Tag: AdSurfDaily

  • 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.

  • MPB TODAY SPONSOR ATTACKS FELLOW MEMBERS: Join My Group Because Other Uplines ‘Lying’ To Prospects; ‘People Are Gonna Try To BS You To Try To Get You To Join’

    At the 2:54 mark in this video that includes a guitar as a backdrop, an MPB Today sponsor informs prospects that the company includes uplines that lie to recruits to get them to join.

    An MPB Today sponsor is asserting in a YouTube video that his upline is honest — but that other uplines in the company consist of liars who are “gonna tell you whatever they think you’re gonna want to hear” in a bid to get you to join the Pensacola-based multilevel-marketing (MLM) program that purports to sell groceries.

    How any MPB Today payments to members could be considered untainted if the company collected money based on lies and misrepresentations by sponsors was not explained in the 4:26 video.

    “And you’re going to see so many videos here, telling you, ‘Join us, we have a large upline, large [upline],’” the video’s narrator intoned.

    “They’re lying to you,” he continued. “I know that ours is the second-largest upline in the company. Don’t be . . . People are gonna try to BS you to try to get you to join. They’re gonna tell you whatever they think you’re gonna want to hear.”

    MPB Today is being promoted on YouTube and other social-networking sites. It also is being promoted on known Ponzi scheme forums such as ASAMonitor, TalkGold and MoneyMakerGroup.

    It is believed that some of the promoters have ties to the judicially declared CEP Ponzi scheme, the alleged AdSurfDaily Ponzi scheme, the alleged Pathway To Prosperity Ponzi scheme, the alleged Regenesis2x2 Ponzi scheme and other Ponzi and pyramid schemes.

    Ponzi ties are potentially catastrophic to MPB Today because promoters could be using criminal proceeds from other schemes to join the company. A public claim by a promoter that the company has upline sponsors who lie to members also is potentially catastrophic because it could be construed as an acknowledgment that the company is coming into possession of money based on falsehoods told by its own members.

    Meanwhile, some MPB Today members have posted purported “proof” videos that the company is legitimate. Some of the videos show images of checks drawn on a Florida bank that is operating under an FDIC consent agreement.

    At least one video shows an MPB Today member cashing a check from the MLM at an FDIC-insured bank while audiotaping the bank teller’s voice. Research suggests the affiliate’s account is at a bank in Utah.

    Federal officials have said that Utah is plagued by Ponzi schemes, including schemes targeted at people of faith.

    If MPB Today has come into possession of money from Ponzi schemes and is gathering money based on the lies of its members — and if affiliates are cashing or depositing MPB Today checks at banks across the United States — it means that banks external to MPB Today’s bank may be in possession of tainted money.

    The U.S. Department of Agriculture is conducting a “review” of claims about the MPB Today program. In July 2009, the U.S. Secret Service, which opened a probe into ASD’s business practices a year earlier, said it also was investigating a 2×2 cycler program known as Regenesis2x2.

    MPB Today also operates a 2×2 cycler. It is known that at least one MPBToday affiliate also promoted Regenesis2x2.

  • FBI Says It Has Opened 291 New HYIP Cases And Has 780 Pending Cases Of High-Yield Fraud; Many Have ‘International Nexus,’ Agency Notes

    FILE: Kevin Perkins appears before the Senate Judiciary Committee in 2009. He appeared again today.

    How confident are you that the HYIP you’re flogging on the Ponzi boards isn’t already under investigation by any of a number of state or federal agencies?

    Court records show that the alleged Legisi HYIP Ponzi scheme (about $70 million) was under investigation by state and federal law-enforcement agencies even as promoters were pitching it. The same is true of the alleged AdSurfDaily (ASD) Ponzi scheme (about $100 million).

    In Congressional testimony today, Kevin L. Perkins, assistant director of the FBI’s Criminal Investigative Division, said the agency has opened 291 “new” HYIP case this fiscal year and has 780 pending cases of high-yield fraud.

    “Many of the Ponzi scheme investigations have an international nexus and have affected thousands of victims,” Perkins told the Senate Judiciary Committee.

    In February 2009, members of the alleged ASD scheme bizarrely asked the very same committee to investigate the prosecutors investigating the scheme — not ASD President Andy Bowdoin, the alleged schemer.

    By September 2009, Bowdoin was telling members the $65.8 million the government seized from his 10 personal bank accounts belonged to them — a position that contradicted his own court filings.

    Bowdoin told U.S. District Judge Rosemary Collyer the money belonged to him. The judge later ordered the money forfeited to the government, which is establishing a restitution fund. Bowdoin appealed.

  • Pensacola Fraudsters Sentenced To Federal Prison; Pinnacle Quest International Vendors Sold ‘Tax And Credit Card Debt Elimination Scams,’ Federal Prosecutors, IRS Say

    “They helped form a series of sham business entities and then promoted fraudulent debt elimination tactics intended for the sole purpose of concealing income from the IRS.” — Victor S. O. Song, chief, IRS Criminal Investigation

    As the U.S. Department of Agriculture was conducting a “review” of claims made by affiliates of a purported “grocery” business in Pensacola, Fla., that dispenses “gift cards” to winners in a 2×2 matrix cycler, a federal judge in Pensacola was handing out prison sentences to defendants convicted in a tax-fraud and debt-elimination scheme.

    All in all, nine promoters were implicated in the Pinnacle Quest International (PQI) case. Four were sentenced to prison in July. Two others will be sentenced in October, and three were sentenced yesterday for their roles in an elaborate fraud in which PQI served as an “umbrella organization for numerous vendors of tax and credit card debt elimination scams,” federal prosecutors said.

    Eugene Casternovia received 7 years in prison. Arthur Merino, meanwhile, was sentenced to 40 months. Mark Lyon, the third defendant sentenced yesterday, cooperated with prosecutors and received a sentence of 18 months.

    Among the PQI vendors was the Southern Oregon Resource Center for Education (SORCE), which “sold bogus theories and strategies for tax evasion,” prosecutors said.

    “For fees starting at $10,000, SORCE assisted its customers in the creation of a series of sham business entities in the United States and Panama,” prosecutors said. “Other tax-related PQI vendors denied the legitimacy of the income tax system on various theories and provided customers with a ‘reliance defense’ that consisted of a paper trail of frivolous correspondence which a client could allegedly use as evidence of good faith if the client were prosecuted.”

    Financial Solutions, another PQI vendor, sold “fraudulent schemes for eliminating credit card debt,” prosecutors said.

    “Financial Solutions charged its customers thousands of dollars for a series of letters to send to credit card companies disputing the lawfulness of the underlying debt,” prosecutors said. “The product was wholly ineffective, and customers typically were sued by their creditors and often forced into bankruptcy.”

    At the same time, yet-another PQI vendor known as MYICIS “operated as a sophisticated, computerized ‘warehouse bank,’” prosecutors said.

    “MYICIS was a single bank account in which customers pooled their money,” prosecutors said. “MYICIS was promoted to PQI’s clients as a method to hide their assets from the IRS as a result of the pooled nature of the account. MYICIS had 3,000 clients and approximately $100 million in deposits over a three year period.”

    A veteran IRS agent declared the business entities tied to the PQI case a “sham.”

    “These defendants are now being held accountable for their criminal behavior,” said Victor S. O. Song, chief, IRS Criminal Investigation. “They helped form a series of sham business entities and then promoted fraudulent debt elimination tactics intended for the sole purpose of concealing income from the IRS. Their tactics were fraudulent. There is no secret formula that can eliminate an individual’s tax obligation.”

    In July, Arnold Ray Manansala was sentenced to 12 years in prison; Dover Eugene Perry, meanwhile, was sentenced to 10 years. Michael Guy Leonard was sentenced to nine years and one month, and Mark Daniel Leitner was sentenced to five years.

    The trial in Pensacola took up a full month. Wayne Hicks, the operator of My Icis Inc., already was serving a five-year prison sentence.

    FBI Director Robert Mueller has warned Congress at least twice this year about a “shadow” banking system that is a threat to U.S. national security.

    In November, President Obama formed the Financial Fraud Enforcement Task Force to attack the problem with white-collar and other forms of fraud. It is billed the “broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.”

    MYICIS was a topic of discussion on known Ponzi scheme and fraud forums such as TalkGold. In May, the U.S. Postal Inspection Service referenced the forums in filings in a criminal case against an alleged Ponzi scheme known as Pathway To Prosperity.

    In recent months, a Pensacola business known as MPB Today (My Premier Business Today) has been operating an MLM program that purports to sell “groceries.” The program has been advertised on TalkGold, and other known Ponzi forums.

    One MPB Today affiliate attempted to sell the program by creating a video animation and depicting President Obama and Secretary of State Hillary Clinton as Nazis. Clinton was called “Hitlary” in the promo.

    Others have attempted to sell the MPB Today business “opportunity” by linking it to the federal Food Stamp program administered by the Department of Agriculture. The USDA announced earlier this month that it was conducting a “review” of affiliate claims.

    This video promo for Pensacola-based MPB Today is targeted at Food Stamp recipients.

    Still other MPB Today affiliates have focused on recruiting prospects by telling them they’d receive “gift cards” from Walmart. At least one promo on YouTube shows an envelope inside an envelope that had been mailed through the U.S. Postal Service.

    Such an approach is consistent with the practices of “cash-gifters” — people who use the mails to promote chain-letter pyramid and tax schemes. The inside envelope in the YouTube video showed that at least one MPB Today affiliate had been paid with a prepaid Visa card purchased at Walmart. The envelope also contained a Walmart gift card.

    In the YouTube video, the MPB Today affiliate appeared to be surprised about what he’d just received in the mail.

    One promo after another for MPB Today has emphasized the gift cards. Still other affiliates have produced videos that show checks drawn on an FDIC-insured bank in Pensacola that has been operating since January under a consent agreement with the FDIC.

    Florida has been plagued by mortgage foreclosures. MPB Today is targeting foreclosure subjects in a video pitch, as are many affiliates. Affiliates also have targeted the unemployed, senior citizens, people of faith and members of the alleged AdSurfDaily (ASD) Ponzi scheme.

    ASD also was based in Florida. The company is known to have attracted affiliates who participated in tax, debt-elimination and cash-gifting schemes. At least one ASD affiliate has been linked to a group that sought to imprison federal judges and litigation opponents in debt cases. Another affiliate filed papers in federal court that purported to show that a bank could be defeated in a foreclosure case by filing a bond consisting of $21 in “silver coinage.”

    At least one MPB Today promoter positioned the grocery company as an opportunity for religious members of ASD to make up losses in the failed autosurf. The U.S. Secret Service has seized tens of millions of dollars from bank accounts linked to ASD.

    Florida records show that MPB and its associated grocery company — Southeastern Delivery — have operated by at least five names since 2006. MPB Today operator Gary Calhoun was ordered by the U.S. Food and Drug Administration to stop violating federal law in promotions for a product marketed as a treatment for Lou Gehrig’s disease, among others.

    ASD President Andy Bowdoin also operated numerous companies in Florida. according to records.

  • Golden Panda Forum DOA — Again; WebsiteTester.biz Continues To Baffle And May Have MPBToday Link

    The testimonial signed "Mike DeBias" on a website pitching MPB Today purports that "Mike DeBias" sought "Divine Guidance" when using Google to find a sponsor for the purported grocery program, which operates as an MLM. Nevada records lists "Michael A. DeBias" as the operator of Alpha Market Research, the purported parent company of Websitetester.biz, which purports to have gathered 400,000 names and email addresses online in recent months. Websitetester purports to offer "jobs" and an opportunity to become a website "tester." What, precisely, WebsiteTester does is far from clear.

    The Golden Panda Ad Zone forum, also known as the Online Success Zone (OSZ), appears to have died — again. Visitors are greeted with a note that says the forum is “currently unavailable.”

    Like ASAMonitor, MoneyMakerGroup and TalkGold, OSZ was a site that pitched Ponzi schemes, pyramid schemes, cash-gifting programs and other highly questionable business “opportunities” such as a “program” known as WebsiteTester.biz.

    OSZ first died quietly in the spring. It resurrected itself during the summer, and a poster sang the praises of WebsiteTester, a mysterious company that claims to have gathered 400,000 names and email addresses in recent months for a purported “jobs” and website “testing” opportunity.

    WebsiteTester’s business model is far from clear. Although affiliates have said there is no downside for registering because the opportunity is “free,” the company says its legitimacy can be established by watching a video that shows no faces and reading a news release published by an anonymous author.

    The purported opportunity has encountered a failed launch, a failed relaunch, server problems, substantial downtime and other problems — and yet somehow has amassed more than 19,600 Twitter followers, even though registrants don’t know exactly what they’re registering for.

    Records in Nevada show that Michael A. DeBias is the president of Alpha Market Research, WebsiteTester’s purported parent company. A series of websites linked to the firm, however, are registered behind a proxy.

    Separately, a person purported to be “Mike DeBias” of “Las Vegas” is listed as a provider of a testimonial on a website that hawks the purported MPBToday “grocery” program. The testimonial implies that “Mike BeBias” sought guidance from God when searching Google for an appropriate MPB Today sponsor.

    “. . . I thought I would google-search for a sponsor that was more to my liking . . . I asked for Divine Guidance and the Force led me to you,” the testimonial reads in part. “Thank God, and Thank you.” It was signed, “Mike DeBias – Las Vegas, Nevada.”

    It was not immediately clear if the “Mike DeBias” of “Las Vegas” referenced in the testimonial was the same “Michael A. DeBias” listed at the operator of Alpha Market Research, which purports to be based in Las Vagas.

    What is clear is that WebsiteTester — like MPB Today — is being promoted on forums infamous for pitching Ponzi schemes. Promos for MPB Today have been targeted at Food Stamp recipients, senior citizens, the unemployed, people of faith, churches and victims of the alleged AdSurfDaily (ASD) Ponzi scheme.

    The OSZ forum got its start in the aftermath of the August 2008 federal seizure of tens of millions of dollars from bank accounts linked to ASD and Golden Panda Ad Builder, ASD’s purported “Chinese” autosurf. Promos for other surfs — and “opportunities” such as cash-gifting schemes — were launched from the forum, even after one surf after another crashed and burned and ASD president Andy Bowdoin was sued for racketeering.

    Clarence Busby, the alleged operator of Golden Panda, was implicated in three prime-bank schemes by the SEC in the 1990s. ASD’s Bowdoin was arrested in the 1990s for bilking investors in a securities swindle in Alabama, according to court records.

    The ASD scheme has been linked to tax-deniers, “patriots,” people who engage in the credit-repair business, and at least one person who sought to imprison federal judges by having a bogus “Indian” tribe issue bogus arrest warrants. At least one ASD member declared himself “sovereign” in a bizarre court case, suggesting he enjoyed diplomatic immunity and answered only to Jesus Christ.

    Another person linked to ASD filed court papers in Missouri that claimed a mortgage-foreclosure case could be halted in its tracks by posting a bond of $21 in “silver coinage.”

    Appeals to religion frequently were displayed on the now-defunct “Surf’s Up” forum — a forum that had ASD’s official endorsement — and one HYIP program pitched from the forum used an image of Jesus Christ in a sales pitch. The HYIP later collapsed, after collecting an untold sum of money.

    Court records suggest that a person believed to have been involved in ASD and other HYIPs also was engaged in cell-phone trafficking.

    Prior to its series of deaths, the OSZ forum also promoted “programs” such as Narc That Car and Data Network Affiliates, both of which purported to be able to help law enforcement and the AMBER Alert program rescue abducted children. No evidence has surfaced that either Narc that Car or DNA has any capacity to help in the rescue of children. During the spring, DNA also purported to be in the cell-phone business.

    Narc That Car since has changed its name to Crowd Sourcing International (CSI). Like DNA, CSI has an “F” rating from the Better Business Bureau.

    Meanwhile, a separate website that is promoting MPB Today also is promoting DNA and at least 100 “surfing” programs. The programs are promoted MLM-style.

  • INTERPOL Chief Says His Identity Was Stolen In Fraud Bid On Facebook; Meanwhile, MPB Today Members Post Check-Waving Videos On Social-Media Sites And WebsiteTester.biz Gathers 400,000 Names And Email Addresses

    Earlier this week the PP Blog reported that members of MPB Today were using YouTube and other sites to post images of checks drawn on a distressed Florida bank. The checks, which were supplied as purported “proof” of MPB Today’s legitimacy, may expose both the posters and the bank to security breaches and identity theft.

    The bank, Gulf Coast Community Bank of Pensacola, has been operating under an FDIC consent agreement since January. It did not respond to a request for comment from the PP Blog. It is possible that the bank was unaware that its name was being used as a form of purported “proof” that one of its customers — MPB Today, which operates an MLM advertised on Ponzi forums such as ASA Monitor — was above-board.

    Like MPB Today, the alleged Legisi Ponzi scheme was pushed on Ponzi forums such as MoneyMakerGroup. This bizarre section of the Legisi Terms of Service purports that members must avow they are not an "informant, nor associated with any informant" of the IRS, FBI, CIA and the SEC, among others. The others included "Her Majesty's Police," the Intelligence Services of Great Britain, the Serious Fraud Office and Interpol.

    In the alleged AdSurfDaily (ASD) Ponzi scheme in 2008, members cited ASD’s relationship with Bank of America as purported “proof” of legitimacy. Federal agents later seized more than $65.8 million from 10 bank accounts controlled by ASD President Andy Bowdoin amid allegations of wire fraud and money-laundering.

    ASD also was promoted on the Ponzi boards. Robert Hodgins, who operated a company ASD members said supplied debit cards to the firm, now is wanted by INTERPOL in a case that alleges he assisted in the laundering of money for Colombian narcotics traffickers. The money was accessed with debit cards through ATMs in Medellin, according to court records.

    A mysterious business opportunity known as WebsiteTester.biz also is being hawked at ASAMonitor and other Ponzi boards. WebsiteTester claims it has collected the names and email addresses more than 400,000 prospects across the world. WebsiteTester claims its legitimacy can be established by watching a YouTube video that shows no faces and by reading a news release published by an anonymous author.

    In July, the Financial Industry Regulatory Authority (FINRA) issued an alert about fraud schemes that use forums and social-media sites such as YouTube and Facebook to spread virally.

    Among the other “programs” pushed on the Ponzi boards was Legisi, an alleged Ponzi scheme that gathered more than $70 million. Legisi members were specifically prompted to “avow” they were not “an informant” for law enforcement, including INTERPOL, the FBI and the SEC, among other agencies.

    Despite repeated public warnings by authorities to exercise caution on the Internet, fraud schemes continue to proliferate globally. INTERPOL now says one of its own was targeted in an identity-theft bid on Facebook — and it was the boss himself.

    “Just recently INTERPOL’s Information Security Incident Response Team discovered two Facebook profiles attempting to assume my identity,” said Ronald K. Noble, INTERPOL’s Secretary General.

    “One of the impersonators was using this profile to obtain information on fugitives targeted
    during our recent Operation Infra Red,” Noble said. “This Operation was bringing investigators from 29 member countries at the INTERPOL General Secretariat to exchange information on international fugitives and lead to more than 130 arrests in 32 countries.”

  • EDITORIAL: Animated Attack On Obama Goes Missing From MPB Today Affiliate’s Sales Arsenal; PP Blog Declines Request From Affiliate’s MLM Sponsor To Remove Story That Describes Bizarre Sales Pitch Painting President As Nazi

    Regular readers of the PP Blog know that it supports the efforts of President Obama’s Financial Fraud Enforcement Task Force to weed out the purveyors of schemes who brought the U.S. and much of the world economy to its knees. Obama is a Democrat.

    What readers may not know is that the Blog is written by a Republican who celebrates America’s entrepreneurial spirit, its market economy, its job-creators, its Great Defenders of Freedom, its Great Guardians of Liberty.

    The PP Blog concerns itself with matters of interest to readers who embrace online commerce and see the Internet as an outlet that is pivotal to future economic expansion. How wonderful would it be, say, if Americans and the other peoples of the world who are living in poverty could harness their entrepreneurial spirits and the power of the Internet to engage in legitimate commerce and elevate the standard of living worldwide?

    And how wonderful would it be if companies and individuals who already are benefiting from financial success could use the Internet to create a legitimate turbine that generates sustainable jobs that pay a pride-producing wage and freelance sales and vendor positions that create bright financial futures?

    Although the PP Blog focuses on business and generally avoids politics, today it makes an exception: When the President of the United States — regardless of party — is attacked to drive business to an online multilevel-marketing (MLM) firm, it must be noted for posterity that the MLM sphere has reached a new and deeply disturbing low.

    To call the anti-Obama, animated screed by an affiliate of MPB Today “tasteless” would be a gross understatement. It harms MPB Today, which is the subject of a “review” by the U.S. Department of Agriculture amid affiliate claims the company has been endorsed by the government. Various government agencies — regardless of what political party controls the White House and the Congress — have warned repeatedly for years that one of the scammer’s most important tools is the shovel that plants the seed that the government endorses a “program” or “business opportunity.”

    MLM “opportunities” are infamous for planting this cancer-spreading seed. Members of AdSurfDaily, for instance, planted the seed that President George W. Bush had given ASD President Andy Bowdoin an award for a lifetime of business achievement. Bowdoin fanned the pollination of the seed by taking his “award” on the road with him and even posing with it.

    The clear aim of the claim was to make prospects believe that ASD could not possibly be a scam because the President of the United States would not give an important business award to a scammer.

    It turned out that the “award” actually was a memento for making campaign donations to the National Republican Congressional Committee. In effect, Bowdoin had made the donations to the NRCC in return for banquet tickets. Records show that Bowdoin made the donations during a period of time in which federal prosectors say he was operating an international Ponzi scheme that perhaps ensnared more than 100,000 people.

    It is a virtual certainty that Bowdoin, who’d been charged with felonies in Alabama in a previous securities swindle and was given a suspended jail sentence, used Ponzi proceeds to make the donations.

    Harm spreads virally when such bogus seeds are planted and take root on the Internet.

    But getting back to the matter of the MPB Today affiliate’s Obama-bashing sales pitch . . .

    Walmart and Walmart’s Sam’s Club name now have been harmed because the MPB Today affiliate used the name of Sam’s Club in the animated attack, which painted Obama and Secretary of State Hillary Clinton as Nazis — with Obama as a cowering Nazi and Clinton as a drunken one wearing “puke colored” clothes purchased from Big Lots, a discount retailer.

    This occurred while other MPB Today affiliates were claiming that MPB, which dispenses Walmart gift cards to winners in the MPB 2×2 matrix cycler, was under “contract” with Walmart, that MPB members were “partners” with Walmart, that MPB sells food “vouchers” that can be exchanged for Walmart gift cards and that the MLM program was “Govt. certified with Food Stamps!”

    As incredible as it seems, Michelle Obama — the First Lady of the United States — was depicted in the affiliate’s animation as experiencing an embarrassing gas attack in the Oval Office after sampling “beans” at a Sam’s Club store. A dog depicted in the pitch more or less said that the First Lady was stinking up the joint.

    Good grief!

    The pitch also harms the image of U.S. business in general because it sends the message that “anything goes” in American Capitalism as long as it returns a profit, the precise message U.S. companies now under indictment or investigation were sending when they brought the financial sector to its knees.

    Meanwhile, it specifically harms online business. Much of the world already believes the Internet is one giant cesspit, in no small measure because of the business practices of certain MLM programs and affiliates of MLM programs.

    At the same time, it harms the Republican party, which is trying to make gains in the upcoming midterm elections. It would be easy, for example, for the Democrats to seize on the message that the sales pitch for MPB Today is just another example of wretched GOP excess and hatred embedded in code. The most bizarre thing about the pitch is that it seems to presume that it is a perfectly acceptable business practice to alienate MPB members and prospects who might be Democrats and Obama supporters — as well as Republicans who actually respect and admire the President even if they disagree with his policies and do not share his political philosophy.

    Even though the MPB Today affiliate’s precise party or political affiliation is not known, it seems clear that the affiliate sees nothing wrong with mixing business with inflammatory, divisive politics,  and is not enthusiastic about the current Democratic leadership. In this sense, it also harms the Democratic party. Political pranksters and Obama opponents could paint the MPB pitchman as a Democratic saboteur or a Tea Party activist seeking to create dissension in the ranks, something that could inure to the benefit of Republicans.

    Most of all, though, the pitch hurts America. Much of the world looks to America for both financial and moral leadership. What the world got in the context of the promotion for MPB Today is yet-another impossibly ham-handed attempt to sell an MLM product at any price — even at the price of American prestige.

    Segments of the MLM trade already are infamous for their inability to sell products without lying, for resorting to gutter tactics, for using sales pitches to reimagine products as something they are not and for setting the stage for tens of thousands of people to get fleeced in one spectacular scam after another that goes “viral” on the Internet.

    Today the PP Blog received a request from a person who described herself as the sponsor of the MPB Today affiliate who produced the anti-Obama screed to “delete” the Blog’s stories on the reprehensible sales pitch.

    “The animated short video on MPB with Hilary and Obama was created by a member I sponsored into MPB and the film has since been taken down,” the sponsor noted. “The member agrees it may have been in poor taste and chose to delete it. Please do the same.”

    Welcome to the often-bizarre world of MLM — a world in which the affiliate who authored a political attack on the President of the United States to gain payments from a 2×2 cycler matrix pushed on known Ponzi forums such as ASAMonitor  “agrees” only that the pitch “may have been in poor taste” and the dutiful sponsor seeks to make sure the the record gets deleted.

    Although the PP Blog verified that the sales pitch had been deleted from the animation site, the Blog is declining to delete its coverage of the matter. All people engaged in MLM need to see it. If they are interested in being taken seriously, they need to condemn it.

    MPB Today should issue a statement that condemns it.

    In May 2009 — just days after the Obama administration announced a crackdown on international financial fraud — the PP Blog received a request from KINGZ Capital Management to delete a story about the AdViewGlobal (AVG) autosurf’s claim that it had secured KINGZ as an offshore wire facilitator to make it easier for Americans (and other peoples of the world) to send money to an obvious Ponzi scheme that had risen from the ashes of ASD, yet another Ponzi scheme

    The PP Blog declined the request. KINGZ later was banned by the National Futures Association for turning a blind eye to the actions of Trevor Cook, a now-convicted felon who operated an international Ponzi scheme that caused investor losses of at least $158 million. The scheme traded on religion. A federal judge called it “wretched, tawdry and cheap.”

    History will record that AVG made the claim about  its new relationship with KINGZ on the very same day in May 2009 that Obama himself announced the fraud crackdown. By June 25, 2009, AVG suspended autosurf cashouts, taking an unknown sum of money sent in by members with it. It is known that many AVG members also were members of ASD, the subject of a racketeering lawsuit and two federal complaints that sought the forfeiture of more than $80 million. The government won both forfeiture cases. The decisions by U.S. District Judge Rosemary Collyer now are under appeal by Bowdoin.

    It also is known the ASD victims have been targeted in promotions for MPB Today. If that’s not enough, it also is known that at least one MPB Today affiliate’s pitch page includes links to at least 100 “surfing” programs, as well as a link to Data Network Affiliates (DNA).

    DNA, yet another MLM program, purports to collect license-plate data that can aid law enforcement and the AMBER Alert program rescue abducted children. Even as DNA and affiliates are claiming to be interested in helping law enforcement, the company says it is selling a spray product that prevents cameras from snapping photographs of license plates at intersections that use electronic systems to enforce traffic laws.

    As DNA is doing this, it also is telling churches that they have the “MORAL OBLIGATION” to recruit affiliates for a purported mortgage-reduction program targeted at people who are facing foreclosure. Meanwhile, MPB Today also is targeting foreclosure subjects in sales pitches, and some MPB affiliates are using religion in sales pitches to attract MLM members.

    Both MPB Today and DNA are operating in Florida, which has one of the highest concentrations of foreclosures in the United States and is near the top of the list in U.S. bank failures.

    So, no. The PP Blog will not delete its coverage of the MPB Today affiliate’s attack on Obama.

    All of America — all of the world and all of the MLM universe — needs to see that the President of the United States was right in May 2009 when he announced the fraud crackdown and was right in November 2009 when he announced the formation of the Financial Fraud Enforcement Task Force.

    The PP Blog has no doubt — none whatsoever — that corrupt elements within the MLM universe are doing everything in their power to use the Internet to bleed wealth from hard-working Americans and other hard-working peoples of the world, and that the corrupt transfer of wealth is leading to losses of billions of dollars globally. Simply put, these reprehensible — if not downright criminal business practices — are a money grab on a colossal scale.

    Proceeds from fraud schemes are difficult to trace. Money moves at the speed of an electronic impulse. Any number of nefarious enterprises, including narcotics traffickers, organized crime and terrorist groups, could be tapping into the fraud stream. There is no doubt that some of the criminal enterprises are dressed up as legitimate MLMs or employ a direct-sales business model that pays commissions to attract new money.

    Stand strong, Mr. President. Your efforts to turn off this criminally gushing Ponzi and fraud spigot not only are commendable, but also are in the interest of U.S. national security, the safeguarding of which is your highest duty to the American people.

    The photos below are for posterity. We are publishing them even as we wonder if nothing is off limits if it helps an MLM offer convert — and even as we wonder why the MLM trade seems so willing to repeatedly attribute its image problem to only a “few bad apples” while simultaneously calling the industry’s critics “haters.”

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

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

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

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

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

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

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

    In this YouTube video and text pitch, a claim punctuated with exclamation marks is made that the program is "Govt. certified with Food Stamps!" and that there is a "contract with wal mart!" The word "scam" appears multiple times in the pitch — in an apparent bid to drive traffic to the site from prospects seeking to determine if there is any scam-related information on MPB Today.
    MPB Today positioned on YouTube as a good opportunity for people of faith. The words "Christian" and "scam" are used to drive traffic to the site.
    In a money-waving Blog post, an MPB Today affiliate with a California address shows a check for $300 and a Walmart card.
    In this video for MPB Today on DailyMotion, visitors are encouraged to visit a .org affiliate site for the company, even though MPB Today is not a charity. The video claims members can purchase "electronics," even though MPB Today says it is in the grocery business and affiliates are targeting Food Stamp recipients in sales pitches.
    MPB Today affiliates display check and Walmart card on YouTube after videotaping check-opening ceremony. The program is described as a "NO BRAINER."
    This document on file in Florida shows that Southeastern Delivery LLC, the grocery arm of the MPB Today MLM program, once was known as William Lindsay Properties LLC. The name change occurred in January 2010. Gary Calhoun, the operator of MPB Today, is associated with both firms, according to records.
    On Aug. 25, the PP Blog received an unsolicited sales pitch for MPB Today via an email to the Blog's support address. Among the claims in the pitch, which did not include an unsubscribe link, was that "Walmart is thrilled" with the results of MPB Today. The pitch was targeted at members of AdSurfDaily, a company the PP Blog regularly covers because ASD is implicated by the U.S. Secret Service in an alleged Ponzi scheme involving tens of millions of dollars. A similar pitch was sent to another website that covers AdSurfDaily-related news.
    The names of Walmart and Sam's Club referenced by "Ken Russo" at the ASAMonitor forum, which is notorious for promoting Ponzi schemes.
    In this video, a check and Walmart card are displayed. Unlike other checks written in Southeastern Delivery's name, this check was written in the name of MPB Today Inc. The video, which captured a check-opening ceremony, shows a Walmart "In Store Credit" card
    In this video, an MPB Today affiliate gives a sales pitch while driving an automobile. A check and Walmart card were presented when the vehicle stopped at a highway intersection.The pitch claims a "ONE-TIME" expenditure of $200 can "TOTALLY ELIMINATE" grocery bills.
  • Forex Ponzi Schemers Who Targeted Deaf Investors Hit With $6.2 Million In Sanctions; ‘Billion Coupons’ Case Drew Comparisons To Defunct Noobing Autosurf

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    The video has received nearly 5,800 views.

    See earlier PP Blog column.

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

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

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

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

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

    The defendants admitted no wrongdoing.

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

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

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

    ***

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

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

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

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

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

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

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

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

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