ponzi scheme, Bowdoin did not take the stand at the hearing he requested.

    He was “too honest” to testify, explained one of his followers.

    Prosecutors had a different take: Bowdoin, they said, was a recidivist securities swindler with a felony record in Alabama from a previous fraud scheme in the 1990s. One of his business partners also was a veteran swindler who once pushed “prime bank” frauds, according to court filings.

    Other Bowdoin followers planted stories that prosecutors secretly had admitted ASD was not a Ponzi scheme but were clinging to the case in a bid to save face. One follower ventured that a prosecutor should be placed in a medieval torture rack. Another ventured that a “militia” should storm Washington.

    In the bizarre world of ASD, there were efforts to enlist public support for Bowdoin by mailing packets of Kool-Aid to Fox News host Bill O’Reilly. There was a corresponding effort to enlist support for an investigation into a Florida TV station, apparently for having the temerity to cover negative news about ASD. Some of Bowdoin’s followers also wanted to investigate then-Florida Attorney General Bill McCollum, apparently for holding the view that ASD was a pyramid scheme.

    On Sept. 11, 2008, the seventh anniversary of the 9/11 attacks, some Bowdoin followers prayed for the prosecution to be struck dead.

    By July 2010, purported “sovereign citizen” Kenneth Wayne Leaming had entered the ASD fray. He is now jailed near Seattle on charges of filing false liens against at least five federal officials involved in the ASD case: a federal judge, three federal prosecutors and the Secret Service agent who did the early investigative legwork in the case. Leaming, according to court filings, was harboring two federal fugitives from Arkansas, had tried to pass a bogus “Bonded Promissory Note” for $1 million and assisted in the filing of false liens against other federal officials in cases presumably unrelated to ASD.

    Leaming, prosecutors said, was instrumental in the founding of the so-called “County Rangers,” an armed enforcement wing for a “sovereign” group in Washington state. The “Rangers” carried fake badges, according to court filings. And when Leaming, a convicted felon, was arrested in November 2011 by an FBI Terrorism Task Force on the false-liens charges, several firearms were found.

    One of them was an “AK-47 style assault rifle with a bayonet,” according to court filings.

    afavideosmall1Bowdoin was charged criminally in November 2010, when an indictment was unsealed. By October 2011, Bowdoin was trying to sell a “program” known as OneX to the members he was accused of defrauding in the ASD case. Conference-call listeners were told they could earn $99,000 very quickly through OneX, which federal prosecutors later described as yet another fraud scheme pushed by Bowdoin.

    In May 2012, Bowdoin pleaded guilty to wire fraud, acknowledging that ASD was a Ponzi scheme and that his Florida-based firm had never operated lawfully from its inception in 2006.

    Even after Bowdoin pleaded guilty, some of his followers continued to insist that ASD was a legitimate business. Bowdoin was jailed in June 2012, after prosecutors proffered evidence that he continued to promote fraud schemes even after the Secret Service seized $80 million in the ASD case and even after he was charged criminally.

    Bowdoin spent the early days of his sentence in a District of Columbia jail. Earlier this month, he was listed as a prisoner at a federal holding facility in Oklahoma City.

    And today he apparently has arrived in Tallahassee to serve out the remainder of his 78-month term. [New on Feb. 8: Bowdoin has been transferred to Pensacola FPC.) The prison is only a short [Feb. 8 edit: roughly two-and-a-half hour] drive from Quincy, the town from which Bowdoin pulled off a $119 million Internet fraud.

  • BULLETIN: Grand Jury Returns Superseding Indictment Against AdSurfDaily Figure And Purported ‘Sovereign Citizen’ Kenneth Wayne Leaming

    americaatrisk4BULLETIN: (UPDATED 4:38 P.M. EDT U.S.A.) A federal grand jury in the Western District of Washington has returned a superseding indictment against AdSurfDaily figure and purported “sovereign citizen” Kenneth Wayne Leaming.

    It is the second superseding indictment against Leaming. The first was filed in 2012.

    The new indictment was returned yesterday, a day after the White House and the Justice Department referenced “sovereign citizens” in a policy announcement that pointed to an FBI site that defined “sovereign citizens” as “anti-government extremists who believe that even though they physically reside in this country, they are separate or ‘sovereign’ from the United States. As a result, they believe they don’t have to answer to any government authority, including courts, taxing entities, motor vehicle departments, or law enforcement.”

    Leaming is 57. His alleged onetime business colleague David Carroll Stephenson, 57, also is named in the superseding indictment. The indictment formally accuses Leaming of filing false liens against a federal judge, two former federal prosecutors and a U.S. Secret Service agent who had roles in the ASD Ponzi case. The liens were filed in August 2010 and November 2010, according to the indictment.

    Meanwhile, the indictment accuses Leaming and Stephenson of filing false liens against two U.S. prison officials in July 2011.

    Leaming, meanwhile, was further accused of harboring two federal fugitives in 2010 and of being a felon in possession of six firearms.

    At the same time, the indictment accuses Leaming of passing a bogus “Bonded Promissory Note” for $1 million in March 2008, in a bid to defraud the United States.

    Leaming and Stephenson are being held at the SeaTac federal detention center near Seattle.

    ASD was a $119 million Ponzi scheme brought down by the Secret Service in August 2008. Leaming reportedly was performing legal work for some ASD members, even though he is not an attorney.

    Leaming was arrested in Spanaway, Wash., by an FBI terrorism Task Force in November 2011. He has been jailed since then. Stephenson already was serving a federal sentence for a tax crime when Leaming was arrested.

    Leaming has an existing federal felony conviction for piloting an aircraft without a license.

  • 4 Charged Amid Allegations ‘Industrial Bleach’ Was Sold On Internet As ‘Miracle Cure’ For Flu, Arthritis And Cancer; Web Chatter References Pro Advocate Group, Same Enterprise Linked To Bizarre Claims In AdSurfDaily Saga

    A YouTube video apparently in support of “Project GreenLife” superimposes an image of FDA Commissioner Dr. Margaret Hamburg against the backdrop of a height chart -- an apparent bid to suggest that Hamburg should be booked at a police station.
    A YouTube video apparently in support of “Project GreenLife” superimposes an image of FDA Commissioner Dr. Margaret Hamburg against the backdrop of a height chart — an apparent bid to suggest that Hamburg should be booked at a police station.

    The PP Blog first told you about “Miracle Mineral Supplement,” also known as “Miracle Mineral Solution” or MMS, in August 2010. The FDA warned that serious harm could come to human beings who consumed it, saying MMS produced industrial bleach when used as directed.

    “Multiple independent distributors” sold the product online, the FDA said.

    Now, the U.S. Department of Justice has announced that four people — two from Oregon and two from Washington state — have been charged criminally.

    Named defendants were Louis Daniel Smith, 42, and Karis Delong, 38, both of Ashland, Ore. Also charged were Chris Olson, 49, and Tammy Olson, 50, of Nine Mile Falls, Wash.

    “Our most vulnerable citizens need real medicine — not dangerous chemicals peddled by modern-day snake oil salesmen,” said Stuart F. Delery, principal deputy assistant Attorney General for the Justice Department’s Civil Division.

    Smith and Delong operated a business known as “Project GreenLife” or PGL, the Justice Department said.

    A dissolved Nevada corporation known as PGL International LLC lists “Daniel Smith” as its managing member. A website styled ProjectGreenLife.com now appears to be parked at GoDaddy. Meanwhile, there are references online to ProjectGreenLife purportedly having been a “1st and 14th Amendment Private Membership Association.”

    At least one website that makes the claim makes a companion claim that Daniel Smith used “the help and counsel of the ProAdvocate Group” when contacting the FDA about MMS-related matters. “Daniel based his inquiry on a good-faith understanding of U.S. Supreme Court case law as it pertained to the activities of a private association,” the site claims. “Daniel told the FDA unless they objected within ten days he would assume they had no objection.”

    Pro Advocate Group reportedly was the Texas-based entity that assisted the AdViewGlobal HYIP scam form a “private association” in 2009 in which AVG appears to have tried to insulate itself from examination by the U.S. government by purporting to operate from Uruguay. In April 2012, federal prosecutors in the District of Columbia linked AVG to the $119 million Ponzi scheme operated by Andy Bowdoin of AdSurfDaily.

    Along with hawking purported private associations, Pro Advocate Group claims on its website that it offers “Pro Se Litigation with Super Appeal” and other services.

    A Justice Department news release yesterday on the charges flowing from Project GreenLife and the sale of MMS did not reference Pro Advocate Group.

    Smith, Delong and Tammy Olson were charged with one count of conspiracy, four counts of interstate sales of misbranded drugs and one count of smuggling. Chris Olson was charged with one count of conspiracy, one count of the interstate sale of a misbranded drug and one count of smuggling.

    The Justice Department said that “PGL provided consumers directions to combine MMS with citric acid to create Chlorine Dioxide, and the instructions told consumers to drink this mixture to cure numerous illnesses. Chlorine Dioxide is a potent agent used to bleach textiles, among other industrial applications. In humans, Chlorine Dioxide is a severe respiratory and eye irritant that can cause nausea, diarrhea and dehydration.”

    Research by the PP Blog shows that Daniel Smith apparently has supporters who’ve issued an appeal to “Please take a stand to help save MMS and Daniel Smith from the FDA.” A headline for video on the site describes the FDA as a “Cult of Tryanny.” A narrator describes the FDA as a “rogue agency” and superimposes the images of FDA Commissioner Margaret A. Hamburg and others against the backdrop of a height chart. It appears to be a ham-handed way to suggest that Hamburg and the other purported “rogues” should be booked at a police station.

    From the Justice Department statement (italics added):

    As part of the scheme to manufacture MMS, the indictment alleges that Smith, Delong, and others smuggled sodium chlorite into the United States from Canada using fraudulent invoices to hide the true end use of the product.   In these invoices, according to the indictment, they falsely claimed that the ingredients they were purchasing for MMS were to be used in wastewater treatment facilities.

    According to the charging documents, Smith and Delong were the managing members of PGL Smith co-founded the company, and Delong frequently handled financial transactions for the company and recruited friends and family to participate in the business. The indictment alleges that Smith and Delong paid Tammy Olson to handle all customer inquiries regarding the product.   It is alleged that Tammy Olson continued selling MMS on her own website after federal agents shut down the Project GreenLife website and production facilities.  

     The indictment also alleges that Smith and Delong paid Chris Olson to clandestinely manufacture MMS in a building on his property after regulators from the Food and Drug Administration (FDA) inspected PGL’s original manufacture and shipping locations.

  • URGENT >> BULLETIN >> MOVING: Gary Calhoun, MPB Today Operator, Pleads Guilty To Racketeering Charge In Florida

    Gary Allen Calhoun
    Gary Allen Calhoun

    URGENT >> BULLETIN >> MOVING: (UPDATED 1:06 P.M. ET U.S.A.) Gary Calhoun, the operator of the the MPB Today MLM “program” and a companion grocery-delivery business known as Southeastern Delivery, has pleaded guilty to a state-level racketeering charge in Florida. He was charged in December.

    Calhoun, 56, of Pensacola, was not immediately sentenced. But he is expected to turn in his passport to the Florida Department of Law Enforcement “within 48 hours,” according to the docket of the case in Escambia County. The docket also notes correspondence from the U.S. Attorney’s Office for the Northern District of Florida and references a “voluntary forfeiture agreement.”

    In July, federal prosecutors filed a forfeiture complaint for a property at 8812 Grow Drive, also known as Grow Road, in Pensacola. The property is the business address of Southeastern Delivery and also the address of a Calhoun-controlled entity known as WL Property Holdings LLC. The property also is the address of MPB Today.

    MPB Today was among a number of “programs” pitched on Ponzi-scheme forums such as TalkGold and MoneyMakerGroup.

    The Calhoun guilty plea represents the second time in 24 hours that the name of a “program” operator whose “opportunity” was pitched on the Ponzi boards has surfaced in the news, either as a current prison inmate or potential one.

    David Merrick, the operator of the Trader’s International Return Network (TIRN) fraud scheme that was promoted from the Ponzi boards in 2008 and 2009, was sentenced in 2012 to 97 months in federal prison and was handed additional civil sanctions and a restitution order yesterday totaling more than $22.8 million.

    MPB Today was promoted on the Ponzi boards in 2010.

    Some individual MPB Today promotions were bizarre, including one that cast President Obama and former U.S. Secretary of State Hillary Rodham Clinton as Nazis. Another MPB Today promoter videotaped himself making a deposit of his MPB Today commissions at an FDIC-insured bank. At least one of MPB Today’s banks was operating under an FDIC consent agreement.

    Still other MPB Today affiliates taped commercials for the enterprise inside Walmart stores. Some promoters asserted Walmart was affiliated with MPB Today and approved by the government. One MPB Today affiliate videotaped a UPS driver making a delivery of a television set.

    The video’s narrator said the TV has been purchased “kind of, indirectly” with a Walmart gift card from MPB Today. Other MPB Today affiliates claimed a one-time purchase of $200 in groceries from Southeastern Delivery set the stage for MPB Today affiliates to receive free groceries and gasoline for life.

    Clinton once sat on Walmart’s board of directors. Why some MPB Today affiliates apparently believed it prudent to attack Democratic politicians in a bid to sign up MPB Today affiliates remains unclear.

    Promos for MPB Today were targeted at foreclosure subjects, Food Stamp recipients and the poor — and victims of the Florida-based AdSurfDaily Ponzi scheme. In 2010, Walmart declined to comment on MPB Today-related claims.

    Some MLM “opportunities” are infamous for implying in promos that they’re endorsed by famous business people or famous companies. MPB Today used images of Donald Trump and Warren Buffett in promos, and affiliates regularly implied that Walmart had endorsed MPB Today.

    From our files:

    1.

    mpbtodayobamalarge11

    2.

    mpbtodayupsdrivesmall

    3.

    mpbtodayfreedomsmall2

  • ‘American Greed’ Producing Episode On Trevor Cook Ponzi Fraud; Seniors, People Of Faith Fleeced By Cook And His Pitchmen

    Trevor Cook
    Trevor Cook

    CNBC’s “American Greed” will be in Minneapolis today to begin filming an episode on the massive Trevor Cook Ponzi scheme that was targeted at senior citizens and conservative Christians and rendered some victims penniless, a source told the PP Blog.

    Cook’s scheme gathered about $194 million. It collapsed in 2009. Money that potentially could go to victims is still missing. The scheme was reminiscent of the AdSurfDaily Ponzi case in that it took various bizarre and disturbing turns.

    Earlier this month, Cook pitchman Jason Bo-Alan Beckman was sentenced to 30 years in federal prison. Gerald Durand received 20 years. Christopher Pettengill, who cooperated with prosecutors, received a 90-month sentence. Sentencing for Pat Kiley, a conspiracy theorist and former radio host in his seventies, was put on hold, pending the results of medical and psychological exams.

    Cook, the ringleader, received a 25-year sentence in 2010.

    For what the Cook fraud lacked in dollar volume — indeed, it was significantly smaller than Tom Petters’ epic Ponzi fraud in Minnesota — it more than made up for in pure brazenness. Beckman essentially was accused of taunting victims in his court filings after stealing millions from a senior-citizen couple in their late eighties. Durand told a tale about a submersible submarine Cook allegedly bought on eBay for the waters of Canada before moving it to Panama, where Cook purportedly found the conditions to be more sub-friendly.

    Kiley once tried to have a CFTC lawyer fined $1,000 for filing court papers Kiley deemed “offensive.”

    The Cook scheme also had something in common with AdViewGlobal, the collapsed 1-percent-a-day autosurf linked to the AdSurfDaily Ponzi scheme: a tie to offshore facilitator KINGZ Capital Management Corp.

    AdViewGlobal announced its purported tie to KINGZ on May 4, 2009, the same day the Obama administration announced a crackdown on offshore fraud. KINGZ denied any tie to AVG. But the National Futures Association (NFA) established a tie between KINGZ and Cook.

    AdViewGlobal collapsed during the summer of 2009, amid reports that millions of dollars had been stolen. The purported “opportunity” bizarrely declared itself a “private association” operating in Uruguay, apparently in a bid to evade U.S. regulatory scrutiny even though it was conducting business in the United States. Federal prosecutors tied ASD President Andy Bowdoin to AdViewGlobal in 2012. Bowdoin, now serving a 78-month prison sentence, once claimed that prosecutors were “Satan” and compared the U.S. Secret Service to the 9/11 terrorists. His scheme gathered at least $119 million.

    Prosecutors have evidence that suggests at least some of the AdViewGlobal money was deposited in Switzerland. The Cook Ponzi also did business in Switzerland.

    There also is a tie between Trevor Cook and Peregrine Financial Group Inc., the collapsed fraud scheme of Russell R. Wasendorf Sr., now facing up to 50 years in federal prison. Wasendorf once was a member of NFA’s Futures Commission Merchant Advisory Committee

    Peregrine consumed at least $215 million and conducted a scam for two decades, prosecutors said. “[I]n order for the fraud to be effective and sustainable for years, defendant routinely created and used false certifications and forged documents to deceive his customers, his accounting department, his fellow corporate officers, an outside auditor, and multiple regulatory agencies whose core function was to detect and prevent exactly the type of criminal activity defendant perpetrated,” prosecutors said of Wasendorf.

  • UPDATE: Leaming — Again: After Earlier Claiming He’d Been Targeted For ‘DEATH,’ AdSurfDaily Figure And Purported ‘Sovereign Citizen’ Now Claims’ He’s Been Subjected To ‘POISON’ And ‘TORTURE’

    AdSurfDaily figure Kenneth Wayne Leaming now claims he's been subjected to "POISON" and "TORTURE."
    AdSurfDaily figure Kenneth Wayne Leaming now claims he’s been subjected to “POISON” and “TORTURE.”

    In 2009, AdSurfDaily figure and purported “sovereign citizen” Kenneth Wayne Leaming claimed a city in Washington state targeted him for “DEATH” and threatened to kill him by “HUNTING” him down “in screaming packs and mobs” and using “several armed street gangs” that served as police, according to records.

    Leaming, now 57, further claimed the Pierce County city of Puyallup engaged in terrorism by controlling “multiple electronic broadcast media” and employing police who used “chemical and biological weapons,” “machine guns” and “explosives.”

    In November 2011, prosecutors said Leaming was found in Spanaway, Wash., with two federal fugitives from Arkansas. Those fugitives now have been convicted of mail fraud for a multimillion-dollar, home-based business caper. Court filings by Timothy Shawn Donavan, 64, and Sharon Jeannette Henningsen, 68, suggest they also were sovereign citizens.

    After Leaming’s arrest with Donavan and Henningsen, federal prosecutors in the Western District of Washington said an FBI terrorism Task Force found evidence that Leaming had filed false liens against at least five public officials involved in the AdSurfDaily Ponzi case filed by the U.S. Secret Service in 2008.

    Leaming allegedly also filed bogus liens or assisted in filing liens against a former cabinet official in the administration of President George W. Bush, the head of a credit union and at least two U.S. prison officials. In 2012, while detained, Leaming sued President Obama and Attorney General Eric Holder, advancing a Birther conspiracy theory.

    A federal judge tossed that lawsuit. Court filings by Leaming now suggest he intends to sue Holder anew, this time in the District of Columbia as opposed to the Western District of Washington.

    But Leaming also has another active lawsuit against Holder and others in the Western District of Washington. A complaint by Leaming dated yesterday asserts he has been subjected to “POISON” and “TORTURE” during his ongoing detention at the SeaTac federal detention center near Seattle.

    In October 2012, federal prosecutors alleged that Leaming “was instrumental in founding the ‘County Rangers,’ the sovereign group’s armed enforcement wing. Members of the County Rangers were issued realistic-looking badges and credentials were required to possess firearms as part of their duties, and held themselves out as law enforcement agents.”

    Leaming already is a convicted felon from a case that alleged he had no license and yet piloted an aircraft. When he was arrested in November 2011 in the company of Donavan and Henningsen, several firearms were found in Leaming’s residence, including an “AK-47 style assault rifle with a bayonet,” prosecutors said.

    He later was charged with unlawful possession of firearms as a convicted felon.

    When agents executed a search warrant, they found “numerous boxes of correspondence and legal paperwork documenting other apparent fraud schemes,” prosecutors said.

  • On Date Of Obama Inauguration, ‘Program’ Promo Turns President Into Pitchman For ‘Ultimate Power Profits’

    ultimatepowerprofitspresUPDATED 11:08 A.M. ET (U.S.A.) On a day Americans cherish as a great symbol of the continuation of Democracy, images of their President are being used to create the impression he has endorsed a “program” HYIP hucksters sought to popularize in the aftermath of the August 2012 collapse of the Zeek Rewards “program” amid SEC allegations that Zeek was just another massive Internet scam.

    “Just join their team and you will receive all the help you need to grow your own business,” an animated Obama tells prospects in a video promoting Ultimate Power Profits. “By doing so, your earnings will increase. There is no hidden agenda. They showed me how their system worked and I was impressed. It is a fully legal and U.S.-patented system they use to make money.”

    Obama’s image previously was used in affiliate promos for MPBToday, a purported MLM “grocery” program whose operator was arrested on a racketeering charge in Florida last month. A building that housed MPB Today’s operations is the subject of a federal forfeiture action in U.S. District Court for the Northern District of Florida. The forfeiture case was filed July 31, 2012.

    Less than three weeks later — on Aug. 17, 2012 — the SEC alleged Zeek was a $600 million Ponzi and pyramid scheme. Zeek and MPBToday are known to have promoters in common, including serial Ponzi scheme pitchman “Ken Russo,” also known as “DRdave.”

    On Aug. 18, only a day after the SEC’s Zeek action late on Friday afternoon, the PPBlog began to receive spam about the UltimatePowerProfits “program.” (See Comments thread below this story. The Blog established a Ponzi-forum tie between Zeek and Ultimate Power Profits.)

    On Aug. 20, the office of North Carolina Attorney General Roy Cooper — which also had been investigating Zeek — issued a warning on “reload scams” in the wake of the SEC’s Zeek action.

    Ultimate Power Profits is not the first “program” to make a claim about a “U.S. patent.” The JSS/JBP scam, which purported to pay an annualized return of 730 percent and purportedly was operated by former AdSurfDaily Ponzi-scheme pitchman Frederick Mann, also made a claim about a U.S. patent.

    It is not uncommon for HYIP scams and MLM frauds to plant the seed that a “program” is endorsed by an agency of the U.S. government or a U.S. politician. ASD’s Andy Bowdoin was accused in 2008 of trading on the name of George W. Bush, then the President of the United States and Obama’s predecessor.

    Images of former President Bill Clinton and Secretary of State Hillary Clinton were used in the massive Mantria “green” Ponzi scheme in 2009.

    In 2012, JSS/JBP came under the lens of CONSOB, the Italian securities regulator. Some promoters, however, didn’t miss a beat. (Compare the images in the screen shots below. The first is from a promo for an emerging “program” known as RicanAdFunds; the second is from a promo for Zeek; the third is from a promo for JSS/JBP.)

    1.

    ricanfundschapmansmall

    2.

    chapmanzeek

    3.

    jss-triplersmall1

  • BULLETIN: AdSurfDaily Figure And Purported ‘Sovereign Citizen’ Kenneth Wayne Leaming Now Seeks To File Another Lawsuit

    Kenneth Wayne Leaming
    Kenneth Wayne Leaming

    BULLETIN: (UPDATED 12:35 P.M. ET U.S.A.) AdSurfDaily figure and purported “sovereign citizen” Kenneth Wayne Leaming has reached out from jail again in a bid to sue the government and officeholders.

    Leaming, 57, is detained in the SeaTac federal-detention facility near Seattle on charges of filing false liens against at least five public officials involved in the ASD Ponzi case and other crimes. He was arrested by an FBI terrorism Task Force in November 2011. Since his arrest, Leaming has filed lawsuits against President Obama, Attorney General Eric Holder, the U.S. Attorney for the Western District of Washington and a county sheriff in Arkansas.

    Filings in U.S. District Court for the District of Columbia — the venue from which the ASD Ponzi prosecution was brought — now show that Leaming is seeking to sue Holder anew, along with a federal prison official in Washington state. Leaming originally sued Holder and Obama in a different venue.

    His new claims make Holder a prospective defendant in the D.C. District Court and make new claims against the Attorney General.

    The case is docketed as “unassigned” to a specific judge, but U.S. District Judge Rosemary Collyer — an alleged target of one of Leaming’s false liens and the presiding judge in the ASD case — has issued an order that requires Leaming to submit certain paperwork to the court before the case can proceed. The January docket for the D.C. district suggests that Collyer’s duties this month have included the initial responses to complaints brought by individuals desiring to sue members of government.

    Leaming does not appear to be making an ASD-related claim in his most recent case. Even so, it is possible that Collyer would remove herself from any Leaming-related process moving forward because of the FBI allegations he filed a false lien against her in Washington state.

    In the new filing in the D.C. District, Leaming appears to be trying to make a damages claim against a SeaTac prison official while simultaneously making a claim against Holder. The earlier case against Holder and Obama was tossed in the Western District of Washington months ago. Following a Birther conspiracy theory, it alleged that Obama was not born in the United States and thus was inelegible to be President — and that Holder was a bogus Attorney General because he’d been appointed by a bogus President.

    Leaming now is demanding damages paid in “United States Silver Eagle Dollars,” amid allegations he was denied access to a law library. In his earlier case against Holder and Obama, he demanded payment in gold in silver.

  • UPDATE: PP Blog Now Starting To Get Bizarre Spam Related To BannersBroker ‘Program’

    americaatrisk4UPDATED 7:06 P.M. ET (U.S.A.) The PP Blog today began to receive bizarre spam related to the purported BannersBroker “program,” a Ponzi-forum darling.

    Senders from separate IPs who deemed themselves “Banners Broker” transmitted spam at 5:27 p.m. (ET) and 5:29 p.m. today. (UPDATE: 7:06 P.M. Actually, the 5:27 spammer deemed himself/herself “Banners Broker” and the 5:29 spammer deemed himself/herself  “Banners Brokers.”)

    One of the spams appeared to make the assertion that the PP Blog was created specifically in response to the Banners Broker “program” and that the Blog is in cahoots with at least two other sites to make Banners Broker look bad. The same would-be spam, which appeared to originate in the United Kingdom, also appeared to advance an argument that individuals should not question the Banners Broker “program.”

    An earlier spam — one that appeared to originate in Poland with a different email address but largely the same user name and same URL to a website that appears to sell purported Banners Broker sales aids — took a potshot at a Blogger named Finch. (The later spam described in the paragraph above also took a potshot at Rod Cook, the “MLM Watchdog.“)

    The PP Blog’s first reference to Banners Broker was published on June 17, 2012, when the Blog reported that a site that claimed it sold “customers” to Zeek Rewards members also was pushing traffic to Banners Broker and JSS Tripler/JustBeenPaid, the bizarre, 730-percent-a-year “program” purportedly operated by Frederick Mann.

    Mann also was a pitchman for the AdSurfDaily Ponzi scheme. JSS/JBP, which later morphed into a “program” known as ProfitClicking, may have ties to the sovereign-citizens movement.

    In August 2012, the SEC called Zeek Rewards a $600 million Ponzi- and pyramid fraud. Zeek, JSS/JBP, ProfitClicking and Banners Broker all were promoted from the Ponzi boards and had members in common, which leads to questions about whether the schemes and their financial vendors came into possession of funds tainted by multiple fraud schemes.

    The commonality of the “programs” also leads to questions about whether satellite companies are developing “leads” programs and purported sales aids to benefit from securities-fraud schemes before they are detected.

    The spammer at 5:27 p.m. today asserted that he (or she) was sure companies such as Banners Broker “will fight back through the legal system and get [Blogs critical of such programs] shut down.”

    In July, less than a month before the collapse of Zeek, Zeek figure Robert Craddock sought to shut down the website of Zeek critic K. Chang. It became the “Most Important” story of the year on the PP Blog.

    Banners Broker uses at least two of the payment processors used by Zeek: Payza and SolidTrustPay.