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  • UPDATE: ‘Wealth Creation Alliance’ Now Publishing Ads For HYIP Scheme After HYIP Scheme

    ProfitClicking was one of the "programs" advertised on Wealth Creation Alliance today.

    UPDATE: (UPDATED 11:51 A.M. EDT U.S.A.) Our first story on Wealth Creation Alliance (WCA) is here. Like the collapsed Zeek Rewards MLM scheme that the SEC accused last month of being a $600 million Ponzi- and pyramid fraud, WCA preemptively denies it is an investment company. And WCA also specifically denies in is an “HYIP,” despite the fact it claims that a $2 “purchase” of an “ad unit” will return $3.25.

    Apparently positioning itself as an “advertising” company, WCA now is publishing ads for HYIP scheme after HYIP scheme on its website. One of the ads is for “ProfitClicking,” the apparent successor scam to the JSS/Tripler/JustBeenPaid scheme that seeks to make members affirm they are not with the “government” while simultaneously seeking to disclaim any responsibility on the part of itself and affiliates for advancing the scheme, which plants the Zeek-like seed that annualized returns in the hundreds of percent are there for the making.

    Another ad on the WCA site today read as follows (italics added):

    New A2P Pre-launch
    7% daily for 30 days
    10% income on 2 levels
    Join Free!
    Click Here Now

    A2P is shorthand for Alert2Pay, which purports to have a “ShortTerm Plan” for 30 days and a “LongTerm Plan” for 70 days. Both plans permit “compounding,” a key marker of an HYIP scam.

    And Alert2Pay also explains what it is not, another key marker of a scam.

    “Alert2pay is not a hyip, not a mlm, not a doubler and definitely not a cycler. We’re a Targeted Email Advertising company that’s Paying You Daily Cash Back on ALL Your Advertising Purchases. We sit under the umbrella called AI Corp, (AlertInvest Corporation). Alert2Pay.com is the first website under the AI Corp umbrella.”

    Another “program” pitched on WCA is something called HourHour. Here is the text pitch (italics added):

    Get 120% in 5 days!
    Paying hourly!
    Licensed Script!
    Click Here Now

    HourHour purports to pay “1% FIXED HOURLY FOR 120 HOURS” or “150% AFTER 240 HOURS.” Meanwhile, the HourHour “program” advertises that its accepts SolidTrustPay and other offshore payment processors. SolidTrustPay has been linked to fraud scheme after fraud scheme and was one of the processors used by Zeek.

    See article on WCA at BehindMLM.com. Visit WCA thread on RealScam.com.

  • ‘Before, During And After The Aforesaid Seizure’: Feds Charge Ponzi Schemer Scott Rothstein’s Wife, Her Attorney And Friend With Conspiracy To Obstruct Justice, Launder Money And Tamper With Witness In Alleged Plot To Conceal Assets

    “Those who assist others to conceal assets subject to forfeiture will be fully investigated and prosecuted. Together with the U.S. Attorney’s Office, we will continue to pursue forfeiture of all assets acquired with funds derived from Rothstein’s Ponzi scheme.” — José A. Gonzalez, special agent in charge of the IRS-Criminal Investigations Division, Sept. 6, 2012

    Saying criminal conduct occurred “before, during and after” the seizure of assets linked to Florida Ponzi schemer Scott Rothstein, federal prosecutors today announced that Rothstein’s wife, her attorney and friend have been charged in an alleged bid to conceal more than $1 million in jewelry.

    Two others also were charged.

    “The integrity of our system of justice is based on the truthfulness of every witness that participates in the process,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “When a witness lies under oath or conspires to obstruct justice, the integrity of our system of justice is undermined. The charges filed against these five individuals are proof of our office’s commitment to safeguard and protect the integrity of our legal system. Thanks to the continued dedication and commitment of our law enforcement partners and our prosecutors, these individuals will be brought to justice and the integrity in our system of justice restored.”

    Kimberly Wendell Rothstein, 38; Stacie Weisman, 49; and attorney Scott F. Saidel were charged with with conspiracy to commit money laundering, to obstruct justice and to tamper with a witness, prosecutors said.

    Among the allegations against Kim Rothstein, Weisman and Saidel is that they “sought to have Scott W. Rothstein testify falsely” in a civil proceeding after Scott Rothstein’s corrupt law firm imploded in 2009.

    Meanwhile, Eddy Marin, 50, and Patrick Daoud, 54, were indicted on charges of obstruction of justice and perjury, prosecutors said.

    The Sun Sentinel is reporting that Daoud is a jeweler in Fort Lauderdale, the city in which Scott Rothstein’s epic, $1.4 billion Ponzi fraud collapsed in 2009 and took the Rothstein Rosenfeldt Adler law firm with it. Scott Rothstein was sentenced to 50 years in federal prison.

    From a statement by prosecutors today (italics added):

    According to the charging documents, former Ft. Lauderdale attorney Scott W. Rothstein, who was the Chief Executive Officer and Chairman of the law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA), used the funds obtained from the operation of a Ponzi scheme to purchase tens of millions of dollars of real estate, vehicles, vessels, business interests, luxury watches, jewelry and sports memorabilia for himself, his wife, Kimberly Rothstein, and others.

    As part of his plea agreement, Scott W. Rothstein agreed to forfeit to the government all assets acquired with funds derived through the aforesaid Ponzi scheme. On November 9, 2009, agents of the Internal Revenue Service, Criminal Investigations, went to the Rothstein residence, where Kimberly Rothstein assisted the agents in retrieving what was believed to be all of the available cash, jewelry and luxury watches which had previously been purchased by Scott W. Rothstein with proceeds derived from the Ponzi scheme.

    In fact, before, during and after the aforesaid seizure by federal agents on November 9, 2009, Kimberly Rothstein, Stacie Weisman, and Scott F. Saidel knowingly took action to conceal certain items of jewelry, valued in excess of one million dollars for the purpose of preventing the government from exercising its authority to take such property into its lawful custody and control. Thereafter, Kimberly Rothstein and Stacie Weisman sold and attempted to sell a portion of this jewelry to and through various persons, including Eddy Marin and Patrick Daoud.

    The charging documents further allege that, in connection with civil proceedings instituted by the Trustee in bankruptcy for RRA, all of the defendants took steps to obstruct justice by concealing the true location of certain items of jewelry in order to prevent its availability for use in those proceedings. It is further alleged that Marin and Daoud committed perjury during depositions in connection with those proceedings, and that Kimberly Rothstein, Stacie Weisman and Scott F. Saidel sought to have Scott W. Rothstein testify falsely in connection with those proceedings.

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

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

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

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

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

    From the SEC complaint (italics added):

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

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

    Howard, 53, resides in of Lauderhill, Fla.

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

    Gallo, 43, resides in Parkland, Fla.

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

    Casey, 65, resides in Oakland Park, Fla.

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

    From the SEC complaint:

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

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

    James Clark Howard III

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

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

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

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

    Read the SEC complaint against Casey, Howard and Gallo.

  • UPDATE: Zeek Case Gets Top Billing On SEC Website Today; Agency Establishes Information Page

    The SEC has established an information page for victims of the alleged Zeek Rewards Ponzi- and pyramid scheme. The Zeek case, which may affect up to 2 million individuals, is spotlighted today on the SEC's main webpage.

    Information for victims of the alleged Zeek Rewards Ponzi scheme is getting top billing on the SEC’s website today, and the agency has established a webpage for Zeek victims.

    Here is that page, which includes a link to the website of the court-appointed receiver. Kenneth D. Bell is filling that role. Visit the receiver’s website.

    Zeek was operated by Paul R. Burks and Rex Venture Group LLC of Lexington, N.C. The SEC described Zeek as a $600 million Ponzi- and pyramid that operated online.

     

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Thank you for you time and your trust, 

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

  • ANOTHER FALSE-LIENS CASE: Residents Of Utah, Louisiana Charged With Mail Fraud In Alleged ‘Sovereign Citizen’ Bid To Record Phony Debts Against Judges

    It has happened again — this time in Utah: Maria Melody Fuentes Cecil, 42, of Spanish Fork, and Robert Clifton Tanner, 44, of Mansura, La., have been indicted on charges of mail fraud in an alleged bid “to assert false claims of indebtedness totaling billions of dollars against state court judges and others,” federal prosecutors in Utah said.

    Tanner was arrested last week in Louisiana by “local, state and federal officers,” prosecutors said, adding that Cecil was arrested in Spanish Fork.

    “Cecil and Tanner made it appear as though the victims of their conduct had incurred the multi-billion dollar debts by not responding to pseudo-legal documents mailed to them,” prosecutors said. “Then, acting in concert, Cecil and Tanner filed false and fictitious lien documents with the Utah County Recorder’s Office against the state court judges and others, using the previous fraudulent mailings as justification.”

    Part of the scheme featured an attempt by Cecil to file a “Notice of Expatriation” with the Utah Lieutenant Governor’s Office on March 9, 2012, in an effort to declare herself a “sovereign” citizen,” prosecutors said. “In 2011 and 2012, Cecil was a party in various court proceedings in the Provo City Justice Court, Utah Fourth District Court, and Utah Fourth District Juvenile Court in Utah County.”

    Utah also was part of the staging grounds of Curtis Richmond, a purported “sovereign” being and a figure in the AdSurfDaily Ponzi story. Richmond was sued successfully under the federal racketeering statue in a case that alleged he was part of a “sham” Indian tribe that targeted public officials with vexatious liens, including one for $250 million against a county attorney.

    Richmond later became a figure in the ASD Ponzi case, accusing a federal judge of “TREASON” and federal prosecutors of theft.

    Cecil and Tanner sought $3.2 billion each from targets of their false liens, prosecutors said.

    ASD figure Kenneth Wayne Leaming is jailed near Seattle on charges of filing false liens against at least five public officials involved in the ASD case, including a federal judge, three federal prosecutors and a special agent of the U.S. Secret Service.  He was arrested by the FBI in November.

    The FBI also is investigating the Cecil/Tanner case.

  • ** UNCONFIRMED ** Some Credit Cards Or Payment Accounts Tied To Zeek May Be Getting Charged For Subscriptions In Aftermath Of Collapse ** UNCONFIRMED **

    UPDATED 12:18 P.M. EDT (U.S.A.) There is a report on the MoneyMakerGroup Ponzi forum today of at least one member of the Zeek Rewards’ “program” getting charged $99 for a monthly renewal:

    Here’s how the post read (italics added):

    “Your Diamond renewal has been processed
    Order Total: 99.00
    Order Date: 8/5/2012 6:06:51 PM
    Subscription Renewal Date: 7/29/2012
    Order Number: [deleted by PP Blog]
    This will appear on your statement as ZeekRewards.com.
    Thanks!
    ZeekSupport

    The poster went on to point out that the “[d]ates are off though.”

    And the poster also asked, “Anyone else get this? Probably old renewal only processed now, knowing how slow they’ve been.”

    Last week, the state of Maine cautioned Zeek members to contact their service-providers to cancel Zeek billings. Here is the statement from Maine’s Office of Securities and Bureau of Financial Institutions in its entirety (italics added):

    Maine’s Office of Securities and Bureau of Financial Institutions today alerted consumers that federal regulators recently took action to stop an alleged massive online “profit sharing” Ponzi scheme that appears to have attracted Maine investors. The site, ZeekRewards.com, was placed into receivership and had its assets frozen by a North Carolina District Court on August 17 following an action by the U.S. Securities and Exchange Commission (SEC) for securities fraud against the site, as well as a related entity, Rex Venture Group, LLC, and internet marketer Paul R. Burks of Lexington, N.C.

    According to the SEC’s complaint, ZeekRewards and defendants raised $600 million dollars from more than one million internet customers and investors nationwide and overseas through the website, ZeekRewards.com, which began operating in January, 2011. Customers were offered several ways to earn money through the ZeekRewards profit-sharing program, which the SEC alleges was marketed in violation of federal law. ZeekRewards operated a classic Ponzi scheme by paying the first wave of investors with new funds solicited from subsequent investors using false and misleading statements.

    “Some Maine financial institutions reported receiving requests for assistance from customers who invested in ZeekRewards.com, so, unfortunately, we have good reason to believe there may be a number of Maine victims of this scheme,” said Bureau Superintendent Lloyd LaFountain III. LaFountain encouraged anyone who purchased an interest or otherwise invested in ZeekRewards through a monthly subscription or other recurring payment plan administered by their financial institution to contact the institution immediately to make sure future payments are not deducted from the customer’s account.

    The receiver in this case has identified $225 million in investor funds in 15 foreign and domestic financial institutions, but is still currently identifying assets and victims of the scheme. Securities Administrator Judith M. Shaw urged investors to stay abreast of developments by monitoring the receiver’s website: www.zeekrewardsreceivership.com. Shaw pointed to another resource for investors, an SEC site to keep investors apprised of updates, www.sec.gov/divisions/enforce/claims/zekerewards.htm.

    “Scam artists rely on the internet as a reliable forum for perpetuating fraud,” noted Shaw. “The fact that this scheme reportedly pulled in over one million investors worldwide underscores the importance of thoroughly investigating any kind of profit-making venture before investing, regardless of how the venture is styled or presented The Office of Securities stands ready to assist all Maine citizens with objective information so that investors can make informed investment decisions.”

    Last Updated: August 31, 2012 12:33 AM

    Visit the webpage of the Maine Office of Securities and Bureau of Financial Institutions.

  • The Bizarre Wordplay Of ‘ProfitClicking’

    “25. Individual PC members are not responsible for the performace [sic] of PC or any other programs, products, and services provided by PC. Individual PC members, including those who introduce, sponsor, or refer other members, incur no liabilities or obligations in respect of PC’s financial decisions and directions and any other programs, products, and services launched.” — From the ProfitClicking Terms of Service, Sept. 3, 2012

    ProfitClicking, the nascent follow-up scam to JSS Tripler/JustBeenPaid that surfaced last month amid claims of the sudden retirement of purported JSS/JBP operator Frederick Mann, appears to be trying to tell affiliates that they’ll incur no liability for promoting the “program.”

    And even as it does this, ProfitClicking is disclaiming any liability on the part of the “opportunity”:

    “Participants agree to hold the ProfitClicking! owners, managers, and operators harmless in respect of any losses incurred as a result of participation in any activity related to ProfitClicking!” the “opportunity” claims in its Terms.

    The development occurs on the heels of the collapse of Zeek Rewards, which the SEC described as a $600 million Ponzi- and pyramid scheme that recruited investors by making them believe they’d joined a sort of online nirvana that provided a return of 1.5 percent a day. Zeek’s Aug. 17 collapse already has triggered at least two class-action lawsuits, the appointment of a receiver who has signaled he’ll pursue winners for ill-gotten gains and the seizure of Zeek-related money by the U.S. Secret Service.

    Like JSS/JBP before it, highly secretive ProfitClicking plants the seed that it will pay even more than Zeek.

    One of the Zeek-related, class-action lawsuits is targeted at Zeek operator Paul R. Burks and 10 “John Does,” meaning the plaintiffs are targeting individuals believed to have profited from the alleged Zeek Ponzi scheme or perhaps helped Burks pull off the scam.

    Given that disclaimer language never has succeeded in warding off a fraud prosecution or private lawsuit in HYIP Ponzi land, ProfitClicking’s words aimed at insulating itself are virtually meaningless. Whether ProfitClicking actually believes it can provide legal cover for its pitchmen is unclear. What is clear is that the ProfitClicking Terms — like the JSS/JBP Terms before it — read like an invitation to join an international financial conspiracy.

    If you’re a ProfitClicking promoter, good luck at your deposition in the post-AdSurfDaily*, post-Legisi**, post-Pathway To Prosperity*** and post-Zeek era when a private attorney or lawyer for the government asks you why you were promoting a “program” that advertised a return in the hundreds of percent per year and made you affirm you were not with the “government.”

    Some highlights from the ProfitClicking Terms (italics added):

    6. I affirm that I am not an employee or official of any government agency, nor am I acting on behalf of or collecting information for or on behalf of any government agency.

    7. I affirm that I am not an employee, by contract or otherwise, of any media or research company, and I am not reading any of the PC pages in order to collect information for someone else.

    22. It is your responsibility to check your payment system accounts to be sure you actually received all payments that you should have received. Because certain payments are made member to member in PC, the PC system cannot confirm that any payments between members were actually made.

    24. In the event of a disagreement between two members regarding payments, it is the responsibility of the members involved to resolve the disagreement. The PC managers hold no responsibility at all in such scenarios.

    Here’s one way to read the Terms: Either ProfitClicking or its affiliates can rip you off — and there’s not a damned thing you can do about it.

    With Zeek’s Paul Burks confronting litigation on at least three fronts and with “John Does” being part of the mix, ProfitClicking’s words are just more HYIP drivel.

    * ASD operator Andy Bowdoin was sentenced to 78 months in federal prison for his Ponzi scheme.

    ** Legisi operator Gregory McKnight faces sentencing Sept. 11 for his Ponzi scheme. Legisi pitchman Matt Gagnon, meanwhile, faces civil judgments in the millions of dollars, along with a criminal charge.

    *** Pathway To Prosperity’s alleged operator Nicholas Smirnow is listed by INTERPOL as an international fugitive.

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

    Missouri Sectetary of State Robin Carnahan

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

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

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

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

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

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

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

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

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

    Read the Missouri order for additional details.

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

  • URGENT >> BULLETIN >> MOVING: U.S. Secret Service Has Seized Zeek Money

    URGENT >> BULLETIN >> MOVING: (UPDATED 8:59 P.M. EDT U.S.A.) The U.S. Secret Service has seized more than $11.5 million allegedly traceable to the Zeek Rewards MLM “program,” according Preferred Merchants Solutions LLC (PM), which cited an “asset seizure warrant” in a new court filing.

    PM is a Zeek vendor. The company also says it is in possession of between $10 million and $15 million of “unprocessed checks” linked to Zeek. Moreover, the company has advised a federal judge that there may be an additional $3 million in checks that were not processed due to “processing errors.”

    The Secret Service confirmed on Aug. 17 that it was investigating Zeek. The filing by PM is believed to be the first public document that shows the agency is seizing Zeek-related money. The SEC has described Zeek as a $600 million Ponzi- and pyramid scheme.

    PM, according to Florida records, is a Miami-based company. The company, whose registration in Florida was marked reinstated on July 2, also lists an address in Napa, Calif., in Florida records.

    Separately, North-Carolina-based Four Oaks Bank & Trust Co., which earlier said it needed more time to establish how much it was holding in Zeek-related funds through Rex Venture Group LLC, has advised the judge it does not have an account in the Rex name “or any other direct relationship” with Rex.

    However, the bank went on to say that it “does have a commercial account in the name of “Nx Systems Inc.” and that the bank “froze the entire NX Systems’ Commercial Account” on Aug. 17.

    Rex Venture is Zeek’s purported parent company.

    Nx Systems was a Zeek vendor. What the freeze of its “entire” commercial account means to other NX Systems’ customers was not immediately clear. Four Oaks advised the judge that it could not “independently certify” the amount of funds Nx Systems holds in the name of Rex and that Nx Systems told the bank it was working on a reconciliation for presentation to the court.

    Earlier this year, Zeek identified NX Systems as a service-provider. Zeek also scolded members for making phone calls to NX Systems, which operates an entity known as NxPay.

    See June 26 story on BehindMLM.com.

    Link to PM filing (courtesy of ASDUpdates.)

  • Zeek Operator Paul R. Burks Was Cooperating With SEC Prior To Date Of Ponzi Complaint, New Filing Suggests

    Paul R. Burks, the operator of Zeek Rewards, was cooperating with the SEC prior to the filing of the Aug. 17 complaint that alleged Zeek was a $600 million Ponzi scheme and pyramid fraud, a new court filing suggests.

    That “period of cooperation” resulted in the production of “hundreds of thousands of documents, including financial records, e-mails, and all manner of electronic files,” according to the filing by Noell P. Tin, an attorney for Burks.

    The filing does not specify when the cooperation began or say whether others inside of Zeek knew that the SEC had access to Zeek records prior to the filing of the complaint and a freeze on the assets of Zeek’s parent company, Rex Venture Group LLC. But it may explain at least in part why Burks agreed to settle the case without admitting or denying the allegations and to cooperate with Kenneth D. Bell, the court appointed receiver: The SEC effectively already had been inside the company.

    Separately, First Premier Bank of Sioux Falls, S.D., has advised Senior U.S. District Judge Graham C. Mullen of the Western District of North Carolina that it is holding more than $31.2 million in three separate Rex Venture accounts frozen under court order. The largest Rex account at the bank holds more than $30.9 million. A smaller account holds more than $284,000, and the smallest account holds only $90, according to a filing by the bank.

    To date, court filings suggest that Rex Venture has an account at Charles Schwab that holds $10.3 million in cash and more than $4.94 million in securities. The company also has an account at North Carolina-based NewBridge Bank that holds more than $11.64 million.

    Rex Venture also holds an account at Four Oaks Bank & Trust Co. Inc., another bank in North Carolina. The bank has asked the judge to give it until Sept. 3 to say how much it is holding because of the “complexity of the financial information that must be analyzed and the need to obtain relevant information from a third party.”

    All in all, the SEC said on Aug. 17 that the Burks-controlled entities used 15 foreign and domestic financial institutions.

    Burks’ personal assets were not frozen in the Aug. 17 SEC action, and the accused Ponzi schemer wants to keep it that way, according to court filings.

    “There is no basis and no need to freeze Mr. Burks’ personal funds,” his attorney wrote in response to a motion by Bell that raised the possibility that “Recoverable Assets” were controlled by Burks and his family. “Mr. Burks has never expatriated the assets of Rex Ventures Group, LLC or his personal money. He has fully cooperated in the SEC investigation, which included examination of relevant financial records. He is 65 years old, married, a two time cancer survivor, and has lived in Lexington, North Carolina for 23 years. He has never been a defendant in any action, civil or criminal, until this matter. Mr. Burks is aware of the importance of this proceeding and will abide by any orders this Court imposes.”

    One of the remaining mysteries of Zeek is how and when key executives found out about the SEC probe and whether they or other insiders feathered their own nests prior to the collapse.