PatrickPretty.com

Category: Ad Surf Daily

  • BULLETIN: Zeek Had $20.7 Million In AlertPay/Payza And $20 Million In SolidTrustPay

    Screen shot: Accused Ponzi schemer Paul R. Burks of Rex Venture Group LLC advised Senior U.S. District Judge Graham C. Mullen of the Western District of North Carolina today about Zeek's relationships with various financial vendors. The alleged Zeek Rewards Ponzi scheme operated through Rex Venture..

    BULLETIN: (UPDATED 9:18 P.M. EDT U.S.A.) New court filings by accused Ponzi schemer Paul R. Burks of Rex Venture Group LLC show that Zeek Rewards had more than $40 million in offshore payment processors.

    Included in that sum is $20.765 million in Canada’s AlertPay/Payza, and $20 million in Canada’s SolidTrustPay.

    Today’s filing also shows $10 million on deposit at Bank of America. Court filings in the AdSurfDaily Ponzi scheme case brought by the U.S. Secret Service in 2008 show that ASD also banked at Bank of America.

    On Aug. 17, the SEC alleged that North Carolina-based Zeek was a massive online Ponzi- and pyramid scheme that had gathered $600 million since January 2011. Filings by Burks today suggest Zeek did it all with fewer than 40 employees, including part-time contractors such as attorneys and consultants in areas such as payroll, accounting, compliance and marketing.

    Included among the consultants listed by Burks was Keith Laggos, a purported MLM expert. Laggos once opined that AdSurfDaily was not a Ponzi scheme. ASD President Andy Bowdoin later admitted that it was. Bowdoin was sentenced last month to 78 months in federal prison.

    Visit the ASD Update Blog’s files site to read Zeek-related court filings.

    Visit the website of Kenneth D. Bell, the court-appointed receiver in the Zeek case. Read the FAQs on the receiver’s website.

  • PP Blog Still $47 Short: [SEPTEMBER DONATION RE-POST]: The Challenges Are Unprecedented — And The PP Blog Continues To Serve Its Readers

    Dear Readers,

    UPDATED 8:13 P.M. EDT (SEP.16. , U.S.A.) As noted on Sept. 15, the PP Blog is $255 $205 $155 $105 ($47) short for September. The matter is pressing now, so this post has been republished.

    The past few weeks have been something that approaches crazy. The PP Blog is doing some of its most important work to date — and there is plenty more to do.

    The need this month again is on the order of $550. Our readers sustained us again last month, but once again it came down to the 11th hour. As always, every story you’ve read this month was made possible by our small universe of contributors.

    Our mission is to keep you reliably informed and to provide content that provides both the backstory and analysis. Ponzi schemes and online fraud are a world scourge. These moments in history are unprecedented and create economic and security challenges never before seen in the history of mankind.

    Please contribute if you’re able.

  • UPDATE: Teetering ‘Wealth4AllTeam’ Scheme Reportedly Was Using I-Payout, Same Facilitator Cited By ‘OneX’ Scheme In July

    Screen shot: I-Payout website showing logos of "Global Strategic Partners." Ponzi-forum reports surfaced yesterday that the Wealth4AllTeam HYIP scheme was using I-Payout. In July, a scheme known as "OneX' that federal prosecutors previously described as a fraud and a "pyramid" announced that it was transitioning to I-Payout.

    UPDATE: Wealth4AllTeam, one of the many HYIP schemes pushed by Zeek Rewards “I Got Paid” cheerleader “Ken Russo,” reportedly was using I-Payout as a payment facilitator, according to new Ponzi-forum reports.

    Wealth4AllTeam appears to have suspended operations, leaving the Ponzi forums in an uproar amid claims that it is transitioning to a new business model that incorporates something called “Project Genesis.”

    Earlier this year, Wealth4AllTeam planted the seed that it would sue the RealScam.com antifraud forum  for publishing information unfriendly to Wealth4AllTeam.

    “I-payout quick links has been removed….all the attached bank account has been deactivated..there is no option left to deposit or withdraw…Looks like W4all have a hold on I-payout,” MoneyMakerGroup poster “jhakas22” claimed yesterday.

    If the report is true — and MoneyMakerGroup poster Tobwithu claimed that he (or she) “can confirm that all links at i-payout are gone!’ — then it means that Wealth4AllTeam was using the same facilitator to which the mysterious “OneX’ scheme claimed it was transitioning.

    In April, federal prosecutors described the purported OneX “program” as a “fraudulent scheme” and “pyramid” pushed by former AdSurfDaily President Andy Bowdoin. ASD was a $119 million Ponzi scheme. In August, Bowdoin was sentenced to 78 months in federal prison.

    On July 19, the PP Blog reported that OneX claimed it had dropped SolidTrustPay — a Canada-based processor linked to fraud scheme after fraud scheme — in favor of I-Payout. That announcement was made by “J.C.,” later identified by federal prosecutors as James C. Hill.

    I-Payout’s website publishes the logos of HSBC, Deutsche Bank, Barclays and other “Global Strategic Partners,” including Bank of America.

    “J.C.” made the OneX I-Payout announcement on July 17, the same day the U.S. Senate Permanent Subcommittee on Investigations was grilling HSBC executives on HSBC’s anti-money-laundering practices, including an executive who announced his resignation in front of the panel.

    (Also see June 20 PP Blog report about OneX claim that it was working with a processor with a tie to Bank of America. Given events that occurred after the dropping of Bank of America’s name and the appearance of the bank’s name on the I-Payout site, it appears “J.C.” was alluding to I-Payout in June.)

    Any number of ASD Ponzi-scheme pushers used Bank of America’s name to sanitize the ASD fraud. In raising Bank of America’s name in June and announcing the I-Payout transition in July, OneX appears to have been doing the same thing.

    Name-dropping to sanitize fraud schemes is common in the HYIP sphere. So are lawsuit threats and other bids to chill websites that publish information critical of HYIPs.

    In July, Robert Craddock, a purported “consultant” for Rex Venture Group LLC — the operator of the Zeek Rewards MLM scheme — sought to have a HubPages site operated by Zeek critic “K. Chang” removed from the web by filing a complaint with HubPages about purported copyright and trademark infringement and libel. Craddock’s efforts succeeded temporarily.

    In a bizarre Blog post on Aug. 4, Zeek claimed that “all” criticism of Zeek was unfair and planted the seed that unspecified “North Carolina Credit Unions” were circulating a purported “internal memo” that allegedly was “at once unfavorable to Zeek Rewards and false.”

    The Zeek post, attributed to then-acting COO Gregory J. Caldwell, complained the credit unions were slandering Zeek and warned Zeek members to toe the company line.

    Thirteen days later, the SEC filed an emergency court action that described Zeek as a $600 million Ponzi- and pyramid scheme.

    Craddock now is involved in a purported effort to defend Zeek affiliates from clawback actions by the court-appointed receiver in the SEC’s Zeek case. That effort began after the SEC’s actions against Zeek and also included name-dropping. During a pitch for Zeek members to send in money, Craddock dropped the name of former Florida Attorney General (and former U.S. Rep.) Bill McCollum.

    McCollum, now a partner at the SNR Denton law firm, no longer is in public office. Precisely why Craddock mentioned McCollum’s name is unclear, although Craddock initially said that the Zeek affiliates were hiring SNR Denton. That effort appears now to have fallen through.

    As Florida’s Attorney General, McCollum sued ASD for fraud in August 2008. Some ASD members countered that McCollum should be sued for Deceptive Trade Practices for holding the view that ASD was a fraud. Although McCollum’s office later dropped the ASD lawsuit, it said it had gathered names of ASD fraud victims and provided them to the U.S. Department of Justice, which had established a remissions process through which ASD victims could receive compensation from proceeds seized by the U.S. Secret Service in the ASD Ponzi case filed at the federal level in the District of Columbia.

    Zeek is known to have members in common with the ASD Ponzi scheme. Some Zeek members also promoted OneX, the scheme promoted by ASD’s Bowdoin after his December 2010 arrest by the U.S. Secret Service on Ponzi-related charges of wire fraud, securities fraud and selling unregistered securities.

    Bowdoin told prospects that OneX was good for “college students.”

    “Ken Russo” also is known as “DRdave.”

  • BULLETIN: Citing Gregory McKnight’s ‘Semantic Obfuscation,’ Prosecutors Ask Judge To Sentence Convicted Legisi HYIP Swindler To 15 Years — ‘The Top Of The Sentencing Guidelines’; Like Zeek, ‘Program’ Was Pushed On The Ponzi Boards And Instructed Members Not To Use The Word ‘Investment’

    This grainy likeness of Legisi HYIP operator Gregory N. McKnight appears in U.S. court files.

    BULLETIN: Yesterday’s scheduled sentencing of convicted Legisi HYIP swindler Gregory N. McKnight has been delayed until Nov. 19, but federal prosecutors in the Eastern District of Michigan have asked U.S. District Judge Mark A. Goldsmith to sentence McKnight to 15 years in prison.

    McKnight and Legisi relied on “semantic obfuscation” in which investors were told they were joining a “loan program,” not making an “investment,” prosecutors said.

    A 15-year sentence is at “the top of the sentencing guidelines of 151-188 months” and “may serve to discourage others who are inclined to involve themselves in similar criminal conduct,” prosecutors argued to the judge.

    In February, McKnight, 52, pleaded guilty to wire fraud in the Legisi Ponzi caper. The scam, which planted the seed a return of between .25 percent a day and 12 percent a month was possible, was popularized in part on Ponzi boards such as MoneyMakerGroup and Talk Gold.

    Court filings show that Legisi used some of the same payment processors used by the AdSurfDaily Ponzi scheme, including e-Gold and e-Bullion. ASD operator Andy Bowdoin was sentenced in August to 78 months in federal prison.

    “The principle mechanism by which investor funds would be funneled to defendant was through the utilization of the internet via digital currency, particularly e-gold and e-bullion,” prosecutors said in the McKnight sentencing memo. “The use of these non-traditional funding methods provided McKnight with the opportunity (at least for a while) to conduct the scheme below the radar of regulators.”

    And, prosecutors pointed out, “[i]n 2007, the United States government seized the property in approximately 58 e-gold accounts due to various criminal violations, including McKnight’s account . . . Moreover, in 2008, e-gold and its operators were convicted of money laundering and conspiracy to defraud the United States . . . And in 2006, the United States government commenced a forfeiture suit against e-bullion for operating an unlicensed money transmitting business, wire fraud, and money laundering . . . James Fayed, the owner and operator of e-bullion, was later convicted in the State of California of having his wife murdered and sentenced to death row.”

    Legisi gathered about $72 million. The SEC and the U.S. Secret Service led the probe, which resulted in civil charges against McKnight by the SEC and a criminal charge of wire fraud against him by the Secret Service.

    Legisi pitchman Matthew John Gagnon also was charged civilly and criminally in the Legisi case.

    From the prosecution’s sentencing memo on McKnight (italics added/bolding in original):

    As if the exorbitantly high interest rates were not enough to induce investors into defendant’s scam, Legisi also offered a referral program whereby investors could earn a 5% to 7% commission on the amount of new funds that a referred investor placed in the program. As McKnight explained, “[a]s an Active Member of Legisi.com, you are encouraged to refer friends, colleagues, and your own website visitors to us and benefit from an additional source of income — a 5% – 7% incentive bonus for each new account opened by your referrals and on any and all future deposits from them!”

    Legisi was an acronymn that stood for “Lucrative Electronic Gold Income Services International,” prosecutors said. HYIP schemes spread in part because unlicensed/unregistered brokers (such as Gagnon) push them online to earn “commissions.”

    The MoneyMakerGroup Ponzi forum — one of the outlets from which Legisi was pushed — is specifically referenced in court filings in the Legisi case.

    Zeek Rewards, which the SEC described last month as a $600 million Ponzi- and pyramid scheme selling unregistered securities, also was heavily pushed on the Ponzi forums. Zeek used both domestic and offshore financial vendors, including AlertPay and SolidTrustPay in Canada.

    Zeek planted the seed it could provide a return of between 1 percent and 2 percent a day, far higher than Legisi’s maximum suggested payout of 12 percent a month. Like Zeek, ASD suggested a payout on the order of 1 percent a day. The ASD scheme gathered at least $119 million, federal prosecutors in the District of Columbia said.

    ASD relied on wordplay to dupe investors. So did Legisi, prosecutors said in the McKnight sentencing memo (italics added):

    In addition to operating a Ponzi scheme, McKnight committed various securities violations. While McKnight himself referred to Legisi as a “loan” program, and demanded that “members” not refer to their “loan” and an “investment,” Legisi was, in reality, an investment contract, which is considered a security and therefore regulated by the Securities and Exchange Commission. This semantic obfuscation was quite obviously an attempt to sidestep the securities laws.

    From a footnote in the prosecution’s McKnight sentencing memo (italics added):

    [Legisi] Investors originated from all 50 states and approximately 33 foreign countries (Australia, Bahamas, Belgium, Canada, Cyprus, Demark, England, France, Finland, Germany, Greece, Iceland, India, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Malaysia, Mexico, Nigeria, Philippines, Saudi Arabia, Singapore, Slovenia,
    South Africa, South Korea, Sweden, Spain, Thailand, Trinidad West Indies).

    Read the prosecution’s sentencing memo on McKnight and recommendation of 15 years’ imprisonment.

  • DISTURBING: ‘ProfitClicking’ Thread At MoneyMakerGroup Ponzi Forum Used In Zeek-Related Disinformation Campaign That Delivers Traffic To Troy Dooly’s Blog While Creating Brand Confusion And Opportunity To Harvest Leads For Poster Known As ‘freezeekler’

    EDITOR’S NOTE: The PP Blog sought comment from Troy Dooly of MLMHelpDesk this morning (Sunday) on the disturbing Zeek- and Ponzi forum-related developments reported in our story below. (Story appears below screen shots.) Dooly has not responded as of the time of this post, but the PP Blog will publish his comment if and when received. (UPDATE 10:24 p.m. Dooly has responded to the request for comment. His comment has been added to the story below.)

    Various efforts to mislead Zeek members and the public about the SEC’s Aug. 17 action against Zeek Rewards amid allegations that Zeek was a $600 million Ponzi- and pyramid fraud now are under way online. If you’ve received an email attributed to Zeek member Dave Kettner that claims “[t]he SEC acknowledged that there are a couple of problems with the case against Zeek Rewards and Rex Venture group,” it almost certainly is best to be extremely skeptical of the claims. Similar claims were made by apologists for the AdSurfDaily Ponzi scheme.

    These are among the claims attributed to Zeek-member Kettner, who is using the pronoun “we” when referring to the SEC:

    1. We (the SEC) are not able to find a victim in this case. We are not able to find anybody at this time that has been harmed by Zeek Rewards.
    2. We (the SEC) are having a hard time finding a security. In the complaint, it said that Zeek was selling securities and was an investment scheme.

    Beginning in August 2009, dozens of AdSurfDaily members flooded the docket of U.S. District Judge Rosemary Collyer with claims the government had produced no “VICTIMS” in the ASD Ponzi case. The pleadings appear to have been based on a template shared by one or more ASD downline groups. Included among the filers was Todd Disner, then an emerging figure in the ASD story and now an emerging figure in the Zeek story.

    Collyer rejected each and every one of the claims. In September 2011, the U.S. government announced it had identified at least 8,400 ASD victims. Two months later — in November 2011 — Disner filed a lawsuit against the government that alleged it had produced a “tissue of lies” and that ASD was a legitimate enterprise. About seven months later — in May 2012 — ASD operator Andy Bowdoin pleaded guilty to wire fraud and admitted ASD was a Ponzi scheme and that the company never had operated lawfully. The government now says it has identified at least 9,000 ASD victims.

    Justia.com has archived Collyer’s ASD docket and the related filings here. Disner’s unsuccessful filing is Docket No. 91. The ruling rejecting his claim (and others) is Docket No. 96. Despite the denials, other ASD members continued to use the same no “VICTIMS” argument, which incorporated a conspiracy theory that government evil was afoot. Collyer eventually issued en masse denials.

    Disner, Kettner and Zeek figure Robert Craddock are known to be involved in an effort to raise funds purportedly to defend Zeek affiliates while taking the SEC to task. The effort has been marked by shifting stories, contributing to an atmosphere of confusion. PP Blog guest columnist Gregg Evans wrote about some of that confusion here. The SNR Denton law firm, once presented by Craddock as the attorneys for Zeek affiliates, now appears to have withdrawn its representation. Meanwhile, a website known as ZTeamBiz that was gathering funds for the purported Zeek defense has been blocked by PayPal, a development ZTeamBiz blamed on purported fear of competition by eBay. eBay owns PayPal.

    RealScam.com (GlimDropper) now is reporting that ZTeamBiz is soliciting money via “electronic check drafts” and potentially putting contributors’ banking information at risk.

    Meanwhile, it’s worth pointing out that the U.S. Secret Service confirmed on Aug. 17 that it was investigating Zeek. Beyond that, the office of North Carolina Attorney General Roy Cooper has confirmed it is investigating Zeek. At least two proposed class-action lawsuits also have been filed against Zeek. The SEC is hardly Zeek’s only worry.

    Here, now, our story about how a Ponzi-board poster appears to be causing Dooly’s MLMHelpDesk.com to load beneath a different URL in an apparent bid to create confusion about the SEC’s Zeek action while also leeching off Dooly’s work product to gather “leads.”

    1.

    "freezeekler," a MoneyMakerGroup Ponzi forum poster in the "ProfitClicking" thread, is using his (or her) forum signature to help disinformation about Zeek spread online. ProfitClicking may have ties to the "sovereign citizens" movement.

    2.

    The redirect from the signature of "freezeekler" at the MoneyMakerGroup Ponzi forum causes Troy Dooly's MLMHelpDesk.com Blog to load under a URL styled "draftsforcash.com."

    3.

    On the MoneyMakerGroup Ponzi forum, "freezeekler" says his (or her) plan with the "ProfitClicking" program is to "withdraw at least until I have my investment back."

    UPDATED 10:24 P.M. EDT (U.S.A.) TO ADD FIRST COMMENT FROM TROY DOOLY. UPDATED AT 11:25 P.M. TO REFLECT COMMENT FROM DOOLY THAT THE OFFENDING PAGE DESCRIBED BELOW HAS BEEN REMOVED. UPDATED 9:13 A.M. (SEPT. 10) TO FIX REDUNDANCY IN THIRD PARAGRAPH.

    Efforts to spread disinformation about the SEC’s action in the Zeek Rewards Ponzi case intensified on the web yesterday. One such bid occurred within the thread on the “ProfitClicking” scam-in-progress at the MoneyMakerGroup Ponzi forum, where a poster known as “freezeekler” is using the following “signature” line (italics added):

    Hot! ZEEK REWARDS Coming Back, NOT GUILTY? NEW updated information!

    “freezeekler” apparently also is in “ProfitClicking,” given his (or her) MoneyMakerGroup comment about a plan to “withdraw at least until I have my [ProfitClicking] investment back.”

    MoneyMakerGroup is listed in U.S. federal court filings as a place from which Ponzi schemes are promoted. Records show that five major scams promoted on the forum in recent years — Zeek, AdSurfDaily, Legisi, Pathway To Prosperity and Imperia Invest IBC — allegedly gathered a combined sum of at least $868 million. By contrast, the 2013 budget for the city of Las Vegas is $468.8 million, according to a May report in the Las Vegas Sun. The population of Las Vegas is approximately 590,000.

    In terms of the number of victims — currently estimated at between 1 million and 2 million — Zeek may be the largest Ponzi scheme ever investigated by U.S. law enforcement. Its membership base may be at least 10 times larger than ASD, whose base was estimated by the U.S. Department of Justice at 97,000. Zeek’s estimated cash-drawing power of $600 million appears to have been approximately five times larger than ASD’s.

    When “freezeekler’s” signature link is clicked, a redirect kicks in and visitors are taken to a URL styled “draftsforcash.com” and a page styled “zeekrewards.” (draftsforcash.com/zeekrewards.) When visitors move their mouse, a lead-capture ad then loads for a 60-minute “webinar” for an unspecified program that asks viewers to submit  their name, email address and phone number.

    Although visitors may believe they are at the “draftsforcash” site’s Zeek Rewards page, they’re actually at the site of Troy Dooly’s MLMHelpDesk.  MoneyMakerGroup’s “freezeekler” appears to have caused the redirect to Dooly’s Blog to occur without causing the URL for MLMHelpDesk to appear in the location bar. Visitors unfamiliar with Dooly could come to believe he is the owner of “draftsforcash.”

    That domain, however, is registered on the name of Bargain Crusader Inc., according to a whois search. When the “zeekrewards” page is stripped from the “draftsforcash.com/zeekrewards” URL, visitors see Blog whose sole story appears under a headline of “Daily, and Weekly fantasy sports leagues.”

    The “skin” for the one-post Blog, according to a link at the site, is provided by “online casino uk site in cooperation with play roulette for fun weblog.”

    Dooly tonight expressed concern about the Ponzi-forum development.

    “This is nuts,” he said in an an initial email to the PP Blog. “Thank you for sharing this info with me. I will do a post tomorrow on this issue.”

    In a second email to the Blog, Dooly said his company took quick action to ensure the offending page was taken down.

    “My COO jumped on the issue as soon as I sent it to him,” Dooly said.

    ProfitClicking is an ASD-like autosurf formed from the carcass of the JSS Tripler/JustBeenPaid “program” that suddenly went missing last month amid reports of the sudden “retirement” of Frederick Mann, the purported operator of JSS/JBP.

    Mann is a former pitchman for the ASD Ponzi scheme. JSS/JBP claimed to have more than 1 million members. Its cash-sucking power remains unclear.

     

  • UPDATE: Launch Of JSS/JBP Follow-Up Scam (ProfitClicking) Under Way — Sort Of

    The launch of “ProfitClicking,” the follow-up scam to the JSSTripler/JustBeenPaid HYIP scheme (2 percent a day) purportedly operated by Frederick Mann, is under way.

    Sort of.

    Carl Pearson in his JSS/JBP days.

    Just who’s running ProfitClicking is unclear, although the site has claimed that cash-gifting enthusiast J.J. Ulrich is the “PC Executive Director” and that Carl Pearson is on the “Management Team.” Pearson purportedly was the one-time COO of JSS/JBP, which experienced a promotional ban in Italy by the securities regulator CONSOB.

    Mann hinted last month that he feared arrest in the United States. He previously speculated that the JSS/JBP site could be taken out by “cruise missiles.” Some JSS/JBP members complained that their support tickets hadn’t been addressed in weeks.

    Rather than hold JSS/JBP responsibile, Mann suggested, it perhaps was best for members to read a self-improvement manual.

    ProfitClicking’s site had featured a countdown clock for days, with the launch set to go live at 6 a.m. (EDT) today. Despite claims by ProfitClicking that new servers and a new engineering approach would make for a seamless experience, the site experienced an immediate meltdown — with the landing page defaulting to a “Block DOS” gateway.

    The site did begin to load slowly within a few minutes, but members immediately complained on the MoneyMakerGroup Ponzi forum that they couldn’t log in. Members now are saying that they can log in but that the site is performing worse than dial-up.

    Whether members’ data was transferred properly from the JSS/JBP site to the ProfitClicking site remains an open question. Like JSS/JBP, ProfitClicking makes members affirm they are not with the “government.” The site also seeks to disclaim any responsibility on the part of the “opportunity” or its affiliates for offering the “program.”

    As JSS/JBP’s purported owner, Mann compared government workers to the Mafia. Regardless, he once permitted JSS/JBP’s conference-call host to hang up on a man who claimed to have been recruited by Mann and later to have suffered a stroke. Prior to being unceremoniously disconnected from the call, the man informed Mann that JSS/JBP support had ignored his pleas for help.

    A woman who complained about support after claiming her sister’s home was at risk because of the JSS/JBP “program” was treated rudely during an earlier call — this after she pointed out she had a heart condition.

    Among the apparent early aims of ProfitClicking is to permit members to fund accounts, but not withdraw. Such an approach is consistent with an effort to draft suckers into turning over money that may or may not be used at a later time to make Ponzi payments to people who bought into the JSS/JBP scam. AdSurfDaily, a ProfitClicking-like autosurf, scammed its members in this fashion in 2007, according to U.S. federal court files.

    Mann was a former ASD pitchman, according to a 2008 promo.

    ASD President Andy Bowdoin never told his new members that their money would be used to pay old members on board when the original iteration of ASD collapsed, federal prosecutors said. Bowdoin was sentenced last month to 78 months in federal prison.

    All sorts of vacuous claims are made on the ProfitClicking site, including a claim that the purported opportunity is “Legally Compliant” and has a “Patented system.” Like JSS/JBP, ASD and the recently collapsed Zeek Rewards “program,” ProfitClicking has no known securities registrations and purports to do business with payment processors linked to fraud scheme after fraud scheme.

    Because ProfitClicking has a virtually unquantifiable number of HYIP scammers within its ranks owing to the fact it was formed from the carcass of JSS/JBP and was promoted widely on the Ponzi-forum cesspits, new members may be at grave risk. ProfitClicking’s original group of scammers has a vested interest in continuing the deception because attracting “new money” may be the only means of getting paid in the future.

    For posterity, the screen shots below provide a snapshot of the countdown of a new scam in progress:

    1.

    The ProfitClicking countdown timer at the 1:00 mark today.

    2.

    The ProfitClicking countdown timer at the 0:01 mark today, one second before launch.

    3.

    Time to scam anew!

  • BULLETIN: ZTeamBiz, Site Purportedly Raising Funds To Defend Zeek Affiliates, No Longer Has Access To PayPal; Site Weaves Conspiracy Theory That eBay Didn’t Want Zeek To Survive

    BULLETIN: (UPDATED 3 P.M. EDT U.S.A.) This bizarre announcement appears today on ZTeamBiz, the site that was using PayPal purportedly to raise funds to “defend” affiliates of the collapsed Zeek Rewards’ MLM scheme:

    The payment solution has been removed and will be replaced on September 8, 2012. PayPal a company owned by eBay.com had decided it is not in their best interest to assist us in bringing back a Penny Auction that is directly competing with eBay.com.

    We apologize for this inconvenient [sic] and will have a new solution soon. Thank you for your understanding

    ZTeamBiz, which targeted Zeek affiliates in its fundraising pitch, has a tie to Todd Disner, a figure in the AdSurfDaily Ponzi scheme that advertised a Zeek-like payout of 1 percent a day. Affiliates who provided money to ZTeamBiz potentially put themselves at cross-purposes, given that a federal judge has appointed a receiver in the Zeek case and that the interests of all Zeek affiliates are not equivalent.

    In 2011, ASD President Andy Bowdoin sought to use PayPal to raise funds to pay for his criminal defense. The site, known as Andy’s Fundraising Army, eventually was blocked by PayPal from using its services.

    Robert Craddock is part of the purported braintrust behind the ZTeamBiz fundraising effort. Disner once was a guest on a Zeek-related conference call featuring Craddock. That call occurred after the SEC moved against Zeek last month.

    In July, Craddock reportedly was behind an effort to silence the voice of Zeek critic “K. Chang” by bringing a purported copyright and trademark infringement complaint against K. Chang through HubPages, a site used by K. Chang to publish news and opinion about Zeek. The site was taken offline, but eventually returned.

    In 2011, Disner sued the United States for alleged misdeeds in bringing the ASD Ponzi case, claiming ASD was a legitimate enterprise and that the U.S. government had presented a “tissue of lies” when bringing the case in August 2008. About seven months after Disner brought the action, Bowdoin pleaded guilty to wire fraud, admitting ASD was a Ponzi scheme.

    A federal judge sentenced Bowdoin to 78 months in federal prison — and dismissed the lawsuit filed by Disner. Disner’s co-plaintiff in the case was Dwight Owen Schweitzer. At an unclear point in time after the August 2008 seizure of tens of millions of dollars in ASD-related bank accounts in the ASD Ponzi case by the U.S. Secret Service, both Disner and Schweitzer became Zeek promoters.

    Zeek’s business model was similar to ASD’s. On Aug. 17, the SEC described Zeek as a $600 million Ponzi- and pyramid scheme that potentially affected more than 1 million people. The Secret Service also is investigating Zeek.

    ASD’s Bowdoin was sentenced Aug. 29. Federal prosecutors described his “program” as a $119 million Ponzi scheme that had created at least 9,000 victims and had resulted in millions of dollars of losses.

    ZTeamBiz did not explain on its website whether PayPal blocked the account through which it was soliciting funds from Zeek affiliates. Instead, it suggested that eBay, which owns PayPal, was an envious Zeek competitor.

    See “Whose Lawyer Is This Anyway,” an Aug. 29 PP Blog guest column by Gregg Evans. See July 9, 2009, guest column by Evans that raised questions about how the SolidTrustPay payment processor was enabling fraud schemes.

    See July 28 PP Blog column on the Craddock HubPages flap.

  • URGENT >> BULLETIN >> MOVING: Florida Attorney Charged Civilly, Criminally In Alleged ‘Commodities Online’ Caper; 2 Principals (With Felony Convictions) Also Charged

    URGENT >> BULLETIN >> MOVING: Florida attorney Michael R. Casey has been charged both civilly and criminally in the alleged Commodities Online fraud scheme, the SEC said.

    Also charged criminally and civilly were former Commodities Online executives James C. Howard III and Louis N. Gallo III.

    “This trio teamed up to employ all the hallmarks of an investment scheme,” said Eric I. Bustillo, director of the SEC’s Miami Regional Office. “Howard met with prospective investors at a luxury hotel to emanate a false sense of wealth and security, Gallo oversaw an in-house boiler room that drummed up investor interest, and Casey was the company’s purported legal counsel who acted anything but lawyerly.”

    Both Howard and Gallo were convicted felons prior to emerging as executives at Commodities Online, the SEC said. The fraud caper allegedly gathered $27.5 million.

    From the SEC complaint (italics added):

    In reality, COL performed only a limited percentage of the commodities transactions it promised investors. Instead, the Company, Howard, and Gallo dissipated millions of dollars of investor funds to largely sham companies, including Relief Defendants Sutton Capital, LLC, J & W Trading, LLC, American Financial Solutions, LLC, and Minjo Corporation. Through these companies, Howard and Gallo misappropriated investor funds for their own use. So-called profits they distributed to investors they took largely from other investors’ funds.

    Casey personally made misrepresentations to investors about the profitability, structure, and existence of the purported commodities contracts. He also knew about Howard’s misappropriation of investor funds, but failed to disclose this fact when he communicated with investors.

    Howard, 53, resides in of Lauderhill, Fla.

    “In 1997, Howard was convicted of federal narcotics and firearms felonies and sentenced to 57 months in prison,” the SEC said.

    Gallo, 43, resides in Parkland, Fla.

    “In 2005, Gallo pleaded guilty in the United States District Court for the District of New Jersey to bank fraud and narcotics charges and was ultimately sentenced,” the SEC said. “In 2007, in the same court, he pleaded guilty to transmitting a threat to injure and was later sentenced to one day in prison and a three-year term of supervised release.”

    Casey, 65, resides in Oakland Park, Fla.

    “He is an attorney licensed to practice in Florida,” the SEC said. “In early 2010, Casey acted as COL’s outside legal counsel. In May 2010, he replaced Howard as president of COL.”

    From the SEC complaint:

    In May 2010, COL issued a press release announcing Howard was stepping down from his COL management position but would “remain in a consulting relationship with [COL] and will continue to provide the company with the benefit of his many years of experience in the commodities business.” While the press release announced that Casey would replace Howard as president, it did not disclose Howard’s arrest [in a separate alleged fraud scheme]. Gallo and Casey were aware of the press release, which at least one of COL’s sales agents circulated.

    The SEC initially moved against Commodities Online last year. Today’s complaint names individual defendants and companies that allegedly received ill-gotten gains.

    James Clark Howard III

    Howard was arrested by the Boca Raton Police Department in a separate scheme targeting Haitian Americans on March 5, 2010. About six months later — in September 2010 — he was sued by a Nevada company that listed former AdSurfDaily member and Surf’s Up moderator Terralynn Hoy as a director.

    The Nevada company — SSH2 Acquisitions Inc. — alleged that Howard was part of a Ponzi scheme that also involved Patricia Saa, Sutton Capital LLC and Rapallo Investment Group LLC.

    Howard and the defendants, according to the lawsuit, told SSH2 it was trading in commodities and “would produce profits of 40% per month or more, while not risking any of the invested funds.”

    In its lawsuit, SSH2 alleged that its dealings with Howard and the others began in “early 2009? and continued through March 2010.

    Read the SEC complaint against Casey, Howard and Gallo.

  • UNBELIEVABLE: In Wake Of Zeek Collapse, Members Get Pitch For ‘Wealth Creation Alliance’; Promo Features Strange Use Of Capital Letters; Pitchmen Are Called ‘Prosperity Advocates’ — And Promo Claims Tie To Bank Of America

    UPDATED 11:55 A.M. EDT (U.S.A.) On Aug. 17, the SEC accused the purported Zeek Rewards revenue-sharing program of being a $600 million Ponzi- and pyramid scheme that had affected more than 1 million people. Zeek was touted on the MoneyMakerGroup and TalkGold Ponzi forums.

    Now comes word that Zeek members are being pitched on a “program” known as “Wealth Creation Alliance” (WCA), which declares it is operated by an “Executive Dream Team,” makes strange use of capital letters in a sales promo, calls its pitchmen “prosperity advocates” and also has a presence on the Ponzi boards.

    Like Zeek, WCA says members can send in sums of up to $10,000.

    Zeek said participants were purchasing “bids”; WCA says its product is “ad units.”

    The WCA “program” according to one promoter, touts a relationship with offshore payment processors and even Bank of America.

    Bank of America also handled the banking for the 2008 AdSurfDaily Ponzi scheme, according to federal court files. A tie to the emerging WCA “program” could not immediately be confirmed.

    Like ASD and Zeek, WCA has a purported “advertising” component and tiered commissions, according to one promo for the “opportunity” viewed by the PP Blog. Zeek-like language also is present in WCA. Both companies, for example, purport to operate (or have operated) a “profit pool.”

    Some Ponzi-board apologists for Zeek have described it as a “freedom company.” WCA, meanwhile, says it “will apply the proven “Free Enterprise” formula” and emerge as a firm “Of the People, For the People and Built By the People.”

    These email remarks (below/italics added) were received by at least one Zeek member and were attributed to Paul Skulitz, the purported owner of WCA. Many of the words on the left margin curiously begin with capital letters, which leads to questions about whether WCA and/or its pitchmen are communicating in code to certain prospects and are sympathetic to the so-called “sovereign citizens” movement.

    Some “sovereign citizens” are preoccupied by the use of capital letters.

    The capital letters in the first words in the first three lines of the email form the acronym “WCA,” for instance. Whether WCA has any “sovereign” ties is unknown.

    Welcome to our rapidly growing family of prosperity advocates here at “Wealth 
    Creation”. It is our intention to develop a program that is innovative, profitable 
    And sustainable. Our priority is to build a successful  ‘long term home’. 

    You and your families deserve dynamic success and we at WCA are committed 
    To providing you with the vehicle and tools to take control of your life and reach 
    Your greatest goals and dreams. Many of you want to become wealthy and free 
    And we intend to help you do just that! These goals will be met by putting in 
    Place a business model that is not simply exchanging money for money. The 
    WCA model will apply the proven “Free Enterprise” formula of providing 
    Much-needed product and service solutions to the global marketplace. We 
    Are building a sustainable business model with powerful products and services 
    That are in much demand. 

    To unleash the viral power of “Word of Mouth”, we are using a 15%, two level 
    Bonus plan along with a powerful global revenue pool that will be shared with 
    All active affiliates. This plan has produced some of the largest earnings in direct 
    Selling history. 

    An “Executive Dream Team” is guiding our business. These business professionals 
    Bring well over 120 years of high-level business experience to WCA.  They have 
    Run companies and built marketing teams globally over the past 40 years and are 
    Committed to building a company that is, “Of the People, For the People and Built 
    By the People”. 

    Our core product/services are a virtual marketing and advertising tool and a global 
    Directory.  These tools have been developed over the past decade by our CTO (Chief 
    Technology Officer) and are time tested and proven effective. Many of these product/
    Services are available at no charge to our free affiliates. All of our advertising products 
    Can and are being used to promote not only WCA but also any other business or program. 
    There will be certain limitations. These products/services carry a huge profit margin, 
    Which fuel both our first (10%) level and second (5%) level commissions and our 
    Company wide profit pool.

    Our business plan is dynamic and will require flexibility on your part as we roll out 
    Our different divisions, which will include, but not be limited to: 

    Our online banner and text ads, our marketing and communication tools 

    Our robust global directory where both affiliates and customers can advertise 
    Showcase their products/services and causes our upcoming online mall featuring 
    Products/services at a tremendous value

    Our Life Literacy University, where individuals and families can tap into the wisdom 
    Of some of the world’s greatest mentors on topics as diverse as family finance, fitness/
    Nutrition, self-esteem, generational wealth creation, goal settings & achievement, travel 
    & leisure, personal & spiritual development, language skills, public speaking and family 
    And friendship dynamic. As the community develops there will be online empowerment 
    Opportunities as well as regional gathering to learn your favorite topics.

    As with any legitimate business, you will be able to buy these offerings at a discount 
    For personal use, make them available for resale on your website and generate profits 
    Or share the program with others and enjoy referrals bonuses on their purchases. What 
    Sets this apart form everything else is the company wide global profit pool. This is the 
    Best of it all… As our volume grows you will participate in the profit of the entire company 
    On a daily basis. WCA is truly committed to ‘ Sharing The Wealth ‘!’

    We are committed to building people, who will develop culture, which will change this
    World and make it a better place to raise our families.  We are committed to a revolution
    In the hearts and minds of each and every child of God who believe in their hearts, “There 
    has to be a better way!”

    We are fully operational right now and in our company pre-launch, this simply means 
    that you are able to sign up for free and receive your business website and purchase 
    advertising units as well. You can also refer and sign others in as well. We are also 
    currently receiving payments and more importantly we are paying referral bonuses 
    and daily profit sharing. Our pre-launch will continue through October 2012. We 
    will hold our first major event the first weekend of November. (Details will be 
    forthcoming) 

    As we continue to upgrade our system to provide the very best opportunity for you, 
    please be patient as there will be moments of brief interruption of service while we 
    attend to necessary online functions. We just recently finished one fantastic 
    improvement to provide additional protection internally and the systems are 
    systematically coming back online. Our 65% auto re-purchase feature, our 
    100% default system and several other features are being put fully into operation. 
    All of these will have a wonderful affect on your profits and the company’s sustainability. 

    As we continue to improve daily and roll systems out for you, stay excited and 
    positive what the future holds in store for you. 

    Thank you for you time and your trust, 

    Best Wishes, 
    Paul Skulitz Admin
    if you’ve questions
    [Deleted by PP Blog]

  • Missouri Orders Alleged HYIP Operated By Christopher Hanson To Cease And Desist; Scheme Reached Into North Carolina, State Alleges; Tough Economic Times Give Scammers Opportunity To ‘Pull Schemes Directly From The Pages Of The Fraud Playbook,’ Official Says

    Missouri Sectetary of State Robin Carnahan

    UPDATED 10:52 A.M. EDT (U.S.A.) Christopher Hanson of Springfield, Mo., has been ordered to “cease and desist” from offering an HYIP “featuring supposed ‘leveraging’ on U.S. Treasuries,” the office of Secretary of State Robin Carnahan announced.

    Missouri state securities regulators described the scheme as a hybrid that married Hanson’s HYIP to a prime-bank scheme.

    “In tough economic times, everyone is looking for ways to make money, which gives fraudsters ample opportunities to pull schemes directly from the pages of the fraud playbook,” Carnahan said.

    Regulators at both the state and federal level have issued repeated warnings about HYIP and prime-bank swindles. Walter Clarence Busby Jr., a figure in the AdSurfDaily Ponzi scheme in 2008 and a companion fraud scheme known as Golden Panda Ad Builder, was implicated by the SEC in three prime-bank swindles in the 1990s.

    “The cease-and desist-order alleges that Hanson sold unregistered securities and committed securities fraud by failing to disclose material information to investors,” Carnahan’s office said.  “According to the order, Hanson assured investors that their investments were risk free or ‘safe’ and were backed by a U.S. Treasury program. Hanson promised investors that they would quickly receive high rates of return on their investments, some in as little as 24 hours. To date, investors have not received any return on their investments.”

    Hanson, according to the state’s order, is a former insurance salesman who was fired in 2005 “for failure to disclose reportable events on a Uniform Application for Securities Industry Registration Form . . . and failure to fully cooperate with a regulatory inquiry and internal requests for information.”

    By 2011, Hanson was in the HYIP business, according to Missouri state investigators — at least one of whom was corresponding with a Hanson investor in New York, according to the state.

    The New York investor, according to Missouri investigators, “was referred to Hanson through an attorney in North Carolina.”

    Also named in the order are Hanson Holdings LLC of Springfield and IBS Investments LLC, also of Springfield.

    Read the Missouri order for additional details.

    North Carolina recently was rocked by the collapse of Zeek Rewards, which the SEC described as a $600 million Ponzi- and pyramid scheme.

  • BULLETIN: CFTC Says California Man At Helm Of Ponzi Scheme Targeted At Deaf Christians; Marc Perlman Charged With Fraud Amid Claim He Advised Investor To Sell House Quickly And Plow Proceeds Into Forex Scheme

    BULLETIN: The CFTC has gone to federal court in the Southern District of New York, alleging that Marc Perlman of Rancho Cucamonga, Calif., and his firm, iGlobal Strategic Management LLC, were running a commodity-pool and Forex Ponzi scheme targeted at deaf Christians.

    Perlman and the company have been charged with fraud. The CFTC said the scheme sucked in “at least $670,000 from at least 17 people.”

    In at least one instance, the CFTC charged, Perlman encouraged an investor “to sell a house at a price that would result in a quick sale, stating that the profits that the iGlobal Investor would earn with iGlobal would make up for the lost equity.”

    It is at least the third major fraud scheme targeted at the deaf community since 2009. In October 2010, the SEC charged an entity known as Imperia Invest IBC in a caper that sucked in millions of dollars and affected thousands of people with hearing impairments. In 2009, the FTC charged Affiliate Strategies Inc. (ASI) in a government-grants scam. The Noobing autosurf was in the ASI stable of companies, and promotions were targeted at the deaf.

    Both Imperia Invest and Noobing were promoted on the MoneyMakerGroup and TalkGold Ponzi forums — the same venues from which Ponzi schemes such as AdSurfDaily and alleged Ponzi schemes such as Zeek Rewards were promoted.

    “Perlman furthered his and iGlobal’s fraudulent scheme by playing upon the Christian faith of certain iGlobal investors, using claims about his own faith and references to scripture to obtain the trust of certain iGlobal investors,” the CFTC charged.

    Victims hailed from Arizona, California, Florida, Georgia, Michigan, Oregon, Utah, Washington and Pennsylvania, the CFTC said, noting that Perlman is deaf.

    “Perlman offered to have calls with certain potential iGlobal Investors through a video phone system that enables communication through sign language,” the CFTC charged. “During these calls, Perlman told certain potential iGlobal Investors that he was offering them the opportunity to invest in a forex investment system that would yield profits of 10 percent each month. He later revised this projected number to 5 percent after certain iGlobal Investors invested funds.”

    The U.K. Financial Services Authority assisted in the CFTC probe, CFTC said.

    Read the complaint.