Tag: BidsThatGive

  • Firm In Which TelexFree Figure Faith Sloan Allegedly Hid Money Charged With Fraud In Separate Case

    After the SEC's TelexFree case in 2014, Faith Sloan allegedly sent money to Changes Worldwide, a firm bow charged with fraud by the CFTC,
    After the SEC’s TelexFree case in 2014, Faith Sloan allegedly sent money to Changes Worldwide, a firm now charged with fraud by the CFTC. From: federal court files.

     

    UPDATED 12:14 P.M. EDT U.S.A. Back in April 2014, the SEC charged online huckster Faith Sloan with fraud for pushing the TelexFree scheme. Two month later, in June 2014, the SEC accused Sloan of violating the TelexFree asset freeze by sending nearly $15,000 to an online scheme known as Changes Worldwide LLC for the purchase of “business promo packs.”

    She also was accused of violating the freeze by sending $3,990 to an entity known as Changes Trading. There has been concern for years about serial MLM HYIP participants proceeding from fraud scheme to fraud scheme to fraud scheme. This sometimes is described as “whack-a-mole.”

    Now, the U.S. Commodity Futures Trading Commission has charged both Changes Trading and Changes Worldwide with fraud. Also charged were Changes operator Timothy Baggett of Lakeland, Fla., and Kimball Parker of Lehi, Utah, along with Parker’s Utah company, MakeYourFuture LLC.

    The CFTC prosecution appears not to be related to the SEC’s TelexFree case, except in the sense that it demonstrates a continuing need for discernment and that discernment may be in short supply. Sloan is not a CFTC defendant.

    From the CFTC (italics added):

    The CFTC Complaint alleges that the Defendants engaged in a fraudulent scheme to misrepresent the profitability and success of a futures trading system that they sold to customers, including making fraudulent representations in marketing materials, on their websites, and in one-on-one communications with customers and prospective customers regarding the profitability of their trading system. According to the Complaint, from at least March 2014 through the present, the Defendants induced at least 289 customers to pay them more than $853,294.98 for the trading system.

    Specifically, as alleged, the Defendants made material, false representations in his solicitations of customers and prospective customers, including that their trading system had “never had a losing month,” and generated “300% annual returns.” According to the Complaint, to support these claims, Defendants posted so-called “documented and verifiable results” on their websites showing returns of between 11% and 68% each month from January through December 2014.

    However, as the Complaint further alleges, Defendants’ “documented and verifiable results” were false and did not reflect any actual trading of real money in any futures account. Meanwhile, according to the Complaint, Parker and Baggett consistently lost money trading futures in their personal accounts, and customers also consistently lost money attempting to trade according to the system, a fact that Defendants were made aware of by customer complaints.

    A bogus “live training room” and “robot” also were part of the scheme, the CFTC alleged.

    Kenneth D. Bell, the receiver in the Zeek Rewards Ponzi- and pyramid case, has raised the issue of promoters/participants jumping to new schemes. Robert Craddock, a figure in the Zeek scheme later charged with ripping off the Deepwater Horizon oil-spill fund, once had an association with Changes Worldwide.

    BehindMLM.com has some history on the Changes-related companies and notes Baggett also allegedly was involved in the BidsThatGive scheme.

    Read the CFTC complaint, which explains how Baggett’s MLM business purportedly selling vitamins and vacations allegedly ended up getting involved in the futures business.




  • ‘BidsThatGive’ Operator Listed As Oregon’s Biggest Tax Scofflaw

    Randall Jeffers in a pitch for BidsThatGive. From the PP Blog archives, July 2012.
    Randall Jeffers in a pitch for BidsThatGive. From the PP Blog archives, July 2012.

    UPDATED 12:41 P.M. ET U.S.A. Remember “BidsThatGive,” the bizarre auction “program” linked to MLM huckster Randall Jeffers that surfaced just prior to the spectacular collapse of Zeek Rewards in 2012 amid Ponzi-scheme allegations?

    Among other things, BidsThatGive was notable for reckless name-dropping and claiming it existed to feed children and prevent them from becoming sex slaves. The then-upstart commandeered the names of Chelsea Clinton, presidential adviser Doug Wead and NBC News anchor Lester Holt — all while soliciting $25,000 in “certified funds” from purported “founders” and promising “Presidential Ambassadors” they could qualify for an”Exotic Car, Yacht, RV or Home.”

    One promo for BTG, as it was known, promised that that the “opportunity’s” most successful distributors would receive an “orphanage in your name.”

    From the 2012 BTG promo, as reported by the PP Blog (italics added):

    “ . . . what we do is we take a quarter-million dollars out of the company’s profit, right? It’s not coming out of your pocket; it comes out of the company profit, and we’re going to establish an orphanage in your name. So, that’s your little slice of heaven. You don’t have to manage it or run it. We’ll put some cameras up and you can see the kids that you actually pretty much saved their life, and that’s just an emotional reward for you, as well as all the monetary things that you’ve already earned.”

    Nevada has revoked the business registrations of BidsThat Give and a related company known as BTG180.

    And now, according to a Feb. 25 story in the Oregonian that cites state records, Randall Jeffers is Oregon’s biggest individual tax scofflaw, owing more than $3.8 million in personal income tax.

    BTG, meanwhile, has carded an “F” from the Better Business Bureau.

    In 2014, Jeffers was a plaintiff in a trademark-infringement case that named Zeek figure Robert Craddock a defendant and accused him of engaging in a “shake down” bid against BTG affiliates.

    In an unrelated matter, Craddock later was charged and convicted of scamming the Deepwater Horizon oil-spill fund of more than $100,000.




  • DEVELOPING STORY: Zeek Figure Robert Craddock Accused Of Trademark Infringement And Engaging In ‘Shake-Down’ Bid Against MLM Affiliates

    EDITOR’S NOTE: The story below focuses mostly on a lawsuit filed against Zeek Rewards figure Robert Craddock by a Nevada company known as BTG180. A lawsuit filed against Craddock by a Wyoming company known as OfferHubb.net Inc. makes similar claims against Craddock.

    ** ___________________________________**

    breakingnews72DEVELOPING STORY: (4th Update 10:12 a.m. EDT Oct. 14 U.S.A.) Zeek Rewards figure Robert Craddock has been accused in a private lawsuit filed in Nevada federal court of trademark infringement and using a “shell corporation” to engage in a “shake-down” bid against affiliates of at least three MLM networks: Zeek, OfferHubb and BTG180.

    The alleged shell corporation is known as Fun Club USA Inc., according to a complaint filed Feb. 5, 2014.  It has “no employees,” was  “never capitalized” and created a condition under which Craddock was able to use funds directed to the corporation by MLMers as his personal funds, the plaintiffs contend.

    The plaintiffs in the case are listed as BTG180 LLC and Randall Jeffers. A second complaint against Craddock was filed on the same day, also in Nevada. Plaintiffs in that case are OfferHubb.net Inc. and David Flynn, who allege that Craddock “immediately” embarked on a web-based disparagement campaign against them after OfferHubb chose in July 2013 not to renew a contract with Craddock and FunClub USA.

    OfferHubb.net Inc. further accused Craddock of misrepresenting the company, breaching the OfferHubb Terms of Service by inducing affiliates to make side deals and accept kickbacks from affiliates and cross-selling other MLM opportunities in contravention of his agreement with OfferHubb.

    BTG180 is associated with a “program” known as BidsThatGive, which positioned itself as an opportunity to fight child poverty and the exploitation trades. An apparent prelaunch for BidsThatGive was conducted in July 2012, the month before the SEC moved against Zeek.

    Fun Club and Craddock are referenced in a blistering memo filed in the Zeek Ponzi- and pyramid-scheme case by the SEC on Dec. 17, 2012. In the memo, the SEC accused Craddock of encouraging Zeek affiliates “not to cooperate” with Kenneth D. Bell, the court appointed receiver. The SEC further alleged that Craddock was spreading misinformation about how the agency viewed its own case against Zeek and that Fun Club appeared to have been formed 11 days after the SEC emergency action against Zeek on Aug. 17, 2012.

    Craddock has not been charged by the SEC with wrongdoing.

    Despite the SEC’s December 2012 assertions against Craddock and Fun Club, however, BTG180 appears to have entered into a contract with Craddock and Fun Club on Aug. 12, 2013, just five days shy of the one-year anniversary of the SEC’s complaint against Zeek. In the August 2012 action, the agency accused Zeek of engaging in securities fraud, selling unregistered securities and operating a combined Ponzi and pyramid scheme that had gathered hundreds of millions of dollars in just shy of 20 months.

    BTG180, according to its own lawsuit against Craddock and Fun Club filed in February 2014, paid Craddock and the shell company $50,000 in advance of work Craddock had agreed to perform for BTG180.

    BTG180 says it wants back the $50,000 because Craddock failed to deliver. It also contends other actions by Craddock caused it to suffer damages.

    Part of Craddock’s duties, according to the complaint, was to “market the BTG180 network marketing opportunity to former affiliates of the Zeek Rewards network, which had provided products similar to those provided by BTG180.”

    Craddock did not perform the agreed-to work, according to the lawsuit. Instead, he attempted to “induce BTG180 to promote and incorporate into its product line a so-called checking account draft processing system known as BTM. Craddock is the founder of a corporation  known as BTM Check Draft Inc.”

    Without authorization from BTG180’s Jeffers, according to the complaint, Craddock pitched his BTM check system to the members of BTG180, amid false claims that it “had been approved by BTG180” and was in the company’s product stable.

    Other “confrontations” between Craddock and “BTG180 executives” ensued, and Craddock tried to “induce” BTG180 to “market other products for him,” according to the complaint.

    When Craddock “continued to defy Plaintiffs requests to stop these actions,” according to the complaint, “BTG stopped paying Craddock and Fun Club.”

    Under the terms of the contract, according to an exhibit in the case, Craddock and Fun Club were to receive $20,000 a month through BTG180, plus approved expenses, from Sept. 1, 2013 through Sept. 1, 2014.

    Craddock also was required not to reveal BTG180’s trade secrets and proprietary information, according to the exhibit.

    But at some point during contractually required Craddock visits to BTG180’s operations in Nevada, according to the complaint, BTG180 came to believe that “Craddock used a computer or several computers at BTG180’s offices to access and download and/or retain contact information of BTG180’s affiliates.”

    Craddock, according to the complaint, then sought to harm BTG180 by “disrupting and ruining its relationships with its affiliates.”

    As part of his plan to ruin BTG180, according to the complaint, Craddock established a website styled BTGlegal.com and engaged in trademark infringement while doing so. As a further part of this scheme, according to the complaint, Craddock used the website to paint Jeffers as dishonest and unethical, saying Jeffers and “other principals” of BTG180 had criminal records and a history of defrauding people.

    At the same time, according to the complaint, Craddock claimed that BTG180 had been “classified” a Ponzi scheme, that the company was to be “investigated,” that “reports” about BTG180 had been filed with the North Carolina Attorney General, that a Zeek-like action against BTG180 was planned by investigators and that “BTG180 affiliates could face criminal or other legal charges for signing up new affiliates.”

    Craddock, according to the complaint, issued an “edict” that “all BTG180 affiliates were under a cease and desist order to stop doing business with BTG180.”

    By December 2013, according to the complaint, Craddock was soliciting monthly donations of $25 each from BTG180 affiliates, saying the money would help them get back sums they had paid to BTG180. At the same time, according to the complaint, Craddock was encouraging members to contact a reporter at ABC News by email and to use a subject line that read, “They Took My Money and Used Kids to Lure me In.”

    In 2012, according to the BTG180 complaint, Craddock had solicted donations from Zeek members amid assertions he was protecting their legal interests. He eventually did the same thing to BTG180 and OfferHub participants, a “shake-down” bid targeted at MLMers, according to the complaint filed by BTG180.

    Craddock is accused in the complaint of cybersquatting, trademark infringement, wrongful use of a computer, misappropriation of trade secrets, wrongful interference with economic relations, breach of contract, unjust enrichment, defamation and hiding behind a shell company.

    The trademark-infringement claim may be particularly concerning to the MLM trade, given that Craddock has asserted he works as a copyright and trademark agent on behalf of MLM “programs.”

    On July 22, 2012, while purportedly working as a “consultant” for Zeek, Craddock filed a copyright- and trademark-infringement complaint against a HubPages website operated by Zeek critic K. Chang. K. Chang, who also posts on publications such as the PP Blog and BehindMLM.com, ultimately prevailed in the action brought by Craddock.

    Less than a month later, the SEC brought the Ponzi- and pyramid action against Zeek.

    Earlier this year, a website known as Changes Worldwide identified Craddock as its copyright agent. Filings by the SEC in June 2014 alleged that Faith Sloan, accused in April 2014 of securities fraud by the agency in its Ponzi- and pyramid complaint against the TelexFree “program,” sent more than $15,000 to an entity known as Changes Worldwide LLC after an asset freeze was opposed against Sloan in the TelexFree case.

    Sloan also was a Zeek affiliate. Whether proceeds that originated in Zeek and/or TelexFree made their way into Changes Worldwide is unclear.

    BehindMLM.com, recently the subject of a DMCA takedown notice by Sloan but now back online, reported yesterday that Changes Worldwide and a companion entity known as Changes Trading are having payment problems. As the PP Blog reported on Oct. 2, the email address Sloan used to file the complaint against BehindMLM.com was associated with a 2×2 matrix “program” known as “Diamond Holiday Feeder” that was making the HYIP rounds in 2010.

    Despite the fact Sloan accused BehindMLM.com of using on its website copyrighted material she owned, one of her 2010 promos for Diamond Holiday feeder used nearly three minutes of a soundtrack recorded in 2009 by The Black Eyed Peas to celebrate the 24th season of the Oprah Winfrey Show.

    MPB Today, a collapsed matrix cycler that led to racketeering charges in Florida against the “program” operator, is an example of a 2×2. Another example is Regenesis 2×2, which led to a U.S. Secret Service probe in Washington state in 2009. Some Zeekers are known to have promoted Regenesis 2×2.

    News broke last week that Craddock is listed on Amazon.com as the author of a book on Zeek Rewards. Marketing copy for the book asserts that the U.S. government should have modeled a “stimulus program” after Zeek, rather than shutting it down.

    In the current infringement actions against Craddock, the dockets of the case suggest Craddock no longer has paid counsel and is seeking to litigate pro se against the plaintiffs, contending that the cases should have been handled through binding arbitration, not actions in federal court.

    Craddock’s wife is a co-defendant, amid claims she and her husband used Fun Club USA to dupe MLMers who provided money to protect their legal interests.

    NOTE: Our thanks to the ASD Updates Blog.

     

     

  • MORE FROM THE MLM LA-LA LAND PLAYBOOK: Former ASD, NewGNI, Club Asteria, Zeek And Profitable Sunrise Pitchman ‘Ken Russo’ Coins New Acronym (NAG); Paul Darby Plants Seed FBI Backs His ‘YouGetPaidFast’ Program — AFTER Trading On Name And Likeness Of President Of The United States

    Paul Darby with "President Obama," apparently on Inauguration Day in 2009 after the U.S. Secret Service infomed the MLM world through the filing of the AdSurfDaily Ponzi case that trading on the name and image of the President of the United States might not be a good idea.
    Paul Darby with “President Obama,” apparently on Inauguration Day in 2009 after the U.S. Secret Service infomed the MLM world through the filing of the AdSurfDaily Ponzi case that trading on the name and image of the President of the United States might not be a good idea.

    UPDATED 8:37 A.M. EDT (OCT. 21, U.S.A.) Former AdSurfDaily President Andy Bowdoin is continuing to serve 78 months in federal prison at the age of 78  — in part because he borrowed liberally from the MLM scammer’s playbook and planted the seed that the President of the United States (then George W. Bush) backed his “program.” Some MLM prospects joined the ASD fraud scheme — a $119 million Ponzi popularized in part on the Ponzi boards and broken up by the U.S. Secret Service in 2008 — based on pitches highlighting Bowdoin’s purported ties to the White House.

    Bush left office on Jan. 20, 2009. Barack Obama then became President.

    Records now strongly suggest that Obama was President for only minutes when he became an unwitting salesman for an MLM or affiliate scheme. Indeed, an online pitch featuring “Obama” is dated Jan. 20, 2009, Inauguration Day in the United States and the date upon which Obama took over from Bush.

    A Blog on Google’s free Blogspot platform made this headline claim on Jan. 20, 2009: “Barack Obama visits Unimax Services.”

    The Blog, which remains online well into Obama’s second term that began on Jan. 20 of this year, features a knockoff of the Seal of the President of the United States. “Presidents Club,” it screams. Recruits for a “program” known as Net Millionaires Club apparently were accorded the title of Presidents — not of the United States, but of the “Unimax States.”

    This is straight out of MLM or affiliate scheme La-La Land.

    Paul Darby, who describes himself as “President of the Unimax Services Corporation” on the Blogspot site with the “Barack Obama visits Unimax Services” headline, is featured alongside a cardboard cutout of Obama in a video playing on the site. In the bizarre video, Darby bizarrely describes the cutout of Obama as the “featured guest” and suggests the Net Millionaries Club he’s promoting with the knockoff of the U.S. Presidential Seal is an “economic stimulus package.”

    If you don’t go any farther than the headline — if you don’t take the time to view the video showing the Obama cutout — you could reasonably conclude that Obama actually visited Unimax Services and endorsed the “program.” Put another way, it’s a contemptible, backdoor way to use the Internet to turn the White House and the Commander-in-Chief into a spokesman for a highly dubious MLM or affiliate scheme.

    If all of this seems altogether too much, altogether too bizarre, consider that the Secret Service, through the filing of the ASD Ponzi case in 2008, informed the MLM world that it wasn’t a good idea to go around trying to tie the President of the United States to your scheme. Next consider that the ASD scheme had its own form of a Darby-like Net Millionaries Club; the ASD version was multipronged and was called the “President’s Circle,” the “President’s Advisory Board” and “President’s Advisory Counsel.”  Then consider that the Darby Blog — in January 2009, months after the ASD case had been filed — led with the “Barack Obama visits Unimax Services” headline on the date the President was inaugurated.

    Did the President of the United States really visit Unimax Services, purveyors of the Net Millionaires Club? And did the White House somehow give Darby permission to alter the Seal of the President of the United States as a means of driving traffic to the “program? Did Paul Darby learn nothing from the ASD case?

    But it gets worse . . .

    Flash forward to 2013 (while considering that MLM schemes such as BidsThatGive and Lyoness also have tried to tie themselves to the U.S. Presidency or the Presidency of other countries), and you’ll find Darby as the braintrust behind yet another “program.” This one is called “YouGetPaidFast.”

    Like ASD before it, YouGetPaidFast has a presence on the Ponzi boards. The new “program” appears to be a cash-gifting scheme. Ponzi-forum pitchman “Ken Russo,” previously of the ASD Ponzi scheme, the GNI and NewGNI Ponzi schemes, the Zeek Rewards Ponzi scheme, the MPB Today pyramid scheme, the Club Asteria fraud scheme and the Profitable Sunrise fraud scheme, is helping lead the YouGetPaidFast charge.

    “Ken Russo” appears even to have coined a new acronym to deflect attention away from the critical issues surrounding online fraud schemes. Critics, according to a post attributed to “Ken Russo” at the MoneyMakerGroup Ponzi forum, are “NAG[s].” NAG stands for “Naysayers Anonymous Group.”

    According to “Ken Russo,” in apparent defense of YouGetPaidFast (italics added):

    “The NAG (Naysayers Anonymous Group) are doing their best to deter you from joining an excellent program which offers one of the best opportunities I have ever seen for average folks to develop a substantial additional income stream. The NAG is relentless in their efforts to denigrate this fine program . . .”

    This is occurring after the United States charged three women criminally in Connecticut for pushing a cash-gifting pyramid scheme. Two of the three women were sentenced earlier this year to lengthy terms in federal prison.

    It also is occurring against the backdrop of bids earlier this year by enthusiasts of other Ponzi-board “programs” to trade on images of Obama and the prestige of the U.S. Presidency. Those “programs” included Empower Network and “Ultimate Power Profits.”

    Unlike his Net Millionaires Club scheme, however, Darby’s YouGetPaidFast scheme appears no longer to be interested in trading on the name of the President of the United States and the seal of the President of the United States.

    No, this time Darby is planting the seed that the FBI backs his “program.”

    Darby is trotting out some of the same sort of MLM La-La Land talking points advanced by self-styled Zeek Rewards consultant Robert Craddock — that is, if you speak out against a “program,” you’re going to get sued and perhaps even paid a visit by its backers in law enforcement.

    As BehindMLM.com is reporting today, Darby now claims to have FBI agents on “speed dial.” And at least one of those agents purportedly has vetted YouGetPaidFast and given it the all-clear.

    Beyond that, according to the BehindMLM.com report, one or more Christian pastors is encouraging Darby to sue his detractors.

    If that seems altogether too odd, consider that purported Christian pastors also are backing Empower Network and its purported “Badass” content, including the reported death by suicide of a top Herbalife MLM distributor.

    David Wood, one of the top dogs at Empower Network, once advised critics to “Back the fuck down.”

    “Be warned: BIG, SCARY WARNING,” Wood wrote. “I’m in the process of having lawyers research into whether or not we can sue the shit out of you.”

    Whether Wood lost any pastors after the remark is unclear. At least one purported pastor encouraged Empower Network affiliates to overlook the nasty language and simply concentrate on making money. Pastors also backed the ASD Ponzi scheme and the Profitable Sunrise scheme — to cite just two of the MLM fraud schemes that recently have fleeced people of faith. ASD’s Bowdoin, before becoming a pitchman for a scheme known as OneX, once described himself as a Christian “money magnet.”

    There is plenty of God talk in YouGetPaidFast, too.

    Also see YouGetPaidFast thread at RealScam.com.

  • UPDATES: (1) HYIP Huckster ‘Dave’ Launches New Scams, Says He’s Gearing Up For ‘Auction’ Business; (2) BidsThatGive ‘Auction’ Site Says It Will Launch Tomorrow; (3) Zeek ‘Auction’ Business Names New Officers — And Affiliates Make ‘I Got Paid’ Posts As Purported Earnings Calculator Appears On Ponzi Forum

    EDITOR’S NOTE: In Ponzi Land, HYIPs that suggested returns of 1 percent (or more) per day “worked” to line up lambs for the slaughter. So did autosurfs that planted the 1 percent a day (or more) seed. Now, 1 percent a day (or more) “auction” sites are “working.” Will they mushroom globally like HYIPs and autosurfs, setting the stage to fleece participants in unprecedented numbers?

    Apparently now fully recovered from his purported bout with Dengue fever, legendary HYIP huckster “Dave” is back — this time with something called “DailyCashMania” (DCM) that appears to be married to a nascent penny-auction site known as “HawkPay” that is luring affiliates amid DCM promises it will offer a “mega-prize” of a $10,000 cash voucher.

    One MoneyMakerGroup Ponzi forum promoter of DCM declared it “The ONLY Matrix supported by a [sic] Auction site.”

    HawkPay says it will offer “scratch” auctions. A graphic for a “test listing” (Canon camera) on the site reads “SCRATCH TO SEE YOUR PRICE.” When that graphic is clicked, this message loads: “Your scratch will cost 1 bid and the product price will be lowered with $.10.”

    Separately, a penny-auction site known as “BidsThatGive” says it will formally launch tomorrow to make the world a better place for children. Like the AdSurfDaily Ponzi scheme, some of the chatter for BidsThatGive involved the recitation of names of people who had some sort of tie to the institution of the Presidency of the United States.

    ASD’s chatter about the Presidency quickly brought out the U.S. Secret Service, which discovered ASD affiliates were being paid with money from other affiliates: a classic Ponzi scheme. The Secret Service also discovered that political donations made by ASD President Andy Bowdoin came from Ponzi money.

    Other prelaunch hype for BidsThatGive claimed that affiliates of the “program” could get filthy rich, so rich the company would pay to name a hospital or orphanage after them.

    Meanwhile, the Zeek Rewards MLM “program,” which is married to a penny-auction site known as Zeekler, has announced a new slate of officers at Rex Venture Group, the purported parent company of the Zeek businesses. Even as the company was making the announcement, posters on the MoneyMakerGroup Ponzi board were sharing “I Got Paid” posts. Another poster placed a link to something called ZeekCalc, a purported earnings calculator apparently created by a Zeek fan.

    Earnings calculators were part of the ASD Ponzi scheme. ASD, like Zeek and “Dave’s” emerging DCM “program,” also had a presence on the Ponzi boards. An earnings calculator also was used in “Dave’s” JSS Tripler 2 scam.

    “This is a online FREE Zeekrewards Profit Calculator that allow [sic] you [to] predict your profit from the Zeekrewards Program,” the calculator site claimed. “With this tool it’s easy and fast [to] calculate your future income or future earnings of the new people who join the program.”

    Among the apparent Zeek affiliates bragging about their Zeek payouts at MoneyMakerGroup in the run-up to Zeek’s announcement about its new officers yesterday was legendary Ponzi promoter “strosdegoz,” a former cheerleader for “Dave’s” scams, along with the OneX scam and the ClubAsteria scam — and many others. “strosdegoz” has claimed to be a member of 35 HYIP boards.

    Among other things, Club Asteria traded on the names of the World Bank and the American Red Cross. Hank Needham, one of Club Asteria’s purported managers, was a former AdSurfDaily pitchman and cash-gifting enthusiast shown on videotape opening packages of cash from at least two countries.

    “Just received two payments now,” “strosdegoz” posted of Zeek on MoneyMakerGroup on July 29. He simultaneously was promoting Bidify, yet another emerging penny-auction site. Others joined “strosdegoz” in the Zeek “I Got Paid” cheerleading chorus on MoneyMakerGroup, including a poster known as “jumpin.”

    “You’ve got cash!” a post yesterday from “jumpin” began. “Rex Venture Group LLC . . .  just sent you money through Payza.”

    The post went on to claim a July 30 Zeek payment of $23.98 from Rex Venture, Zeek’s purported parent company.

    “Ken Russo,” another Ponzi forum legend, also has made “I Got Paid” posts that cited payments from Rex Venture. In May, “Ken Russo” claimed on the TalkGold Ponzi forum that he’d received $34,735 from Zeek since Nov. 14, 2011. “Ken Russo” posts on Talk Gold as “DRdave.”

    Just plain “Dave” of the emerging DCM scam perhaps is most infamous for a “program” known as JSS Tripler 2, which appears to have based its name on the JSS Tripler/JustBeenPaid “program” purportedly operated by Frederick Mann, a former ASD pitchman. JSS Tripler 2 soon morphed into something called T2MoneyKlub and launched a companion scam known as Compound150.

    T2 Money Klub and Compound150 appear to have collapsed after “Dave” purportedly was battling back from a bout with Dengue fever.

    But now “Dave” appears to be back with DCM and its work-in-progress “scratch” auction.

    The new Rex Venture Group officers announced yesterday, according to Zeek’s news Blog, include Greg Caldwell as “acting COO”; Josh Calloway as CTO; Clifton Jolly “to head up PR”; Angie Fiebernitz as CFO; and Alex de Brantes as executive director of training and support services.

    Meanwhile, according to the Zeek Blog, Peter Mingils “is rockin’” over the “Certified Trainers course curriculum as Zeek’s Training & Incentives Coordinator,” and “Robert Mecham and OH Brown are banging out video after video and Zeek’s “FANTASTIC NEW BUSINESS CARDS!”

    Dawn Wright-Olivares is Zeek’s new “Chief Marketing Officer,” after previously serving as “acting COO,” according to the Zeek Blog.

  • ZEEK SLAYER? Now, A Penny-Auction Site Married To MLM-Like Scheme Purportedly Tied To Effort To Save Children From Hunger Or Becoming ‘Sex Slave[s]’; Build Up To ‘Founding Member’ Sales Pitch Drops Names Of White House, Chelsea Clinton, Historian And Presidential Adviser Doug Wead, Unidentified Presidential Candidate And NBC News Anchor Lester Holt

    From YouTube sales pitch for BidsThatGive by Randy Jeffers. (Children's faces masked by PP Blog.)

    EDITOR’S NOTE: It is true that far too many of the world’s children live in poverty. It also is true that children may become the objects of criminals who engage in human trafficking and that children are exploited in the sex trades. It is equally true that legitimate charities exist to combat these horrific situations and that one MLM “program” after another has tried in recent times to tug at the human heart and “marry” their “programs” to a purported cause. If you desire to improve the human condition for the masses of children, it likely is best to donate directly to a legitimate charitable organization, rather than joining a get-rich-quick scheme that says it is doing good work behind the scenes.

    ** __________________________________________ **

    UPDATED 6:57 P.M. EDT (U.S.A.) WARNING: The following development in MLM La-La Land may be harmful to your gag reflex.

    Zeek Rewards, the U.S.-based MLM “program” that wraps itself in the American flag, collects sums of up to $10,000 from participants, plants the seed affiliates can earn a return of between 1 percent and 2 percent a day while insisting it is offering neither securities nor an investment program, has a payout scheme similar to the AdSurfDaily Ponzi scheme and securities swindle, is married to a penny-auction site known as Zeekler that has told successful bidders for sums of U.S. cash that they can receive their money via offshore payment processors and preemptively denies it is a pyramid scheme, has some emerging, U.S.-based competition.

    The name of the “program” is “BidsThatGive” — and it unabashedly tugs at heartstrings while at once asking prospects to imagine themselves behind the wheel of a grand automobile and feeling good because they also could become a “Contributor” for $10 a month, a “Guardian” for $50 a month, a “Benefactor” for $100 a month” or a Global Ambassador” for $250 a month and pile up mountains of cash while they’re displaying a social conscience.

    Two of the core aims of the “program,” according to a nine-minute video promo running on YouTube, are to help impoverished children and children who’d been exploited and became “sex slave[s].” The prelaunch of BidsThatGive appears to have been timed to coincide with the Independence Day holiday period in the United States.

    One of the assertions in a the YouTube video is that the “rewards” the company provides include “an orphanage and a school, church or hospital built in your name.” All of this apparently is possible because BidsThatGive has a “global business model” and employes a “concept” known as “PPSC,” which stands for Private Profit Sharing Company.

    But before we get to the uber bizarre, let’s address the run-of-the-mill bizarre in this latest entry in MLM La-La Land.

    BidsThatGive is a little bit Andy Bowdoin. Indeed, the emerging penny-auction company with an MLM-style compensation plan, claims it’s not an MLM program and tells prospects they’re “probably not going to sleep at night” once they understand the profit potential. Bowdoin, the infamous AdSurfDaily Ponzi schemer, told prospects that ASD was not a “network marketing company” and used largely the same line about all the sleepless nights excited prospects would experience.

    Meanwhile, BidsThatGive is a little bit like AdViewGlobal (AVG), a collapsed 1-percent-a-day Ponzi autosurf federal prosecutors said in April 2012 had ASD ties. AVG once claimed that one of its desires was to save the rainforest through charitable contributions. BidsThatGive also resembles ClubAsteria, which offered outsize weekly returns ranging from 3 percent to 8 percent and told prospects that its charitable arm would provide relief to victims of the devastating earthquake in Japan last year. ClubAsteria also purported to provide aid to children and claimed its mission was to elevate the word’s poor out of poverty.

    Last year, the American Red Cross sent Club Asteria a letter demanding it stop using the Red Cross name in promos.

    And BidsThatGive also resembles DataNetworkAffiliates (DNA), which tied itself to the U.S. AMBER Alert system for rescuing abducted children and said its “token system” could help prevent child poverty.

    “Help DNA Feed A Million. OVER 1000 AN HOUR DIE. The DNA Token System Can Prevent This!” the company exclaimed.

    Among other things, DNA used a YouTube video to trade on the name of Adam Walsh, the 6-year-old who was abducted and murdered in Florida in 1981. Adam’s father, John Walsh, became a prolific advocate for children and later became the host of the “America’s Most Wanted” television series.

    DNA, which was associated with longtime MLM huckster Phil Piccolo, appears not to have helped a single abducted child or a single child living in poverty. Affiliates, though, tried to plant the seed that the DNA “program” was backed by Oprah Winfrey and Donald Trump. When DNA’s CEO resigned suddenly in 2010, the company waited nearly a week to announce the departure — and then misspelled the former CEO’s name.

    BidsThatGive Operator

    Randy Jeffers, an MLM aficionado, is the purported operator of BidsThatGive, according to promo videos on YouTube. Jeffers also presides over a nonprofit entity known as “Liberty Kidz,” which says its “[v]ision is to empower a child to be all that he or she is created to be, by providing homes, help and hope for discouraged, displaced and distressed children of the world.”

    A similarly named Jeffers’ entity known as Liberty International LLC filed for bankruptcy in August 2010, listing about $1.94 million in debt and $641 in assets, according to federal records. The assets consisted of the balance of a business checking account.

    What follows are comments from Jeffers in the nine-minute sales pitch for BidsThatGive on YouTube (italics added):

    You know, there are so many terrible things that happen to children all over the world. Right now a little boy is dying of hunger, a little girl just got sold by her mother and is being forced into life as a sex slave.

    Right now, children are being physically abused, and then there’s so many children that are just left by themselves and there’s no one there to love or care for them. I don’t know why bad things happen to innocent little children, but they do. But here’s what I do know: All of us can do something about it.

    You see, that’s our No. 1 purpose. This company was founded to be a true partnership between those children, the children’s charities that it supports and its affiliates who make it all happen.

    A ‘Founding Member’

    One of the founding members of BidsThatGive is Glen Woodfin, according to 6:56 promo video dated July 2 and running on YouTube.

    Woodfin describes himself in the video as an American who once moved to Brazil to be with his “multimillionaire” fiance who had 90 employees. Enjoying the “good life” on the beach while sitting around drinking “coconut milk” was fun for a while, but ultimately led to a desire to become more productive and to develop an online skill set. Woodfin ultimately discovered he had a talent for search engine optimization and that clients were interested in those services.

    Glen Woodfin, who says he's done SEO for a Presidential candidate, does a little dance in his Bids That Give sales pitch on YouTube.

    His SEO skills ultimately became so good that “I was hired by somebody running for President . . .,” according to Woodfin, who narrates the video. He did not identify the candidate.

    Woodfin, however, goes to to explain that he was fortunate to know author and White House adviser Doug Wead, who wrote “All The President’s Children,” a New York Times Bestseller. (Wead’s Wikipedia entry says he advised GOP Presidents George H.W. Bush and George W. Bush.)

    Apparently in the market for SEO advice, Wead turned to Woodfin, according to the video.

    “He said, ‘Glen, we’ve got one of the Presidential children about to get married in three weeks, and we don’t have a website up. Can we get in there and get to the top of the search engines with it?'” Woodfin recalled.

    That Presidential child, according to Woodfin, was Chelsea Clinton, daughter of former President Bill Clinton and U.S. Secretary of State Hillary Clinton.

    Over the weekend Chelsea Clinton got married, Woodfin said, his SEO techniques on Wead’s behalf put a site known as ChelseaClintonWeddingWatch.com at the top of the rankings. (Chelsea Clinton was married on July 31, 2010.)

    When NBC News anchor Lester Holt was interviewing Wead, Woodfin said, Holt mentioned the website Woodfin had put at the top of the rankings, apparently attributing the feat to Wead.

    Neither BidsThatGive nor Jeffers is mentioned in the first three minutes of the Woodfin video. But at roughly the 3:03 mark, Woodfin announces, “I’m going in business with a gentleman named Randy Jeffers. Randy Jeffers started the No. 1, fastest-growing MLM of all time, called Destiny. They put in 1 million distributors in 18 months.”

    Woodfin goes on to say that Jeffers recently called him and offered him a “founder’s membership” in BidsThatGive.

    “While he’s talking, the hair start[s] standing up on my arm, and I got thrilled,”  Woodfin recalled. “As a matter of fact, every time I get off the phone with him now, I’m just, ‘Thank you for putting this together.’ It’s based on penny auctions . . .”

    It’s not known whether Woodfin contacted the White House, Wead, Clinton and Holt as a courtesy to let them know he’d be using their names in a YouTube pitch for Jeffers’ BidsThatGive. What is known is that namedropping is common in the MLM sphere — often without the knowledge of those whose names are dropped.

    Although the Woodfin pitch did not imply that any of the celebrities or institutions mentioned in the pitch endorsed BidsThatGive, the implication was clear that BidsThatGive prospects who joined under Woodfin would gain access to an SEO expert who’d worked for a Presidential candidate and knew a Presidential adviser.

    Neither the Jeffers’ video nor the Woodfin video referenced the Liberty International LLC 23-month-old bankruptcy filing. Nor did either video address any of the potential problems BidsThatGive could encounter from regulators.

    Like the Zeek Rewards’ business model, the BidsThatGive model resembles that of ASD. In 2008, the U.S. Secret Service seized more than $80 million from ASD-related bank accounts, including $65.8 million in the personal accounts of Andy Bowdoin.

    Court records showed that ASD was trading on the name of then-President George W. Bush. Analysts saw it as a transparent bid to sanitize the “opportunity” by trying to link it to the White House.

    Major politicians from both sides of the aisle have seen their names used in promos for “opportunities” that proved to be Ponzi schemes.

    Former President Clinton’s name and image were used by the Mantria Corp. Ponzi scheme. Clinton is a Democrat.