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  • While Asking Members To Input License-Plate Numbers And Citing U.S. Based AMBER Alert In Promos, Data Network Affiliates Lists Domain-Registration Address In Cayman Islands

    UPDATED 2:37 P.M. ET (March 5, U.S.A.) If the United States or any U.S. based police agency were to purchase database entries from Data Network Affiliates (DNA), the government and the agencies would be purchasing information from a company that uses a Cayman Islands address.

    Even as it suggests the U.S.-based AMBER Alert program is wasting taxpayers’ money and encourages U.S. residents to write down the license-plate numbers of their neighbors for entry in a database, DNA is using a service in the Cayman Islands to keep the registration data of its domain name hidden.

    The street address in the registration data is used by an untold number of businesses, including porn sites and malware sites, according to Google search results. On May 4, 2009, President Obama specifically cited the Cayman Islands in remarks on his initiative to combat offshore tax fraud.

    Using capital letters on its website, DNA said the U.S.-based AMBER Alert system had recovered “ONLY” 492 abducted children, saying “DNA could help in such safe recoveries at a fraction of cost of Amber Alert.” Meanwhile, a DNA pitchman in a conference call questioned AMBER Alert’s effectiveness, even as DNA was using an address in the Cayman Islands.

    “I’m pretty sure you heard of AMBER Alert,” he said. “It saved over 497 people. But guess what? AMBER Alert, I think, costs about over $100 million a year or some kind of astronomical number.”

    The same pitchman also has suggested that U.S. church parking lots and the parking lots of giant retailers such as U.S.-based Walmart were places DNA members could harvest license-plate numbers for entry in DNA’s database.

    Why the company chose a Cayman Islands address for its website is unclear. Also unclear is why DNA would at once criticize AMBER Alert while repeatedly using its name to generate business for a company that lists its address as George Town, Grand Cayman, the capital city of the Caribbean nation in the British West Indies.

    AMBER Alert is managed by the U.S. Department of Justice. Its secondary program is managed by the U.S.-based National Center for Missing & Exploited Children.

    Like Narc That Car — another company that is urging members to write down license-plate numbers — the DNA pitchman implored prospects to view the company as an excellent tool for “law enforcement.”

    “We’ll be able to reunite families,” he said. He did not reference the Cayman Islands domain registration in his pitch.

    DNA says it has an “Executive Power Team,” identifying Dean Blechman as its chief executive officer, board chairman and founder.

    “In the early 1990’s Mr. Blechman served as Director and Board Member of the National Nutritional Foods Association (NNFA),” DNA says on its website. “Mr. Blechman was a key strategist and lobbyist for the NNFA and was influential in the team that was responsible for the passage in 1994 of the Dietary Supplement Health and Education Act through the United States Congress and Senate. This bill still stands today as one of the most important pieces of legislation in the Health Food and Natural Food Supplement Industry.”

    Troy Dooly, a multilevel-marketing (MLM) aficionado who runs the MLM Help Desk website, issued a Scam Alert on DNA yesterday. Dooly’s Scam Alert followed on the heels of an earlier one he issued for Narc That Car, which is the subject of an inquiry by the BBB in Dallas and an inquiry by the district attorney of Henderson County, Texas.

    “Data Network Affiliates aka DNA makes Narc That Car look like saints,” Dooly said on the MLM Help Desk website.

    Meanwhile, MLM aficionado Rod Cook, who was threatened with lawsuits for publishing information on AdSurfDaily, which later was implicated in a $100 million Ponzi scheme, also has labeled Narc That Car a scam.

    Narc That Car is “one of the cutest pyramid tricks ever pulled!!!!” Cook exclaimed on his MLM Watchdog website.

    Separately, a You Tube site featuring a Jeff Long video for Narc That Car in which Long informs viewers that he recorded 100 license-plate numbers for Narc That Car on his iPhone as he strolled though a Walmart parking lot, now says that he has jumped ship to DNA.

    In the Narc That Car video, Long said he collected so many license-plate numbers at Walmart that he could give some way to Narc That Car prospects, perhaps even enough for them to qualify for a $55 payout without leaving home.

    Long, though, now has turned sour on Narc That Car, according to a screaming message on the YouTube site.

    “This video talks about NARC That Car,” a message on the YouTube site says. “IF YOU ARE PLANNING ON MARKETING THIS BUSINESS ON THE INTERNET DO NOT JOIN!!!!! NarcThatCar CANCELED AND DISABLED My distributorship because I put this video YouTube…I’m now the #1 leader and sponsor in their BIGGEST COMPETITOR’S BUSINESS…DataNetworkAffiliates. Again…don’t join NarcThatCar if you plan on marketing on the internet!!!!!! JOIN DNA WITH ME FOR 100% FREE!”

    Long’s name was referenced in a recent DNA conference call.

    In other Narc That Car news, promoter “Jah” says he has received a check for $70 from Narc That Car.

    Jah, who says he has a Narc That Car team of 100 members, posted a video of the check on YouTube.

    In May 2009, Obama announced a crackdown on offshore fraud. On the same date — May 4 — the AdViewGlobal autosurf announced it had secured a new international wire facility. AVG crashed and burned in June 2009. The company it identified as its facilitator — KINGZ Capital Management Corp. (KCM) — later was banned by the National Futures Association (NFA) amid allegations that it failed to uphold high ethical standards and failed to supervise its operations.

    NFA’s specific ban on KCM centered on Minnesota Ponzi scheme figure Trevor Cook, who allegedly managed a KCM investment pool. Cook is one of two central figures in an alleged Ponzi scheme and financial fraud involving at least $190 million. The other central figure is Pat Kiley, a former host on Christian radio.

    Promotions for Narc That Car have appeared on the former Golden Panda Ad Zone forum, now known as the Online Success Zone. A pitch for DNA also appears on the site, as well as a promoter’s link to DNA conference calls.

    Golden Panda was implicated in the alleged AdSurfDaily Ponzi scheme.

    At least three promos for Narc That Car and DNA have appeared on the former Golden Panda forum in recent days. One of the promos for Narc That Car was deleted. Two remain: one for Narc That Car, another for DNA.

    “UPDATE: D.N.A – FREE Method of Earning GOOD Money…Just surpassed 19,000 Members and Climbing,” says the headline in the DNA promo on the former Golden Panda site.

  • EDITORIAL: Private Big Brothers Meet The Stepford Children; Armed With Paper, Pen And Video Cameras, MLM Army Coming To A Neighborhood Near You

    The probability of a public-relations backlash with Narc That Car and Data Network Affiliates (DNA) is high. Promotions for the companies have been both bizarre and reckless. The cheerleading has been downright creepy. Some local media outlets are beginning to pay attention. It quickly could become fodder for Larry King, Bill O’Reilly, Jay Leno, David Letterman and Oprah.

    A Story With Worldwide Interest Born For TV And Tabloids

    Few things make better TV fodder than a real-life “Big Brother” story, perhaps especially if Big Brother’s Army isn’t led by the government and consists of thousands and thousands of civilian commanders and Stepford children.

    This particular MLM story also is born for newspapers, including the tabloids. If the story makes its way into Europe, the headlines will suggest Americans would sell their grandmothers into hucksterism if it meant trading in the reliable old Ford for a flashy BMW.

    People in the news business know that news is man bites dog, not the other way around. The story of Narc That Car and DNA is man bites dog — and perhaps man bites himself. The man is interesting simply because he’s American. Man bites himself is one of the great themes of literature and tabloid journalism. Tabloid editors love it when the man biting himself is an American.

    MLM, which already has a bad reputation, has hit a new low. Internet marketing, which already has a bad reputation, has hit a new low. Ladies and Gentlemen, the private Big Brothers of America have met the Stepford Children. Together they’re coming to a neighborhood near you.

    Here, in italics (below), is the promoters’ cheerleading strategy — in condensed form. Whether or not it’s condoned at the corporate level is virtually meaningless. Why? Because the Stepford army already is in motion, and it is doing what the Stepford army does: Recruiting other Stepfords — money Stepfords — Stepfords who behave reflexively on cue, have no sense of PR or propriety and will do anything if money is involved. The Stepfords are biting themselves at this very moment.

    Narc That Car and DNA are coming to a neighborhood near you. Drop whatever you’re doing. Start writing down the license-plate numbers of your neighbors. Go to the supermarket parking lot or the Walmart parking lot and start writing down the plate numbers of store patrons (your neighbors).

    Don’t seek the express consent of the retailers to use their parking lots and the plate numbers of their patrons as your information goldmine and secret pathway to personal riches. No one has to know what you’re doing. Enter the information in a web-accessible database the companies provide for a fee or put it in the mail and let the companies enter the information.

    “You write them (license-plate numbers) down,” said a Narc That Car promoter on You Tube. “You take pictures of them, which is what I just did on my iPhone. I just walked down the aisle at Walmart and snapped like 100 cars, literally, on my way into Walmart.

    “And I parked in the very back, and I just walked and snapped a bunch of pictures as I was walking. I was already going in anyway, so it didn’t take me any more time and effort, and I got a little bit more exercise than I [would] have,” the promoter said. “So, it’s a win-win. So, hey, you got a weight-loss opportunity here, too. [Laughing.] You’ll walk and you’ll lose weight, and you’ll have lots of money.”

    Now, back to the cheerleading strategy . . .

    Recruit people (your family, friends, neighbors and online contacts) to do the same. Suggest they are helping AMBER Alert or law enforcement by joining these MLM companies. Tell them how bad the economy is and how bad the bad guys are. Tell them you have the solution for the bad economy and a tool that gives the bad guys a one-way ticket to jail. Imply that joining Narc That Car or DNA is like performing a public service. Perhaps put an ad on craigslist that suggests you’re part of a community “watchdog” program.

    “Get Paid to be a watchdog in your community . . .” a craigslist ad for Narc That Car prompted last week.

    One Narc That Car promoter claimed the purpose of the program was “To help The US Dep’t of Homeland Security find terrorists.” Another claimed, “We are backed by the better business bureau, the F.B.I., and the Amber Alert system . . . ” Yet another claimed, “A company out of Dallas needs to grow a data base of license plates to use for Amber Alerts and other reasons.”

    The U.S. Department of Justice, which oversees AMBER Alert, said Narc That Car was in “no way affiliated” with the AMBER Alert system. So did the National Center For Missing & Exploited Children, which administers AMBER Alert’s secondary distribution program. The Better Business Bureau has opened an inquiry into the company’s business practices and compensation plan. The FBI, an arm of the Justice Department, has not endorsed Narc That Car.

    Now, back to the cheerleading strategy . . .

    Make sure you emphasize that there are no “barriers” to entering the “business.” Startup costs are low or nonexistent. This will help you get poor people or people in the shackles of poverty in your downline. Suggest the programs are the cure for the high unemployment rate and that you’re doing your part for America by helping put people to work. Appeal to the patriotism of your prospects. Tell them they’re helping the Department of Homeland Security find terrorists.

    Drop a few names of prominent people — living or dead — in your promos or conference calls. Names such as Tim Russert, Donald Trump and Oprah work well, even if they are not involved in the programs. By namedropping, you can leech off the brands of famous people and companies and create credibility by osmosis.

    In recent DNA conference calls, the names of Russert, Trump and Oprah all were dropped. So was AMBER Alert’s name. So was the name of “law enforcement.” One promoter suggested AMBER Alert was wasting taxpayers’ dollars.

    “I’m pretty sure you heard of AMBER Alert,” he said. “It saved over 497 people. But guess what? AMBER Alert, I think, costs about over $100 million a year or some kind of astronomical number. Don’t quote me on the figures here, but it saved some lives. But the system we have in place. I want you to imagine if your daughter . . .”

    The DNA promoter then asked listeners to imagine loved ones being “kidnapped” and “molested” and “raped” — with Data Network Affiliates providing the tool to track down the kidnappers and molesters and rapists.

    In a separate DNA call, the promoter suggested that church parking lots were good places for DNA members to record license-plate numbers. Walmart, too.

    Major retailers put the address of their stores “right on the receipt,” making it easy for DNA members who are shopping in the stores to enter the information in DNA’s database after they write down plate numbers in the parking lot,” the promoter said.

    “You walk into the parking lot,” he said. “Guess what? You have vehicles all over the place. You can easily jot down 20 or 30 of them, literally in five or 10 minutes.”

    He did not say if DNA members were required to obtain the permission of church pastors to record the plate numbers of congregants or retailers such as Walmart to record the plate numbers of patrons.

    The promoter, however, did say that 100 million license plates entered into the DNA database could become “the equivalent of just about $1 billion” in potential revenue for DNA.

    Meanwhile, on DNA’s website, the company was saying this:

    “ONLY 492 children Since (sic) 1997, has the AMBER Alert program been credited for safe recovery. DNA could help in such safe recoveries at a fraction of cost (sic) of Amber Alert… If DNA help (sic) save ONE MORE CHILD it’s worth it? (sic).”

    The same sales message said, “Our mission is to turn data into dollars.”

    Now, back to the cheerleading strategy . . .

    Create an “exciting” atmosphere. Talk about how “excited” you are. Suggest people can get rich, then backpedal, explaining that you wouldn’t want people to get the wrong impression. Throw your line in the water, but reel it back quickly. You don’t want people to see themselves as the fish; you want them to see themselves as the fishermen.

    Create (perhaps) some boilerplate language that explains all Narc That Car and DNA members are independent contractors required to follow the law. Don’t let your downline give the practical realities a moment of thought — things such as whether permission to record plate numbers needs to be obtained, what to do if a store manager or patron calls the police, whether promoters need solicitors’ licenses from local jurisdictions, whether a promoter working as an independent consultant should increase his or her insurance protection or secure a bond against potential claims, what to do if promoters are confronted by retail managers, patrons or police, whether the paper on which they’re recording license numbers needs to be preserved, whether the video on which they’re recording plate numbers needs to be preserved and how they’re supposed to behave if challenged.

    Keep them focused on the money and how excited you are. Tell them you barely can sleep. Don’t mention Big Brother. Don’t even suggest other people would be apt to view acquisition of plate numbers on private property as an untenable invasion of privacy. Keep them focused on the money and on AMBER Alert.

    And, by all means, don’t even suggest there is anything Stepfordian about doing what you’re told without asking any questions: Just do it. Explain that the people who ask questions and raise issues of propriety, safety and legality are naysayers and malcontents and “haters.”

    Never imagine that a TV reporter or a newspaper reporter or a tabloid reporter is going to stick a microphone in your face and ask why you’re writing down license-plate numbers in a supermarket parking lot and trading off AMBER Alert’s name to build a database for the repo man or another customer who could monitor the whereabouts of your car and your neighbor’s car even if you aren’t suspected of murder, kidnapping, molestation or rape. Don’t concern yourself with mundane issues such as who has access to the database and whether any of your fellow plate-number recorders are criminals themselves.

    Whatever you do, don’t imagine your neighbors expressing shock and outrage and having bitter expressions on their faces. If confronted, tell them you’re writing down license-plate numbers to make America a better, safer place.

    And tell them they’re free to join, and might even want to consider registering a .org domain with a pitch that begins, “Help us.”

  • DATA NETWORK AFFILIATES: Pitchman For License-Plate Database Cites AMBER Alert, Walmart, Church; Company Website Suggests AMBER Alert Falling Short On Child-Recovery Mission

    EDITOR’S NOTE: We have been experiencing intermittent website disruptions this morning and are working to resolve the problem. It’s not immediately clear how long it will take to fix the problem, which is causing the site to go down periodically and the database connection to time out. Our apologies.

    A pitchman for Data Network Affiliates (DNA) suggested church parking lots, supermarkets and Walmart were rich targets for members of the multilevel-marketing (MLM) company, which is soliciting prospects to write down license-plate numbers for entry in a database.

    Meanwhile — in a sales message on DNA’s website — the company suggested AMBER Alert was falling short in its efforts to recover abducted children and that DNA could help the famous national and state alert system recover abductees for less money.

    “ONLY 492 children Since (sic) 1997, has the AMBER Alert program been credited for safe recovery,” the DNA website said on its main page. “DNA could help in such safe recoveries at a fraction of cost (sic) of Amber Alert… If DNA help (sic) save ONE MORE CHILD it’s worth it? (sic).”

    The same sales message said, “Our mission is to turn data into dollars.”

    DNA, which says it is launching Feb. 16 and already has recruited thousands of people to record plate numbers, operates a business similar to Narc That Car, another MLM that recruits prospects to write down plate numbers while using AMBER Alert’s name.

    The DNA pitchman said famous retailers such as Walmart put the address of their stores “right on the receipt,” making it easy for DNA members who are shopping in the stores to enter the information in DNA’s database after they write down plate numbers in the parking lot.

    “You walk into the parking lot,” the pitchman said in a DNA conference call recorded Monday. “Guess what? You have vehicles all over the place. You can easily jot down 20 or 30 of them, literally in five or 10 minutes.”

    He did not say if DNA members were required to obtain the permission of retailers such as Walmart to record the license-plate numbers of its patrons.

    The pitchman, however, did say that 100 million license plates entered into the DNA database could become “the equivalent of just about $1 billion” in potential revenue for DNA.

    Another voice on the call said that “the press is going to pick up on this sooner or later.” Earlier, the man predicted a “million or 2 million” people would join DNA by the end of the year. He added that he was so excited that he was having trouble sleeping.

    Like Narc That Car promoters, the DNA pitchman in the conference call referenced the AMBER Alert program, imploring prospects to view DNA as an excellent tool for “law enforcement.”

    “We’ll be able to reunite families,” he said.

    The URL for the DNA was published on the old Golden Panda Ad Zone forum, now known as the Online Success Zone. Narc That Car also was promoted from the old Golden Panda Forum.

    Golden Panda is part of the AdSurfDaily Ponzi scheme investigation.

    Narc That Car charges a fee of $100 to join and requires members to submit 10 license plates monthly. DNA charges no fee and requires members to submit 20 license plates monthly. Web records suggest that some people promoting Narc That Car also are promoting DNA.

    Listen to the DNA conference call.

    See this report on Narc That Car on NBC 5 in Dallas/Fort Worth.

  • Receiver In Allen Stanford Ponzi Case Says Politicians Have Not Returned More Than $1.8 Million In Tainted Contributions

    Political groups and politicians have not returned more than $1.8 million in tainted campaign donations received from entities and individuals linked to the alleged Allen Stanford Ponzi scheme, according to the court-appointed receiver in the civil case against Stanford.

    Ralph Janvey, the receiver, said only $87,800 had been returned by politicians. Letters requesting the money be returned went out 11 months ago.

    The donations were linked to Stanford personally, Stanford International Bank Ltd., Stanford Group Co., Stanford Capital Management LLC, and Stanford executives James M. Davis and Laura Pendergest-Holt and certain entities they own or control, Janvey said.

    Here is a list of donations that have not been returned. (The numerals are dollar amounts):

    950,000 Democratic Senatorial Campaign Committee
    238,500 National Republican Congressional Committee
    202,000 Democratic Congressional Campaign Committee
    128,500 Republican National Committee
    83,345 National Republican Senatorial Committee
    25,000 Rangel Victory Fund
    10,000 New Jersey Democratic State Committee
    10,000 Representative Pete Sessions (R-TX)
    6,600 Representative Gregory Meeks (D-NY)
    6,100 Senator Bill Nelson (D-FL)
    5,000 Americans for a Republic Majority PAC
    5,000 Delegate Donna Christensen (D-USVI)
    5,000 Representative Charles Gonzalez (D-TX)
    5,000 KPAC (affiliated with Senator Kay Bailey Hutchinson of Texas)
    5,000 Lone Star Fund
    5,000 Representative Charles Rangel (D-NY)
    5,000 Senator Roger Wicker (R-MS)
    4,600 Senator Barack Obama (D-IL) (presidential campaign)
    4,550 Representative Dan Maffei (D-NY)
    4,000 Senator John Cornyn (R-TX)
    4,000 Senator Patty Murray (D-WA)
    4,000 Representative Richard Neel (D-MA)
    4,000 Senator Charles Schumer (D-NY)
    3,300 Representative Pete Olson (R-TX)
    3,300 Representative Charles Rangel (D-NY)
    3,000 Representative James E. Clyburn (D-SC)
    3,000 Representative Rahm Emanuel (D-IL)
    3,000 ERICPAC
    3,000 Leadership PAC 2006
    2,550 Representative Eric Massa (D-NY)
    2,550 Representative Mike McMahon (D-NY)
    2,500 Senator Richard J. Durbin (D-IL)
    2,500 Freedom Fund
    2,500 Representative Timothy Johnson (R-IL)
    2,500 Representative Paul Kanjorski (D-PA)
    2,500 Senator Mary Landreiu (D-LA)
    2,500 Representative John Lewis (D-GA)
    2,500 Senator Mitch McConnell (R-KY)
    2,500 National Leadership PAC
    2,500 Representative Adam Putnam (R-FL)
    2,500 Senator Gordon Smith (R-OR)
    2,500 Former Senator John Sunnunu (R-NH)
    2,500 Representative John Tanner (D-TN)
    2,500 Representative Bennie Thompson (D-MS)
    2,300 Representative John Boccieri (D-OH)
    2,300 Representative Deborah Halvorson (D-IL)
    2,300 Senator John McCain (R-AZ)
    2,300 Olson-Texas Victory Committee
    2,300 Senator Roger Wicker (R-MS)
    2,100 Senator Orrin Hatch (R-UT)
    2,000 Representative Spencer Bachus (R-AL)
    2,000 Senator Evan Bayh (D-IN)
    2,000 Reprsentative Kevin Brady (R-TX)
    2,000 Representative Vern Buchanan (R-FL)
    2,000 Representative Dave Camp (R-MI)
    2,000 LEADPAC
    2,000 Representative Ileana Ros-Lehtinen (R-FL)
    2,000 Representative Lamar Smith (R-TX)
    2,000 Representative Patrick Tiberi (R-OH)
    1,500 Representative Charles Boustany (R-LA)
    1,500 Representative Sam Johnson (R-TX)
    1,500 Representative Peter King (R-NY)
    1,500 Representative Kendrick Meek (D-FL)
    1,000 Representative Joe Barton (R-TX)
    1,000 Senator Max Baucus (D-MT)
    1,000 Senator Maria Cantwell (D-WA)
    1,000 Representative Shelley Moore Capito (R-WV)
    1,000 Representative Steve Cohen (D-TN)
    1,000 Former Senator Elizabeth Dole (R-NC)
    1,000 Senator Byron L. Dorgan (D-ND)
    1,000 Representative Michael McCaul (R-TX)
    2,000 Representative Donald Payne (D-NJ)
    1,000 Senator Pat Roberts (R-KS)
    500 Representative Steve Cohen (D-TN)

    TOTAL NOT RETURNED: $1,825,495

    Here is a list of donations that have been returned. (Dates returned included. Numerals are dollar amounts):

    03/24/09 14,000 Shelby for US Senate
    03/24/09 1,000 Barney Frank for Congress Committee
    03/24/09 4,000 Arcuri for Congress
    03/24/09 2,000 Neugebauer Congressional Committee
    03/24/09 1,000 Marsha Blackburn for Congress
    03/24/09 8,000 Friends for Harry Reid
    03/24/09 1,500 David Scott for Congress
    03/24/09 1,000 Freedom Funds – Mike Crapo, Honorary Chairman
    03/30/09 11,500 Chris Dodd for President
    03/30/09 16,000 Friends of Chris Dodd
    03/30/09 2,500 Friends of Mark Warner
    04/03/09 2,300 Minnick for Congress
    04/03/09 2,000 Lloyd Doggett for Congress
    04/07/09 3,000 Alexander for Senate 2014, Inc.
    04/08/09 2,500 Collins for Senator
    04/23/09 5,000 Friends of Jay Rockefeller
    05/07/09 2,500 Campaign Account of Robert Wexler
    06/18/09 3,000 Mel Watt for Congress
    06/18/09 5,000 Friends of John Boehner

    TOTAL RETURNED AS OF JAN. 21, 2010: $87,800

    Stanford is accused of multibillion-dollar fraud. He is jailed in Texas.

    Campaign contributions tainted by Ponzi money also are an element of the $1.2 billion Scott Rothstein case in Florida. Records suggest that AdSurfDaily President Andy Bowdoin, implicated in an alleged $100 million Ponzi scheme, also gave political donations with tainted funds.

  • Narc That Car Promoter Sets Sights On Critics, Says He Is In ‘Real Know’ And Can Help Prospects Conduct ‘Real Legitimate Due Diligence’

    A Cash For Car Plates ad for Narc That Car was videotaped in a parking lot of the Giant Eagle supermarket chain, but did not say whether Narc That Car participants needed permission from Giant Eagle to record the license-plate numbers of patrons.

    After describing people who question the Narc That Car multilevel-marketing (MLM) program as “haters” and clever wordsmiths bent on publishing misinformation about the “opportunity,” a Narc That Car promoter now says a conference call will be held to “share the actual facts.”

    The call will be conducted on Feb. 14 — Valentine’s Day, according to Jah, who runs the Cash For Car Plates Blog and reports he has a Narc That Car downline “team” of more than 100 members.

    Jah posted the URL for his Cash For Car Plates pitches on the PP Blog. Ownership data for the Cash For Car Plates web domain, an affiliate site that promotes Narc That Car, suggests the site is owned by Ohio resident Ajamu Kafele.

    A man by the same name, in the same Ohio county and city and at the same street address listed in the Cash For Car Plates domain-registration was charged civilly earlier this decade with practicing law without a license. Jah has neither confirmed nor denied he is the same person.

    The Ohio Supreme Court ruled in 2006 that Ajamu Kafele had engaged in the unauthorized practice of law in a banking and mortgage-foreclosure case involving a third party, and assessed him a $1,000 civil penalty.

    Kafele was enjoined by the Supreme Court from further unauthorized practice of law.

    “Respondent’s misguided attempts to represent Divine Endeavors, L.L.C., illustrate why the practice of law must be strictly limited to licensed attorneys,” the Supreme Court ruled. “The practice of law is exacting even with the required legal and ethical training, and the legal system cannot adequately safeguard the public’s interest unless it assures a core level of professional competence and integrity.”

    Cash For Car Plates argued on the PP Blog that the Narc That Car program was perfectly legal.

    “The fact is that if google maps can establish a video feed of your public information address and zoom in to your front door, one can definitely obtain open public display of license plates for the purpose of building a national database for multiple beneficial purposes,” Cash For Car Plates said. “Heck we are all being filmed in our cars by video cameras around the cities of America, some that can get snap shot of your face while in the car.”

    After asserting he provided Narc That Car “training” and claiming to “Truly Know” the Narc That Car program, Cash For Car Plates declined to answer several questions posed by the PP Blog about the propriety, safety and legality of the Narc That Car program.

    Cash For Car Plates said he was not “getting into back and forth meaningless arguments,” accusing critics of  “spreading clear ‘hate’ for this business.”

    Here are some of the questions we posed:

    • Do Narc That Car members need the permission of store managers [such as managers of Walmart, Best Buy and Giant Eagle] to record the plate numbers of patrons?
    • How should Narc That Car promoters behave if confronted by a store manager or patron?
    • Who posts bond for a Narc That Car “independent consultant” if he or she gets arrested for defying a private-property owner’s policies, procedures or orders?
    • Should Narc That Car consultants refuse to turn over the paper on which the license numbers are recorded or the video camera or the cell phone on which the license numbers were recorded if approached by the store manager or a concerned patron?
    • What should a Narc That Car promoter do if a store manager or store patron observes license-plate numbers being recorded and says, “Stop that! I’m calling the police?”
    • What should a Narc That Car promoter do if a store manager or patron asks for identification? Flee? Provide it? Argue? Insist they’re authorized to appear on private property and in parking lots maintained by retailers such as Giant Eagle because they’re authorized to do so by Narc That Car or a Narc That Car downline group?
    • Should Narc That Car promoters destroy the papers on which they’ve recorded the plate numbers after entering them into the Narc That Car database? How about the videos? Should they be destroyed?
    • What if the papers and the videos later are needed for evidence and have been destroyed? Should Narc That Car promoters preserve records of all the license plate numbers they record?
    • Does your opinion about Google cover all contingencies? Can it beat back all potential challenges? Is it even valid?

    The Cash For Car Plates Blog now says a conference call will be conducted.

    “There are a several apparent network marketing would be scam alert sites and blogs spreading incomplete, inaccurate and/or mis-information, and seemingly slanderous claims about the Grand Narc That Car opportunity,” according to the Cash For Car Plates Blog.

    “We want to share the actual facts and provide you with Real legitimate due diligence answers to your questions to make it clear that this is the Right opportunity to be involved with here and now!”

    The Cash For Car Plates Blog does not explain how it is possible to conduct “real due diligence” on a company that does not publish financial data.

    Still, the Cash For Car Plates Blog insists it’s important that Narc That Car members “Get information from people who are in the real ‘know’ about Narc That Car and not those that want to just drive traffic to their sites in an attempt to claim to be ‘helping’ people.”

    Visit the Cash For Car Plates Blog. See our earlier story on a Cash For Car Plates video for Narc That Car made in the parking lot of a Giant Eagle supermarket. Visit a Scam.com discussion thread on Narc That Car. Visit a Work-At-Home-Forum thread on Narc That Car.

  • Feds Charge Husband And Wife In Alleged Work-At-Home Scheme; Philip Pestrichello Is Recidivist Offender

    EDITOR’S NOTE: Recidivism, the tendency to continue committing crimes or breaking laws even after getting caught and perhaps even going to prison, is a common theme in the scam universe. It has been an element in many recent cases we’ve written about, including the AdSurfDaily Ponzi scheme case (principals Andy Bowdoin and Clarence Busby had previous run-ins with securities regulators); the Frank Constantino securities-fraud case (Constantino had previous run-ins with securities regulators in Georgia and Missouri); the Edmundo Rubi foreclosure-rescue case (Rubi had a previous conviction in a Ponzi/pyramid case and spent time in federal prison).

    Meanwhile, it has been an element in the Philip R. Lochmiller Ponzi scheme case (Lochmiller previously was sentenced to three years in a California state prison for a fraud scheme); the Kenneth W. Lee Ponzi scheme case (Lee spent five years in a Texas prison in a previous fraud scheme and also had a $3 million judgment against him); the Thomas L. Labry securities-fraud case (Labry had been ordered by five states to cease and desist from selling unregistered securities); the Brian David Anderson Ponzi scheme case (Anderson was linked to multiple fraud schemes and clashed with law enforcement in the United States and Canada); the Bruce Namenson mortgage-fraud case (Namenson, formerly an attorney, already was in jail for an insurance scam when charged in the mortgage case); the Troy A. Titus Ponzi scheme case (Titus, a former attorney, was disbarred for writing bad checks for huge amounts before his Ponzi scheme conviction).

    At the same time, recidivism has been an element in the Trevor Cook Ponzi and financial-fraud case (Cook had a run-in with the National Futures Association before his spectacular run-in with the SEC and the CFTC);  and the Arthur Nadel Ponzi scheme case (Nadel, a former attorney, was disbarred decades ago amid allegations he raided client funds to pay off loan sharks).

    There are other recent examples, of course.

    Here is a new one . . .

    A New Jersey man implicated in fraud schemes dating back to the early 1990s has been arrested in a new, work-at-home fraud scheme, federal prosecutors said.

    Part of the scheme centered on telling participants that the companies involved had good reputations and weren’t shady, “get-rich-quick” schemes, prosecutors said.

    Philip Pestrichello, 38, of Bayville, N.J., is a recidivist offender who served three years in federal prison after being convicted in 2003 of mail fraud in a work-at-home scheme known as “IMXT & Co.”

    Pestrichello was on supervised probation when he hatched his new scheme — for which his wife, Rosalie Florie, 38, also was arrested. Prosecutors said the husband-and-wife team collected more than $1 million, operating the scheme through entities known as “Preferred Platinum Services Network LLC” ;”PPSN LLC”; “Home Based Associate Program;” and “Postcard Processing Program.”

    “Work-at-home scams prey on some of the most vulnerable in our society — the economically disadvantaged, the unemployed, the disabled, and the elderly — who are trying to supplement their income by working from home,” said U.S. Attorney Preet Bharara.

    Bharara assigned the Complex Frauds Unit to the case. The FTC and the U.S. Postal Inspection Service also are playing pivotal roles.

    Pestrichello’s post-prison scheme began in June 2007, prosecutors said.

    Consumers were duped into sending money to Pestrichello and Florie “under the pretense that the consumers were enrolling in a program that would allow them to earn income at home,” prosecutors said. “In fact, the consumers typically got nothing in return for their payment.”

    The scheme operated though the U.S. mail, the Internet and classified ads. Participants
    were charged what they believed to be “one-time” enrollment fees of up to $90 and promised “the opportunity to earn a ‘weekly paycheck’ by labeling postcards that advertised a product called the ‘Mortgage Accelerator Program,’” prosecutors said.

    Consumers were told they could earn $1 for each postcard they labeled, but the story changed after they sent their money.

    “[A]fter consumers paid their enrollment fee, they were asked for more money to remain in the program,” prosecutors said. “Typically, consumers learned for the first time after paying the enrollment fee that they had to pay an additional fee, usually $40, for a new batch of 100 postcards for processing.”

    To keep the scheme churning, prosecutors said, the scammers pressured participants “to return their first set of labeled postcards ‘within 5 days’ or risk delays with their paychecks.

    “This caused many consumers to send in money for second and third batches of postcards before they received payment for the first batch,” prosecutors said. “By the time they realized they were not receiving any paychecks at all from PPSN, many consumers had already sent PPSN between $150 and $350.”

    Among the advertising claims were (italics added):

    “Would you like an opportunity to earn a $475 check from home processing Mortgage Products Postcards for our company?”

    “EARN $1.00 PER POSTCARD”

    “Rest assured, this is NOT a gimmick or some shady ‘get rich quick scheme.’ Our company has a rock-solid reputation . . . As one of our Home Based Associates you could earn $1.00 (one-dollar) for each Postcard you process and we conveniently offer you weekly
    compensation directly by Company Check each Friday.”

    “The vast majority of consumers ultimately received no money at all, after paying the up-front fee and labeling and returning the postcards as instructed,” prosecutors said. “Even those few individuals who were paid did not receive anything near the promised payments of $1.00 per postcard.”

    And, prosecutors asserted, the rules continued to change, thus putting consumers in the impossible position of clinging to the program in an effort to get back the money they paid in.

    “After consumers complained to PPSN that they did not receive the weekly paycheck, they either received no response from the company or were then told, contrary to PPSN’s earlier representations regarding the operation of the program, that the program was a ‘commission’ program, and that they would receive a commission only if and when the postcards they sent out generated a sale on the ‘Mortgage Accelerator’ product advertised in the postcards,” prosecutors said.

    “In fact, the Mortgage Accelerator Program itself appears to have been a sham, non-existent product,” prosecutors continued. “Although the work-at-home program was marketed as offering a ‘100% Satisfaction Policy’ guaranteeing consumers a refund in the event they are not fully satisfied with the program, refunds were rarely, if ever given. If a refund was in fact given, it was typically only after a consumer had complained to law enforcement authorities.”

    Pestrichello was in repeated trouble even prior to his 2003 criminal conviction, prosecutors said.

    “Between 1992 and 2002, Pestrichello was the subject of numerous enforcement actions by the New Jersey Division of Consumer Affairs, the Office of the Attorney General in the State of Florida, and the FTC, in connection with his operation of other consumer fraud schemes. Those actions resulted in permanent injunctions barring Pestrichello from engaging in the type of conduct and business alleged in the Complaint.”

  • PROSECUTORS: Man Operated Identity-Theft Fraud Scheme While Out On Bond In Ponzi Scheme Case; Bryant R. Filter Sentenced To 135 Months In Federal Prison

    While completing its investigation of Bryant R. Filter for operating an insurance Ponzi scheme, the U.S. Postal Inspection Service discovered Filter was operating a second fraud scheme, federal prosecutors said.

    Filter, 39, of Mars, Pa., now has been sentenced to 135 months in federal prison for the Ponzi fraud, and a second scheme in which he stole the identities of customers to obtain fraudulent loans.

    Through a company known as Filter and Associates, Filter fraudulently secured financing for insurance premiums by fabricating “an insurance relationship with a nonexistent representative of an insurance company, and a fictitious underwriter,” prosecutors said.

    He obtained more than $8 million in the insurance scheme, which prosecutors dubbed a “Ponzi” type loan scheme.

    Even as the Ponzi case was before the court and Filter was pleading guilty in April 2009, Filter was knee deep in a second scheme, prosecutors said.

    “Unbeknownst to the Court and the government, Filter committed a second wave of fraud offenses, which resulted in his arrest on May 21, 2009,” prosecutors said.

    In the second scheme, Filter used a company known as Three Rivers Business Group LLC to obtain “personal information from clients seeking to sell or purchase a business and seeking the financing to do so.

    “Filter used the clients’ personal information without their permission to obtain financing proceeds in their names for himself,” prosecutors said.

    As part of the second scheme — and while Filter was out on bond in the Ponzi scheme — Filter “attempted to defraud a bank when he applied to obtain a $50,000 home equity loan in the names of unsuspecting victims, without their authorization, using their house as security.”

    A federal judge revoked Filter’s bond and jailed him when the second scheme was discovered.

    The identity-theft case involved financing for bogus accounts receivable and the “fraudulent acquisition of an $18,000 check after Filter purported to sell his leased vehicle and obtain clear title,” prosecutors said.

    Filter pleaded guilty in November to the identity-theft charges and was sentenced simultaneously on the Ponzi charges.

  • 3 Plead Guilty In Bizarre Shakedown Bid In Anthony Vassallo/EIMT Ponzi Case; 1 Pleads To Conspiracy To Impersonate An Officer

    Three individuals who attempted to shake down the operators of a hedge fund associated with the alleged Equity Investment Management and Training Inc. (EIMT) Ponzi scheme have pleaded guilty in California for their roles in the shakedown bid.

    Craig Anderson, 39, of Chicago, pleaded guilty to conspiracy to impersonate a federal officer and employee; Cassandra Moore, 26, of Beverly Hills, Calif., pleaded guilty to a misdemeanor count of unlawfully possessing false documents, as did Sean Smartt, 41, of Sacramento.

    The FBI described the crime as “bizarre,” when the shakedown charges were announced in May 2009. In announcing the guilty pleas today, federal prosecutors said the shakedown attempt occurred after a fake meeting was arranged in March 2009 under the guise that a wealthy investor wanted to meet figures associated with EIMT.

    Also participating in the shakedown scheme was Michael David Sanders, 41, of Fair Oaks, Calif., prosecutors said. Sanders has pleaded not guilty. His trial is set to get under way next month.

    “Once the individuals were inside the office, Anderson tapped on the window with an identification badge to gain entry,” prosecutors said. “Sanders, Anderson, Moore, and Smartt entered, wearing bulletproof vests, earpieces, and credentials falsely bearing identification information and the authentication feature of the United States.

    “They carried handcuffs, badges, and some carried radios and appeared to be armed leaving the impression that they were federal law enforcement agents,” prosecutors said.

    Anderson, Moore, and Smartt now “admit that Sanders and Anderson paced around the office, exposed their weapons, and blocked the entrances and exits of the office suite,” prosecutors said. “One of the co-conspirators told the hedge fund operators that the defendants were there to collect funds taken from the . . . (EIMT) account on behalf of fraud victims.”

    Anderson, prosecutors said, “told the hedge fund operators that they had until noon on Monday, March 9, 2009, to wire $378,300.16 to a Patelco Credit Union account in the name of the ‘Spirit Foundation’ and to send an e-mail confirmation,” prosecutors said. “The defendants left a sheet of paper with the wiring instructions, routing number, account number, bank name, amount, and an e-mail address.”

    Anderson faces a maximum of five years in federal prison. His sentencing is set for April 27, before U.S. District Judge John A. Mendez.

    Smartt and Moore are set to be sentenced on April 25 and 26, before U.S. District Judge Gregory G. Hollows. They face up to a year in prison.

    Anthony Vassallo was charged in April 2009, with mail fraud, wire fraud, and money laundering, amid allegations he operated the $40 million EIMT Ponzi scheme.

    Vassallo has pleaded not guilty.

  • Now, A Narc That Car Training Video Shot By Promoter In Parking Lot Of Giant Eagle Supermarket Chain; ‘I’m Not Going To Talk To Anybody,’ Narrator Says

    A Narc That Car promoter recorded a video for the program in the parking lot of a Giant Eagle store. Giant Eagle is one of the largest grocery chains in the United States. Some Narc That Car promoters have recommended that members visit the parking lots of prominent retailers and restaurants to find a never-ending supply of license-plate numbers.

    UPDATED 11 A.M. ET (U.S.A.) A grainy video promotion for Narc That Car was shot in the parking lot of one of the largest grocery-store chains in the United States and posted on YouTube.

    The narrator in the video talked about the “countless cars that are in the parking lot” of a Giant Eagle store. Pittsburgh-based Giant Eagle is one of the largest food retailers and food distributors in the United States, recording about $8 billion in annual sales.

    Narc That Car is a Dallas-based, multilevel-marketing (MLM) company that says it is building a database of license-plate numbers for use by banks and companies that specialize in repossessing automobiles.

    “This is how simple this business is, folks,” the narrator says, as a camera pans around the Giant Eagle parking lot and captures one car after another in video frames.

    “I’m not even going to talk to anybody,” the narrator says, noting he did not know the address of the particular Giant Eagle at which he was recording the video, but would obtain it online.

    Giant Eagle did not immediately return a call seeking comment on the Narc That Car video shot in its parking lot and the practices of Narc That Car and its promoters.

    The narrator cites Giant Eagle’s name in the video, panning on Giant Eagle signage and a nearby gas station.

    “I want to show you how simple and easy this business is,” the narrator intones. “I’m just going to jot down some public information of the license plates. That’s the way this works.”

    The narrator continues, “As a matter of fact, I don’t even know the address of this Giant Eagle. I’ll just look it up online and get the address when I get home. Or, [if] I’m at a gas station, I can do the exact same thing. So, this is really great how simple this business is. Come on and join us [via] Cash For Car Plates.”

    In the the video, which appears to have been shot on a dark and dreary winter day, the narrator raised no issues of propriety, safety, privacy or legality. The narrator did not, for example, instruct Narc That Car members if permission needed to be obtained from companies such as Giant Eagle to write down the license-plate numbers of patrons.

    Nor did the video provide any instruction on what Narc That Car members should do if approached by a store manager or patron while the Narc That Car promoter was writing down license-plate numbers or capturing them on video.

  • STOP THE MADNESS: Now, AmberAlertHelp.org; Narc That Car Promoters Continue To Link Company To Legacy Of Amber Hagerman

    Two days ago, we wrote about FindThatCar.org, a website with a red banner at the top that appeals to visitors to “Help us,” as though it were promoting a charity such as the Red Cross.

    FindThatCar.org actually is promoting Narc That Car, a Dallas-based multilevel-marketing  (MLM) company that is building a database to sell information to companies in the business of repossessing automobiles. Both Narc That Car and its promoters reference the AMBER Alert program in their sales pitches.

    Today we turn your attention to AmberAlertHelp.org. It, too, is selling Narc That Car. Here’s the AmberAlertHelp.org pitch on the site’s main page (italics added):

    Welcome to Amber Alert Help

    Our goal is to build awareness about an opportunity for you, your friends, and your family to get paid for helping build the Amber Alert system database simply by submitting 6 random license plate numbers per month online. It is so easy, and you can get started now.

    Here is the pitch on a secondary AmberAlertHelp.org page (italics added):

    We Joined Narc That Car and feel wonderful about having the ability to:

    • Help find and save missing children
    • Help build the very valuable Amber Alert system database
    • Make extra money easily

    AmberAlertHelp.org also has an AmberAlertHelp.com version of the domain. Both sites were registered Jan. 20, two days after the BBB in Dallas asked Narc That Car to explain its business practices. The inquiry is still open, according to the BBB website.

    The U.S. Department of Justice, which coordinates the AMBER Alert program, said Wednesday that Narc That Car is in “no way affiliated” with the program. On Thursday, the National Center for Missing & Exploited Children (NCMEC), which manages the Amber Alert Secondary Distribution Program for the Justice Department and 120 Amber Alert coordinators throughout the United States, said Narc That Car “is not a part” of the secondary program.

    Nine-year old Amber Hagerman was abducted 14 years ago while riding her bicycle in Arlington, Texas. She was brutally murdered. The AMBER Alert program — America’s Missing: Broadcast Emergency Response — is her legacy.

    AMBER Alert is about keeping children safe. It is not about keeping the world safe for multilevel-marketing profits. AMBER Alert’s name should be accorded the same dignity accorded Amber Hagerman’s name, which is to say neither name ever should be made part of a pitch fest.

    That AMBER Alert’s name is being mentioned in sales pitches for Narc That Car is beyond the pale. AMBER Alert is about life-altering emergencies. It is not about MLM recruiting and pocketing commissions up to five levels deep.

    Good grief. Narc That Car promoters are using .org extensions — the same extensions used by the Red Cross, the Salvation Army and NCMEC for their noble purposes — to promote a business that is building a database for the repo man — and they are implying it is a public service.

    Today we call on Narc That Car to remove references to AMBER Alert from its marketing materials, including videos. We further call on Narc That Car promoters to do the same.

    Not only are some Narc That Car promoters repeatedly referencing AMBER Alert, they also are referencing government agencies such as the FBI and the Department of Homeland Security as though the agencies have endorsed the Narc That Car program.

    One Narc That Car promoter claims the purpose of the program is “To help The US Dep’t of Homeland Security find terrorists.” Another claims, “We are backed by the better business bureau, the F.B.I., and the Amber Alert system . . . ” Yet another claims, “A company out of Dallas needs to grow a data base of license plates to use for Amber Alerts and other reasons.”

    Elsewhere, a website that uses a name similar to the famous ToysRUs trade name, references AMBER Alert and tells viewers that big money is possible through Narc That Car.

    “I went to Walmart,” a video narrator intones at the PlatesRUs.biz website. “It took me every bit of five minutes to write down 10 tag numbers randomly, go in my back office and log it into the national database through the company, and actually earn a check.”

    This madness must stop.

  • Nilton Rossoni Sentenced To 68 Months In Federal Prison For Colossal eBay Fraud; Elaborate Scheme Featured 59 Mail Drops, 260 Bogus Auction Accounts

    It was a case that was all about the numbers. In the end, the number with the most meaning to Nilton Rossoni was 68 — the number of months he’ll be spending in federal prison.

    Rossoni conducted more than 5,500 fraudulent auctions on eBay. He pulled off his scheme by using at least 260 bogus accounts, at least 59 mail drops, six names, four bogus passports and three banks.

    Rossoni, 50, formerly of Sunny Isles and Hallandale Beach, Fla., collected $717,000 in the scheme between October 2003 and June 2008. The bizarre fraud was smashed by the U.S. Postal Inspection Service

    Winning bidders were notified via e-mail to send a check or money order payable either to Celso Ferreira, Jorge Carlos, Joao Santos, Lourival Philipps, Prime Hill Inc. or Primo Hill Inc. Buyers were instructed to send payments via U.S. Mail to specific addresses, all of which proved to be mail drops.

    “Elaborate” barely described the scheme.

    “Rossoni rented at least 59 separate private mail boxes at various Commercial Mail Receiving Agencies (CMRA), including The UPS Store, Mail Boxes Etc., and Pak-Mail, using fraudulent Brazilian passports in the names of Celso Ferreira, Jorge Carlos, Joao Santos, or Lourival Philipps as identification,” prosecutors said. “After receiving payment, Rossoni deposited the money into various bank accounts he opened at Bank of America, Citibank, and SunTrust Bank, under these aliases.”

    As part of the scheme, “Rossoni registered and established hundreds of eBay accounts and used various names, e-mail addresses, phone numbers, and mailing addresses on those accounts to post items for auction,” prosecutors said.

    He then purchased inexpensive items from himself and posted positive “feedback” on the transaction, prosecutors said.

    Confident that Rossoni was an honest broker because of his positive feedback, buyers lined up to be fleeced, prosecutors said. Rossoni sold them textbooks, computer flash drives, rotisserie grills, tools, sporting equipment, DVD collections, airline tickets, saddles, saddlebags, designer luggage, appliances, metal detectors and more.

    Rather than shipping items, he kept the money.