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  • EDITORIAL/ANALYSIS: Events Are Controlling DNA, Not The Other Way Around; Prosecutor’s Office Mum On Narc That Car Inquiry In Texas

    This Narc That Car promoters' check-waving video is now missing from YouTube's public channel, after being placed there March 1. The video, however, is said to be available through a private YouTube channel. It is unclear whether Narc That Car asked its promoter — "Jah" of the Cash For Car Plates Blog — to remove the video, which also claimed repping for Narc That Car was like working for the U.S. "Census Bureau."

    First, some news: A website titled DeanBlechman.com now resolves to a parked page at the offshore registrar directNIC. As first reported on the PP Blog, the site previously redirected to the website of Data Network Affiliates (DNA).

    directNIC is “based in Grand Cayman, Cayman Islands,” relocating from its former base in Louisiana after Hurricane Katrina, according to the firm’s website. directNIC is DNA’s registrar, and also the registrar for the DeanBlechman.com domain and a DNA-associated domain known as TagEveryCar.com.

    In a bizarre autoresponder message earlier this week, DNA said it had chosen “privacy” protection for $5 “to prevent management from having to “put up with 100 stupid calls a day,” a source told the PP Blog.

    In an interview Wednesday with the Blog, Blechman, DNA’s former chief executive officer, said he was “surprised” to learn of the DeanBlechman.com site, painting a picture that the company was not in control of its own message and had a “back door guy” who was authoring “bizarre” communications.

    Blechman did not identify the “back door guy.” Precisely when the DeanBlechman.com domain stopped redirecting to DNA’s website is unclear. It was still redirecting to the site early yesterday, but now is resolving to the directNIC page.

    Meanwhile, the PP Blog contacted the office of R. Scott McKee, the district attorney of Henderson County, Texas, yesterday. McKee is training for deployment to Iraq, and was not available immediately to answer questions on his inquiry into Narc That Car, according to a woman who answered the phone.

    The woman said it was possible that an assistant prosecutor would contact the Blog, but the call was not returned yesterday.

    McKee’s office opened a civil inquiry into Narc That Car (NTC) more than a month ago, turning to the office of Texas Attorney General Greg Abbott for assistance and saying it had received “numerous calls and complaints inquiring into the legitimacy and legality” of NTC.

    How that inquiry is proceeding is unclear. Two days ago, the Dallas branch of the BBB reduced its rating on NTC from “No Rating” to “F,” the worst possible rating on the BBB’s 14-step scale that begins with “A+.”

    NTC now joins companies such as AdSurfDaily and Speed of Wealth as firms that have scored an “F.”

    It is possible that NTC could improve its score at the BBB over time, but the score of “F” it holds now was arrived at after the company had been given more than a month to explain its compensation program to dampen pyramid concerns. The BBB also said it asked NTC to “substantiate some claims made in its advertising” Jan. 18. That inquiry remains open.

    NTC does not publish the name of customers of its database product. Some affiliates have claimed the firm was associated with major automobile manufacturers, the FBI, the Department of Homeland Security and the AMBER Alert program.

    The company removed a video reference to the AMBER Alert program after the U.S. Department of Justice, which administers AMBER Alert, denied it had any affiliation with NTC.

    ASD never improved its BBB score because it became consumed by a government investigation. ASD is implicated by the U.S. Secret Service in a Ponzi scheme.

    Speed of Wealth, which also became consumed in government litigation, also did not improve its BBB score. It is implicated by the SEC in a Ponzi scheme involving Mantria Corp., whose BBB rating is being “updated,” according to the BBB. Mantria currently is listed as “No Rating.”

    On another matter, MLM aficionado Troy Dooly now is openly challenging DNA officers Arthur Kurek and Donald Kessler to explain what is happening at the company.

    Rumors are rampant that Phil Piccolo, a notorious figure in MLM, somehow had become involved in DNA. Absent a firm denial from company management, the rumors continue to fly.

    For his part, Blechman, DNA’s former CEO, did not rule out that Piccolo was involved in the firm.

    In the absence of a unified message from DNA and plain statements on issues such as whether Piccolo is involved and what steps have been taken to assure that DNA is compliant with state and federal law, events are controlling DNA, not the other way around.

    The suggestion that “privacy” protection was chosen so management would not have to put up with “stupid” calls is patently absurd — as is the amount of hype being put out under DNA’s name.

    No one at the company has emerged to speak on issues of legality and privacy. DNA says it is in the business of recording license-plate numbers. Like Narc That Car promoters, DNA promoters have made sweeping statements, asserting that affiliates could record plate numbers at places such as Walmart, Target, church parking lots and parking lots at doctors’ offices.

    Company conference calls have been cheerleading sessions — with DNA’s own pitchmen leading the cheers.

    Whether DNA and NTC affiliates are required to seek  permission from owners of private property or the permission of local jurisdictions to record plate numbers remains unclear. Also unclear is how affiliates are required to behave if confronted by property owners or police who question what they are doing.

    Sweeping assertions have been made by affiliates that plate data is “public information” available for the taking in the parking lots of large retail stores. One NTC promoter said on YouTube that his wife recorded plate numbers at a university. The PP Blog believes the university was the University of Nevada, Las Vegas.

    The office of Sen. Harry Reid, D.-Nev., did not return a call from the Blog seeking comment on the practice recommended by the NTC promoter. Nor did Reid’s office return an email sent by the Blog. Reid is Senate Majority Leader. One of the buildings on UNLV’s campus bears his name. The same NTC promoter recommended “libraries” as excellent sources of plate numbers.

    Among the privacy concerns is whether the companies, which appear to be targeting as clients of the database product firms that repossess automobiles, could use the data to create profiles on the movement of people.

    In a DNA conference call, one company pitchman said DNA hoped to attract enough affiliates to make it possible for the company to record a plate number at Walmart at noon — and the same plate number at a “doctor’s office” at 1 p.m. and the same plate number elsewhere at 4 p.m. The same pitchman suggested churches were good sources of license-plate numbers.

    Adding to the fog of uncertainty is a pattern of strange communications from the firm, which is using Google’s free gmail service to conduct customer service. Emails received by DNA members do not include a street address, which brings issues of transparency into play and potentially brings issues of federal compliance into play.

    The PP Blog, which is a Blog among millions of Blogs, has received repeated affiliate spam from DNA and Narc That Car promoters. For weeks, there was no way even to contact DNA to report spam. The Blog will not contact the company via the gmail address — which was made public only days ago –out of concern its email address will be harvested and added to a database controlled by an unknown party.

    Narc That Car, meanwhile, has a “Span Policy” — as opposed to “Spam Policy” — link at the bottom of its website. Some of its promoters have produced check-waving videos, including a video that claimed repping for NTC was like working for the “Census Bureau,” a government agency.

    One of the videos showed that NTC payments are issued by check drawn on the account of “National Automotive Record Centre Inc.” That entity, which uses the word “National” in its name and the British spelling of “Centre” — as opposed to the U.S. spelling of “Center” — is registered in Nevada. NTC also is associated with a Texas company known as Narc Technologies, which, according to a YouTube video now made private, once issued checks for affiliates.

    These things hardly inspire confidence in the NTC enterprise.

    Just this morning, the PP Blog received information from a DNA member that the company emailed members, claiming “D.N.A. archived e-mail communications were erased by design.

    “We will send you the last 3 e-mail communications within the next 24 hours,” the email said. “If you do not wish to receive D.N.A. Daily Communications please visit your back office.”

    Even if the email was perceived by management as a means of demonstrating that DNA was trying to gain control over its message, such a communication only leads to more questions. The email did not include a street address. It also implied that members needed to opt out of communications by doing so within their back offices, rather than opting out by clicking on a link at the bottom of emails they receive.

    The hype from DNA and its promoters — dropping names of icons such as Donald Trump and Oprah Winfrey — and making claims that a “MEGA MILLION DOLLAR DEAL with a publicly known industry giant” and a “Top Secret Product” are on the horizon are rubbing some MLM aficionados the wrong way.

    MLM has a miserable reputation. Messages from DNA are doing the industry no favors.

    If DNA is attempting to seize back its communications apparatus, it needs to explain precisely why it lost control of it early on. And a corporate face must emerge for the company — one who is willing to answer the hard questions on the propriety, safety, legality and privacy concerns the firm is sparking.

    For now, at least, it is a tangled web fueled by hype that ducks the issues and causes the company to look silly — day after day.

  • A PONZI MYSTERY: Trevor Cook’s Faberge Eggs, Iraqi Dinars Missing; Appraiser Braves Elements, Accesses Cook’s Frozen Island Retreat In Canada By Snowmobile

    It’s starting to read like Ian Fleming fare, something straight out of James Bond and “Octopussy.”

    R.J. Zayed, the receiver in the alleged Trevor Cook/Pat Kiley Ponzi scheme in Minnesota, says he did not find Cook’s collection of Faberge eggs when, armed with a court order, he searched Cook’s home in Apple Valley. The precise size of the collection is unclear, but it has been described in court filings as featuring “numerous” eggs.

    The fabulous jeweled eggs also didn’t turn up at the Van Dusen mansion in Minneapolis, which Cook and Kiley used as an office. Potentially “millions” of Iraqi dinars once stored on the third floor of the mansion also are missing, according to court filings.

    Zayed was able to get cursory information on Cook’s island getaway in Canada, though — thanks to a real-estate appraiser who was willing to venture to the Rainy Lake Island property near Fort Francis, Ont., on a snowmobile.

    “Given the difficulty traveling to the island during the winter, however, no other licensed appraisers have been able to make an on-site inspection as of [yesterday],” Zayed said.

    Additional appraisals will be obtained with the spring thaw, presumably in April, “when the weather allows easier access to the island,” Zayed said.

    The Rainy Lake Island property consists of 2.3 acres of land. There are “several structures on the property, including an 1130 square foot log cabin, a guest cabin, docks and sheds,” Zayed said.

    “The dwelling structures are newly constructed and weather tight, but unfinished on the inside. The property is serviced with electrical power supplied by under water cable originating from the Minnesota side of the lake,” Zayed said.

    He estimated that the property was worth about $400,000 to $500,000.

    Cook, who is jailed for contempt of court for not turning over receivership assets, purportedly purchased a submarine to access the island, but discovered the waters were too dark for the submersible craft.

    Because of the unfriendly waters, Cook talked about moving the craft to Panama, whose waters he believed more suited for use of his submarine, according to court filings. The submarine purportedly was purchased on eBay.

    Zayed was able to locate 31 watches in a collection described in court filings as “vast,” including a “diamond studded Rolex watch that Cook gave to his wife and that she maintained in a safe deposit box.” He also recovered a ROM exercise machine that retailed for $14,165.

    Investors in the alleged $190 million scheme may get “pennies on the dollar,” Zayed said.

    Prior to being jailed in January, Cook asked Chief U.S. District Judge Michael Davis for a monthly allowance of $6,679, including a monthly outlay of $105 to cover the expenses of his three housecats and $100 for a gym membership.

    While searching Cook’s home, Zayed seized three automobiles: a 2005 Lexus 33 series; a 2004 Lexus L43; and a 1997 BMW 328ic. He is seeking to auction them off.

    Zayed already has sold a 1989 Rolls Royce; a 2004 Audi RS6; a 1985 Pontiac Fiero “Lamborghini Kit Car”; a 1998 BMW Z3; a 1989 Mercedes 420 SEL; and a 2000 Lexus. The cars, some of which had high mileage, fetched $73,100, according to court filings.

    All buyers were required to “sign a statement certifying that they were not serving as a proxy” for Cook or any other person or entity that is part of the probe, Zayed said.

    Meanwhile, Zayed sold Cook’s large-screen, high-definition TVs and other items such as computers and gambling equipment for “at least” $24,000 — higher than the expected amount, according to court filings. A final accounting of the auction was not yet finalized.

    An inventory of items suggested that the collection featured 10 TV sets with 50-inch screens and two sets with 42-inch screens. Like the car-buyers, the TV-buyers had to certify they were not acting as a proxy.

    The Cook/Kiley entities perpetrated “a massive scheme to defraud and that they never operated as legitimate investment vehicles,” Zayed said, noting that he believes the entities “have no value as ongoing businesses” and that “the value of any ‘investments’ in these entities has a present value of zero dollars.”

    Zayed said the Van Dusen mansion has a “still-confidential buyer” willing to pay $1.6 million in cash for the historic structure. A deal could close next month, if no buyer willing to pay more emerges.

    The property was marketed for $1.995 million, and racked up some big bills for security, repair of furnaces, repair of the alarm system, snow removal, cleaning and other maintenance.

    Cook, Kiley and several companies were implicated in an alleged $190 million Ponzi and forex fraud in November by the SEC and the CFTC. Kiley formerly hosted a show on Christian radio.

  • BULLETIN: Narc That Car Gets ‘F’ From Better Business Bureau; Rating Is Lowest On 14-Step BBB Scale

    UPDATED 1:42 P.M. ET (U.S.A.) The Better Business Bureau branch in Dallas has given Narc That Car a rating of “F,” the worst-possible rating on the BBB’s 14-step rating scale.

    Narc That Car’s previous rating was “NR,” meaning the firm had no rating with the BBB, which opened an inquiry into the company Jan. 18.

    The BBB said that, despite the fact Narc That Car provided some information on the company’s compensation practices Feb. 8, the organization “remains concerned as to whether the business model, in practice, truly provides any significant method of compensation which would not require sponsorship of additional program participants.”

    “According to the company, as of February 10, 2010, only 1% of total commissions paid out to independent consultants was for the sale of license plate information to third parties, referred to as ‘client share,’” the BBB said.

    “Previously, the company’s ‘client share’ income was the only repeatable form of compensation which did not involve the recruitment of others into the opportunity. However, as of March 1, 2010, the company has provided a modified compensation plan which allows for base-level independent consultants to receive commission payments.”

    Read the BBB’s rating for Narc That Car as of March 5, 2010.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Now, the incomplete story . . .

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    “That was a surprise,” Blechman said yesterday.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Narc That Car Update

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    The video was placed on You Tube March 1.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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