PatrickPretty.com

Tag: 5th Amendment

  • A CEP PONZI SCHEME TIE? MPB Today Member Says ‘Trevor Reed’ In His Organization; No Immediate Comment From USDA

    This promo lists the names of 20 purported MPB Today affiliates, including the name of "Trevor Reed." It is unclear if the "Trevor Reed" included on the list is the same Trevor Reed who operated the judicially declared CEP Ponzi scheme.

    UPDATED 1:03 P.M. EDT (U.S.A.) Two days ago the PP Blog reported that a Sept. 20 “news release” for MPB Today’s purported “grocery” program solicited financially strapped Americans to sell $200 worth of Food Stamps to raise cash to join the Florida-based MLM.

    The Blog further reported that a name referenced in the news release (as the author) appears on page 21 of a distribution plan by the court-appointed receiver in the judicially declared CEP Ponzi scheme. The person referenced in the document is scheduled to receive a distribution of $125, which is expected to be issued Sept. 30.

    Today the PP Blog is reporting that a separate MPB Today affiliate who referenced the federal Food Stamp program in a July sales pitch also informed prospects that a person by the name of “Trevor Reed” is in his MPB Today organization.

    It was not immediately clear if the “Trevor Reed” referenced in the MPB Today promo is the same Trevor Reed charged by the Securities and Exchange Commission in a complaint filed July 9, 2007. The complaint alleged that Reed was committing fraud and selling unregistered securities through a company known as CEP.

    A judge later declared CEP a Ponzi scheme. A judgment of more than $1.5 million was placed against Reed and others on Nov. 18, 2008, according to court records. The order was signed by U.S. Bankruptcy Court Judge James E. Massey.

    On Oct. 27, 2007, Trevor Reed invoked his 5th Amendment right against self-incrimination in the CEP case. In September 2008 — less than a year after Reed invoked the 5th Amendment — Andy Bowdoin, the alleged operator of the AdSurfDaily (ASD) Ponzi scheme, also took the 5th.

    Records show that ASD advertised that it accepted payments from a payment processor known as CEP Trust, which was linked to the CEP Ponzi scheme. ASD members are being targeted in sales promos for MPB Today.

    On Nov. 19, 2008, U.S. District Judge Rosemary Collyer ruled that ASD had not demonstrated it was a lawful business and not a Ponzi scheme, a ruling that dealt a crushing blow to ASD. Just one day earlier — on Nov. 18, 2008 — Massey entered the financial judgment against Reed and others in the CEP Ponzi case.

    Massey ruled CEP a Ponzi on May 22, 2008 — less than three months prior to the federal seizure of tens of millions of dollars in the ASD case. Court records show that CEP had invested money in at least 26 online opportunities, primarily autosurfs.

    “The [CEP] Websites were investment programs that promised cash returns exceeding the amounts paid into the programs,” Massey ruled. “Debtors did not, however, operate or own any underlying business or assets whose profits could fund the promised returns. Although Debtors did place a relatively small amount of money in similar ventures operated by others, the evidence shows they made no profit from those investments. Most importantly, Debtors paid investors with cash received from new investors.”

    The U.S. Department of Agriculture (USDA), which is conducting a “review” about claims made in the MPB Today program, had no immediate comment on potential links to the CEP Ponzi scheme.

    “Take a look at my stats just a few days in!” the MPB Today affiliate urged members in a July forum post. The post included names of 20 downline members, including the name “Trevor Reed.”

    “Trevor Reed’s” MPB Today ID was listed as 150532. It was unclear if “Trevor Reed” is actively promoting the MPB Today program.

    What is clear is that the affiliate pitch in which the name “Trevor Reed” was referenced as an MPB Today downline member also referenced the Food Stamp program.

    “Great opp,” the pitch reads in part. “Just opened affiliated with WAL MART and EBT FOOD STAMPS (GOVT. ACKNOWLEDGED!) TAKE THE TIME TO READ THIS EMAIL IT WILL CHANGE YOUR LIFE!”

    Walmart has not responded to a request from comment about the MPB Today program.

  • SEC Seeks Contempt Order Against Trevor Cook; Minnesota Man Said To Have Bought Two-Person ‘Submarine’ With Ponzi Proceeds

    ponziblotterTrevor Cook, the Minnesota man implicated with Christian radio host Pat Kiley in a Ponzi and currency-trading scheme that collected at least $190 million, already has taken the 5th Amendment in a civil case brought by the SEC.

    The SEC now is seeking a contempt ruling against Cook, amid allegations he violated the asset freeze and receivership orders entered by a federal judge last month.

    A hearing on the contempt allegations began Dec. 11, but was continued to Jan. 5. The SEC said Cook, whom investors said bought a submarine on eBay for $40,000 and used it to access a private island he bought in Canada, hid assets from the court “by using an undisclosed credit card to make thousands of dollars of retail purchases.”

    Screen shot: Deposition in the Trevor Cook case.
    Screen shot: Deposition in the Trevor Cook case.

    Chief U.S. District Judge Michael Davis ordered Cook to surrender his passport.

    The Star Tribune of Minneapolis – St. Paul, which finds itself covering at least three major Ponzi scheme cases in the state, reported that Cook bought “gift cards” after the asset freeze.

    An attorney for the SEC argued that the gift cards smack “of money laundering,” the newspaper reported.

    The gift-card purchases occurred after the asset freeze was ordered, the SEC said. The agency also alleged that Cook failed “to turn over assets to the Court appointed receiver, to repatriate assets held in foreign countries, and to produce an accounting of investor funds.”