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  • [NOTE TO READERS]: Stories About Accused Utah Fraudster Jeremy Johnson Now Back Online

    On March 23, 2012, the PP Blog temporarily removed from public view three stories pertaining to accused Utah fraudster Jeremy Johnson. The explanation of why the stories were taken offline temporarily is here. On March 23, 2012, the PP Blog’s security software recorded a “mass injection attack” as the Blog visited a domain styled CollotGuerard.com while researching matters pertaining to Jeremy Johnson. Collot Guerard is an attorney for the FTC and an alleged subject of harassment by Johnson or people close to Johnson because of the FTC actions against Johnson. The PPBlog is not revisiting the CollotGuerard.com domain and believes it is imprudent for readers to visit the domain.

    Johnson is back in the news in Utah in a big way. The PP Blog will have more later on the situation in Utah. The Blog’s “tag” on Johnson is here.

  • Former Zeek Pitchman Who Also Pushed JSS/JBP Scam Reportedly Doubts He’ll Be Paid By ProfitClicking, A Follow-Up ‘Program’

    alanchapmanpcmmgFormer Zeek Rewards and JSSTripler/JustBeenPaid pitchman “Alan Chapman” reportedly now claims he hasn’t been paid by “ProfitClicking” for “at least 3 months,” according to a post quoting “Chapman” on the MoneyMakerGroup Ponzi forum.

    ProfitClicking is the absurd follow-up “program” to the bizarre JSS/JBP scam, a 730-percent-a-year “opportunity” purportedly operated by Frederick Mann. JSS/JBP may have had ties to the “sovereign citizens” movement. Like ProfitClicking, the JSS/JBP “program” made members affirm they were not with the “government.”

    On Aug. 17,  the SEC described Zeek as a $600 million Ponzi and pyramid scheme that was selling unregistered securities to sustain a massive fraud that duped members into believing it provided a legitimate return averaging 1.5 percent a day. Just a day earlier, JSS/JBP took a page from the Zeek playbook, asserting that it was not selling securities and members were not making an investment.

    After the SEC’s Zeek action, JSS/JBP morphed into ProfitClicking, amid reports of the sudden retirement of Mann, a former pitchman for the AdSurfDaily Ponzi scheme. On Sept. 5, the PP Blog received a menacing communication threatening a lawsuit over its coverage of JSS/JBP/ProfitClicking. The lawsuit threat was made after the Blog reported that ProfitClicking was disclaiming any responsibility on the part of itself or its affiliates for offering the “program.”

    Like Zeek, JSS/JBP/ProfitClicking was promoted on forums listed in U.S. federal court files as places from which Ponzi schemes are promoted. In the hours after the SEC action, the PP Blog began to receive spam for a “program” known as “Ultimate Power Profits.” A check of the MoneyMakerGroup Ponzi forum showed that Zeek peddler “mmgcjm” was the key pitchmen for Ultimate Power Profits.

    The connectivity of the various scams shows how banks and financial vendors can come into possession of funds tainted by fraud schemes. Meanwhile, the court-appointed receiver in the Zeek case said last month that he had “obtained information indicating that large sums of Receivership Assets may have been transferred by net winners to other entities in order to hide or shelter those assets.”

    “Chapman” was an apparent Diamond affiliate of Zeek. In June 2012 — apparently even as the SEC’s Zeek probe already was under way — a “Chapman” Blog known as “ZeekRewardsPays” asserted this (italics added):

    ZeekRewards Daily Profit Last 7 Days!
    June 11 2012 1.89 %
    JUNE 10 2012 0.88 %
    JUNE 09 2012 0.96 %
    JUNE 08 2012 0.92 %
    JUNE 07 2012 1.91 %
    JUNE 06 2012 2.00 %
    JUNE 05 2012 1.93 %

    Court filings by the SEC last week suggest its Zeek probe began in April 2012 and perhaps earlier. What’s not known is when Zeek learned it was under investigation. It is not unusual for law enforcement to maintain secrecy when a “program” hits its radar screens. Court filings from 2008 show that the U.S. Secret Service had infiltrated AdSurfDaily with undercover agents who corresponded with ASD promoters prior to any public announcement of a probe.

    At least one ASD member instructed an undercover agent not to call the “program” an investment, apparently based on the errant belief that wordplay designed to disguise ASD as an “advertising” program and not a program offering unregistered securities and unusually consistent returns at a preposterous rate of 1 percent a day somehow could insulate ASD from prosecution.

    On Aug. 1, 2008, the Secret Service began the process of seizing more than $80 million from ASD-related bank accounts, alleging that the “opportunity” was a massive online Ponzi scheme. ASD, Zeek, JSS/JBP and Profit Clicking planted the seed they provided returns that made Bernard Madoff look like a piker. Viewed on an annualized basis, the “programs” effectively were asserting they could outperform Madoff by a factor on the order of between 30 and 70 to one.

    The assertion by “Chapman” (as noted above) computed to an average daily return of 1.498 percent. On Aug. 17, the SEC said that Zeek operator Paul R. Burks “unilaterally and arbitrarily determines the daily dividend rate so that it averages approximately 1.5% per day, giving investors the false impression that the business is profitable.”

    Burks consented to a judgment on the same day the SEC brought the Zeek Ponzi action. The U.S. Secret Service — also on Aug. 17 — announced it was investigating Zeek. In 2008, the Secret Service brought Ponzi allegations against ASD’s 1-percent-a-day “program.” ASD operator Andy Bowdoin later admitted he was running a Ponzi scheme. Bowdoin was sentenced to 78 months in federal prison. He is 78 years old.

    Mann’s age is unknown. There have been reports he is in his eighties.

  • URGENT >> BULLETIN >> MOVING: New Filings By SEC Suggest Zeek Probe Began In April 2012 Or Earlier; Agency, Receiver Oppose Motions To Intervene By Possible Clawback Targets

    breakingnews72UPDATED 9:46 A.M. ET (JAN. 13, U.S.A.) New court filings by the SEC in the Zeek Ponzi scheme case in the Western District of North Carolina strongly suggest that the Zeek probe was under way at least by April 17, 2012. On that date, according to the filings, an IT specialist for the SEC was tasked by the agency’s Division of Enforcement to “conduct Website/video capture” of ZeekRewards.com.

    Four months to the day later — on Aug. 17, 2012 — the SEC alleged in federal court that Zeek was a $600 million Ponzi- and pyramid fraud operating from Lexington, N.C.  Left unanswered in today’s filing is the question about precisely when Zeek operator Paul R. Burks first was contacted by the agency and when he began to cooperate by providing records.

    Burks consented to judgment in the case, without admitting or denying wrongdoing.

    Separately, the SEC and court-appointed receiver Kenneth D. Bell both argued today that petitions to intervene and to dissolve the receivership by alleged Zeek “winners” Trudy Gilmond and Kellie King should be denied by Senior U.S. District Judge Graham C. Mullen.

    Court filings suggest that Gilmond has clawback exposure of more than $1.364 million. King’s potential exposure may exceed $205,000.

    “Gilmond and King seek to improperly interfere with a settled SEC enforcement action against defendants Rex Venture Group and Paul Burks to deny the Receiver the ability, as directed by the Court, to marshal the estate’s assets for the benefit of all aggrieved ZeekRewards investors,” the SEC argued. “The Motion to Intervene is a transparent attempt to obtain prospective relief in an improper forum with respect to clawback litigation the Receiver has yet to initiate.”

    For his part, Bell said Gilmond and King were engaging in “delaying tactics.”

     

  • UPDATE: Craddock To Zeek Troops: Receiver Is Still Evil — And BOLO For Commies And Nazis

    ponzinews1UPDATED 7:03 P.M. ET (U.S.A.) Zeek Rewards figure Robert Craddock told his conference-call audience last night that the court-appointed receiver in the Zeek case was still evil.

    For good measure, Craddock pointed listeners to a video that planted the seed there is a Communist or budding Hitler behind every tree. (These evildoers, if our take on the video is correct, apparently are descendants of white-haired, briefcase-wielding evildoers first spotted in the Peoples Republic of California at Berkeley in 1992.)

    Craddock further suggested that the PP Blog has backed away from Zeek, apparently because it has seen the evil of its ways after assessing all of the government evil Craddock and team have exposed and concluding that, yes, the U.S. government and the receiver are evil.

    The PP Blog has made no such conclusion. (The Blog believes the SEC is correct in its take on matters and that the receiver is correct on his take on matters.)

    In other news, Craddock apparently now has concluded that Blogger Troy Dooly is less evil than he was a couple of weeks ago and that the judge overseeing the Zeek Ponzi case is less of a political hack than he was several weeks ago.

    Meanwhile, Craddock put out a casting call for a reporter interested in exposing all the government evil its Zeek case has exposed.

    That is all.

    (Background: See Dec. 3, 2012, PP Blog editorial:  EDITORIAL: The ‘Zeek-Step,’ The Stepfordian Shuffle And The Stalinist HYIP.)

  • ‘Sovereign’ Cocaine Distributor Sentenced To Life In Prison

    americaatrisk4Accused cocaine distributor Clinton Williams Jr. put on sideshows in federal court in Pensacola, Fla., arguing that he was a “sovereign citizen,” recasting a serious, cross-border criminal case as a “civil” dispute and insisting that Senior U.S. District Judge Lacey A. Collier had no authority over him.

    “Throughout the prosecution, Williams continually told the Court he was a ‘sovereign citizen’ and had no ‘ownership interest’ in the name Clinton Williams,” the office of U.S. Attorney Pamela Cothran Marsh of the Northern District of Florida said yesterday.  “He said he believed the charges against him were ‘only civil disputes’ that he wished ‘to settle’ with the ‘claimant.’ He challenged the authority of Senior District Judge Collier to preside over the case.”

    Collier ended that nonsense Tuesday, sentencing 31-year-old Williams to life in prison plus a concurrent 30 years for cocaine-related crimes in multiple states.

    Prosecutors described Williams as “a leader in a multi-state cocaine distribution operation extending from Texas to Florida.”

     

  • ASD Figures Todd Disner And Dwight Owen Schweitzer Toss Linguistic Spitballs At Federal Judge; Government Calls Them ‘Intemperate Attacks’

    ponzinews1UPDATED 7:49 P.M. ET (JAN. 14, U.S.A.) Judge Rosemary Collyer has been on the federal bench in the District of Columbia for 10 years. She was nominated by President George W. Bush in 2002 and was confirmed by the U.S. Senate. Earlier in her career, then-attorney Collyer was appointed by President Reagan to lead the Federal Mine Safety and Health Review Commission.

    Collyer is 67. She also has broad experience in the private sector, having been a partner at Crowell & Moring, a top-tier law firm with blue-chip clients and offices in the United States, the United Kingdom, Belgium, Egypt and Saudi Arabia.

    As a federal judge, Collyer has presided over national-security cases, voting-rights cases, worker-rights cases, securities cases, cases involving international intrigue and U.S. foreign policy and a case involving an alleged would-be assassin of the President of the United States.

    In 2009, when the PP Blog referenced Collyer in a story that mentioned her ruling in a case involving former U.S. Secretary of State Henry Kissinger, once National Security Adviser to President Richard M. Nixon, the Blog observed that “[n]o critic interested in fair or logical debate would dismiss her as an intellectual lightweight.”

    AdSurfDaily figures Todd Disner and Dwight Owen Schweitzer, though, have a different take on Collyer. To the former ASD Ponzi pitchmen who went on to become pitchmen for the alleged Zeek Rewards Ponzi scheme, Collyer is a “sophist” and the author of opinions in the ASD case that a “first year law student” would have found “repugnant.”

    ASD was a $119 million Ponzi scheme. In August, the SEC described Zeek as a $600 million Ponzi- and pyramid fraud. Having once been involved in an effort to raise funds purportedly to defend ASD members from government overreach, Disner then became involved in efforts purportedly to raise funds to protect Zeek members from the government.

    In November 2011, ASD figure and purported “sovereign citizen” Kenneth Wayne Leaming was arrested by an FBI terrorism Task Force on charges of filing false liens against at least five public officials involved in the ASD case, including Collyer. When Leaming was arrested, he allegedly was found in the company of two individuals who’d pulled off a multimillion-dollar bizop fraud in Arkansas.

    During that same month, Disner and Schweitzer sued the United States. In court filings, the ASD duo alleged that the government had produced a “tissue of lies,” that its forfeiture case involving ASD assets was a “house of cards,” that the government had relied on “some of their Washington D.C. operatives to become members of ASD” in a bid to sink a legitimate business and that federal prosecutors had shopped the case to Collyer.

    In May 2012, ASD operator Andy Bowdoin pleaded guilty to wire fraud and acknowledged ASD was a Ponzi scheme and that the Florida-based firm never had operated lawfully from its 2006 inception. Collyer tossed the claims of Disner and Schweitzer in August 2012. The ASD duo appealed, accusing Collyer of bias,  sophistry and issuing rulings that would deeply offend even freshmen students of the law.

    The government has responded to the Disner/Schwwitzer appeal.

    “Appellants go so far as to argue that Judge Collyer ‘had so improperly authorized the taking of the Appellants[’] property and effects, that a first year law student would have found it repugnant’ and that ‘she abrogated her role as a jurist and became what can only be called a sophist,’” an appeals lawyer for the government argued. “Offering nothing more than intemperate attacks on the District Court Judge, Appellants failed to raise any specific facts suggesting bias on the part of the District Judge.”

  • [JANUARY DONATION POST]: Blog $150 Short This Month [JAN. 9 UPDATE: Blog OK Now]

    UPDATED 3:34 P.M. ET (U.S.A.., JAN. 9):

    Dear Readers,

    A sum of approximately $150 is needed to get the Blog through January. [Jan. 9: Blog OK for January now, thanks to readers.]

    Key bills vital to the Blog’s continued operation are coming due. This is the first donation post since October.

    Please help if you’re able.

    Thank you.

    Patrick

  • URGENT >> BULLETIN >> MOVING: Feds Filed Forfeiture Complaint Against Property Linked To MPB Today MLM Operator, Who Is Subject Of Fraud Probe

    Gary A. Calhoun
    Gary A. Calhoun

    URGENT >> BULLETIN >> MOVING: Gary A. Calhoun is the subject of a criminal probe linked to a civil-forfeiture action in federal court in the Northern District of Florida, according to court filings by his attorney.

    Calhoun, 56, is the operator of the MPB Today MLM, which is tied to a grocery-delivery business in Pensacola known as Southeastern Delivery. In July, federal prosecutors filed a forfeiture action against a property at 8812 Grow Drive, also known as Grow Road, in Pensacola. The property is the business address of Southeastern Delivery and also the address of a Calhoun-controlled entity known as WL Property Holdings LLC.

    The affidavit in the forfeiture case was filed under seal. But the forfeiture case, according to prosecution filings, was brought to enforce 18 USC § 1028 and 18 USC § 1029, statutes dealing with access-device fraud and fraud in connection with identification documents.

    Calhoun was arrested last month in Florida on a state-level charge of racketeering. The existence of the federal documents may mean that Calhoun also has exposure under federal criminal law. The forfeiture complaint also cites the federal wire-fraud and conspiracy statutes.

    Some promos for MPB Today in 2010 were targeted at federal Food Stamp recipients. The U.S. Department of Agriculture told the PP Blog in 2010 that it had opened a “review” into claims about the MPB Today “program.” The agency later described the matter as an investigation.

    A news release apparently authored by an MPB Today affiliate in 2010 encouraged impoverished prospects to sell $200 worth of Food Stamps to a “friend, family member or whoever” to raise cash to join the the MPB Today program.

    In September, Calhoun asked for the forfeiture case to be stayed because of a parallel criminal probe. A federal judge granted the request.

    When prosecutors filed the July forfeiture action, they noted that “[t]he facts and circumstances supporting the seizure and forfeiture of the defendant property are contained in a sealed affidavit, so as not to publish the facts of an ongoing criminal investigation.”

    On Sept. 24, Calhoun’s lawyer noted in a court filing that he “has confirmed that Mr. Calhoun is, at a minimum, a subject in the related criminal investigation.”

  • JUNEAU COUNTY STAR TIMES: Judge Tells Purported ‘Sovereign Citizen’ That ‘Fidelity To Nonsense Is No Virtue’

    recommendedreading1UPDATED 8:55 P.M. ET (JAN. 6) TO CORRECT GEOGRAPHY ERROR . . . In a plea deal, a purported Wisconsin “sovereign citizen” and father of 11 children was ordered to spend 90 days in the Juneau County Jail for illegally transferring the ownership of property in a case that started as a bank-fraud prosecution.

    John A. Glavin, 42, must also pay restitution of $44,737 to Necedah Bank “and refrain from filing more ‘sovereign citizen’ paperwork in any court as a condition of three-years of probation,” the Juneau County Star Times reported.

    “Sovereign citizens” may have an irrational belief that laws do not apply to them and that courts have no authority over them. Cases involving “sovereigns” typically involve bizarre court pleadings. Some “sovereigns” have been known to file bogus liens against public officials, including judges, prosecutors and investigators. Public officials in Alaska have been targeted in murder plots. Banks and other financial institutions sometimes are targeted in “sovereign” schemes. From the Star Times (italics added):

    [Juneau County Circuit Judge Paul] Curran pointed to a series of civil suits and small claims cases filed against Glavin in recent years by other institutions in which Glavin had also advanced sovereign citizen claims, including several suits ultimately rejected as “nonsense” by a federal judge.

    “And yet you pursued it again in this case,” Curran said, adding that fidelity to a cause is often a good thing. “But fidelity to nonsense is no virtue.”

  • BULLETIN: Gary Calhoun, Operator Of MPB Today ‘Grocery’ Program, Arrested On Racketeering Charge

    Gary Calhoun: Source: Escambia County Booking photo.
    Gary Calhoun: Source: Escambia County Booking photo.

    Gary Allen Calhoun was arrested and booked in Escambia County, Fla., on a racketeering charge last month, according to the Escambia County Sheriff’s Office.

    Details of the case were not immediately clear early this morning. Calhoun, 56, of Pensacola, appears to have been released on bond. A note in the booking information references the Florida Department of Law Enforcement. It was not immediately clear if FDLE was the agency that carried out the arrest. Calhoun was the operator of the MPB Today MLM “program.”

    Whether the arrest had anything to do with MPB Today also was not immediately clear. The “program’s” website has been offline for weeks, and there were reports that an MPB Today-related investigation was under way.

    Calhoun’s arraignment is set for Jan. 17.

    MPB Today became a popular “program” in 2010, fueled in part by regular check-waving videos on YouTube by affiliates. Critics of the “opportunity,” which was popular on the Ponzi boards, were described as “idiots.”

    Among the MPB pitchmen was “Ken Russo,” later of Zeek Rewards. In August 2012, the SEC described Zeek as a $600 million Ponzi- and pyramid fraud.

    The MPB Today “program” was marked by strangeness, including an affiliate promo that depicted President Obama as a Nazi, First Lady Michelle Obama as an embarrassment to the family dog and U.S. Secretary of State Hillary Clinton as a bawling drunk.

    In 2010, MPB Today described Calhoun as 2003’s “Businessman of the Year” as recognized “by the National Republican Congressional Committee’s [NRCC] Business Advisory Council.”

    Ponzi schemer Andy Bowdoin of Florida-based AdSurfDaily also claimed to be an NRCC award recipient. ASD was a $119 million Ponzi scheme.

  • PP Blog Experiences Unusual Traffic Pattern

    UPDATED 10:03 A.M. ET (JAN. 5, U.S.A.) The PP Blog has experienced an unusual traffic pattern on a couple of occasions today. Like previous strange patterns, “readers” displaying a range of international IPs sought to pull the same story virtually simultaneously. Today’s unusual pattern involved repeated calls to the Blog’s database to load a story that references Zeek Rewards. The call strings were lengthy.

    Since November, the Blog has experienced approximately five publishing outages. One appears to have been what the Blog is characterizing as a traffic flood that appears to have originated in Northwest Europe. All five outages required manual intervention for the Blog to resume publishing operations. In addition to the traffic floods, the Blog receives an incredible volume of spam.

    In December 2012 alone, at least 38,148 spam messages were directed at the Blog. In November 2012, at least 31,617 spam messages were directed at the Blog.

    Today’s unusual traffic pattern appears not to be spam-related and did not affect publishing operations.

    Here is a screen shot from one period of today’s unusual pattern.

    trafficpatternppblog1413small