Tag: BBB

  • EDITORIAL/ANALYSIS: Events Are Controlling DNA, Not The Other Way Around; Prosecutor’s Office Mum On Narc That Car Inquiry In Texas

    This Narc That Car promoters' check-waving video is now missing from YouTube's public channel, after being placed there March 1. The video, however, is said to be available through a private YouTube channel. It is unclear whether Narc That Car asked its promoter — "Jah" of the Cash For Car Plates Blog — to remove the video, which also claimed repping for Narc That Car was like working for the U.S. "Census Bureau."

    First, some news: A website titled DeanBlechman.com now resolves to a parked page at the offshore registrar directNIC. As first reported on the PP Blog, the site previously redirected to the website of Data Network Affiliates (DNA).

    directNIC is “based in Grand Cayman, Cayman Islands,” relocating from its former base in Louisiana after Hurricane Katrina, according to the firm’s website. directNIC is DNA’s registrar, and also the registrar for the DeanBlechman.com domain and a DNA-associated domain known as TagEveryCar.com.

    In a bizarre autoresponder message earlier this week, DNA said it had chosen “privacy” protection for $5 “to prevent management from having to “put up with 100 stupid calls a day,” a source told the PP Blog.

    In an interview Wednesday with the Blog, Blechman, DNA’s former chief executive officer, said he was “surprised” to learn of the DeanBlechman.com site, painting a picture that the company was not in control of its own message and had a “back door guy” who was authoring “bizarre” communications.

    Blechman did not identify the “back door guy.” Precisely when the DeanBlechman.com domain stopped redirecting to DNA’s website is unclear. It was still redirecting to the site early yesterday, but now is resolving to the directNIC page.

    Meanwhile, the PP Blog contacted the office of R. Scott McKee, the district attorney of Henderson County, Texas, yesterday. McKee is training for deployment to Iraq, and was not available immediately to answer questions on his inquiry into Narc That Car, according to a woman who answered the phone.

    The woman said it was possible that an assistant prosecutor would contact the Blog, but the call was not returned yesterday.

    McKee’s office opened a civil inquiry into Narc That Car (NTC) more than a month ago, turning to the office of Texas Attorney General Greg Abbott for assistance and saying it had received “numerous calls and complaints inquiring into the legitimacy and legality” of NTC.

    How that inquiry is proceeding is unclear. Two days ago, the Dallas branch of the BBB reduced its rating on NTC from “No Rating” to “F,” the worst possible rating on the BBB’s 14-step scale that begins with “A+.”

    NTC now joins companies such as AdSurfDaily and Speed of Wealth as firms that have scored an “F.”

    It is possible that NTC could improve its score at the BBB over time, but the score of “F” it holds now was arrived at after the company had been given more than a month to explain its compensation program to dampen pyramid concerns. The BBB also said it asked NTC to “substantiate some claims made in its advertising” Jan. 18. That inquiry remains open.

    NTC does not publish the name of customers of its database product. Some affiliates have claimed the firm was associated with major automobile manufacturers, the FBI, the Department of Homeland Security and the AMBER Alert program.

    The company removed a video reference to the AMBER Alert program after the U.S. Department of Justice, which administers AMBER Alert, denied it had any affiliation with NTC.

    ASD never improved its BBB score because it became consumed by a government investigation. ASD is implicated by the U.S. Secret Service in a Ponzi scheme.

    Speed of Wealth, which also became consumed in government litigation, also did not improve its BBB score. It is implicated by the SEC in a Ponzi scheme involving Mantria Corp., whose BBB rating is being “updated,” according to the BBB. Mantria currently is listed as “No Rating.”

    On another matter, MLM aficionado Troy Dooly now is openly challenging DNA officers Arthur Kurek and Donald Kessler to explain what is happening at the company.

    Rumors are rampant that Phil Piccolo, a notorious figure in MLM, somehow had become involved in DNA. Absent a firm denial from company management, the rumors continue to fly.

    For his part, Blechman, DNA’s former CEO, did not rule out that Piccolo was involved in the firm.

    In the absence of a unified message from DNA and plain statements on issues such as whether Piccolo is involved and what steps have been taken to assure that DNA is compliant with state and federal law, events are controlling DNA, not the other way around.

    The suggestion that “privacy” protection was chosen so management would not have to put up with “stupid” calls is patently absurd — as is the amount of hype being put out under DNA’s name.

    No one at the company has emerged to speak on issues of legality and privacy. DNA says it is in the business of recording license-plate numbers. Like Narc That Car promoters, DNA promoters have made sweeping statements, asserting that affiliates could record plate numbers at places such as Walmart, Target, church parking lots and parking lots at doctors’ offices.

    Company conference calls have been cheerleading sessions — with DNA’s own pitchmen leading the cheers.

    Whether DNA and NTC affiliates are required to seek  permission from owners of private property or the permission of local jurisdictions to record plate numbers remains unclear. Also unclear is how affiliates are required to behave if confronted by property owners or police who question what they are doing.

    Sweeping assertions have been made by affiliates that plate data is “public information” available for the taking in the parking lots of large retail stores. One NTC promoter said on YouTube that his wife recorded plate numbers at a university. The PP Blog believes the university was the University of Nevada, Las Vegas.

    The office of Sen. Harry Reid, D.-Nev., did not return a call from the Blog seeking comment on the practice recommended by the NTC promoter. Nor did Reid’s office return an email sent by the Blog. Reid is Senate Majority Leader. One of the buildings on UNLV’s campus bears his name. The same NTC promoter recommended “libraries” as excellent sources of plate numbers.

    Among the privacy concerns is whether the companies, which appear to be targeting as clients of the database product firms that repossess automobiles, could use the data to create profiles on the movement of people.

    In a DNA conference call, one company pitchman said DNA hoped to attract enough affiliates to make it possible for the company to record a plate number at Walmart at noon — and the same plate number at a “doctor’s office” at 1 p.m. and the same plate number elsewhere at 4 p.m. The same pitchman suggested churches were good sources of license-plate numbers.

    Adding to the fog of uncertainty is a pattern of strange communications from the firm, which is using Google’s free gmail service to conduct customer service. Emails received by DNA members do not include a street address, which brings issues of transparency into play and potentially brings issues of federal compliance into play.

    The PP Blog, which is a Blog among millions of Blogs, has received repeated affiliate spam from DNA and Narc That Car promoters. For weeks, there was no way even to contact DNA to report spam. The Blog will not contact the company via the gmail address — which was made public only days ago –out of concern its email address will be harvested and added to a database controlled by an unknown party.

    Narc That Car, meanwhile, has a “Span Policy” — as opposed to “Spam Policy” — link at the bottom of its website. Some of its promoters have produced check-waving videos, including a video that claimed repping for NTC was like working for the “Census Bureau,” a government agency.

    One of the videos showed that NTC payments are issued by check drawn on the account of “National Automotive Record Centre Inc.” That entity, which uses the word “National” in its name and the British spelling of “Centre” — as opposed to the U.S. spelling of “Center” — is registered in Nevada. NTC also is associated with a Texas company known as Narc Technologies, which, according to a YouTube video now made private, once issued checks for affiliates.

    These things hardly inspire confidence in the NTC enterprise.

    Just this morning, the PP Blog received information from a DNA member that the company emailed members, claiming “D.N.A. archived e-mail communications were erased by design.

    “We will send you the last 3 e-mail communications within the next 24 hours,” the email said. “If you do not wish to receive D.N.A. Daily Communications please visit your back office.”

    Even if the email was perceived by management as a means of demonstrating that DNA was trying to gain control over its message, such a communication only leads to more questions. The email did not include a street address. It also implied that members needed to opt out of communications by doing so within their back offices, rather than opting out by clicking on a link at the bottom of emails they receive.

    The hype from DNA and its promoters — dropping names of icons such as Donald Trump and Oprah Winfrey — and making claims that a “MEGA MILLION DOLLAR DEAL with a publicly known industry giant” and a “Top Secret Product” are on the horizon are rubbing some MLM aficionados the wrong way.

    MLM has a miserable reputation. Messages from DNA are doing the industry no favors.

    If DNA is attempting to seize back its communications apparatus, it needs to explain precisely why it lost control of it early on. And a corporate face must emerge for the company — one who is willing to answer the hard questions on the propriety, safety, legality and privacy concerns the firm is sparking.

    For now, at least, it is a tangled web fueled by hype that ducks the issues and causes the company to look silly — day after day.

  • BULLETIN: Narc That Car Gets ‘F’ From Better Business Bureau; Rating Is Lowest On 14-Step BBB Scale

    UPDATED 1:42 P.M. ET (U.S.A.) The Better Business Bureau branch in Dallas has given Narc That Car a rating of “F,” the worst-possible rating on the BBB’s 14-step rating scale.

    Narc That Car’s previous rating was “NR,” meaning the firm had no rating with the BBB, which opened an inquiry into the company Jan. 18.

    The BBB said that, despite the fact Narc That Car provided some information on the company’s compensation practices Feb. 8, the organization “remains concerned as to whether the business model, in practice, truly provides any significant method of compensation which would not require sponsorship of additional program participants.”

    “According to the company, as of February 10, 2010, only 1% of total commissions paid out to independent consultants was for the sale of license plate information to third parties, referred to as ‘client share,’” the BBB said.

    “Previously, the company’s ‘client share’ income was the only repeatable form of compensation which did not involve the recruitment of others into the opportunity. However, as of March 1, 2010, the company has provided a modified compensation plan which allows for base-level independent consultants to receive commission payments.”

    Read the BBB’s rating for Narc That Car as of March 5, 2010.

  • Data Network Affiliates (DNA) Issues Bizarre Announcements; Meanwhile, Narc That Car Promoter Says Repping For NTC Like Working For ‘Census Bureau’

    UPDATED 1:57 P.M. ET (March 5, U.S.A) Data Network Affiliates (DNA) announced via email that Chief Executive Officer Dean Blechman has stepped down, according to a member. The announcement came six days after Blechman’s departure — and one day after the company said it launched a “Beta Test” of its ability to gather license-plate numbers.

    DNA’s website previously implied the company would be in full launch yesterday, after two previously advertised launch dates in February were postponed.

    Why DNA, which lists a Cayman Islands address in its domain registration and lists no address at all in email communications sent to members, chose to wait nearly a week to announce Blechman’s departure to the membership was unclear.

    Important news such as the departure of a CEO or top executive normally is announced in advance of the departure as a means of quelling rumors and maintaining continuity and stakeholder trust.

    Also unclear is why a domain titled DeanBlechman.com, which uses the same Cayman Islands address as DNA’s website and a DNA-related website known as TagEveryCar.com, redirects to the DNA website.

    A person believed to be Blechman contacted the PP Blog Sunday, saying by email that “I am no longer the CEO of DNA. I have no affiliation with the company whatsoever.” The sender’s identity could not be verified immediately, but the Blog believes it was Blechman, owing to follow-up correspondence it received.

    It is anticipated that Blechman will contact the Blog later this week to answer questions, although no formal interview has been scheduled. It is unclear if Blechman knows about the DeanBlechman.com domain or approved of its creation.

    DNA, which previously had neither a contact form nor a contact email address on its website, now lists a gmail address. gmail is Google’s free email service. A source said tonight that the gmail address was on an autoresponder that sends a message titled “Top 16 Customer Service Issues.”

    Item No. 5 on the Top 16 list reads: “The D.N.A. Management is Aware of many FALSE Rumors…The D.N.A. Legal Department is on top of such and is taking Legal Action…You can not become the #1 record breaking company in THE WORLD… Without people taking cheap shots at you…  In the mean time keep on keeping on…”

    Meanwhile, Item No. 16 provided an explanation for why the DNA domain was registered in the Cayman Islands. The reason, according to the autoresponder message, was because the company chose “privacy” protection for $5 in a bid to prevent management from having to “put up with 100 stupid calls a day.”

    Prior to the numbered items, the autoresponder message claimed: “The D.N.A. company is signing a MEGA MILLION DOLLAR DEAL with a publicly known industry giant. Between this agreement being sign (sic) and the D.N.A. Top Secret Product being announced on March 27th, 2010. (sic)  D.N.A. is positioning itself to be Global Giant.”

    The announcement by DNA of Blechman’s departure was ungrammatical, bizarre — and also at odds with information previously released by the company. It even misspelled Blechman’s name.

    “Intentions On Going Public,” the email began. “Say Good Bye To Naysayers.

    “A public company has to answer to a HIGHER POWER than an AG,” the email said. “A publicly traded company has to answer to the SEC. No messing with them. Ask Martha Stewart.

    “Dean Bleckman (sic) on 02/24/2010 stepped down from being the future CEO and any affiliation with D.N.A…” the company email said. “Due to the fact that Mr. Blechman is a Director and High Equity Owner of a high visibility network marketing company could create a conflict of interest. We believe Mr. Blechman to be a very good man and wish him well in any future endeavors.

    “There are some who will try to turn the above information against us,” the email continued. “But the truth be known with the intention of taking D.N.A. public it is in our best interest to have management dedicated and with experience on taking companies public.

    “DNA is currently interviewing high level marquis executives for the role of CEO,” the company said. “We will keep all our D.N.A. Affiliates informed. All other management is 100% in place and very dedicated and excited about the future of D.N.A.”

    Why DNA would say Blechman stepped down from being the “future” CEO is unclear. Only days ago Blechman identified himself as the current CEO, and the company promoted him as such in marketing materials and on conference calls.

    Narc That Car Update

    A new YouTube video by a Narc That Car (NTC) promoter says that collecting data for NTC is like working for the U.S. Census Bureau. Checks issued by the firm bear the name “National Automotive Record Centre,” the video reveals.

    Despite the use of the word “national” in its name and the YouTube video that uses the name of the Census Bureau, NTC is not a government agency.

    The video, by NTC promoter “Jah” of the Cash For Car Plates Blog, focuses exclusively on money and does not address any propriety, safety, legal or privacy concerns, defining license-plate numbers as “public” information available for the taking for entry into the NTC database.

    “We’re like Census Bureau workers,” the video claims. “We’re collecting public data.”

    Some critics have raised myriad concerns about NTC, which is the subject of an inquiry by the BBB in Dallas and the office of the district attorney of Henderson County, Texas.

    Among the concerns raised by critics is whether the company could use the license-plate data it collects to create profiles on the movement of people — battered wives living in secret shelters, federal judges, politicians, celebrities, patients of psychiatrists and other medical professionals, members of religious groups and ordinary citizens from coast to coast in the United States.

    Some promoters of Narc That Car and DNA have argued that people who have nothing to hide have nothing to fear, raising the specter of a sort of private Big Brother.

    Narc That Car promoters routinely suggest that no license-plate numbers are off-limits for entry in the database, which purportedly is being created for companies in the business of repossessing automobiles.

    At least one You Tube video promoting Narc That Car — a video that featured footage from a Public Service Announcement by a group of celebrities that had been spliced into the video as though they were promoting Narc That Car — has been removed from YouTube for Terms of Use violations.

    That video, by a Narc That Car downline group known as Team Trinity International, formerly existed at this URL:

    http://www.youtube.com/watch?v=XgLFHH6TaaA&feature=related

    Jah’s Cash For Car Plates video for NTC, meanwhile, shows two checks issued by National Automotive Record Centre Inc.  and drawn on NewBridge Bank to demonstrate that Narc That Car pays.

    “We’re [going] to show you some real, solid video proof of the money that’s being made here and where you can go with this business,” the video says. “This is awesome.”

    Whether Narc That Car pays has not been an issue, however. The issues have centered on how the company pays, whether it is operating a pyramid or Ponzi business model and the propriety, safety and legality of Narc That Car.

    The two checks in the video are for $45 and $452.10  — both of which appear to have been drawn Feb. 23.

    In the video, the $45 check is used as proof of payment — and the check for $452.10 is used as proof of the type of payments that could come later for Narc That Car members.

    “This may be one of our last . . .  videos, because this is the real deal,” the video says. “We can’t go any further. We’re not going to be out here flashing, you know, five-figure checks.”

    The video was placed on You Tube March 1.

    In a Jah video placed on YouTube Feb. 12, a check featured in the video is written in the name of a different entity: Narc Technologies Inc. The check appears to be drawn on a different bank than the check in the March 1 video, although the video was grainy.

    National Automotive Record Centre Inc. was registered as a corporation in Nevada Jan. 12.

  • BBB ‘Remains Concerned,’ Still Has Questions About Narc That Car After Firm Says Only 1 Percent Of Commissions Stems From Sale Of Data To Third Parties

    Narc That Car has told the Dallas Better Business Bureau that only “1% of total commissions paid out to independent consultants are for the sale of license plate information to third parties,” the BBB said today.

    That 1 percent, which Narc That Car referred to as “client share,” is the “only repeatable form of compensation which does not involve the recruitment of others into the opportunity,” the BBB said.

    Although the BBB said Narc That Car has provided “some” information since the organization opened an inquiry Jan. 18, the BBB added that it “remains concerned as to whether the business model, in practice, truly provides any significant method of compensation which would not require sponsorship of additional program participants.”

    “The BBB warns consumers to be wary of participating in business opportunities that primarily derive compensation through the recruitment of other participants rather than through the sale of a product or service,” the BBB said.

    Critics have raised concerns over privacy and the propriety, safety, and legality of Narc That Car, which says it is building a database of license-plate numbers for sale to companies that repossess automobiles.

    Longtime MLM aficionados have questioned whether Narc That Car  affiliates are selling a product or a business opportunity. The BBB’s interim report — and Narc That Car’s 1 percent assertion — is apt only to fuel the concerns.

    A note on the BBB’s website says the inquiry remains open and that it still is awaiting responses on Narc That Car’s advertising claims. Visit the BBB site to read the updated report, which includes a list of “other facts” it has learned during its inquiry.

  • Narc That Car Video From Downline Group Known As Team Trinity International May Use Content Lifted From Public Service Announcement Put Out By Actor Leonardo DiCaprio

    UPDDATED 2:26 P.M. ET (March 5, U.S.A.) A YouTube video promotion for the Narc That Car multilevel-marketing (MLM) program appears to use celebrity footage produced by Appian Way Productions, a production company owned by actor Leonardo DiCaprio.

    The PP Blog attempted to contact DiCaprio for comment through the Screen Actors Guild Friday night. The office was closed for the weekend.

    The Narc That Car You Tube promotion references a downline group known as Team Trinity International, and appears to splice in content from a Public Service Announcement (PSA) produced by Appian Way in 2008 that urges Americans to vote.

    It was not immediately clear if DiCaprio, his production company or the other celebrities in the PSA approved of the use of the footage in what effectively was a commercial for Narc That Car. Several celebrities appear in the Narc That Car promo.

    At the moment, the Team Trinity promo is at this URL:

    http://www.youtube.com/watch?v=XgLFHH6TaaA&feature=related

    The PSA can be seen in this 2008 story from Reuters:

    http://blogs.reuters.com/fanfare/2008/10/02/leonardo-dicaprio-other-celebs-pump-up-youth-vote/

    The PSA has nothing to do with MLM. The footage potentially at issue in the Team Trinity video begins at about the 3:40 mark in the PSA and the 0:11 mark in the Narc That Car promo. The PSA’s theme is passing along to friends the worthwhile message of going to the polls, but the Team Trinity video applies the theme to passing along info about Narc That Car.

    “I need you to take this and send it to five people,” Oscar-winning actress Halle Berry says in the PSA, referring to sharing the message of going to the polls.  Berry says the same thing in the Team Trinity Narc That Car video, but in the context of sharing the Narc That Car message.

    Other celebrities who appeared in the PSA are spliced into the Team Trinity MLM message for Narc That Car. The Team Trinity video fades to the Team Trinity logo after comedian-actress Sarah Silverman appears.

    In an earlier video, Team Trinity used the logos of 30 famous retail companies, positioning their parking lots as good places to capture license-plate data.

    Team Trinity also has referenced the AMBER Alert program administered by the U.S. Department of Justice. The Justice Department denied that Narc That Car had any affiliation with the famous child-protection system.

    Narc That Car, which says it is building a database for companies that repossess automobiles, is the subject of inquiries by the Dallas BBB and the district attorney of Henderson County, Texas.

  • 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.

  • Better Business Bureau Revokes Accreditation Of Speed Of Wealth After SEC ‘Green’ Ponzi Action; Firm Experiences ASD-Like PR Disaster In Wake Of Allegations

    The accreditation of a Colorado company implicated in an alleged $30 million “green” Ponzi scheme by the SEC has been revoked by the Denver/Boulder branch of the Better Business Bureau.

    BBB now gives Speed of Wealth a rating of “F” — the worst possible score on a scale of “A+” to “F” — and says the accreditation was revoked because the company did not comply with BBB standards.

    Speed of Wealth’s BBB accreditation was revoked on Dec. 16, precisely one month after the SEC accused the firm of selling a Ponzi scheme for Philadelphia-based Mantria Corp. A rating for Mantria was not immediately available. The BBB of the Mid-Atlantic region, Metro Washington, D.C., and Eastern Pennsylvania says on its website that the organization is in the process of updating its report on Mantria.

    Under “Government Actions” in Speed of Wealth’s BBB listing, the organization summarizes the SEC allegations against Speed of Wealth and Mantria and provides links to the SEC’s charging document and news release in the case (emphasis added):

    On November 16, 2009 the U.S. Securities and Exchange Commission “SEC” filed a complaint with charges against Mantria Corporation, Troy B. Wragg, Amanda Knorr, Speed of Wealth LLC, Wayde M. McKelvy, and Donna M. McKelvy alleging that they are involved in perpetrating a $30 million Ponzi Scheme, which they persuaded more than 300 investors nationwide to participate in purported environmentally- friend[ly] investment opportunities.

    Click below view the entire press release and the complaint from the “SEC”:

    http://denver.bbb.org/Storage/33/Documents/9-16-09%20SEC_Complaint_Speed%20of%20Wealth.pdf

    http://www.sec.gov/news/press/2009/2009-247.htm

    PR Disasters Mark Speed Of Wealth, AdSurfDaily Cases

    Speed of Wealth’s website now throws a server error and appears to have been disabled. In a column in the Denver Business Journal last month, reporter Renee McGaw said she attempted to email Wayde McKelvy, a Speed of Wealth principal, to get his comments on the SEC action.

    McGaw reported that her email to McKelvy resulted in a steady stream of pitches to join wealth-building programs.

    “YOU MUST START YOUR OWN BUSINESS Renee!” McKelvy exclaimed to McGaw in one email. “What You Have Been Taught About Building Wealth is DEAD WRONG!”

    The Denver Post also wrote about the Trump Network emails from McKelvy in the wake of the SEC action. A college professor interviewed by the newspaper said words such as “amazing,” “unbelievable” and “phenomenal” used by McKelvy to describe the Trump Network should be considered red flags.

    The emails demonstrated that a crisis affecting one company can bring an unwanted spotlight on wholly separate brands. Indeed, the Denver Post reported that it contacted the Trump Network for comment on McKelvy’s emails. The calls were not returned.

    Even the names of President Obama, former President Bill Clinton and Secretary of State Hillary Clinton became part of the Mantria/Speed of Wealth story. The companies used a video that included images of Obama, the Clintons and other politicians and media figures in promotional materials.

    Meanwhile, the McKelvy emails were reminiscent of the experiences reporters had when they tried to contact Florida-based AdSurfDaily for comment after federal prosecutors seized tens of millions of dollars from the firm amid Ponzi allegations in August 2008.

    Like Speed of Wealth, ASD also has a rating of “F” from the BBB, which cites government actions against the autosurf firm. Unlike Speed of Wealth, ASD has unresolved consumer complaints, according to the BBB.

    Reporters who called ASD got a recording featuring the voice of ASD President Andy Bowdoin. Bowdoin, whom prosecutors later said had “followers,” intoned in the recording that that God was on the company’s side.

    Thirteen months later, Bowdoin told an audience listening to a conference call that his ongoing legal fight against the government was inspired by the story of a former Miss America who now operates a Christian organization. The PP Blog contacted both the Miss America Organization and the Christian organization for comment.

    The Miss America Organization did not return the call; the Christian organization, Salem Family Ministries, responded by saying it had no comment, except to say it did not recognize Bowdoin’s name. The Secret Service transcribed Bowdoin’s remarks in the conference call and presented them to the federal judge hearing the forfeiture cases against the firm.

    Companies in legal crisis can lose the PR war quickly if their initial actions lead to more questions than answers. Within days of the federal action against ASD, Bowdoin invoked “Satan,” comparing the U.S. Secret Service to the 9/11 terrorists who killed nearly 3,000 people.

    In a Nov. 19 conference call with participants, McKelvy described the SEC allegations as “ridiculous,” but at the same time acknowledged he possibly sold securities without a license, according to the Denver Business Journal.

    But in the same conference call — just days after the SEC action — McKelvy also said he was turning his attention to the Trump Network, an MLM opportunity. The comment — and the emails Speed of Wealth sent out to promote the Trump Network — led to more headlines in newspapers, forums and Blogs.

    Read Speed of Wealth’s BBB report.

    Read ASD’s BBB Report.

  • Better Business Bureau Warns: Cash-Gifting Epidemic Online; Organization Says 22,974 Gifting Videos Posted On YouTube

    In the days after the government’s August seizure of tens of millions in the AdSurfDaily probe amid Ponzi allegations, opportunists stepped in to fill the void by offering cash-gifting schemes.

    Today, months later, opportunists trading on Ponzi pain are using the names of autosurfs and autosurf-related keywords to drive traffic to cash-gifting websites.

    The Better Business Bureau (BBB) says gifting programs and gifting clubs are flourishing on the Internet, taking advantage of families struggling to make ends meet in the poor economy.

    BBB has issued a warning “that cash gifting is not a legitimate way to make a few extra dollars, and in fact, is nothing more than a pyramid scheme.”

    How widespread is the problem? BBB reports there are 22,974 cash-gifting videos on YouTube. The videos have garnered an “astounding 59,192,963 views,” BBB adds, citing statistics from TubeMogul, an online video analytics company.

    Cash-gifting purveyors are “targeting people with some form of an affinity — such as women’s clubs, community groups, church congregations, social clubs and special interest groups, BBB says.

    “Bernie Madoff isn’t the only guy with a Ponzi scheme,” says Steve Cox, a BBB spokesman. “Money-making opportunities promising big returns for little work are all over the Internet and are extremely enticing to millions of people struggling with today’s economy.

    Run like there’s no tomorrow, warns Cox.

    “Anyone tempted by slick cash gifting marketing appeals should run in the opposite direction, or they run the risk of being the next person ripped off by a pyramid scheme,” he says.

    BBB said cash-gifting promotions typically are vague, adding that a video performer “might even open a FedEx envelope with cash inside to prove the effectiveness of the program.”

    Scammers often tout the programs as fundraisers for a worthy cause or as “empowerment” programs to help people help themselves. Prospects may be asked to pay anywhere from $150 to $5,000 to join.

    Money then is funneled to people farther up the pyramid, and participants then recruit more people to join in order to start making money themselves.

    Beware of assertions the programs are legal and sanctioned by the IRS, BBB cautions.

    “Almost every state has laws prohibiting pyramid schemes and/or assesses penalties on those who participate, and the Federal Trade Commission and many state attorneys general have issued warnings about cash-gifting clubs, BBB says.

    Here are some questions consumers should ask, according to BBB:

    • Do I have to make an “investment” or give money to obtain the right to recruit others into the program?
    • When I recruit another person into the program, will I receive what the law calls “consideration” (that usually means money) as a result?
    • Will the person I recruit have to make an “investment” or give money to obtain the right to recruit and receive “consideration” for getting other people to join?

    If the answers are “yes,” BBB warns people to steer clear of the scheme.

    “Don’t give in to tempting claims online and never buckle under to high-pressure sales pitches, even when they come from the mouth of a trusted friend, co-worker, neighbor or church member,” BBB advises.