Category: Writing And Branding

  • UPDATES/NEWS: ASA Ponzi Forum Now Redirects To CashX.com; Arthur Nadel Gets 14 Years In Florida Ponzi Case Brought By Obama Task Force; Former Indiana Pastor Who Bilked Christians Convicted Of Securities Fraud

    President Obama formed the interagency Financial Fraud Enforcement Task Force in November 2009. He later became the subject of an attack ad by an affiliate of the purported MPB Today "grocery" MLM.

    UPDATED 10:56 A.M. EDT (U.S.A.) The ASA Monitor Ponzi and criminals’ forum now is redirecting to a website operated by CashX.com, a Canadian payment processor that hawks MasterCard debit cards and says it permits customers to withdrawn money to Liberty Reserve.

    Liberty Reserve is a Ponzi-friendly payment processor purportedly headquartered in Costa Rica after earlier operating from Panama.

    Meanwhile, confessed Ponzi schemer Arthur Nadel — who briefly went on the lam from Florida in early 2009 as his $390 million scheme was disintegrating and became known as one of the original “mini-Madoffs” — has been sentenced by a federal judge in New York to 14 years in prison.

    It is effectively a life sentence for Nadel, who is 77 and one of several senior citizens implicated in U.S. Ponzi schemes.

    At the same time, a former clergyman from Indiana who told congregants it was their “Christian responsibility” to become pitchmen for his then-undiscovered bond scheme has been convicted of nine counts of securities fraud.

    Vaughn Reeves, 66, is scheduled to be sentenced next month. The jury deliberated only four hours before returning the verdict against Reeves, himself a senior citizen. Congregants believed they were helping raise money for church-building projects, but it was a scam that led to foreclosure proceedings against eight places of worship. (See link to AP report below.)

    Claims made by Reeves are similar to claims made by the Data Network Affiliates (DNA) MLM program, which told members that churches had the “MORAL OBLIGATION” to help bring business to the Florida-based firm and qualify for commissions ten levels deep. DNA purports to be in the license-plate data collection business, claiming it can help law enforcement and the AMBER Alert program recover abducted children.

    Incongruously, DNA also purports to sell a “protective spray” that shields cameras from taking photographs of license plates. Equally incongruously, the company said that it could offer a free cell phone with unlimited talk and text for $10 a month. The company later backtracked on the claim, bizarrely saying it studied pricing structures only after announcing it had become the world’s low-price leader while acknowledging it hadn’t vetted its purported vendor for the service.

    DNA figure Phil Piccolo later threatened to sue critics. Earlier, Dean Blechman, who said he was the company’s CEO before resigning in February, threatened to sue critics. DNA withheld the announcement of Blechman’s departure for nearly a week and then misspelled his name. DNA also described Blechman as the “future” CEO, even though Blechman had described himself as the current CEO.

    Blechman complained to the PP Blog about “bizarre” events at DNA.

    ASA Monitor, which is referenced in court filings as a place from which the alleged Pathway To Prosperity (P2P) Ponzi scheme was pitched and was a site from which the purported “grocery” MLM operated by Florida-based MPB Today was pitched, suddenly announced on Oct. 12 that it was closing.

    Like MPB Today, DNA also was pitched from Ponzi and criminals’ forums.

    The ASA Monitor closure announcement coincided with a flap in which an ASA forum moderator sought to muzzle critics of the MPB Today program, which is being targeted at Christians, foreclosure subjects, Food Stamp recipients, senior citizens, people of color and members of the alleged AdSurfDaily (ASD) Ponzi scheme.

    ASD also operated from Florida before the U.S. Secret Service seized tens of millions of dollars in August 2008, amid allegations of wire fraud and money-laundering. Robert Hodgins, an international fugitive wanted by Interpol in a narcotics-trafficking and money-laundering case filed after an undercover probe by the U.S. Drug Enforcement Administration in Connecticut, provided debit cards to ASD, members said.

    Nadel’s scheme, meanwhile, operated in the Sarasota area.

    “Through his massive Ponzi scheme, Arthur Nadel greased his own pockets and financed his lavish lifestyle, using money his clients relied on him to invest,” said U.S. Attorney Preet Bharara of the Southern District of New York.

    “He cheated his elderly and unwitting victims out of their retirement savings and consigned others to poverty,” Bharara said. “The message of [yesterday’s] sentence should be loud and clear — we will continue to work with our partners at the FBI to find the perpetrators of financial fraud and use every resource we have to bring them to justice.”

    U.S. District Judge John G. Koeltl ordered Nadel to forfeit $162 million, five airplanes, a helicopter and real estate in Florida, North Carolina and Georgia.

    The prosecution of Nadel was brought in coordination with President Obama’s Financial Fraud Enforcement Task Force. U.S. Attorney General Eric Holder traveled to Florida earlier this year to warn fraudsters that the United States was serious about putting scammers in prison.

    By September, an affiliate of MPB Today had created a video in which Obama was depicted as a left-handed saluting Nazi who cowered to U.S. Secretary of State Hillary Clinton, who was depicted as a drunk. First Lady Michelle Obama, the mother of two daughters, was depicted as having experienced an embarrassing gas attack in the Oval Office after sampling beans at a Sam’s Club store.

    Clinton, depicted in the sales promo as “Hitlary,” knocked out Michelle Obama after barging into the Oval Office bawling and carrying a bottle of wine. Clinton, the mother of one, was the first woman ever appointed to the Walmart board of directors.

    Some MPB Today affiliates have claimed Walmart is affiliated with MPB Today and that the government backs the MLM program, which appears to have accounts at at least two banks in the Pensacola area. One of the banks is operating under a consent agreement with the FDIC.

    Read the AP story on the Vaughn Reeves scheme in Indiana.

  • Did MPB Today Have Predecessor Company Known As ‘MyPremierBiz’ In 2009? Wellness, ‘Apps’ Programs Pitched From Ponzi Boards Last Year Prior To Birth Of ‘Grocery’ MLM

    This video promo from June 2009 hawks "My Premier Biz," a site now associated with the MPB Today "grocery" program. My Premier Biz was pitched on Ponzi forums more than a year before promos for MPB Today began to appear on the Ponzi forums. MyPremierBiz was a purported opportunity for distributors to pay up to $3,456 to have wellness products associated with MPB Today operator Gary Calhoun placed in retail stores.

    A website known as MyPremierBiz.com was hyped on Ponzi boards last year and videos were produced to drive traffic to a confusing “opportunity” that included both a straight-line and a 2×2 matrix cycler and a hard-to-decipher sales and compensation program.

    Affiliate links were created for the program, which was purported on the MoneyMakerGroup forum to gather between $312 and $3,456 from distributors to place “Pro Packs” — cases of wellness products — in retail stores. The more a prospect sent in to acquire purported retail space for “Pro Packs,” the more he or she purportedly would earn. As of yesterday, some of the links redirected to the website of the purported MPB Today “grocery” program, research shows.

    The product line-up for the MyPremierBiz opportunity is associated with products offered by Gary Calhoun of MPB Today. One promoter on a Ponzi board claimed MyPremierBiz had lined up “outlets” that are “independent nutrition and health food stores, specialty wellness shops, holistic or independent pharmacies, spas, salons, etc.

    “We have a certain number right now, but NOT ENOUGH members to cover the sales! Talk about a GROUND-FLOOR OPPORTUNITY!” the affiliate exclaimed. “As this gets rolling, you will be a part of a small, elite nucleus of people who will have THOUSANDS of STORES in your downline within 12-36 months!”

    Incongruously, a video on YouTube displayed photos of several retail outlets, but included a disclaimer in tiny type that “Stores shown are for example only and are not affiliated with our company.”

    The root of the domain — MyPremierBiz.com — displayed this message this morning: “MPB Today is off-line for site maintenance.” However, other URLs at the site served pages, including a page that included a link for the MPB Today “grocery” program. The fate of the “Pro Packs” offer first advertised last year was not immediately clear.

    The development strongly suggests that MPB Today, which itself is being promoted on the Ponzi boards, had a predecessor site more than a year ago that also was pitched from the Ponzi boards. Receipt of any revenue from Ponzi schemes or criminal business opportunities is potentially catastrophic for MPB Today because the company could be paying members with proceeds from other online schemes.

    Separately, MPB Today Inc. has canceled its Florida incorporation, according to documents on file in the state. The company now is known simply as “MPB Today” — without the “Inc.” designation — according to  a filing dated Sept. 24. MPB Today is operating as a fictitious entity owned by Le330 Inc., another entity associated with MPB Today operator Gary Calhoun.

    Whether MPB Today Inc. actually ever was incorporated in Florida is unclear. A filing by the firm in July suggests the fictitious entity assigned itself a corporate designation under Le330’s designation. Checks recently received by MPB Today members no longer have the “Inc.” designation. Earlier images of checks posted online by affiliates included the “Inc.” designation. New checks simply list “Mpb Today” as the account-holder.

    Like promos for MPB Today, promos for MyPremierBiz were filled with hype and began with a proposition.

    In March 2009, a poster at MoneyMakerGroup wrote, “Would you spend $312, ONE-TIME ONLY, to EARN at least $360 in PROFIT, from Retail Store sales, year after year?”

    MPB Today uses a similar pitch to plant that seed that a $200, “one-time” purchase can lead to free groceries for life.

    MyPremierBiz was positioned last year as “a new division of a six-year-old company that is turning heads both on and off the internet,” according to a promoter writing on the MoneyMakerGroup forum. MoneyMakerGroup is referenced in court filings in the Pathway To Prosperity (P2P) case, amid allegations that P2P was an international Ponzi scheme that fleeced more than 40,000 participants across the globe.

    Writing about MyPremierBiz on MoneyMakerGroup in June 2009, a promoter said that “I am the #2 person in the company. I’m building the TOP Team and I want you to have the same success. Together, I KNOW we can do it!

    “We have SO MANY ways you can get paid and I am going to get you off to an INCREDIBLE START with my MPB Team Build,” the promoter continued. “Here’s what I will do for you. I’ll put two people under you and that will get you off to a ROCKET START! If you join MPB, you will pay $11.50 for the annual website fee, plus $20 for your first monthly order, plus a little shipping for that order, and you can also purchase your way right into our 2 x 2 matrix for only $50 (just one part of our comp plan, but a VERY exciting and rewarding part). So your total expense, to get started is only $89. And you will now be part of several PASSIVE RESIDUAL Compensation Components, and you will be earning a check the very NEXT week!”

    One of the Ponzi-forum references to MyPremierBiz included a tie-in to a program known as “Froggy Apps,” which purported to be a downloads service.

    “FROGGY APPS are HERE!” a pitchman roared on the MoneyMakerGroup forum on July 9, 2009. “APPS are just getting started. People are downloading them at an ASTOUNDING rate, and iPhones, and other ‘Smart Phones’ are selling at a PHENOMENAL CLIP!”

    Links to the MyPremierBiz promos placed in the MoneyMakerGroup forum during the summer of 2009 redirect to the current MPB Today grocery program. So do links to the FroggyApps program.

    All three websites — MyPremierBiz.com, MPBToday.com and FroggyApps.com — are registered behind proxies. When the PP Blog visited the FroggyApps site, it was redirected to the MPB Today site.

    Not all affiliate links formed under the MyPremierBiz domain, however, appear to resolve to an MPB Today affiliate site. The PP Blog clicked on an old MyPremierBiz affiliate link yesterday, and was sent to a page that said, “The page or associate name was not found on this server. Please click the link below to continue.”

    The link below led to the MPB Today site.

  • Bogus Claims Of Google Affiliation Gave Scam ‘False Auru Of Legitimacy,’ FTC Says; Case Leads To $29.5 Million Judgment; Defendants Lose Cash, Cars, Motorcycle, Boat, Gun Collection

    So, you want to plant the seed that your business “opportunity” is backed by a famous company or that the company approves of your use of its trade name in a domain name you registered?

    Eight defendants in a fraud case filed by the FTC have been hit with a judgment of $29.5 million in a settlement with the agency. A ninth defendant was hit with a judgment of $741,900.

    The case mixed financial fraud in the form of unauthorized charges being drawn from customers’ bank and credit-card accounts — and misuse of Google’s name to sanitize the scam, the FTC said.

    The defendants were forced to give up assets that totaled about $3.5 million: cash, two cars, interests in a Harley Davidson motorcycle, a boat and a gun collection “in partial satisfaction of the judgment,” the FTC said.

    Among those hit with the $29.5 million judgment were Jonathan Eborn; Michael McLain Miller; Tony Norton; Infusion Media Inc.; West Coast Internet Media Inc.; Two Warnings LLC; Two Part Investments LLC; and Platinum Teleservices Inc.

    Stephanie Burnside was hit with the $741,900 judgment.

    None of the defendants is able to pay the judgments, which will be suspended unless it is determined that they “have misrepresented their financial condition,” the FTC said.

    A big part of the case was “bogus” claims of ties to Google, the FTC said. The agency brought the action last year as part of “Operation Short Change,” which was targeted at “scammers taking advantage of the economic downturn to bilk vulnerable consumers through a variety of schemes.”

    Federal officials made the announcement today, even as members of an online “opportunity” known as MPB Today were claiming the purported grocery MLM was backed by the government and Walmart. Some MPB Today affiliates have used Walmart’s name in domain names. Meanwhile, affiliates also have used Walmart’s branding materials and even have recorded commercials for MPB Today on Walmart property.

    Such dogs did not hunt in the case against in which bogus claims were made about Google, according to court filings.

    In June 2009, the FTC advised a federal judge that “The defendants’ use of the term ‘Google’ in the defendants’ business names, product names, and Internet domain names and the defendants’ use of logos that are identical to or confusingly similar to the logo of Google Inc. and its Internet search engine create a false aura of legitimacy by suggesting that the defendants are affiliated with Google.”

    Not even a disclaimer in small type by some of the defendants that there was no actual affiliation with Google spared them from the astronomical judgment, according to court filings.

    The defendants did not admit wrongdoing in the settlement agreements.

  • Name Of New Bank Appears On MPB Today Checks; Images Posted On .Org Affiliate Site; Other Affiliates Tape UPS Driver Delivering TV From ‘Grocery’ Program

    Images of two checks purportedly from the MPB Today MLM program are published on a .org website. The checks show Whitney National Bank of Pensacola as MPB Today's bank. Previous checks from the company showed the name of Gulf Coast Community Bank of Pensacola as the bank for both MPB Today and its purported parent company, Southeastern Delivery.

    An MPB Today affiliate’s site on a .org domain is publishing images of checks that suggest the purported “grocery” MLM in Pensacola either has switched banks or is using a second bank.

    The checks are dated Oct. 8 and bear the name of Whitney National Bank of Pensacola. Previous images of checks published by MPB Today affiliates showed the name of Gulf Coast Community Bank, a Pensacola bank that has been operating under a consent agreement with the FDIC since January.

    The checks purportedly drawn on Whitney show the name “Mpb Today” as the account-holder. Previous images of checks published online by MPB Today affiliates showed the names of “MPB Today Inc.” and “Southeastern Delivery LLC.”

    Southeastern is the purported parent company of MPB Today. Why the checks dated in October and purportedly drawn on Whitney did not use the “Inc.” designation was not immediately clear. Also unclear is why MPB checks published online by affiliates included three different names as bank account-holders: Mpb Today, MPB Today Inc. and Southeastern Delivery LLC.

    If MPB Today has switched banks at midstream, it may signal a change in the status quo. Changes in the status quo often are key markers of scams. Changes in MLM compensation plans also may signal a change in the status quo. MPB Today now says it is paying bonuses to certain members of the firm’s 2×2 cycler matrix.

    Some MPB Today affiliates have received Walmart gift cards as part of their compensation, while others have received Walmart “In Store Credit Cards” and prepaid Visa cards branded in Walmart’s name. Whether the varying payment methods represent changes in the status quo is unclear.

    Separately, a video on YouTube shows a 32-inch television set being delivered by UPS to a residence believed to be in Las Vegas. A narrator in in the video says the TV was paid for with a Walmart gift card “kind of, indirectly.”

    The video captures the actual delivery of the TV, showing the face of the UPS driver and also capturing his voice. Whether the UPS driver understood he was being videotaped for a commercial for MPB Today was unclear.

    This marks at least the second time that video promos for the MPB Today program have captured the faces and voices of people who may not have understood that they were being filmed for commercials for the “grocery” program. An earlier video by a separate MPB Today affiliate captured the voice of a teller at an FDIC-insured bank, the face of a Walmart employee and the faces of employees of a taco store.

    At least one other video for MPB Today has shown a TV purchased with proceeds from the “grocery” program — in this case, a 46-inch model manufactured by Samsung.

    This check, published on a Blog, shows the name of Southeastern Delivery.

    This check, published in a video, shows the name of MPB Today Inc.

    A UPS van drives off after after delivering a 32-inch television to an address believed to be in Las Vegas. A narrator in the video said the TV "kind of, indirectly" was paid for with a Walmart gift card from the MPB Today grocery MLM.
    The TV purportedly paid for with a gift card from the "grocery" program.

  • DEVELOPING STORY: A Second Reference To MPB Today ‘Rebates’; Domain Implies Company Offers Cash To Join; Email Address On Affiliate Site Associated With Defunct Company In Miami; No Immediate Comment From USDA

    A domain that redirects to an MPB Today affiliate site provided by the MLM company implies that the firm offers "rebates" to prospects who join. This screen shot shows the page that loads if prospects visit the "rebates" domain. The "rebates" domain that causes this page to load does not explain how MPB Today prospects can secure a rebate after joining.

    UPDATED 11:47 A.M. EDT (U.S.A.) An affiliate domain linked to the MPB Today “grocery” program implies the company offers “rebates” to prospects who join the MLM company. The domain redirects to an MPB Today-provided affiliate site, which includes an email address for the promoter. The promoter’s email address is associated with yet another domain — one whose registration data lists the name of a company in Miami that purports to provide services for “cardholders.”

    Florida records show that the “cardholders’” firm — an LLC — was administratively dissolved by the state last month for failure to file an annual report.  Other records show that the defunct company uses the address of a UPS store as its address.

    The U.S. Department of Agriculture (USDA) said last month that it was investigating claims made about the MPB Today program, which has been targeted at Food Stamp recipients. USDA had no immediate comment this morning on the domain that implies MPB Today offers rebates.

    Two words appear in this domain name prior to the word "rebates." If prospects click on the URL in Google search results, they are redirected to an MPB Today affiliate site.

    Both domains — the one that implies MPB Today offers rebates and redirects to the MPB Today-provided  affiliate’s page and the one associated with the “cardholders’” firm — are associated with the name of the MPB Today promoter. The domain that implies MPB Today offers rebates was registered on July 7, 2007, meaning it was in operation even before MPB Today and its purported parent company, Southeastern Delivery of Pensacola, were in operation.

    The domain that implies rebates are available and redirects to the MPB Today affiliate’s website does so immediately, and there appears to be no content that explains how one can get a rebate when joining the MPB Today MLM program, which operates a 2×2 matrix cycler. MPB Today does not promote a rebate program on its website.

    Why an affiliate would imply that it does is unclear.

    Second Reference To MPB Today ‘Rebates’

    An MPB Today “rebates” program also was advertised last week by a separate promoter — “Ken Russo” — on the ASA Monitor Ponzi and criminals’ forum. ASA announced it was closing only days after “Ken Russo” solicited prospects to send him a private message using the forum’s software to arrange to receive a rebate of $50 from a member of his MPB Today “team.”

    If any rebate transactions for MPB Today occurred as a result of the “Ken Russo” promo on ASA Monitor, they would have done so out of public view because private messages are not displayed to the forum’s readership at large. The ASA promo leads to a question about whether the forum was facilitating private MPB Today rebate transactions for “Ken Russo” during a period in which USDA was investigating claims about the firm.

    Meanwhile, the domain that implies MPB Today offers rebates and redirects to theMPB Today-provided affiliate’s site leads to a question about why affiliates apparently are seeking to lure prospects with cash payouts or the hint of cash payouts for joining the program.

    At the same time, the domain has been associated with yet another domain that purports to offer entrepreneurial “success.” The “success” website promotes six numbered “Projects.”

    A link for “Project 6” redirects to yet-another website that promotes MPB Today. This website features a check- and Walmart card-waving video, but does not reference rebates. A woman who appears in the video identifies herself as a member of the “MPB Power Team.”

    “Come on board and get your own checks and your own gift cards,” the woman said.

  • Yet-Another Website With MPB Today Promo Uses Walmart’s Name In Domain Name; Site Targets Spanish-Speakers; Waves Check, Gift Card; Displays Images Of Buffet, Trump, Walmart

    A website that promotes the MPB Today “grocery” program is targeted at Spanish-speaking prospects and uses Walmart’s name in its domain name.

    Like at least three other websites linked to Florida-based MPB Today’s 2×2 matrix cycler, it is unclear if the site’s operator has Walmart’s permission to use its name in a domain name. The site, which implies Walmart distributes cash, is not registered in the retail giant’s name.

    An English headline on the site urges viewers to “Eliminate Your Grocery Bills . . . Forever” by joining the MLM. The site then presents Spanish content, while linking to a video that uses images of business titans Warren Buffet and Donald Trump. A check drawn on the account of Southeastern Delivery is reproduced on the site, as are images of a Walmart gift card, a Walmart store and a Sam’s Club store.

    MPB Today removed images of Buffet, Trump and Walmart from the homepage of its website last month. Regardless, multiple MPB Today affiliates continue to use the images. Southeastern Delivery is MPB Today’s purported parent company.

    It is common for MLM participants to imply a “program” is endorsed by celebrities and famous companies.

    ____________________________________________________________________

    The check reproduced on the website is drawn on a bank that has been operating under a consent agreement with the FDIC since January. Walmart and the FDIC have not responded to a request for comment from the PP Blog on the MPB Today program. Neither has the bank upon which the check is shown to be drawn.

    Multiple MPB Today affiliates have produced check- and card-waving videos and websites to recruit prospects. Some of them have been online for months.

    MPB Today has been advertised on forums that promote Ponzi schemes, including the now-defunct ASA Monitor forum. Some MPB Today affiliates have claimed publicly that there are liars, thieves and scammers in the organization.

  • BULLETIN: ASA Monitor Ponzi And Criminals’ Forum Says It Is Closing; Threads Go Missing En Masse; Closure Coincides With Undercover Operations By Law Enforcement And USDA Probe Of MPB Today

    BULLETIN: UPDATED 7:37 P.M. EDT (U.S.A.): The ASAMonitor Ponzi and criminals’ forum — the forum from which the purported MPB Today “grocery” program was being promoted and countless other fraud schemes were being promoted — suddenly has announced that the forum is closing.

    The announcement, which appeared today in red type, was made by “Wanrou,” whose ID says he is “ASA Administrator.” Content from the forum appears to have been deleted or hidden en masse.

    “ASA forum has been a place where members can get information, discuss, share, debate, to educate and be educate about possibilities and risks of online money making programs for the last few years,” the Wanrou post said.

    “Sadly we can no longer keep it online as a free discussion forum because of time consuming and financial reasons,” the post continued.

    “Thanks you all for your long time support and best wishes to your present and future online endeavors.”

    The forum’s sudden closure coincided with reports in recent months that U.S.-based law-enforcement agencies were conducting undercover stings both online and offline and using informants to bring both criminal and civil charges against financial fraudsters.

    It was not immediately clear if ASAMonitor would seek to reopen as a so-called “private” forum. Court records show that undercover operations also have infiltrated “private” forums and that members of the forums who had been scammed have provided helpful information to investigators.

    The sudden closure of ASAMonitor also coincided with yet-another flap in the MPB Today thread. An antiscam poster was specifically warned by a moderator yesterday to refrain from his efforts to inform ASA members about developments in the MPB Today story and his reading of events at MPB Today.

    Specific claims about MPB Today are being investigated by the U.S. Department of Agriculture. The program has been pitched to Food Stamp recipients, people of faith, Ponzi scheme victims, people of color, senior citizens, college students and opponents of President Obama, among others.

    Obama created an entity known as the Financial Fraud Enforcement Task Force in November 2009 to do battle with fraudsters. In January, U.S. Attorney General Eric Holder warned in Florida that the U.S. government was serious about putting scammers in prison.

    ASAMonitor previously closed the MPB Today thread after warning an antiscam poster to back off from challenging “Ken Russo,” a poster promoting the MPB Today program. The thread later was opened after what a Mod described as a “cooling off period” had passed. In an earlier closure of the thread, links to the PP Blog’s coverage of the MPB Today story were deleted from the forum and later restored.

  • KABOOM! More Bad News For Fraudsters: ‘FBI Undercover Operation’ Leads To Florida Fraud Busts; 20 Charged In Alleged Schemes, Including ‘CHiPs’ Actor

    An undercover sting conducted by the FBI has resulted in fraud charges being filed against 20 individuals or companies. The sting was centered in southern Florida. Among those charged was Larry Wilcox, one of the stars of the long-running television program “CHiPs” in which Wilcox played the role of a California police officer, the SEC said.

    Records suggest Wilcox agreed to become a government informant after becoming implicated in the probe.

    Wilcox, 63, of West Hills, Calif., was among a group charged both civilly and criminally. The case was brought after the FBI conducted an undercover probe into penny-stock schemes.

    “Securities fraud is an equal opportunity crime — it runs the gamut from very large to very small publicly traded companies,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.

    Ferrer noted that “even microcap companies are plagued by fraudsters who seek to manipulate the stock market to line their own pockets.”

    Separately, the SEC said the sting was conducted “in such a way that no investors suffered harm” — an announcement that could send shockwaves across the fraud universe because it demonstrates that investigators are infiltrating schemes and relying on informants to unmask the schemers.

    Wilcox, for example, believed he was doing business with a “corrupt trustee,” according to court filings. Records suggest that Wilcox entered a deal with the government in July in which he would cooperate in an ongoing probe.

    “These corrupt promoters meticulously planned their schemes down to the last detail, except for the possibility that they were walking into an undercover operation,” said Robert Khuzami, director of the SEC’s Division of Enforcement. “This joint law enforcement effort is a stark warning to those who embark on securities fraud schemes that we may be listening and we may be watching.”

    Whether the SEC and FBI were performing similar stings in the corrupt worlds of HYIPs, autosurfs and 2×2 matrix cyclers as promoted on Ponzi forums was not immediately clear. The Justice Department, however, has made it clear in court filings that it is infiltrating criminal forums and is using undercover operatives.

    The U.S. Secret Service also has made it clear that it is using undercover operatives in its investigations of corrupt enterprises such as HYIPs, autosurfs and 2×2 matrix cyclers.

    Read the SEC’s statement:

    Read the statement of U.S. Attorney Ferrer and remarks from the FBI:

    Read a story about a Secret Service probe in which undercover operatives were used to infiltrate criminal forums:

  • Another MPB Today Site Uses Walmart’s Name In Domain Name; Positions ‘Grocery’ Biz As ‘Freedom Club’ In Domain Hidden Behind Proxy; Uses Images Of Buffet, Trump And Late Sam Walton

    This pitch for MPB Today positions it as the Walmart Freedom Club. The pitch misspells the word "prosper" as "prospour." The website registration is hidden behind a proxy, and uses Walmart's name in the domain name. It is unclear if Walmart authorized the domain name or the use of its intellectual property in the MPB Today promo.

    Yet-another domain linked to the purported MPB Today “grocery” program is using Walmart’s name in its domain name. The domain name is registered behind a proxy and uses images of Warren Buffet, Donald Trump and Sam Walton to position the opportunity as a “Freedom Club.”

    Sam Walton is the late founder of Walmart. It is unclear if the owners of the website have Walmart’s permission to use its name and the likeness of Sam Walton in a pitch for the MPB Today program. Also unclear is whether the website owners have the permission of Trump and Buffet to use their images in promos for MPB Today.

    Separately, yet another pitch for MPB Today features a narrator who notes that food is necessary to stay “alive” and laments, “I wish we could sell air too.” The “air” video is on a restricted YouTube site maked as “unlisted.” An unlisted video “means that only people who know the link to the video can view it (such as friends or family to whom you send the link,” according to YouTube.

    MPB Today is a multilevel-marketing (MLM) program based in Pensacola, Fla. The “opportunity” is tied to a grocery business in Pensacola known as Southeastern Delivery. Both companies are linked to Gary Calhoun, who has a poor track record with the Better Business Bureau and was the recipient of a warning letter from the Food and Drug Administration for his marketing of a product that purported to be a treatment for Lou Gehrig’s disease, Herpes and Alzheimer’s, among others.

    The new domain that uses Walmart’s name is at least the third linked to the MPB Today program — and the second to position MPB Today as a “club” tied to Walmart.  The domain was registered Sept. 9, after MPB Today itself removed images of Walmart, Buffet and Trump from the homepage of its website.

    Other MPB Today-linked websites branded with Walmart’s name imply the retail giant offers free groceries or that Walmart is partnered with MPB Today.

    Meanwhile, still-other websites linked to the MPB Today program position it as a “Grocery Assistance” program and a program linked to the Food Stamp program administered by the U.S. Department of Agriculture. MPB Today also is being pitched from known Ponzi and criminals’ forums such as ASA Monitor, TalkGold and MoneyMakerGroup.

    On Wednesday, the SEC filed an emergency action in federal court in Utah to stop a program known as Imperia Invest IBC dead in its tracks, amid allegations it had fleeced millions of dollars from thousands of Americans with hearing impairments. Like MPB Today, Imperia was promoted on the Ponzi forums.

    Among the allegations in the Imperia case were that the operators were using trademarks and the intellectual property of a major company — Visa Inc. — without the company’s authorization. All in all, more than 14,000 Imperia investors were fleeced, the SEC said.

    In this separate promo for MPB Today, a narrator notes that food is necessary to stay "alive" and laments that he wishes members also could sell "air" through the MPB Today MLM program.

  • EDITORIAL: Sundays Aren’t What They Used To Be: Is The MPB Today Matrix Stalling? Was A ‘Rebate’ Plan Advanced On Ponzi Forum A Bid To Reinvigorate It? (And Why Is The Matrix Being Plugged As A ‘Grocery Assistance’ Program On A .Org Site?)

    Sundays aren’t what they used to be.

    “Ken Russo” announced Sunday on the ASA Monitor Ponzi and criminals’ forum — a forum from which other promoters are targeting people of faith to join the MPB Today “grocery” program — that a member of his “team” is offering $50 “rebates” to entice prospects to sign up. (Read more about the “rebates” program below.)

    On the same day, known in the Christian faith as the Lord’s Day, MPB Today members who apparently were wooed by the company and its affiliates’ sales pitches came to the PP Blog to describe MPB Today critics as “roaches,” “IDIOTS,” “clowns,” “terrible” people, “misleading” people, people who have led a “sheltered life,” people who have been “chained up in a basement,” people who have “chips” on their shoulders, spewers of “hot air,” “naysayers,” “complainers,” “trouble maker[s]” and “crybabies.”

    And these remarks came from just three people in the MPB Today organization, which promoters say has 30,000 members. One of them denied on Sunday that MPB Today pays participants to recruit, something that MPB Today itself does not deny. MPB says commissions are “banked” until promoters sign up at least two other participants, and that no one cycles until a downline group becomes populated by seven members, only one of whom “cycles” and earns a matrix payout.

    For good measure, the same affiliate claimed on Sunday that she is paid for “grocery” sales, but chose not to answer a question about how many people within her organization actually bought groceries by overpaying for them through MPB Today. At the same time, she claimed MPB Today is sustainable because “[inherently] there is hard data that a certain % of people just will not get 2 people and cycle.”

    It was easy to read that as a Sunday concession that MPB Today relies on matrix “losers” to create matrix “winners.” In any event, it wasn’t much of an endorsement for the company, a company the member also described as a “blessing.” Blessings, like Sundays, aren’t what they used to be, it seems.

    Another MPB Today member claimed on Sunday that there are “[rogues]” in the organization. He did not explain whether he was being paid from rogue money or money sent in by honest affiliates.

    MPB Today members should be worried. A “rebate” program may signal that the MLM firm’s 2×2 matrix cycler is stalling and that the only effective way for average members to recruit two members who can recruit two other members in order to “earn” cycler commissions is to bribe them to join the program.

    It also may signal that promoters are trying to plant the seed that it’s time for their downlines to start spreading the word that MPB Today’s shipping costs are such a deal-killer that the only effective way for members to recruit is to tell prospects they’ll help them defray the shipping charges in the unlikely event they’re actually keen on buying overpriced groceries from a company that offers no money-saving generic products, ships dry goods “ONLY” and may charge customers who just overpaid for name-brand groceries up to $300 for $200 worth of food.

    “Ken Russo” said the “rebate” program was limited to four participants and that his “team” member would go $50 out-of-pocket for each of the four new recruits swayed by the offer. “Ken Russo” advertised that MPB Today’s shipping charges could be up to $50, a claim at odds with what MPB Today itself claims.

    Indeed, MPB Today says shipping charges may amount to up to 50 percent of the cost of a grocery order and perhaps may be even higher. MPB Today supplies only an “average” and plants the seed that perhaps customers should choose “lighter” items, as opposed to “heavy” items that are more expensive to ship. It’s even unclear how MPB Today arrived at its published “average”  of up to 50 percent, considering the company does not say how many of its purported 30,000 MLM customers actually get their groceries from the firm.

    MPB Today is operated by Gary Calhoun. Calhoun once was the subject of a warning letter from the Food and Drug Administration for hawking a product that purported to treat Lou Gehrig’s disease and, for good measure, Herpes and Alzheimer’s.

    “Ken Russo” doesn’t seem keen on telling prospects about Calhoun’s FDA experience. What he seems keen on, apparently, is talking about the “rebate” program started by someone on his “team” — and posting the news on the ASA Monitor Ponzi and criminals’ forum on a Sunday.

    If other MPB Today affiliates borrow the idea announced on a Sunday and the “rebate” program takes off and expands, it means that MPB Today sponsors who offer the “rebates” are absorbing additional costs in an enterprise that already is impossible mathematically.

    Any money MPB Today’s affiliates pay in the form of rebates inures to the benefit of the company — a company that already operates a matrix heavily weighted in its favor. Do you really want to go out-of-pocket even more for a 2×2 matrix cycler that uses a business model that came under fire by the U.S. Secret Service in the alleged Regenesis 2×2 Ponzi scheme last year?

    The U.S. Department of Agriculture is investigating specific claims about the MPB Today program, which has been targeted at Food Stamp recipients. What’s next? Recruiting America’s poor by enticing them with rebates and asking them also to offer rebates?

    Whether the “rebates” idea advanced from a Ponzi and criminals’ forum on a Sunday will go viral is unknown. Some affiliates easily could latch onto it, persuading themselves it’s better to ply prospects with rebates than take the chance MPB Today’s matrix will perform the magic itself.  Our reading of the Sunday “rebates” idea is that it is an inducement to separate people from their money on all seven days of the week on the theory that it’s better to pay $50 on top of the $200 (plus website costs) you’ve already paid to plumb a commission.

    If the MPB Today “grocery” program already is stalling, prospects may be few and far between if you’re aren’t willing to bribe them to overpay for groceries on the theory that doing it one time eliminates their grocery costs forever.

    Here is another reason for MPB Today members to worry: Because the “rebate” program purportedly exists to defray the shipping costs MPB Today charges for the home delivery of groceries, it can be construed as an acknowledgment that MPB is not actually serious about selling groceries, that it is more interested in selling the “opportunity.”

    If you’re an MPB Today member — and if you have not applied any sort of “reasonable person” standard to the program and instead have relied on hype from the company and your upline — you have made a mistake.

    Any claim that a $200, “one-time” purchase of groceries from MPB Today can result in free groceries for life is absurd. Spin it as you will. Argue that it is theoretically possible. Argue that you’re already in “profit” and can vouch that the program “works.” Argue that members of your downline can make the same claim.

    It is still absurd. No reasonable person would invest in such an argument and assign it any credibility at all. Jurors would laugh at such an argument. They shop at grocery stores. They know that a $200, one-time purchase and an accompanying claim that this relatively modest expense can result in free groceries for life is the precise sort of claim that exists only in the realm of the huckster.

    Wait until they’re told about the “catch” — i.e., that an MPB Today member must get two who can get two (or produce $1,200 in sales volume in some other combo) to set the stage for “free” groceries for life. And wait until they’re told that an MPB Today shopper perhaps has to pay up to $300 for $200 worth of groceries and that lots of the purported “grocery” money seems to have been converted to Walmart gift cards that can be used to buy big-screen TVs and laptop computers.

    And wait until they’re told that the conditions above have to be repeated, well, repeatedly, in order for members to continue to get paid.

    Speaking of Sundays: We noticed on Sunday that an MPB Today affiliate was promoting the opportunity through a .org domain. The promo shows a cart full of groceries and a bag of groceries of the sort not available through MPB Today, along with a bag of money.

    The promo on the .org site positions MPB Today as a “Grocery Assistance” program.

    “Our Grocery Assistance Program is helping thousands of families earn CASH and FREE groceries!” the page screams.

    It is not unusual for MLM participants to register a .org domain in a bid to plant the seed that prospects will be aiding a charity by enrolling in a program and paying a sign-up fee. Members of Narc That Car and Data Network Affiliates, for instance, registered .org sites and sought to link the MLMs to the national AMBER Alert program administered by the U.S. Department of Justice.

    The .org domain in the MPB Today program we noticed on Sunday — and please note that we have observed several other .org domains linked to MPB Today — hints that it is a government program by using the word “assistance” in its title.

    On a closing note, the .org domain we noticed on a Sunday also was registered on a Sunday — Sunday Aug. 22, 2010, according to records.

    So, no, Sundays aren’t what they used to be.

  • Florida Drops State-Level Pyramid Case Against AdSurfDaily; Says It Has Supplied Victims’ List To Claims Administrator For Restitution From Assets Seized By Secret Service In Federal Case

    Andy Bowdoin

    UPDATED 7:40 P.M. EDT (U.S.A.) Certain members of Florida-based AdSurfDaily began crowing last week that the office of Florida Attorney General Bill McCollum had dropped the pyramid-scheme case it had filed against ASD in August 2008.

    “The State of Florida has dropped all charges against Ad Surf Daily, Inc. This is wonderful news!” an email received by some ASD members exclaimed.

    Florida prosecutors, however, tell a different story.

    Although McCollum’s office confirmed today that the pyramid case has been dropped “without prejudice” — meaning it can be refiled — it noted that state investigators have forwarded a list of Florida victims of ASD to a federal claims administrator “for processing and reimbursement purposes.”

    Florida initially had sought restitution for victims, along with the dismantling of ASD. ASD essentially dismantled itself in September 2009 by not filing required forms with the state, which revoked its corporate registration. Less than four months later, in January 2010, the federal government was awarded title to more than $65.8 million seized in the case. The government earlier had been awarded title to more than $14 million. In March 2010, the government was awarded title to more than $600,000 that had been seized in a separate forfeiture action filed against ASD connected assets in December 2008.

    All in all, the federal government was awarded title to more than $80 million seized in the ASD case, gaining a clean sweep in the forfeiture proceedings.

    The U.S. Secret Service raided ASD on Aug. 5, 2008.  Florida followed up with a lawsuit of its own a day later, but federal prosecutors later said they intended to form a restitution pool from seized assets. That process now has begun, although ASD President Andy Bowdoin is appealing the January 2010 forfeiture order entered by U.S. District Judge Rosemary Collyer.

    In its paperwork to dismiss the pyramid case, McCollum’s office pointed to Collyer’s forfeiture order, saying ASD victims from Florida and elsewhere had been provided an opportunity for restitution by the federal government.

    On Sept. 28, 2009 — three days after Florida revoked ASD’s corporate registration and dissolved the registration of a shell company known as Bowdoin/Harris Enterprises — federal prosecutors filed a U.S. Secret Service transcript of a conference call ASD had recorded Sept. 21.

    In the call, Bowdoin told members that the government had seized their money. In his court filings, however, Bowdoin claimed the money was his.

    Federal prosecutors said the recording was evidence that Bowdoin could not keep his stories straight, arguing that he had told members one story and a federal judge another. Collyer issued the forfeiture order for more than $65.8 million less than four months later.

    Although an email some ASD members received in recent days claimed that “It looks like things are moving in the right direction” with the Florida dismissal, the email urged members to “only share this with those whom you trust.

    “Do not post on forums or blogs,” the email urged.

    Federal prosecutors noted last month that the U.S. Court of Appeals for the District of Columbia Circuit had dismissed one of two appeals Bowdoin had filed in the forfeiture cases, noting his second appeal was pending before the same court.

    The court should reject that appeal as well, prosecutors argued.

    With the federal procedure for restitution established, ASD victims now have a remedy for reimbursement, McCollum’s office advised a state judge.

    In late 2008, Bowdoin told ASD members that Florida had dropped “Ponzi scheme” allegations against the firm. McCollum’s office immediately countered with a statement that it never even had accused ASD of operating a Ponzi scheme, noting that it had alleged a pyramid scheme only.

    When Bowdoin made the 2008 claim, some ASD members raced to forums and websites to spread the news, which turned out not to be true. He later tried to sell members a VOIP telephone service, explaining the price he offered was a gift to his loyal supporters.

    Even as Bowdoin was telling members in September 2009 that he had big plans for ASD, he did not explain why he had permitted its corporate registration to lapse or explain that the state had revoked the registration.

    Instead, Bowdoin told members that the government had seized their money — a claim in opposition to his own court filings that advised a federal judge the seized money belonged to him.