Category: Writing And Branding

  • Images Of Walmart, Donald Trump, Warren Buffet Removed From MPB Today Website; Testimonials Go Missing, Too; Affiliate Bashes Obama, Hillary Clinton In Promo

    An animated promo for MPB Today portrays President Obama as a weakling who cowers to Secretary of State "Hitlary Clinton," who is depicted as a drunken, sobbing Nazi wearing "puke colored" clothes purchased at Big Lots, a discount store. First Lady Michelle Obama is portrayed as suffering from a gas attack in the Oval Office after sampling beans at a Sam's Club store.

    UPDATED 7:32 P.M. EDT (U.S.A.) Images of a Walmart store and business tycoons Donald Trump and Warren Buffet have gone missing from the landing page of a website operated by MPB Today, a multilevel-marketing (MLM) firm that operates a 2×2 cycler matrix tied to a grocery business known as Southeastern Delivery in Pensacola, Fla.

    The website images appear to have been removed yesterday. It was unclear if Walmart, Trump and Buffet forced the removal. It is common for promos for MLMs to imply endorsements from famous companies and people — even if no such endorsements exist.

    Testimonials from customers purportedly happy with Southeastern’s grocery-delivery business also have been removed.

    Separately, an animated affiliate promo for MPB Today is bashing the Obama administration, painting Secretary of State Hillary Clinton as a Nazi and showing a cowering Obama saying “Heil Hitlary” and giving Clinton — who apparently is drunk on wine — a  left-handed Nazi salute while First Lady Michelle Obama is conked out on the floor of the Oval Office.

    A prompt in the animated video says it was produced by a “Real Mentor, Not Merely a Marketer” for MPB Today. It was not immediately clear if the affiliate was seeking to build an MPB organization that consisted solely of Obama opponents. Also unclear is why the affiliate believed it prudent to bash the President of the United States in his or her bid to woo prospects and recruit affiliates.

    As Michelle Obama is emerging from a comatose state, a thought balloon attributed to her animated image asks, “I feel so woozy, like I got clunked in the head with Hitlary’s whine, what just happened??”

    The 1:40 video is filled with sophomoric and caustic humor — a dog is shown thinking that Clinton is a “Brown Noser” and the animation tries to pull off a gag about Michelle Obama’s need for the product Beano while in the Oval Office, for example.

    An embarrassed Michelle Obama is shown observing that her gas problem was caused by “beans” she sampled at Sam’s Club, a chain of stores under the Walmart flag. President Obama is shown saying he “borrowed” $200 to join MPB Today and “wrote it off” — apparently at the expense of taxpayers.

    “You what??” a horrified Michelle Obama counters. “You borrowed the money to join MPB Today? Who’d loan YOU money??”

    Walmart did not respond to a request for comment last week from the PP Blog about the use of its name in MPB Today promotions. Some MPB affiliates routinely are using Walmart’s name in sales pitches. One affiliate in a separate video claimed that MPB Today had a “contract” with Walmart and that the MLM program was “Govt. certified with Food Stamps!”

    The U.S. Department of Agriculture (USDA) said last week that it was conducting a “review” of claims made about the program. The agency said today that it was continuing to review the situation.

    The animated pitch featuring the Obamas and Clinton asks prospects to visit a website that suggests that “just” a $200 One-Time” purchase with MPB Today can “Totally Eliminate Your Grocery Bill.”

    MPB Today has been targeted at Food Stamp recipients, Ponzi scheme victims, foreclosure subjects and people of faith — and now, apparently, at people who are not enthusiastic about Obama’s presidency, U.S. policy at the Department of State and Hillary Clinton’s clothing choices.

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  • MPB Today Operator Was Subject Of Inquiry By U.S. Food And Drug Administration For ‘Cell Rejuvenator’ Product That Claimed To Treat Lou Gehrig’s Disease, Alzheimer’s, Down Syndrome

    This MPB Today pitch claims a $200, "ONE-TIME" grocery purchase from Southeastern Delivery can "TOTALLY ELIMINATE" future grocery bills.

    Gary Calhoun, the operator of a multilevel-marketing (MLM) program that is targeting Food Stamp recipients, Ponzi scheme victims, foreclosure subjects and people of faith, received a warning letter in 2006 from the U.S. Food and Drug Administration for his marketing of a product that claimed to treat multiple diseases, according to federal records.

    Calhoun, who now operates an MLM program known as MPB Today and a grocery business tied to the program, was ordered by the FDA to stop violating provisions of the Federal Food, Drug, and Cosmetic Act. The grocery business is known as Southeastern Delivery LLC.

    On Friday, the U.S. Department of Agriculture (USDA) said it was opening a “review” of claims made in the MPB Today program and the associated grocery business.

    The FDA’s letter pertained to a Calhoun-operated business known as Trim International and a now-defunct website known as MyTrim.com. Calhoun also operated a business known as United Pro Media LLC, which became a subject of complaints to the Better Business Bureau and was given an “F” rating, the BBB’s lowest rating on a 14-step scale.

    In 2006, according to the FDA, Calhoun was marketing a product known as “TCR Cell Rejuvenator.” The agency said the product was positioned as a treatment for “Neurodegenerative diseases: Alzheimer’s, Parkinson’s, amyotrophic lateral sclerosis, axonal and other neuropathies, Down’s and other syndromes.”

    Amyotrophic lateral sclerosis (ALS) commonly is referred to as Lou Gehrig’s Disease, in recognition of the famed New York Yankees’ first baseman, the subject of the tear-jerking 1942 movie “The Pride of the Yankees,” which starred Gary Cooper. Gehrig died in 1941.

    TCR Cell Rejuvenator also was positioned as a treatment for “recurrent Herpes, common cold and flu,” amid MyTrim claims it could be used “to treat patients with Alzheimer’s, Parkinson’s, cancer and other infectious diseases and neurological disorders,” according to the FDA.

    Meta tags on the site also referenced “prostate cancer,” the FDA said.

    Calhoun was ordered by the FDA to notify it “in writing within 15 working days of receipt of this letter about the steps that you have taken to correct” violations. The company eventually went out of business.

    “[T] he introduction or delivery of a new drug into interstate commerce without an FDA-approved application is a prohibited act,” the FDA advised Calhoun. “No such applications exist for this product.

    “Furthermore, many of the diseases or conditions for which this product is offered are not amenable to self-diagnosis and treatment by individuals who are not medical practitioners,” the FDA said. “Therefore, adequate directions for use for these conditions cannot be written so that a layman can use this drug safely for its intended purposes.”

    The agency said Calhoun had misbranded the product because the “product’s labeling fails to bear adequate directions for its intended uses for those diseases or conditions which are not amenable to self-diagnosis and treatment.”

    MPB affiliates claim a single grocery purchase of $200 through Southeastern Delivery can result in free groceries for life.

    Read the FDA’s warning letter to Calhoun.

  • PHOTO EDITORIAL: The MPBToday Flap: Affiliates Target Food Stamp Recipients, Ponzi Scheme Victims, People Of Faith, Foreclosure Subjects — And Say Government Backs MLM Cycler Matrix Tied To Florida Grocery Business

    EDITOR’S NOTE: UPDATED 3:12 P.M. EDT (U.S.A.) Florida-based MPBToday is one of the programs pitched on Ponzi boards such as ASAMonitor, MoneyMakerGroup and TalkGold. It also is being pitched via email and on social-media sites such as YouTube. All three of the forums are referenced in court filings — including filings in criminal cases — as places from which Ponzi schemes are promoted. Pathway to Prosperity, just one of the schemes promoted on the forums, was alleged in May to have defrauded more than 40,000 people across the globe while gathering more than $70 million.

    MPBToday is a multilevel-marketing company tied to a Pensacola grocery company known as Southeastern Delivery LLC. The U.S. Department of Agriculture (USDA) said Friday that it was conducting a “review” of affiliate claims. Precisely what claims USDA will review is unclear.

    Some affiliates are encouraging recipients of Food Stamps to join the program, which claims a $200, one-time expense can led to free groceries for life. Other affiliates have targeted victims of the alleged AdSurfDaily Ponzi scheme in sales pitches. Still others are using religion to sell the program. The program uses the word “foreclosure” in its sales pitch. Florida has one of the highest foreclosure rates in the United States. More than 9,000 people showed up at the Palm Beach County Convention Center late last month to seek foreclosure relief.

    One potential area of inquiry is whether Food Stamp recipients somehow can use their allotment to qualify for MPB Today’s MLM program. Another potential area of inquiry is whether Food Stamp money somehow is being used to pay MLM commissions. Because MPB Today says Southeastern Delivery assesses a shipping charge of up to 50 percent for the home delivery of groceries — and because affiliates purport that food “vouchers” and food “credits” can be acquired, perhaps in the form of a Walmart gift card MPB Today sends in the mail — another potential area of inquiry is whether Food Stamp money somehow can be converted to pay for items such as electronics and prepaid Visa cards. One MPB Today affiliate said the firm’s high shipping costs were a reason for Southeastern Delivery’s Food Stamp customers to join the MLM program.

    Claims have been made that the MLM program is “certified” by the government, “acknowledged” by the government and that Walmart is affiliated with MPB Today. Walmart has not responded to a request for comment from the PP Blog.

    Here are some photos of promotions for MPB Today from around the web. (Red highlighting added by PP Blog):

    In this YouTube video and text pitch, a claim punctuated with exclamation marks is made that the program is "Govt. certified with Food Stamps!" and that there is a "contract with wal mart!" The word "scam" appears multiple times in the pitch — in an apparent bid to drive traffic to the site from prospects seeking to determine if there is any scam-related information on MPB Today.
    MPB Today positioned on YouTube as a good opportunity for people of faith. The words "Christian" and "scam" are used to drive traffic to the site.
    In a money-waving Blog post, an MPB Today affiliate with a California address shows a check for $300 and a Walmart card.
    In this video for MPB Today on DailyMotion, visitors are encouraged to visit a .org affiliate site for the company, even though MPB Today is not a charity. The video claims members can purchase "electronics," even though MPB Today says it is in the grocery business and affiliates are targeting Food Stamp recipients in sales pitches.
    MPB Today affiliates display check and Walmart card on YouTube after videotaping check-opening ceremony. The program is described as a "NO BRAINER."
    This document on file in Florida shows that Southeastern Delivery LLC, the grocery arm of the MPB Today MLM program, once was known as William Lindsay Properties LLC. The name change occurred in January 2010. Gary Calhoun, the operator of MPB Today, is associated with both firms, according to records.
    On Aug. 25, the PP Blog received an unsolicited sales pitch for MPB Today via an email to the Blog's support address. Among the claims in the pitch, which did not include an unsubscribe link, was that "Walmart is thrilled" with the results of MPB Today. The pitch was targeted at members of AdSurfDaily, a company the PP Blog regularly covers because ASD is implicated by the U.S. Secret Service in an alleged Ponzi scheme involving tens of millions of dollars. A similar pitch was sent to another website that covers AdSurfDaily-related news.
    The names of Walmart and Sam's Club referenced by "Ken Russo" at the ASAMonitor forum, which is notorious for promoting Ponzi schemes.
    In this video, a check and Walmart card are displayed. Unlike other checks written in Southeastern Delivery's name, this check was written in the name of MPB Today Inc. The video, which captured a check-opening ceremony, shows a Walmart "In Store Credit" card
    In this video, an MPB Today affiliate gives a sales pitch while driving an automobile. A check and Walmart card were presented when the vehicle stopped at a highway intersection.The pitch claims a "ONE-TIME" expenditure of $200 can "TOTALLY ELIMINATE" grocery bills.
  • BULLETIN: USDA Conducting ‘Review’ Of Food Stamp Claims Made By MPB Today Affiliates; ‘We Take This Matter Very Seriously,’ Agency Says

    BULLETIN: UPDATED 9:21 P.M. EDT (U.S.A.) The U.S. Department of Agriculture (USDA) has opened a “review” of claims made by affiliates of a Florida-based, multilevel-marketing company, the agency said late this afternoon.

    Members of MPB Today, an MLM program owned by a Pensacola-based grocery seller known as Southeastern Delivery, have targeted recipients of Food Stamps in promotions for the MLM program.

    The agency did not say precisely what claims it would check in its review. MPB Today claims in a video sales pitch that a “one-time” purchase of $200 in groceries from Southeastern can “totally eliminate” future grocery bills.

    “We take this matter very seriously,” a USDA spokeswoman told the PP Blog. “We are reviewing the situation.”

    In general, the spokeswoman said, the agency wants “to make a determination if any regulations are being violated.”

    MPB Today operates a 2×2 cycler matrix that is coupled with the home delivery of groceries. As the PP Blog first reported yesterday, some MPB Today affiliates are advising Food Stamp recipients that the high shipping costs of home-delivered groceries from Southeastern Delivery provide a compelling reason for them to join the MLM program and recruit other members.

    Other MPB Today members have produced check-waving videos, placing them on YouTube to drive business to the firm. One of the YouTube videos claims the MLM program is “Govt. acknowledged.” The video further claims that Walmart is “affiliated” with MPB Today.

    Walmart has not responded to a request for comment from the PP Blog.

    Southeastern’s shipping costs for home-delivered groceries may total 50 percent of an order, according to the MPB Today website.

    A Food Stamp recipient with a $200 order with Southeastern would be spending up to $300 to gain the same $200 of purchasing power offered by a local, walk-in grocery retailer.

    Because of the high shipping costs, the Food Stamp customer should join the MPB Today program to qualify for free shipping and MLM payments for getting others to join, an affiliate suggested in a promotional Blog post titled “Shop Online With Food Stamps.”

    In a Blog post, one MPB Today affiliate claimed that Southeastern Delivery, MPB Today's parent company, had the "sole right" to accept EBT debit transactions for Food Stamps in its market area. (Red highlight added to screen shot by PP Blog.)

    Southeastern is authorized to accept Food Stamps, according to a USDA database. One MPB Today affiliate, however, claimed that Southeastern had “the sole right in their area to accept EBT (equivalent to food stamps/card across the US.).”

    If the claim is true, it would mean that the government was favoring one local Food Stamp-participating retailer over another or creating a condition in which financially strapped consumers from Maine to California would be tempted to send their Food Stamp money to a Florida grocer that suggested a one-time payment could result in MLM riches that would end all food worries.

    EBT is the government’s acronym for “Electronic Benefits Transfer” under the Food Stamp program, which is known as SNAP. SNAP stands for Supplemental Nutrition Assistance Program, and is administered by USDA.

    The affiliate’s claim that Southeastern had the “sole right” in its market area for EBT Food Stamp transactions is dubious. A USDA database shows that at least 25 stores within 2.39 miles of Southeastern’s immediate market area in Pensacola are authorized to accept Food Stamp transactions, including a Walmart that is less than a mile from Southeastern’s business address.

    A federal database shows that at least 25 retailers in Southeastern's immediate market area are authorized to accept Food Stamp transactions.

    There also are two Winn Dixie supermarkets within 1.2 miles of the address, according to the federal database.

    The claim has led to questions about whether MPB Today affiliates were trying to steer nationwide business to Southeastern at the exclusion of authorized Food Stamp retailers that do not charge shipping fees, do not seek to solicit customers for an MLM program and may be more competitive on shelf prices.

  • Forex Ponzi Schemers Who Targeted Deaf Investors Hit With $6.2 Million In Sanctions; ‘Billion Coupons’ Case Drew Comparisons To Defunct Noobing Autosurf

    A Hawaii man and his company were hit with sanctions totaling $6.2 million in a case that alleged they targeted people with hearing impairments in a Forex Ponzi scheme.

    Both the SEC and the CFTC filed actions against Marvin Cooper and his Honolulu-based firm, Billion Coupons Inc. (BCI). The CFTC announced the judgment against Cooper and the company.

    Investigators said Cooper and BCI “solicited funds from deaf American and Japanese individuals for the sole purported purpose of trading forex,” luring them with payout promises of up to 25 percent per month.

    For his part, Cooper took “more than $1.4 million of customer funds for personal use, including for flying lessons and to purchase a $1 million home,” investigators said.

    He was ordered to pay $3.9 million in restitution to customers and more than $2.3 million in penalties. The company is liable for the same amounts.

    The “Billion Coupons” case drew comparisons to the now-defunct Noobing autosurf, which also targeted the deaf. Noobing became popular in the aftermath of the August 2008 federal seizure of tens of millions of dollars in the AdSurfDaily Ponzi scheme case.

    Despite the federal seizure, some ASD members promoted Noobing. Noobing effectively went bust in July 2009, when the FTC charged its parent company — Affiliate Strategies Inc. — with pushing a scheme that promised “guaranteed” government grants of $25,000 from economic stimulus funds.

    Noobing later was named a receivership defendant in the case. Receiver Larry Cook sold the company’s assets lock, stock and barrel — right down to a lavatory wastebasket. Like ASD, Noobing’s parent firm also owned a jet ski. Cook sold that, too.

    Despite dramatic asset seizures and the federal actions against ASD and Noobing’s parent — and despite previous actions against autosurfs, including 12DailyPro, PhoenixSurf and CEP — some ASD members have continued to promote autosurfs.

    This has occurred against the backdrop of a racketeering lawsuit against ASD President Andy Bowdoin and public filings in which prosecutors claimed Bowdoin had signed a “proffer” letter in the case and met with members of law enforcement over a period of four days in December 2008 and January 2009.

    It also is known that Interpol is seeking the arrest of Robert Hodgins, whose Dallas-based debit-card company, Virtual Money Inc., is alleged to have agreed to launder drug money in the Dominican Republic and assist a Colombian drug operation launder money at ATMs in Medellin.

    ASD members said Hodgins’ company supplied debit cards to AdSurfDaily, and web records suggest that Hodgins or a Virtual Money designate attended an ASD function in the Orlando area in late 2006.

    Even though Bowdoin acknowledged in court filings that he had given information against his interests to the government, some ASD members continue to promote autosurfs and HYIPs. After signing the proffer letter and surrendering his claims to more than $65.8 million seized from his personal bank accounts, Bowdoin later reentered the case as his own attorney.

    One of Bowdoin’s 10 personal bank accounts contained more than $31 million, according to court filings. Another contained more than $23 million. Three other bank accounts contained the exact same amount — a little over $1 million.

    After submitting to the forfeiture in January 2009, Bowdoin fired his attorneys without notice and attempted to reenter the case weeks later as his own attorney. This set in motion a series of bizarre pleadings from Bowdoin, including one in which he claimed he had not been provided “fair notice” of his illegal conduct by the government. ASD members by the dozens then filed their own bizarre, pro se pleadings. U.S. District Judge Rosemary Collyer ruled against each of the filers, saying they had no standing in the case.

    Collyer since has ruled against Bowdoin, awarding title to more than $80 million seized in the case to the government, which said it intends to implement a restitution program. Bowdoin is appealing Collyer’s forfeiture decisions.

    Court filings show that Bowdoin told Collyer the seized money belonged to him. In September 2009, the U.S. Secret Service presented Collyer a transcript of a conference-call recording in which Bowdoin told members the money belonged to them. Although Bowdoin insisted he had big plans for ASD, records show that he let the firm’s registration lapse in the state of Florida — even as he was telling members they should be excited about the company’s future.

    In the recording, Bowdoin claimed his fight against the government was inspired by the compelling personal story of a former Miss America.

  • DEVELOPING STORY: MPB Today Affiliate Says Firm’s High Shipping Costs For Groceries Good Reason For Federal Food Stamp Recipients To Join 2×2 Cycler Matrix; Also Claims Walmart Gift Cards Convertible To Cash; No Immediate Comment From USDA, Walmart

    UPDATED 4 P.M. EDT (U.S.A.) Former members of AdSurfDaily who lost money in an alleged $100 million Ponzi scheme are not the only prospects being targeted by affiliates of MPB Today. Recipients of federal benefits administered by the U.S. Department of Agriculture (USDA) also are being targeted.

    If you receive federal assistance for food — and if you’re turned off by the shipping costs charged by an online grocery store that is part of a 2×2 cycler matrix operated by a MPB Today, a Florida-based, multilevel-marketing (MLM) program — you should use the high shipping costs as a reason to join the MLM program, according to an MPB Today affiliate.

    And if you are a Food Stamp recipient who needs one more reason to join MPB Today, you should consider that, if you cycle and earn a Walmart gift card from MPB Today, you can use the “gift cards to purchase Walmart Visa Cards, which can be used the same as cash,” according to the affiliate.

    Shopping online for groceries once was a “privilege” reserved “for those in higher income brackets, with more money than time,” according to a Blog titled “Helping Dreams Come True For You!”

    “Granted, shipping charges are usually around 40% of the total grocery bill, but if that seems like too much to pay, you can utilize the marketing plan of the company,” a Blog post aimed at Food Stamp recipients suggests. “And refer your friends to sign up as well.”

    For its part, MPB Today says on its website that shipping costs “can average from 25 – 50%.”

    Under the MPB Today affiliate’s plan, a Food Stamp recipient with a $200 order would be spending up to $300 to gain the same purchasing power offered by a local, walk-in grocery retailer — assuming the local retailer’s prices were the same as MPB Today’s.

    If the local retailer’s prices were lower, the Food Stamp recipient would lose even more purchasing power.

    On average, only about 14 percent of participants “earn” money in 2×2 cycler programs. One such program operating in the Seattle area came under investigation last year by the U.S. Secret Service.

    Walmart did not respond immediately to a request for comment from the PP Blog.

    The Food Stamp program, known as SNAP, is administered by USDA and managed by the U.S. states and territories.

    USDA did not immediately respond to a request for comment from the PP Blog. It was not immediately clear if the agency knows about the MPB Today program and the manner in which it is being marketed to Food Stamp recipients.

    The MPB Today affiliate’s pitch provided no guidance on whether Walmart gift cards could be viewed as reportable income for tax purposes and Food Stamp eligibility purposes. The pitch also did not disclose that the affiliate was in position to earn money if Food Stamp recipients joined MPB Today through the affiliate link on the Blog.

    A promo on MPB Today’s website encourages visitors to “Eat Well Today!” The site shows photos of delicious food, while prompting visitors to click on a video. The video is a sales pitch for the MLM program.

    When visitors click on the video prompt, a dire drum beat begins. The word “foreclosure” flashes on the screen twice in the first 15 seconds. Florida has one of the highest foreclosure rates in the United States.

    Here is how the MPB Today affiliate describes the cycler program’s convenience to Food Stamp recipients:

    “Once at the checkout screen, you enter the number on your EBT,SNAP, or food stamp card, and another credit or debit card to pay for the shipping charges. It’s just that easy.”

    This YouTube promo for MPB Today claims Walmart is affiliated with the program and that the program is "Govt. acknowledged."

    Separately, a MPB Today affiliate is using a video on YouTube to promote the MLM company. The video claims that Walmart is “affiliated” with the firm and that the program is “Govt. acknowledged.”

    “This biz will explode,” the video claims. It does not list a source to substantiate the claim that Walmart is “affiliated” with MPB Today and that the government has “acknowledged” the program.

    The video has received nearly 5,800 views.

    See earlier PP Blog column.

  • KABOOM! (Florida — Again): FTC Hits Bogus Credit-Repair Firm With $14 Million Judgment; Alleged Schemers Lose Cars, Real Estate In Miami-Dade, Broward Counties

    BULLETIN: (UPDATED 11:27 A.M. EDT (U.S.A.) The Federal Trade Commission has lowered the boom on Clean Credit Report Services Inc. of Florida and three individuals associated with the firm.

    In a settlement from a case brought in October 2008, the FTC has obtained a judgment of $14.4 million. The defendants must surrender their assets, including about $165,000 in frozen funds.

    The settlement agreement also includes “any proceeds received from selling their six commercial and three residential properties under foreclosure in Florida; commercial property in Bogota, Colombia; a 1992 Mercedes S300; and a 1997 Chevrolet Venture.”

    In total, Clean Credit Report Services Inc., Ricardo A. Miranda, Ruthy Villabona and Daniel R. Miranda are giving up “two cars, three houses, and six commercial properties in Broward and Miami-Dade counties in Florida, and in Bogota, Colombia,” the FTC said.

    The defendants admitted no wrongdoing.

    Clean Credit Report operated from North Miami, according to court filings. The company used a website (now defunct), radio ads and televisions ads to fleece customers, the FTC charged.

    Here is how the company pitched its offer on its website, according to the FTC:

    “DEROGATORY ACCOUNTS ARE DISPUTED CCRS will help you to legally dispute all your negative remarks directly with the 3 credit reporting agencies.”

    ***

    “Get ready to see DELETED, DELETED, DELETED, DELETED, DELETED, on the responses from the credit reporting agencies.”

    The alleged schemers targeted people going through rough financial times and illegally charged them upfront fees, the FTC charged.

    They also fraudulently claimed that they could remove accurate and timely information from credit reports, charging $400 to do so and debiting the amount from customers’ bank accounts, the FTC said.

    The agency noted in court filings that eight of nine properties the defendants will be giving up already are in foreclosure.

    Florida has one of the highest foreclosure rates in the United States. Certain MLM and Internet Marketing companies — in efforts to recruit financially strapped customers — routinely use the word “foreclosure” in sales pitches, positioning the business “opportunity” as the remedy for the foreclosure problem.

    Such ads often feature a dire drum beat, as images of people down on their luck flash on the screen. Biz Ad Splash, a failed autosurf, used such an ad. The company disappeared with an unknown amount of money sent in by members earlier this year — and then issued an announcement that it was “sad” about the development.

    Biz Ad Splash and it dire drum beat and “foreclosure” message targeted members of Florida-based AdSurfDaily, which was implicated in a Ponzi scheme by the U.S. Secret Service in August 2008. More than $80 million was seized in the ASD case.

    Some ASD members now are recommending a Florida-based program called MPB Today, which also uses a dire drum beat and the word “foreclosure” in its sales pitch.

    It is known that some members of ASD also were in the credit-repair business. One ASD supporter claimed in court filings that he could undermine a bank’s interest in a foreclosure case by filing “twenty-one dollars in silver coinage” at a courthouse in Missouri.

  • WebsiteTester.biz Delays Launch; Produces Video With Voice, But No Faces; Sends Members To News Release By Unnamed Author; Mysterious Firm Has 18,000 Twitter Followers

    UPDATED 7:26 A.M. EDT (U.S.A.) A Nevada company that advertises “job” openings and is being promoted on Ponzi forums such as TalkGold, MoneyMakerGroup, ASAMonitor and DreamTeamMoney has delayed its launch.

    WebsiteTester.biz made the announcement on its website. Forum posters across the world had expected the launch to be under way fully today, but Website Tester says the launch now will be delayed until the company records 400,000 registrations.

    The mysterious firm says it has 375,000 registrants.

    Adding another layer of mystery, the company posted a video on its website that purports to feature the voice of Michael Anthony DeBias, the “CEO.” Michael A. DeBias is listed in Nevada corporation records as director, treasurer, secretary, and president of Alpha Market Research Inc., the apparent parent company of Website Tester.

    The address listed for Alpha Market Research — 3651 Lindell Rd.,  Las Vegas, NV. — appears to be the address of a company that offers “virtual office” services, meaning Alpha Market may not actually be located in Las Vegas. Promotional material attributed to Website Tester has featured awkward phrasing, including this curious sentence:

    “Potential clients who are disturbed by trifles during the ordering process are often unaware of exactly why.”

    The video includes audio that purports to be of DeBias’ voice, but does not show his face. The video does not explain why a company that is asking people from across the world to register and provide private information — and says citizens of 140 countries have done so — is not showing the face of its CEO.

    Meanwhile, a link at the Website Tester site is adding yet-another layer of mystery. Under a headline of “WebsiteTester.biz – Is it a Scam or Real Business,” the company is sending registrants and prospects to a purported news release posted on PRLog.org, a free news-release service.

    The news release is by an author who did not provide a name, but purported to have conducted an interview with DeBias. The news release author claimed that he or she had conducted “the first official interview” with DeBias.

    Why the author of the news release chose to remain anonymous was unclear. Why WebsiteTester would send traffic to a news release written by an anonymous author also was unclear.

    “We contacted the initiator, Alpha Market Research, Inc. (AMR), to find some answers,” the news release began.

    Although the news release used the word “We,” it did not define who “We” is — an individual, a company, a WebsiteTester affiliate, a company employee. The release included a link to yet-another anonymous release. The domain-registration data for the second anonymous release is unclear, meaning the ownership of the domain cannot be determined immediately.

    Meanwhile, the websites of both WebsiteTester.biz and Alpha Market Research are registered behind proxies. Separately, Alpha Market Research’s Twitter site shows 18,178 followers.

    Precisely what Website Tester and Alpha Market Research do remains unclear — weeks after the prelaunch hoopla began. The launch delay now apparently extends the hoopla.

  • WRETCHED, TAWDRY AND CHEAP: AdSurfDaily Members Now Targeted In Pitches For An MLM 2X2 Cycler — One That Trades On Walmart’s Name While Affiliate Offers ‘Blessings’

    UPDATED 7:11 P.M. EDT (U.S.A.) When U.S. District Judge James Rosenbaum sentenced Ponzi schemer Trevor Cook to a quarter of a century in federal prison earlier this week, the judge used some powerful words to describe Cook’s colossal fraud.

    Rosenbaum described the scheme that bilked investors out of at least $158 million as “wretched, tawdry and cheap.” Some of the victims were rendered destitute.

    It’s easy to see why a federal judge would use such words. Not only did Cook steal by the tens of millions of dollars, he stole even after the SEC and the CFTC went to court last November to bring the scheme to a halt. Cook spent money that had been frozen by court order, thus thumbing his nose at both victims and the judicial system. He later failed to disclose the whereabouts of assets — this until he failed a lie-detector test.

    All of those acts — and the $190 million scheme itself — easily qualify as “wretched, tawdry and cheap.” One could argue rationally that even stronger adjectives could be applied to Cook’s behavior and still fall within the bounds of decorum.

    And this brings us to the subject of AdSurfDaily — specifically, what at least one member appears to be doing to recruit former ASD members and people interested in ASD into yet-another scheme.

    That’s been done before, of course. AdViewGlobal, itself a scheme that could be described fairly as “wretched, tawdry and cheap,” rose from ASD’s ashes to bilk anew.

    Along those lines, who could forget MegaLido? It was yet another autosurf that became popular in the aftermath of the domestic seizure of tens of millions of dollars in the ASD Ponzi case. One former ASD member described MegaLido as “fool proof.”

    It’s “OFFSHORE!!!” he exclaimed.

    Some ASD members also saddled up and starting promoting the Noobing autosurf, which targeted people with hearing impairments. There were plenty of HYIPs, too. These included Genius Funds, believed to have gathered up more than $400 million; Gold Nugget Invest, which promoted itself as a betting arbitrage and later implied in was in Forex; and CashTanker, which used an image of Jesus in its sales pitch.

    Look here to see a list of some of the “programs” promoted by ASD members. (Most of the programs, by the way, were promoted after the ASD seizure.)

    How To Irritate A Sleeping Dog

    At 9:05 p.m. yesterday, Maddy the Wonder Puppy — always and forever a wonder puppy in my mind, even though she’s two now — was going through her endearing presleep maneuvers under my desk. This is one of those things that make me feel good about the world.

    As Maddy was going through her positioning dance and stretching and yawning routine, an email popped into my box. It proved to be one of those things that make me feel bad about the world.

    “input on opportunity” — all lowercase — was the subject line of the email. So, I knew right away that I was about to get a sales pitch — and I suspected before opening it that was going to a disingenuous pitch at that.

    “I used to belong to ASD,” the email began. “Need your input on UniqueBuyingClub.”

    OK. Here’s what’s important so far: The pitch was completely unsolicited and came through the Blog’s support address; it used ASD’s name (sixth word) to catch my attention; the subject line suggested I was being asked for “input,” as though the sender saw something fishy on the Internet and wanted to get my take on it; and the pitch proved to be for MPB Today, not an entity called “UniqueBuyingClub.”

    Let’s proceed. It gets worse.

    The first affiliate link appeared 12 words into the pitch, meaning I wasn’t really being solicited for input — unless it was input after the fact — because the sender already had registered for MPB Today. (Note: I checked the email address of the sender against the affiliate email addresses on the MPBToday page. They matched, meaning it is highly likely that the sender was an affiliate who was spamming me.)

    There was no way to unsubscribe from the “list” I now found myself on. (BTW, I’m wondering if the sender knows if Warren Buffet and Donald Trump really have endorsed MPB Today, a business that bizarrely mixes the home delivery of groceries with a 2×2 cycler.  Their pictures are right at the top of the sales page, which implies an endorsement. Perhaps MPB Today missed the news about the FTC action last week in a case that alleges an Internet Marketing company that hawks Acai berry products tried to make people believe Oprah and Rachel Ray were on board.)

    But it got worse from there. Not only was the “UniqueBuyingClub” angle confusing, the link asked me to visit a site called WeCreateRiches. Then, a second link asked me to visit the MPB Today site. We are only 14 words into the pitch at this point.

    Let’s take another brief pause. The import of what’s happening here is that a former ASD member who perhaps got bilked in a $100 million MLM and securities scheme that promised riches now is urging me to visit a website called WeCreateRiches to sign up for a company that uses a home-delivered groceries business to promote an MLM scheme that uses a 2×2 matrix cycler. The U.S. Secret Service, which is investigating ASD, also has experience investigating cyclers.

    Prior to receiving the email, I knew about MPB Today, which Rod Cook had written about. I just haven’t gotten around to writing about it yet, mostly because there is only so much time in the day. In some ways, I almost hate to write about it because writing about it potentially means that the MLM Stepfords will come of the woodwork to “defend” the company. It also potentially means the Blog will start getting spam from people angry that I dared mention the MPB Today name on a blog about scams. (Spam, in this context, means people who “defend” the company not by leaving a comment that actually defends the company, but by submitting their affiliate link on the theory that they might be able to cherry-pick a new downline member from the Blog’s readership ranks.)

    In any event, the email went on to inform me that “Walmart is loving the results!!” generated by MPB Today.

    Oh, really? I do hope the sender leaves a comment in this thread to substantiate the Walmart claim. It will spare me some work.

    The email also wished me “Blessings and hope through your connections,” while urging me to “Please get back to me and let us help many ASD members who lost money and hope.”

    Well, email sender, consider this post “getting back” to you.

    It is my view that your email — and I haven’t gotten into the most revolting part yet — is “wretched, tawdry and cheap.” Like Judge Rosenbaum, I feel that way about Trevor Cook’s actions — as I do the actions of ASD’s Andy Bowdoin, who also traded on religion.

    Take your “blessings” and “hope” elsewhere. I think the idea of using religion and identifying yourself as an ASD member to pitch other ASD members on MPB Today is “wretched, tawdry and cheap.”

    Meanwhile, I think that sending a reporter who covers fraud schemes an email titled “input on opportunity” also is “wretched, tawdry and cheap.”

    It makes me believe you’d sell anything for a commission and say anything to gain a commission. My thoughts on this subject were further reinforced this morning when I learned you sent a largely identical email to another forum.

    “Blessings,” the email to the other forum concluded.

    It made me want to retch. Is this what you believe Internet Marketing to be?

    OK. Here’s the part of the pitch that irked me most (emphasis added):

    “Just go online and order. BUT if you introduce club to just TWO and help those two introduce to two that completes ONE cycle for you. YOU – plus those six, Only qualification to be part of this is to introduce to TWO , but you may choose to get crazy and promote to many to inc. cycling. When you finish cycle one – go to backoffice and order grocery.goods BUT now company pays all shipping OR replace that voucher for a $200 WalmartGiftCard to go into the store and PLUS company sends you a $300 check to spend whereever. You NEVER add another dime. You may cycle as often as you please. People here in Orlando are cycling two to seven times in a week. There is so much excitment because people are hurting and now they can go get FREE groceries/goods and FREE gas at SamClub.”

    Yep. Florida. Again.

    Florida was ASD’s home. Florida means retirees — and ASD members again are being targeted in pitches to send money to MPB Today, whose headquarters also happens to be in Florida.

    Here is who runs MPB Today.

    And here’s hoping that no ASD member will submit to the email pitch of the affiliate who contacted the PP Blog and another forum that covers ASD-related issues.

    “Blessings,” the emailer wrote — in pitches to both places — while also claiming her “girlfriend did [a] background check” and that “all is good” in the land of 2×2 cyclers targeted at victims of previous fraud schemes and prospects from a state favored by retirees who saved to get there.

    Florida has one of the highest foreclosure rates in the United States. Just three seconds — three seconds — into the video pitch for MPB Today, the word “Foreclosure” appears on the screen. It appears again at the 11-second mark.

    In MPB Today’s world, the apparent remedy for the foreclosure problem is to get Florida seniors and other struggling residents to join a 2×2 cycler.

    “Wretched, tawdry and cheap” — for sure.

  • Now, A ‘B-Movie’ Ponzi Scheme: Producer Mahmoud Karkehabadi Charged With 89 Felonies, Faces $11 Million Bail, California AG Says

    EDITOR’S NOTE: If you’re keeping a Bubba Blue notebook on how to have a Ponzi scheme — as opposed to shrimp — here’s one for your list.

    UPDATED AT 12:33 P.M. June 6, 2013. See Comments thread below. Mahmoud Karkehabadi has been sentenced to 27 years in state prison . . .

    A producer of “B-movies” such as “Confessions of a Pit Fighter” scammed investors in a $9 million Ponzi scheme by accepting “movie production loans” and promising returns of up to 35 percent no matter how the films performed, California Attorney General Jerry Brown said.

    Mahmoud Karkehabadi, also known as Mike Karkeh, was charged with 89 felonies, including grand theft and securities fraud. Two alleged accomplices who helped bring money to Karkehabadi’s film company by selling unregistered securities also were charged.

    Karkehabadi, 53, listed an address in the Orange County, Calif., community of Laguna Niguel.

    Before producing a series of four movie flops, Karkehabadi was charged with ripping off customers in a credit-card venture known as First National Credit, according to records. In the 2001 credit-card scheme, customers were told they’d receive a “gold card” with a $15,000 limit and encouraged to pay up to $43 for “rush processing and delivery.”

    The card proved to be a card that could be used only with a “catalog” business. Authorities secured a $5 million judgment in the case, and Karkehabadi declared bankruptcy, according to records.

    By 2005, he was making B-movies, and never told investors about the huge judgment from the credit-card case or the bankruptcy, Brown’s office said.

    “This con artist sold securities under the guise of a loan to fool investors and try to avoid following the rules,” Brown said. “He ran a cold and calculated scam, making promises he never intended to keep and using the funds of new victims to pay off the earlier ones.”

    Karkehabadi’s bail was set at $11 million.

    His alleged accomplices in the movie scheme were identified as Timothy Cho, also known as Hin-Kong Cho, 54, of Newport Beach, Calif., and Deanna Salazar, 53, of Yucca Valley, Calif. Salazar has agreed to surrender, but Cho “remains at large,” Brown’s office said.

    At least 150 investors were affected by the scheme. Records show that Karkehabadi’s movie company — Alliance Group Entertainment — gathered more than $11 million. The movies generated only $535,000 in revenue, Brown’s office said.

    “Karkehabadi and his agents told investors they would get their money back within a year, regardless of a project’s success, with returns of 18 to 35 percent ,” Brown’s office said. “When the year was up, Karkehabadi convinced investors to roll their ‘loans’ over into the latest movie project or agree to extensions on the date for repayment.”

    Among the movie flops was a film titled “Hotel California,” Brown’s office said.

  • Pyramid Scheme Operated From Building Known As ‘One Pyramid Center’; Pennsylvania AG Says; Universities, Nonprofits Swindled In Alleged Caper With Offshore Tentacles

    Brian J. Murray

    Four Pennsylvania residents have been charged in an alleged pyramid-scheme caper that gathered more than $7.5 million and bilked universities, nonprofits, local governments and other clients, investigators said.

    Charged in the case were Brian James Murray, 67, of Scranton; Murray’s wife, Diane D. Murray, 66; Christine M. Oliver-Shean, 51, of Scranton; and Oliver-Shean’s husband, Timothy G. Shean, 53.

    Brian Murray was the chief executive officer of  the Murray Insurance Agency in Scranton. Christine Oliver-Shean was the president of the company, which is now bankrupt, authorities said.

    The former executives are charged with criminal conspiracy, money laundering, theft, insurance fraud, forgery, participating in a corrupt organization, tampering with evidence, obstructing law enforcement and various tax crimes. Among the allegations was that the executives used a business registered in the British Virgin Islands to conceal more than $10 million in income and avoid paying taxes.

    Diane Murray, meanwhile, was accused of theft and conspiracy in an alleged scheme to divert money from another business to the Murray Insurance Agency. She also is charged with filing false tax returns.

    Timothy Shean was accused of conspiracy, tampering with physical evidence and obstructing law enforcement in an alleged bid to conceal evidence.

    In what may go down in the law-enforcement community as a moment of almost impossible symmetry, Pennsylvania Attorney General Tom Corbett got to deliver the type of line that only can be delivered when the fraud-fighting universe aligns itself perfectly.

    Indeed, Corbett said, “It is interesting to note that the building in Scranton where Murray’s insurance business was headquartered is known as ‘One Pyramid Center,’ because this was a massive illegal pyramid.”

    The pyramid absorbed “millions of dollars from new clients to conceal past thefts and keep the scheme in operation,” Corbett said.

    Also charged criminally in the case were three companies: Murray Insurance Agency and Mallow Holding Co. of Scranton, and Gaffer Insurance Co. Ltd. of Tortola, British Virgin Islands.

    The case demonstrates that underlings and relatives who participate in a fraud scheme and/or help to conceal evidence can be charged with serious crimes. Corbett said the probe sprouted from an earlier investigation in which Brian Murray was accused of stealing more than $1.3 million in customers’ payments for insurance premiums.

    “The losses from large-scale fraud cases such as this one impact everyone who purchases an insurance policy in Pennsylvania, who will face higher premiums and increased costs in the future,” Corbett said.

    In essence, Brain Murray was accused of collecting money for insurance premiums — but not forwarding the money to insurers. If a client made a claim, the claim was paid from money sent in by other clients. The scheme collapsed in September 2009.

    Listed among the victims were the University of Scranton, Marywood University, Loyola College of Maryland, St. Joseph’s University, Moses-Taylor Hospital, the Borough of Phoenixville, and the Lackawanna County Multi-Purpose Stadium.

    Other nonprofits and unsuspecting businesses also were fleeced in the scam, investigators said.