UPDATED 11:53 A.M. EDT (U.S.A.) The sales pitch of a multilevel-marketing (MLM) company that plucks the heartstrings of members by suggesting it can help law-enforcement and the AMBER Alert program locate abducted children has been rated a “Complete Failure” by 66 percent of respondents in a PP Blog Poll.
Meanwhile, 88 percent of respondents rated Data Network Affiliates’ message “Poor” or worse. Only 12 percent rated the sales pitch either “Good,” “Very good” or “Exceptionally professional.”
Separately, some DNA members said the firm, which had been barraging them with sales pitches, has been less communicative in recent days. The company has been mysterious from the start, registering its domain name behind a proxy in the Cayman Islands while incongruously suggesting its services could be beneficial to the U.S. government.
DNA initially explained that its domain was registered privately in the Caymans to prevent management from having to “put up with 100 stupid calls a day.â€
Customer service has been conducted via a free Gmail address for months, although the firm in recent weeks has published a street address in Boca Raton, Fla.
Fifty votes were cast in the PP Blog Poll, which was unscientific. Despite the low turnout, the poll results suggest that respondents were deeply turned off by the DNA sales pitch — to the point of revulsion. Regardless, 8 percent of respondents rated the pitch an “A,” meaning they viewed at as “Exceptionally professional.”
Some PP Blog posters have speculated that voters might have rated the pitch “Exceptionally professional” because it deliberately was crafted by MLM hucksters to recruit members into an insidious lead-capture system through which they’d be pitched relentlessly on products other than DNA’s purported database product.
Under this theory, the pitch was deemed “Exceptionally professional” because it achieved the dubious purpose of lining up people by the tens of thousands to be fleeced.
DNA, whose members have claimed Donald Trump and Oprah Winfrey endorse the company even though there is not a shed of evidence that the claim is true, purportedly has attracted more than 130,000 members. It is possible that some or all of the 8 percent of respondents who rated the sales pitch “Exceptionally professional” believe the pitch has merit beyond its ability to suck people into an insidious system.
The database product purportedly is being built by members who appear in the parking lots of doctors’ offices, churches and giant retailers such as Walmart and Target to write down license-plate numbers or take photos with cell phones or video cameras of license plates for entry in the database.
One of DNA’s leading pitchmen on conference calls has described the parking lots of medical facilities, places of worship and retail stores as wonderful places to gather data. He further suggested that members should behave in an inconspicuous fashion when gathering the data.
DNA delayed its launch date twice in February. After its “free” data-collection program purportedly got under way in March, the company quickly began pitching other products to members, including a $127 upgrade that purportedly would improve the ability of “free” members to enter license-plate data into the system.
The company said its “Pro” data-entry module was better than its “free” module. Prior to the introduction of the “Pro” module, “free” members did not know they would be receiving a data-entry tool the company itself described as a clunker.
News about the “Pro” module began to spread March 10, only days after DNA told members who listened to an “Oscar†night conference call that the company’s “free†affiliates would “receive the same kind of commitment and respect from our DNA management team†as paid members received.
DNA said its “Pro” module was part of a Business Benefits Package (BBP).
“Upon close inspection of the B.B.P. you will find a minimum of 10 times the cost of such package to the end user in value savings and benefits,†DNA said in an email to members. “The two that stand out the most is (sic) the FREE 1000 REWARD DOLLARS with FREE REFILLS and the $402 Travel Agent Value Package for only $49.â€
In recent weeks, DNA mysteriously referred to its BBP package as the “BBB” package. Precisely why DNA would change the acronym of its package to the acronym associated with the Better Business Bureau was unclear.
“6 OF THE 10 WILL BUY THE B.B.B. AND GET 1 OTHER TO BUY THE B.B.B. WITHIN 24 HOURS,” DNA declared earlier his month.
Earlier, in April, the company announced that it was in the cell-phone business. The announcement came out of nowhere, and DNA boldly declared, “GAME OVER — WE WIN.”
Without doing any checking, members raced to YouTube and Craigslist to announce that DNA was offering an unlimited cell-phone talk and text plan for $10 a month and, for $19.95 a month, was offering unlimited talk, unlimited text and 20 MB of data.
DNA, which had no experience in the cell-phone business and yet declared it had slayed all competitors, later announced it had not researched pricing prior to announcing the plan.
“[W]e found that there are no such service plans to be found by any carrier, anywhere on the planet, by any company in the industry,” DNA said in an email to members that un-announced the announcement weeks earlier of the $10 unlimited plan.
DNA insisted it would have a new plan by May, but May passed without such a plan. The company then said it would have a plan in June. No such plan has emerged.
A video on YouTube implied that DNA had a branding deal with Apple’s iPhone and that the phone would be called the “DNA iPhone.†The video asserted that DNA is the “ONLY Network Marketing Company With Branded iPhones.â€
Meanwhile, a separate YouTube video implied that DNA not only had an iPhone, but that the iPhone came with a “No Term Contract†for $10 a month.
“You are Not in Kansas Anymore!†the second video screamed. “This is Global Baby!â€
Apple, which is known to defend its brand and intellectual property vigorously, did not respond to the PP Blog’s request for comment on the claims.
DNA also has bragged about something called “RETIRE BY CHRISTMAS 2010 with DNA
in “3″ to “6″ steps . . .†and various guarantees, including a purported “$100,000 DNA Minimum Income Guarantee†and a purported “$1,000,000 DNA Minimum Income Guarantee.â€
It is possible that the purported “income guarantee” exceeds the revenue DNA has posted to date. Like Narc That Car (Crowd Sourcing International), DNA’s purported Dallas-based competitor, the company publishes neither revenue figures nor the names of purported clients of the database product.
The BBB has raised pyramid concerns about Narc/CSI.
DNA also has urged members to imagine themselves driving 10,000 miles a year in pursuit of their DNA businesses to qualify for an IRS tax write-off of $5,000.
In 2009, an MLM company known as YourTravelBiz (YTB) was enjoined in California from making tax claims under the terms of settlement of a pyramid-scheme lawsuit by Attorney General Jerry Brown that ordered the firm to pay $1 million.
DNA has acknowledged that Phil Piccolo is part of its organization, and web records suggest Piccolo was actively involved in YTB. Separately, Narc That Car President Jacques Johnson was a director in YTB, according to court filings.
EDITOR’S NOTE: Readers with queasy tummies are duly cautioned that this post is on the subject of MLM vomit. No, the troops aren’t packaging and selling regurgitated stomach juice and chunky bits that pay commissions 10 levels deep — at least not yet. This post discusses MLM advertising vomit as practiced by Data Network Affiliates, which has declared that a mysterious practitioner known as “Mr P” is promoting the “D.N.A. 1000 Team.” Mr. P is said to be a “19 Time Million Dollar Earner” who “Holds Every MLM World Recruiting Record.”
Here, now, our take on the vomitous pitch . . .
Incoming! If you are a member of Data Network Affiliates (DNA), you have a duty to grab your umbrellas, air freshener and garden hose and warn your downline to do the same. It has become clear that the company has turned its vomit spigot wide open.
Yesterday’s vomit attack followed on the heels of a vomitous flurry late last month that prompted members to imagine themselves racking up 10,000 miles while recording license-plate data for the company.
“Imagine driving 10,000 miles for your DNA Business = up to a $5,000 Tax Deduction,” DNA prompted members in May.
If you are a member of DNA — and if you are a multilevel-marketing (MLM) aficionado or one of the industry’s so-called servant-leaders — you have a duty to warn all potential prospects to be prepared for sustained email vomit attacks. Advise them that, if they intend to open the emails, to make sure the laptop on their home-office network works outdoors.
Under no circumstances should DNA emails be opened indoors. The vomit they project can damage your carpeting, furniture, curtains and fixtures, all while stinking up the inside of your home, perhaps forever. Remember: A stink-removal crew is expensive, and there’s no guarantee the stench will fully dissipate. You could awaken in the middle of the night six years from now, take a sniff and again reach the horrifying conclusion that, yep, its still there.
Important: Open DNA’s emails only outdoors. The initial burst of pressure from the vomit will be sufficient to pump it on an arc away from your laptop, and your laptop’s built-in vomit seal will protect it from damage. The seal will close instantly when it senses a temperature drop in the the hot-air belch that accompanies the vomit, thus protecting your computer from drips and embarrassing streaks from run-off.
Open the emails quickly and step back. Be prepared: It may take up to three minutes for the vomit to stop gushing. Have the umbrella at the ready in case you were unable to step back quickly enough and got caught in the vomit storm.
After the storm subsides, use the garden hose to clear the umbrella of both liquid and chunky vomit. Apply the air freshener liberally to the umbrella. Let it dry. Repeat the process as necessary or buy dollar-store, disposable umbrellas in bulk. Hint: A dollar store also is a great place to buy air freshener in bulk.
An email DataNetworkAffiliates’ (DNA) members received today led with a pitch that participating in DNA could result in large tax deductions for mileage.
DNA purports to be in the business of paying members to record license-plate numbers for entry in a database that would be potentially useful to law enforcement and the AMBER Alert program for abducted children. The company also purports to be in the cell-phone business and other businesses such as juices and magnetic sleep systems.
Today’s email to affiliates suggested that people who racked up mileage while recording plate numbers for DNA could qualify for large, business-related tax write-offs.
“Did you know about your DNA Tax Benefits . . .” the DNA pitch began. “Imagine driving 10,000 miles for your DNA Business = up to a $5,000 Tax Deduction… “IRS Announces 2010 Standard Mileage Rates” IR-2009-111, Dec. 3, 2009… and this is just one of many…”
DNA did not explain what “one of many” meant. The line that trailed off with the ellipses, however, was in the context of tax deductions. The headline on the email was titled, “DNA = FREE = A Great Opportunity with Great Tax Benefits.”
DNA then published snippets from an IRS news release with a Washington dateline. Because DNA’s email included only snippets of the IRS release — and because DNA added commentary to the email and appears not to have distinguished its words from the words of the IRS — members could become confused about whether the IRS was talking or whether DNA was talking.
DNA’s email instructed members to “[c]heck with your accountant to find out what you DNA Business will allow you to legally write off . . .”
Here is the full IRS news release from Dec. 3 (italics added):
IR-2009-111, Dec. 3, 2009
WASHINGTON — The Internal Revenue Service today issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
* 50 cents per mile for business miles driven
* 16.5 cents per mile driven for medical or moving purposes
* 14 cents per mile driven in service of charitable organizations
The new rates for business, medical and moving purposes are slightly lower than last year’s. The mileage rates for 2010 reflect generally lower transportation costs compared to a year ago.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Revenue Procedure 2009-54 contains additional details regarding the standard mileage rates.
Here is the portion of the email concerning tax write-offs DNA sent today (italics added):
WASHINGTON — The Internal Revenue Service today issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
* 50 cents per mile for business miles driven
* 16.5 cents per mile driven for medical or moving purposes
* 14 cents per mile driven in service of charitable organizations
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Check with your accountant to find out what you DNA Business will allow you to legally write off…
DNA spent the balance of the email on topics such as a “Travel Agent Package,” a “Back Relief System,” a “Foot Insole System,” cell phones, juices and other offerings.
“CHECK OUT YOUR BACK OFFICE YOU CAN BUY $59.95 DNA MAGNETIC PRODUCTS FOR $19.95 AND THEY ARE CHEAPER BY THE DNA DOZEN . . .” DNA said. “BUY THE BACK RELIEF SYSTEM TODAY IT IS A GREAT DNA PRODUCT TO DEMONSTRATE . . .
“I”N FACT YOU SHOULD BUY A DOZEN . . . GIVE THEM TO TEN FRIENDS OR 5 COUPLES TO TRY . . . THEY WILL MOST LIKELY BUY THEM AND . . . SIGN UP FOR FREE & START SELLING THEM . . .”
DNA did not explain how it had arrived at the conclusion that people shown the products “most likely” will buy them.
DNA, which uses a domain registered in the Cayman Islands and conducts customer service with a free gmail address, also did not say why it chose to highlight the tax advantages of repping for the company over the advantages of any actual product offered by the firm.
The DNA program — and also a similar program operated by a company known as Narc That Car and Crowd Sourcing International — potentially could lead to tax challenges by the United States because of claims made by promoters and the nature of the business itself.
Both DNA and Narc purport to pay members to record license-plate numbers. Both firms are multilevel-marketing (MLM) programs and have encouraged participants to write down plate numbers or record them on cell-phone cameras at retail outlets such as Walmart, Target, Giant Eagle and others.
Promoters also have been encouraged to record plate numbers at places such as churches and doctors’ offices.
The approach has led to questions about whether members would engage in tax abuses such as claiming trips to the grocery store and places of worship as deductible business miles because they recorded plate numbers while in parking lots. Because members have been encouraged to use cell phones and cameras to record plate numbers, a second tier of potential tax abuse could open up, with members trying to write off the costs in whole or in part of any item that had even a tenuous link to the purported business of recording plate numbers.
There also are questions about whether DNA and Narc members could engage in grandiose frauds such as attending a funeral thousands of miles away and seeking to deduct the trip as a business expense because plate numbers were recorded at the destination site.
Neither DNA nor Narc publish the names of purported clients of the database products. Affiliates have published purported “training” videos on YouTube that encouraged prospects to record plate numbers virtually anywhere. Some of the videos have suggested that members should behave inconspicuously while recording numbers — for example, driving to the parking lot of a retailer and remaining in the car while recording the plate numbers.
Details about the propriety, safety and legality of the DNA and Narc programs have been given short-shrift in the purported training videos. It is known that members of an alleged Ponzi scheme known as AdSurfDaily have promoted DNA and Narc, and ASD has been linked to people who participate in tax schemes.
Parts of DNA’s email today that did not deal with taxes appeared to have been copied from earlier emails and pasted into today’s email. DNA, for example, said today it was “CELEBRATING 69 DAYS IN BUSINESS . . .”
Earlier emails made the same claim about a celebration for 69 days in business. DNA also celebrated a “Two Month Anniversary.”
By now you’ve likely heard about Data Network Affiliates, a multilevel-marketing (MLM) company that launched by telling prospects it was in the business of recording license-plate numbers useful for the AMBER Alert program and then morphed virtually overnight into a purported cell-phone business.
“GAME OVER — WE WIN,” DNA told members in a message that offered unlimited cell-phone service for $10 a month. Within three weeks, however, DNA acknowledged that it could not offer such pricing. In an email to members, the company conceded that its earlier message announcing that it had conquered the cell-phone business within days of entering it was a mistake.
For good measure, DNA blamed an ambitious reseller for making it believe it could offer unlimited service for $10 a month, while also revealing it hadn’t researched cell-phone pricing structures prior to announcing it had conquered the trade.
Today the PP Blog is publishing a new poll that asks readers to rate DNA’s sales pitches. Some readers may wish to search the PP site before responding to the poll. The search function is in the upper-right corner of the Blog.
Today is May 25, 2010. As of the publication of this post, the poll is in the right sidebar, and also enclosed within the post.
This promo by a Narc That Car member appeared on a .org website that used AMBER Alert's name in its URL. The U.S. Department of Justice, which administers the AMBER Alert program, denied in February that it had any affiliation with Narc. Days later, Narc removed a reference to AMBER Alert in its own video production to advertise the opportunity. The actions of both Narc and its promoters have led to questions about whether the company had come into possession of money based on misrepresentations that caused prospects to believe they were helping out worthwhile causes by joining Narc. The very first Narc promotions observed by the PP Blog were authored by members of AdSurfDaily and Golden Panda Ad Builder, companies implicated in a Ponzi scheme involving tens of millions of dollars.
EDITOR’S NOTE: Narc That Car says it is a private company and has no duty to reveal the names of its data clients. This essay challenges Narc’s arguments.
UPDATED 4:33 P.M. EDT (U.S.A.) The public has a compelling interest not only in learning the identities of Narc That Car’s clients through appropriate channels, but also in learning the identities of the company’s data-gatherers who may hold jobs in the public sector and are supplementing their income by moonlighting for Narc as consultants.
Narc is a highly questionable business. Moonlighting by public employees in highly questionable ways is one of the elements in the Scott Rothstein Ponzi scheme in Florida. Rothstein is alleged to have employed off-duty members of law enforcement as bodyguards while he orchestrated a $1.2 billion fraud. Moonlighting also is an element in a recent case in which investigators in Georgia probed allegations of sexual assault against Pittsburgh Steelers’ quarterback Ben Roethlisberger, who employed off-duty police officers as bodyguards.
The assault allegedly took place in the women’s restroom of a nightclub. Roethlisberger was not charged in the case, but was suspended for six games by the NFL for conduct detrimental to society and the league. Two Pennsylvania police officers working for him potentially face disciplinary action for sullying the reputations of their departments and not extricating themselves from a situation in which a crime or crimes might have been committed in their presence.
Why Wouldn’t The BBB Have Questions?
Today the PP Blog challenges its readers, including its critics, to read this essay, observe the sampling of graphics and answer a few simple questions: Why would the Better Business Bureau, responsible businesspeople, journalists, law-enforcement agencies and taxpayers not have questions about Narc That Car? (Now suddenly known as Crowd Sourcing International after issuing checks to members under at least two different names earlier in the year.)
And why isn’t the company stepping forward with answers that enlighten, not deflect or hop-scotch, around key issues? The company should supply the information to the Better Business Bureau and any law-enforcement agency that asks for it. Information Narc provides could be kept private while any investigation ensues and released by the government if it is determined that wrongdoing has occurred.
Narc says it is in the business of paying people to record the license-plate numbers of cars for entry in a database that will be used by “lien holders” and companies that repossess automobiles when owners default on loans.
Members of Narc say they record plate numbers randomly — in places such as parking lots — on the off-chance the vehicle is or later will become a target of the repo man. Narc’s data-gatherers are required to provide the address at which the plate number was viewed and recorded. Because the location data likely will be stale and the car likely will be moved before it becomes the subject of a repo bid, there are legitimate concerns about the actual usefulness of the data to lien-holders and concerns about whether Narc is just an excuse for a business, not an actual business capable of making profits from retail sales to database clients.
There also are significant concerns about privacy, and the propriety, safety and legality of the Narc program. Some Narc members have advertised that they collect “extra” plate numbers and use them as incentives for prospects to qualify for commissions without gathering data themselves, a practice that leads to troubling questions about whether Narc members have provided corrupt data to the company. An unknown number of plate numbers recorded in Narc’s database may be third-party sightings passed along to incoming members who entered bogus addresses at which plates purportedly were sighted — all to qualify for payments.
Equally troubling is that Narc, which has to know that some members are providing plate numbers for downline recruits, does not reveal the names of its database clients, saying the information is proprietary. There may be no way for existing Narc clients to know whether the data Narc reportedly is selling has been corrupted by the practices of members so eager to earn money that they’re giving away plate numbers and the recipients of the plate numbers are fabricating addresses at which the plates were spotted.
Corrupt data is worthless data.
There are reports that Narc can verify the validity of a plate number — but it is inconceivable that Narc has the means to verify that the plate actually was spotted at a specific address. Adding to the ripples of a potentially corrupt data stream is that some Narc members have instructed incoming members in purported “training” videos not to bother noting the address at the time the plate number was sighted. Rather, the prospects have been told to go home and look up the address on the Internet or refer to a store receipt if they happened to be shopping at, say, Walmart or Giant Eagle, when they were doing their side business for Narc.
These practices introduce not only the potential for abuse, but also an undeniable element of “wink-nod” into the business proposition. Gather extra numbers. Give them away. It doesn’t really matter if the car was parked there or not. Any address will suffice. Just get an address off the Internet.
Members appear to be able to enter any address they please, whether the car was spotted there or not. Meanwhile, some members have openly said they don’t like their neighbors knowing they’re recording plate numbers for a fee, so they record the numbers in the same fashion a character in a spy novel hides behind a newspaper or makes himself invisible in plain sight. The casualty is transparency at virtually all levels, meaning clients don’t know if they’re buying reliable data, members of the public don’t know if their cars are being watched and if profiles are being created, and Narc members don’t know anything other than the information Narc chooses to share.
Public Esteem For Police At Stake Amid Confusing Claims
Narc members say police officers have joined the Narc program as data-gatherers and upline sponsors. If true (and the PP Blog believes that police officers are involved in Narc), it is incumbent upon Narc to publicly identify the police departments for which the officers work.
Because of claims made by Narc promoters, the public has the right to determine if officers who belong to Narc are collecting data while on “city time” or during their off-duty hours and assisting Narc in ways that nonpolice members of Narc cannot.
Why? Because Narc largely operates in the shadows. Moreover, some of the public claims of its promoters have been beyond reckless — and only Narc knows the truth about how it is paying members and using the data they collect. If Narc has police officers among its ranks amid these circumstances, it means the officers are promoting a business they may know very little about.
Police officers should not be promoting a business they know very little about, especially amid these circumstances. That Narc is paying members is not evidence that no wrongdoing is occurring. All successful pyramid and Ponzi schemes pay members. Moreover, the advertising and “training” claims of Narc promoters alone give officers all the information they need to pull out of Narc today and potentially spare themselves and their departments embarrassment later — just as Rothstein’s bodyguards and Roethlisberger’s bodyguards should have pulled out.
That the officers are repping for Narc and not providing security services is immaterial. Narc emits the same kind of stink. It stinks even if it’s legal.
Few people would begrudge a police officer for supplementing his or her income in legitimate fashion — but that is not the issue here. The issue is whether Narc and many of its data-gatherers are legitimate. The Better Business Bureau has expressed concerns that Narc might be a pyramid scheme. Whether Narc is a pyramid scheme is not the only issue, however. This essay points out some of the other issues.
Only Full Transparency Can Lead To Clarity For Narc Members
Absent full transparency from Narc, no police officer or nonpolice officer gathering data, asking people to send money to Narc and building Narc downlines can determine if they are promoting a scam.
Period.
There have been reports in recent days that Narc — through its own unfiltered channels — has claimed the reason it does not publish data clients’ names is because such clients got “incessant” calls when it did publish the names.
This claim strikes us as the precise kind of dreck that cannot pass the giggle test on Main Street but somehow passes the plausibility test in the most florid hallways of MLM, which much of America and the world already view as a cesspool. Not only is the claim absurd, it also is contrary to promoters’ claims that Narc was employing a revolutionary MLM concept by which members would build the database product first and Narc would sell it to retail customers later. This approach could be illegal if Narc does not have “true” customers (database clients) in sufficient volume to destroy the pyramid concerns. Although some Narc promoters have claimed the company has “investors,” the claim itself only leads to more questions: Who put up the purported investment money if investors actually exist?
Narc promoter “Jah” (see below) has been telling prospects for months that Narc reps engage in “No Selling, Trying, Switching, or Using Anything” — in short, Narc’s data-gatherers do not buy the retail database product. Rather, they pay an up-front fee to earn the right to submit plate numbers, become Narc recruiters and have the prospect of earning more money by sponsoring more fee-paying members who pay for the right to submit plate numbers and become recruiters themselves, and Narc sells the database to another set of customers.
These claims and similar claims have led to concerns that Narc was operating a pyramid scheme. Such an approach also can be viewed as a Ponzi scheme. Absent continuous membership growth and real profits from sales to retail database customers to support the payments to Narc’s data-gatherers, the business could collapse.
A video promotion in February by another Narc member showed a tab labeled “Clients.” The video was recorded inside the member’s Narc back office and appeared on YouTube — after Narc had been operating for months. “Don’t worry about that right now,†he said of the “Clients” tab. He did not explain why members should not concern themselves about the tab, which led to questions about whether Narc had data clients in sufficient volume to quash concerns that members were getting paid exclusively or almost exclusively with money from other members — not retail sales to database clients.
This Is ‘Training?’
The promo was described as a teaching tool in a YouTube headline titled, “NarcThatCar Training Video.†In the same video, viewers were told that the parking lots of libraries, schools and universities provided a steady stream of license-plate numbers to be harvested and entered into the Narc database.
“So, carry a pen and paper with you,†the narrator instructed. “You can go to parking lots. You can go to libraries. You can go to schools. My wife goes to the university, and just goes through the parking lot and collects license-plate numbers.â€
An address in the video suggests plate data was recorded in or around the University of Nevada, Las Vegas. The address is the same street address as the UNLV campus. Indeed, one Narc promoter after another has pointed one prospect after another to sources of license-plate data, implying that cars parked on both public and private property were fair game for downline commissions.
Not even public schools, universities and libraries were off limits in Narc’s universe of members. Narc itself has said its database will be used to locate people, boats, cars and any item imaginable. Data is being mined on both private and public property, and Narc itself says the plate numbers are checked against “the DMV,” commonly known in many U.S. states as the Department of Motor Vehicles.
If Narc’s data is checked against the DMV, then Narc’s business is the public’s business. The public has an interest in determining the identities of Narc’s data clients in no small measure because the data potentially could be used to monitor private citizens and people who hold sensitive jobs in government, science, research and the military.
Narc’s explanation that its clients’ names are proprietary is unacceptable. Its own members are claiming plate numbers are “public” information and “training” prospects to drive through “university” parking lots and the lots of retail stores and restaurants to get a supply of tags, which are checked against DMV records.
If you’re shopping at Walmart, for example, your plate number could be recorded and entered in Narc’s database by a Narc participant in search of MLM commissions and interested in recruiting prospects who could record your plate number elsewhere, leading to even bigger commissions and an even greater loss of your privacy. Incredibly, some Narc promoters have anticipated the public’s objection to such a pursuit, answering it with a chilling argument that people who’ve done nothing wrong have nothing to fear.
That is just downright creepy. Is it any of Narc’s business where you park your car because it wants to help the repo man repossess your neighbor’s car? And what if the repo man isn’t Narc’s only client?
What if a company poses as a repo company or a “lien holder” company and has an objective totally unrelated to the repossession of collateral? What if a suspicious husband with a violent streak, for example, wants to monitor sightings of his wife’s car? What if a private investigator wants to determine where you spend your time? What if the government wants to determine if you’re seeing a shrink? What if an unfriendly government wants to monitor the whereabouts of an important government official or scientist?
Narc’s purported assurance that members don’t record the plate numbers of government vehicles is hollow because government employees own private cars and do not always travel in government vehicles. The sensitivity of their jobs does not vanish if they are in their private cars whether on-duty or off, and the prospect that a data profile on the movement of these cars can be created and offered for sale is unacceptable.
It is unacceptable whether the target for monitoring is employed by the government or is just an ordinary citizen employed by any private company. Cars are inexorably linked to their owners. To track the car is to track the owner. Left unchecked, Narc could be used as a data source by private and public entities to monitor people. That is inconsistent with liberty and privacy. It is offensive by its very nature because it potentially puts people who don’t know they are being watched under a microscope, and it is offensive to any notion of propriety because it potentially puts private citizens in the business of spying on other private citizens to qualify for downline commissions. That Narc’s own members are cheerleading for the supposed riches to be made by helping the repo man theoretically get the neighbor’s car causes one to wonder if America is taking leave of its senses and willing to package and sell anything.
What’s next? News releases from Narc that announce yet-another successful repo brought about by the company’s army of commission-based spies?
A World-Class Example Of MLM Excess
MLM has served up a doozy this time: Peel away the hype and Narc emerges as a private spy-agency-in-waiting. At last count, 52,000 people have expressed a willingness to help Narc build the database and share in the joy of knowing they’ve helped the repo man separate a struggling, stay-at-home Mom from the car she shares with her laid-off husband who lost his job when the economy went in the tank.
Lien-holders do have the right to seize their collateral if a car owner is in default. Lenders do have a corresponding duty to be responsible to investors and depositors to protect assets. But to create a cheerleading section for the repo man when unemployment is at 10 percent is something only the darkest minds in MLM could serve up. That people seem actually to be comforting themselves with the thought that they’ve performed some sort of civic duty by ratting out their neighbor to the repo man and somehow made America a better place is one of the surest signs yet that a big pocket of U.S. commerce has become morally bankrupt.
And that’s before the Narc privacy and security issues are examined in any detail.
Does anyone really want Narc to come into possession of data that could be used to create movement profiles on private citizens in any context — all under some implausible theory that the repo man needs extra help?
Sensitive research — including research paid for by the government — is performed by some universities. The data could be used to monitor people who hold sensitive jobs. This makes it the public’s business to determine precisely what Narc is doing and how and why it is doing it.
A ‘GOOGLE Opportunity Like Never Before’
Narc, according to an email members received, also is blaming the media for not understanding what it is doing. Its response to the bad press it has received recently was to tell members not to worry, that Narc remains a “GOOGLE Opportunity like Never before” — and then close the email with insipid, flowery motivational drivel, including this gem: “EVERYTHING is funny when you [sic] making MONEY!”
Even dispossessing your cash-strapped neighbor of his car, apparently, is funny as long as it pays a downline commission.
The email reminded us of the now-defunct Surf’s Up forum, which promoted the now-defunct AdSurfDaily Ponzi scheme by instructing members that “there are no prizes for predicting rain, only for building arks.” Perhaps finding the fuel they needed in Surf’s Up’s trite prose, many members of ASD pressed forward, introducing prospects susceptible to the harmful power of trite prose to one Ponzi scheme after another.
As we proceed in this essay, we ask readers to note that check-waving videos and “earnings” reports produced by some members of MLM programs are not evidence of success or honesty. It often is the case in the MLM sphere that promoters who throw caution to the wind and pitch programs they know little or nothing about end up the biggest winners, with the vast majority of participants breaking even or losing both money and time that could be better spent trying to make ends meet by other means.
Moreover, it often is the case that willfull blindness and forced ignorance are the dominant traits displayed by promoters. Incongruously, a lack of knowledge about companies and products is what often drives MLM profits.
Practiced hucksters often prefer ignorance themselves, while also preferring prospects who will not ask hard questions and are willing to pass along hype and unchecked information as though they were the high gospel of truth.
BBB’s Concerns Grow
Although Narc That Car provided the identity of a single, purportedly “major” client to the Better Business Bureau April 27, the BBB now says “the client’s identity only raises more concerns” about the company.
The BBB did not disclose the name of the Narc client or reveal why its doubts were heightened after Narc provided the information. On its website, however, the organization said it is “communicating” its concerns about the client to Narc. The BBB also noted its inquiry into Narc advertising claims remains open. The advertising inquiry began Jan. 18. It has been unresolved for nearly four months.
On March 3, the BBB noted, the organization asked Narc to provide a “comprehensive” list of clients. Narc responded April 27 by providing the name of “one of its major clients,” a development that not only did not dampen the BBB’s concerns that Narc was using a pyramid business model and did not have a product with true value, but also ramped them up.
Narc That Car has identified Rene Couch as its vice president of marketing. He also has been listed by titles such as executive vice president and chief field advisor, leading to questions about whether Narc and its promoters were making things up as they went along.
Narc already has an “F” rating from the BBB, the lowest score on the organization’s 14-point scale. In the past two weeks, at least two television stations in major markets in the United States have aired reports about Narc, questioning Narc’s business practices, the level of knowledge Narc’s promoters have about the Dallas-based company and Narc’s willingness to address the questions in an atmosphere of transparency.
Meanwhile, some Narc promoters have been attacking the BBB and accusing the TV stations of biased reporting — instead of insisting that Narc get out in front of the stories and concerns and put the issues to rest.
BBB Under Attack
One of the promoters attacking the BBB is Ajamu M. “Jah” Kafele. Kafele once was accused in Ohio of practicing law without a license and ordered to pay a civil penalty of $1,000 by the Ohio Supreme Court after the bar proved its case against him.
Attorney or not, Kafele is no stranger to the courts. What follows in the passage below is an exchange between Kafele and the attorney for a law firm he had sued for attempting to collect a debt. The exchange started after the lawyer asked Kafele how old he was. In response, Kafele attempted to assert his 5th Amendment right not to answer the question — in a case in which he was the plaintiff, not the defendant, and a case in which a federal judge admonished him that his “invocation of the Fifth Amendment in response to that question was improper.”
A. [Kafele]. I don’t recall my age. Next question. Q. [Defense counsel]. What was your date of birth? A. I don’t recall my date of birth. Q. Do you have a driver’s license on you? A. No, I don’t. Q. Do you have any form of identification on you? A. No, I don’t. Q. Where were you born? A. I don’t recall. Q. Do you have parents? A. I don’t recall. Q. Do your parents — are your parents living or deceased? A. I don’t recall. Are you going to ask me some relevant questions to the defense and claims or are you going to find out about my livelihood for your personal gain? Q. You’ve indicated you don’t recall whether — A. That’s right. Q. — or not you have parents. Do you have siblings? A. I don’t know. Q. Are you married? A. I don’t recall. Q. Where do you live? A. I don’t recall. Q. What’s your home address? A. I don’t recall. Q. How long have you lived there? A. I don’t recall. Q. What’s your current occupation? A. Who said I had an occupation? Q. Are you gainfully employed? A. Who said I was employed? Q. I’m asking you a question. A. I’m asking you, who said I was employed? Q. Are you employed? A. I don’t recall being employed.
Three-figure, check-waving YouTube video by "Jah," who publicly announced his downline group was "not going to be out here flashing, you know, five-figure checks.†The video, which featured a claim that repping for Narc was like working for the "Census Bureau," later was removed from YouTube's public site. Why it was acceptable to publish a three figure-check but not a five-figure check was never explained.
Strikingly, Kafele, who once believed it was prudent to sue lawyers who were trying to collect on a debt, now has thrown in his lot with Narc That Car, which says it wants to help repossession companies collect their collateral when buyers default on loans. The case cited above did not have a happy ending for Kafele: A federal judge tossed the preposterous lawsuit he had brought, saying Kafele had engaged in “egregious” conduct.
“Plaintiff’s repeated and persistent refusal to participate in the discovery process has clearly been willful and done in defiance of the express and unambiguous orders of this Court,” U.S. District Judge John D. Holschuh said. “As a result, the defendants have been denied virtually all discovery in this case. Moreover, plaintiff has been warned — most recently in the April 4, 2005, Opinion and Order granting defendants’ motion to compel and awarding monetary sanctions against plaintiff, . . . that his continued refusal to participate in the discovery process would result in the dismissal of the action. Nevertheless, plaintiff persists in attempting to transform the litigation process initiated by him into a game. Under these circumstances, no sanction other than dismissal of the action is appropriate.”
Kafele now is telling prospects he is an authority on Narc That Car. He said he has hundreds of members in his downline. He has been conducting meetings in Ohio to recruit even more prospects, according to his website.
Fox TV Reports Exposed Promoters’ Willful Blindness
Not a single Narc promoter approached by Fox 5 in Atlanta in a package aired recently could identify a single Narc data client — and yet the promoters were out in force recruiting people for the firm. Meanwhile, Fox 11 in Los Angeles recently visited YouTube and reported on unsubstantiated claims passed long by Narc promoters to a worldwide audience, noting that California Attorney General Jerry Brown was seeking information on the firm.
It is known that attorneys general from at least three states — Georgia, California and Texas — are aware of growing doubts about Narc’s business practices.
Narc’s approach — and the approaches of its promoters — have caused even longtime proponents of multilevel marketing (MLM) to question whether the often-controversial industry had reached an all-time low and whether participants would buy into any scheme under the sun. It is clear that promoters either do not know if Narc is engaging in legitimate commerce or do not care if it is not
Narc promoter shows prospects that parking lots at the University of Nevada Las Vegas are an excellent source of license-plate data. Narc prospects in this promoter's YouTube video were given no guidance on whether the university or campus police needed to be consulted before recording the plate numbers of students, faculty and employees. The promoter said "libraries" were excellent sources of license-plate data.
— as long as commission checks for recruiting members keep streaming in.
As things stand, there is no way to determine if Narc is operating legally. The reason there is no way is that Narc does not reveal the names of clients, will not step out of the shadows, put an executive and attorney on TV or consent to a probing interview by a print journalist to answer the doubters and publish verifiable financial data audited by a CPA that shows inputs and outputs and the sources of revenue.
Any argument that suggests members are not entitled to this data or that the data is proprietary because Narc is a “private” company is not going to fly. The company’s promoters are saying that license-plate numbers are “public” information available for the harvesting by a membership roster of 52,000 people for the purpose of populating a database that Narc itself has said is going to be used to locate people, cars, boats and any item imaginable. That alone makes it the public’s business. Beyond that, promoters say Narc is using government databases to verify data. The assertion that Narc is using the DMVs of America’s 50 states to verify registration data gives the public a compelling reason to demand answers from the company.
Narc has a duty to tell the public through appropriate channels precisely what database it is using to cross-check data entered by members and how it is accessing the database. It also has a duty to reveal the names of its clients, explain how it screens clients, explain how it screens its data-gatherers, explain whether Narc is able to connect a car to a person when members enter license-plate numbers and explain how the data is secured.
Absent complete transparency, the privacy of every person whose tag number is entered by a Narc member is a potential casualty. It is inconceivable that Narc is empowering itself to collect your license-plate number — no matter where you park — because it has secret clients in the business of repossessing cars and there is a small chance that you are behind on your car payments or a person you do not even know parks his or her car in the same parking lot as you and is behind on his or her car payments.
This is the business Narc has chosen to enter — and the public has a compelling interest in knowing precisely how it operates.
Narc Subjecting Own Promoters To Embarrassment; Promoters, Company Blame It On Media
Narc exposed its own Atlanta-area members and prospects to embarrassment after a Fox 5 reporter showed up to a pitchfest with a hidden camera and could not get answers even to basic questions, but the company has not issued a statement that addresses the concerns in any real way and is suggesting the media is to blame.
No part of the Narc story is consistent with transparency or ordinary business practices — and the media attention likely is only now beginning. Viewers in Atlanta and Los Angeles — two of the largest markets in the United States — now have been treated to an appalling lack of professionalism in the MLM sphere, which only will fuel the public’s legitimate doubts about the industry as a whole.
Why wouldn’t the public believe the Internet is just one giant cesspool after viewing the reports on Fox here and here? If you’re a Narc fan and want to argue that Narc was ambushed, you need to know that Narc had plenty of opportunities to answer questions from journalists before they started hiding their cameras. The PP Blog, for instance, has attempted to contact Narc multiple times. The Blog is aware that other news sites have met dead ends in bids to get Narc executives and knowledgeable employees to answer questions, including NBC-5 of Dallas-Fort Worth and others.
The Fox 5 Atlanta report neatly exposed promoters’ willingness to cheer for a program, duck responsibility for their claims and then hide behind the skirt of a company when the heat became too intense.
The trouble with hiding behind Narc’s skirt, however, was that the skirt provided no cover for members. Promoters found themselves in the awkward position of taking heat for a company that did not defend them in any credible way. Narc’s skirt provided no cover at all, and yet some members merrily continue to promote the opportunity and apparently see no incongruity at all.
Let us spell it out: If you’re going to say the media must get answers from the company rather than promoters in the field, you are hiding behind the company’s skirt. And if the company does not provide the answers, you have no cover at all. This creates the appearance that the prospect of making money is the only thing you value. You certainly don’t value transparency if you’re hiding behind the company’s skirt, and the company certainly does not value transparency by ducking questions, avoiding them altogether or spinning things to create the appearance that the media are responsible for Narc’s lack of transparency.
The media are not responsible for Narc’s bad press; Narc and its promoters are. One Narc promoter created a red banner on a .org site to create the appearance that sending money to Narc was like donating to the Red Cross. Other promoters appropriated the name of the AMBER Alert program to do the same thing on a .org website. At one point the message became so impossibly butchered that a promoter urged prospects to “Help AmberAlert and other organizations find repossessed cars.â€
Some Narc members made much ado about a TV anchor referring to Narc as a “job,” but dozens of Narc members posted ads on craigslist that advertised Narc as a job. Promos for Narc have been reprehensible. One member claimed Narc would be used to help the Department of Homeland Security find terrorists. Others claimed that the FBI and the AMBER Alert program endorsed Narc.
These were blatant misrepresentations — plain and simple. If the MLM world wants the rest of the world to take it seriously, it has to quit serving up this slop and stop apologizing for its chefs and the seemingly mindless cheerleaders who cheer for the chefs even when roaches are swimming in the soup.
In the AdSurfDaily case, for instance, the Secret Service said the chef served up a Ponzi scheme. How did the cheerleaders respond? They called the Secret Service, the agency that guards the President and the Treasury, Nazis and “Satan.”
Now, amid a circumstance in which the BBB — one of America’s most recognized business organizations — has questioned whether the Narc chef is serving up a pyramid scheme that potentially affects tens of thousands of people, the cheerleaders are responding by trying to plant the seed that the BBB has a secret agenda and is infested with roaches. It is reprehensible — and it must not stand.
Myriad questions about Narc remain, including these:
Why are Narc promoters so willing to represent a company they know so little about?
Does Narc not understand that vague, ambiguous claims on its own website and its apparent unease in addressing media questions are what’s driving the story?
Why has a Narc PR spokesman not emerged to address media inquiries and become the face of the company? Why aren’t Narc executives stepping out in front of the cameras?
Why have the statements Narc has issued not explained the incongruity of insisting that license-plate data is “public” information while at once insisting the public has no right to know who its clients are, how they are being screened, how data-gatherers are being screened and how the information is being indexed and sold?
Why does Narc insist it has the right to collect your license-plate number and offer it for sale to a third party whose identity and motives are unknown to you?
Why do tens of thousands of Americans suddenly seem so willing to waltz through parking lots of major retailers to record the plate numbers of their neighbors and to recruit others to do the same — when they have knowledge in advance that troubling questions are being asked about the firm?
Why does the repo man suddenly need the help of a commission-hungry MLM army to dispossess people going through lean times?
Any chance that the “buy here, pay here” car business and the title loan business are backing Narc because the industry’s practice of approving anyone for a loan actually is driving repos?
Why are prospects so willing to hand over money when neither sponsors nor Narc itself are willing to provide information that could make the concerns go away?
How many data clients does Narc have and when did the clients become clients? How much revenue do the data clients generate for Narc weekly and monthly?
Is it possible that Narc is selling data to itself through a process in which it formed another company to become a Narc client or is relying on an alter ego of some sort or close association with another firm to create a client out of thin air?
Is Narc closely connected to the “buy here, pay here” automobile business, meaning an entity with a close association with Narc is making high-risk, front-loaded, usurious loans to disadvantaged consumers?
Is Narc closely connected to the title-loan and payday loan business?
Is Narc closely connected to the repossession business?
Does Narc have an investment angel? If so, what is the source of the money and was a private offering involved?
Is Narc making pyramid or Ponzi-style payments to members?
Narc promoter tells prospects the company was started to provide data to the Amber Alert system.
Who are Narc’s executives beyond CEO William Forester?
What are their names, job descriptions and backgrounds?
Do they have high positions in the MLM organization and rely mostly or exclusively on commissions or do they draw a salary?
Who are the members of Narc’s board of directors?
Are police officers involved in Narc? If so, are they collecting information off-duty or on-duty — and are they complying with the policies of their departments and their cities in their efforts to increase their income?
Promoters have claimed that Narc is authorized to verify license-plate data through the DMVs of all 50 states. Is that true? If so, is Narc able to view the names and addresses of vehicle owners and the makes and models of vehicles as police officers could do? If untrue, is Narc verifying the data entered by members through another process — for example, querying databases to determine if a plate number already is “taken” in a state and thus unavailable to any other party, and then concluding the plate is valid simply because it is unavailable to another party?
Is is possible that police officers are querying restricted databases on Narc’s behalf?
The parking lots of these famous companies are sources of license-plate data for Narc affiliates, according to a promoter. Whether any permission is required of store managers or motorists to record plate numbers for entry in a private, for-profit database is left to the imagination.
Are police officers and nonpolice officers alike collecting scores of plate numbers and using their supplies as incentives for people to join Narc? (The PP Blog has observed multiple instances in which Narc sponsors suggested they would supply the first 10 plate numbers to incoming recruits, thus qualifying them for an immediate payment from Narc.)
What part of the approach in the question above is consistent with an attempt to build a valid database, especially if Narc cannot verify that a “gift” plate number actually was viewed in a specific location by the recipient of the gift?
Why has Narc not publicly and loudly renounced the practice of providing the “gift” of plate numbers to incoming prospects? Can Narc tell if entire downline groups are simply trading or recycling existing plate numbers among members and instructing members and prospects to fabricate an address where the plate was sighted?
How can Narc possibly know if the cars members say were parked at a specific location actually were parked there?
What specific event occurred that caused Narc to remove a reference to AMBER Alert in a video promotion and insert the name Code Amber instead?
About Data Network Affiliates . . .
We’ll close this essay by asking a few questions about Data Network Affiliates, Narc’s purported competitor in the business of collecting license-plate numbers:
Is is possible that DNA saw that Narc’s new business of recruiting members to record license-plate numbers was resonating in the MLM universe? And did DNA then engage in a cynical ploy to build a customer base by incorporating Narc’s message — including references to law enforcement and AMBER Alert — simply because it was “working” for Narc?
DNA declares "GAME OVER – WE WIN" repeatedly in a hype-filled email pitch to announce a $10 unlimited cell-phone plan. The company had been in the cell-phone business only days when it claimed to be able to beat virtually every other competitor on earth on cell-phone pricing. Only weeks later DNA claimed it had been hoodwinked into believing it could offer such a price, removing the offer and claiming to be excited about its future.
DNA quickly backed away from emphasizing data collection after it observed Narc becoming the focus of critics who raised concerns about the propriety, safety and legality of Narc — and then DNA morphed into a sort of anti-Narc, saying it existed to help law enforcement only and would never share data with repo companies that wanted to take away cars owned by poor people.
What follows are DNA’s own words (italics added):
“DNA Affiliates STAY ALERT – They are watching out for their neighbors children. If DNA has 1 million affiliates that is 1,000,000 more people watching out for and caring about children world-wide.
“Other companies may collect data to sell to REPO COMPANIES to take cars away from many people who are just down on their luck. A single mom, a dad out of work or 100 other good reasons why good people just can not make a payment. One DNA Affiliate just had his car repossessed because he owed 3 payments and offer to pay two of them and they said no and picked up his car.
“DNA will have no part in such cases. At DNA we collect car data for one purpose and that purpose is that there is a small chance that this data in the right hands could help save a child or help prevent or solve a crime.
“We do not boast of 6 figure contracts with REPO COMPANIES. At the end of the day a DNA Affiliate knows that what they are trying to do will only be a FORCE FOR GOOD in their community…â€
DNA also positioned itself as the “free” Narc, before springing a $127 upgrade on customers to purchase a data-entry tool that worked faster than the clunker provided the “free” members at no cost. Free members were not told they were getting a clunker until the upgrade program was announced. Before long, DNA announced it was in the cell-phone business — and plenty of other businesses willing to sell products to members who thought they were joining a “free” business.
Could DNA’s approach be the most cynical, ribald effort in the entire history of MLM? And does the DNA braintrust not recognize that MLM has so many critics precisely because of the obnoxious and absurd approach of the man behind the green curtain and the men letting him get away with serving up ceaseless, hyperbolic slop?
In our view, DNA is the worst example of wretched excess the MLM trade has ever served up — and Narc is close on its heels for enshrinement in the Hall of Shame. To be sure, Narc is not the next Google, DNA is not the next anything — and the industry has demonstrated once again that many, many of its members think that trite talk about arks is the same thing as building one.
This promo by a Narc That Car member appeared on a .org website that used AMBER Alert's name in its URL. The U.S. Department of Justice, which administers the AMBER Alert program, denied in February that it had any affiliation with Narc. Days later, Narc removed a reference to AMBER Alert in its own video production to advertise the opportunity. The actions of both Narc and its promoters have led to questions about whether the company had come into possession of money based on misrepresentations that caused prospects to believe they were helping out worthwhile causes by joining Narc. The very first Narc promotions observed by the PP Blog were authored by members of AdSurfDaily and Golden Panda Ad Builder, companies implicated in a Ponzi scheme involving tens of millions of dollars.
EDITOR’S NOTE: Narc That Car says it is a private company and has no duty to reveal the names of its data clients. This essay challenges Narc’s arguments.
The public has a compelling interest not only in learning the identities of Narc That Car’s clients through appropriate channels, but also in learning the identities of the company’s data-gatherers who may hold jobs in the public sector and are supplementing their income by moonlighting for Narc as consultants.
Narc is a highly questionable business. Moonlighting by public employees in highly questionable ways is one of the elements in the Scott Rothstein Ponzi scheme in Florida. Rothstein is alleged to have employed off-duty members of law enforcement as bodyguards while he orchestrated a $1.2 billion fraud. Moonlighting also is an element in a recent case in which investigators in Georgia probed allegations of sexual assault against Pittsburgh Steelers’ quarterback Ben Roethlisberger, who employed off-duty police officers as bodyguards.
The assault allegedly took place in the women’s restroom of a nightclub. Roethlisberger was not charged in the case, but was suspended for six games by the NFL for conduct detrimental to society and the league. Two Pennsylvania police officers working for him potentially face disciplinary action for sullying the reputations of their departments and not extricating themselves from a situation in which a crime or crimes might have been committed in their presence.
Why Wouldn’t The BBB Have Questions
Today the PP Blog challenges its readers, including its critics, to read this essay, observe the sampling of graphics and answer a few simple questions: Why wouldn’t the Better Business Bureau, responsible businesspeople, journalists, law-enforcement agencies and taxpayers not have questions about Narc That Car? (Now suddenly known as Crowd Sourcing International after issuing checks to members under at least two different names earlier in the year.)
And why isn’t the company stepping forward with answers that enlighten, not deflect or hop-scotch, around key issues? The company should supply the information to the Better Business Bureau and any law-enforcement agency that asks for it. Information Narc provides could be kept private while any investigation ensues and released by the government if it is determined that wrongdoing has occurred.
Narc says it is in the business of paying people to record the license-plate numbers of cars for entry in a database that will be used by “lien holders” and companies that repossess automobiles when owners default on loans.
Members of Narc say they record plate numbers randomly — in places such as parking lots — on the off-chance the vehicle is or later will become a target of the repo man. Narc’s data-gatherers are required to provide the address at which the plate number was viewed and recorded. Because the location data likely will be stale and the car likely will be moved before it becomes the subject of a repo bid, there are legitimate concerns about the actual usefulness of the data to lien-holders and concerns about whether Narc is just an excuse for a business, not an actual business capable of making profits from retail sales to database clients.
There also are significant concerns about privacy, and the propriety, safety and legality of the Narc program. Some Narc members have advertised that they collect “extra” plate numbers and use them as incentives for prospects to qualify for commissions without gathering data themselves, a practice that leads to troubling questions about whether Narc members have provided corrupt data to the company. An unknown number of plate numbers recorded in Narc’s database may be third-party sightings passed along to incoming members who entered bogus addresses at which plates purportedly were sighted — all to qualify for payments.
Equally troubling is that Narc, which has to know that some members are providing plate numbers for downline recruits, does not reveal the names of its database clients, saying the information is proprietary. There may be no way for existing Narc clients to know whether the data Narc reportedly is selling has been corrupted by the practices of members so eager to earn money that they’re giving away plate numbers and the recipients of the plate numbers are fabricating addresses at which the plates were spotted.
Corrupt data is worthless data.
There are reports that Narc can verify the validity of a plate number — but it is inconceivable that Narc has the means to verify that the plate actually was spotted at a specific address. Adding to the ripples of a potentially corrupt data stream is that some Narc members have instructed incoming members in purported “training” videos not to bother noting the address at the time the plate number was sighted. Rather, the prospects have been told to go home and look up the address on the Internet or refer to a store receipt if they happened to be shopping at, say, Walmart or Giant Eagle, when they were doing their side business for Narc.
Members appear to be able to enter any address they please, whether the car was spotted there or not. Meanwhile, some members have openly said they don’t like their neighbors knowing they’re recording plate numbers for a fee, so they record the numbers in the same fashion a character in a spy novel hides behind a newspaper or makes himself invisible in plain sight. The casualty is transparency at virtually all levels, meaning clients don’t know if they’re buying reliable data, members of the public don’t know their cars are being watched and if profiles are being created, and Narc members don’t know anything other than the information Narc chooses to share.
Public Esteem For Police At Stake Amid Confusing Claims
Narc members say police officers have joined the Narc program as data-gatherers and upline sponsors. If true (and the PP Blog believes that police officers are involved in Narc), it is incumbent upon Narc to publicly identify the police departments for which the officers work.
Because of claims made by Narc promoters, the public has the right to determine if officers who belong to Narc are collecting data while on “city time” or during their off-duty hours and assisting Narc in ways that nonpolice members of Narc cannot.
Why? Because Narc largely operates in the shadows. Moreover, some of the public claims of its promoters have been beyond reckless — and only Narc knows the truth about how it is paying members and using the data they collect. If Narc has police officers among its ranks amid these circumstances, it means the officers are promoting a business they may know very little about.
Police officers should not be promoting a business they know very little about, especially amid these circumstances. That Narc is paying members is not evidence that no wrongdoing is occurring. All successful pyramid and Ponzi schemes pay members. Moreover, the advertising claims of Narc promoters alone give officers all the information they need to pull out of Narc today and potentially spare themselves and their departments embarrassment later — just as Rothstein’s bodyguards and Roethelisberger’s bodyguards should have pulled out.
That the officers are repping for Narc and not providing security services is immaterial. Narc emits the same kind of stink. It stinks even if it’s legal.
Few people would begrudge a police officer from supplementing his or her income in legitimate fashion — but that is not the issue here. The issue is whether Narc and many of its data-gatherers are legitimate. The Better Business Bureau has expressed concerns that Narc might be a pyramid scheme. Whether Narc is a pyramid scheme is not the only issue, however. This essay points out some of the other issues.
Only Full Transparency Can Lead To A Clean Bill Of Health For Narc
Absent full transparency from Narc, no police officer or nonpolice officer gathering data, asking people to send money to Narc and building Narc downlines — can determine if they are promoting a scam.
Period.
There have been reports in recent days that Narc — through its own unfiltered channels — has claimed the reason it does not publish data clients’ names is because such clients got “incessant” calls when it did publish the names.
This claim strikes us as the precise kind of dreck that cannot pass the giggle test on Main Street but somehow passes the plausibility test in the most florid hallways of MLM, which much of America and the world already view as a cesspool. Not only is the claim absurd, it also is contrary to promoters’ claims that Narc was employing a revolutionary MLM concept by which members would build the database product first and Narc would sell it to retail customers later. This approach could be illegal if Narc does not have “true” customers (database clients) in sufficient volume to destroy the pyramid concerns. Although some Narc promoters have claimed the company has “investors,” the claim itself only leads to more questions: Who put up the purported investment money if investors actually exist?
Narc promoter “Jah” (see below) has been telling prospects for months that Narc reps engage in “No Selling, Trying, Switching, or Using Anything” — in short, Narc’s data-gatherers do not buy the retail database product. Rather, they pay an up-front fee to earn the right to submit plate numbers, become Narc recruiters and have the prospect of earning more money by sponsoring more fee-paying members who pay for the right to submit plate numbers and become recruiters themselves, and Narc sells the database to another set of customers.
These claims and similar claims have led to concerns that Narc was operating a pyramid scheme. Such an approach also can be viewed as a Ponzi scheme. Absent continuous membership growth and real profits from sales to retail database customers to support the payments to Narc’s data-gatherers, the business could collapse.
A video promotion in February by another Narc member showed a tab labeled “Clients.” The video was recorded inside the member’s Narc back office and appeared on YouTube — after Narc had been operating for months. “Don’t worry about that right now,†he said of the “Clients” tab. He did not explain why members should not concern themselves about the tab, which led to questions about whether Narc had data clients in sufficient volume to quash concerns that members were getting paid exclusively or almost exclusively with money from other members — not retail sales to database clients.
This Is ‘Training?’
The promo was described as a teaching tool in a YouTube headline titled, “NarcThatCar Training Video.†In the same video, viewers were told that the parking lots of libraries, schools and universities provided a steady stream of license-plate numbers to be harvested and entered into the Narc database.
“So, carry a pen and paper with you,†the narrator instructed. “You can go to parking lots. You can go to libraries. You can go to schools. My wife goes to the university, and just goes through the parking lot and collects license-plate numbers.â€
An address in the video suggests plate data was recorded in or around the University of Nevada, Las Vegas. The address is the same street address as the UNLV campus. Indeed, one Narc promoter after another has pointed one prospect after another to sources of license-plate data, implying that cars parked on both public and private property were fair game for downline commissions.
Not even public schools, universities and libraries were off limits in Narc’s universe of members. Narc itself has said its database will be used to locate people, boats, cars and any item imaginable. Data is being mined on both private and public property, and Narc itself says the plate numbers are checked against “the DMV,” commonly known in many U.S. states as the Department of Motor Vehicles.
If Narc’s data is checked against the DMV, then Narc’s business is the public’s business. The public has an interest in determining the identities of Narc’s data clients in no small measure because the data potentially could be used to monitor private citizens and people who hold sensitive jobs in government, science, research and the military.
Narc’s explanation that its clients’ names are proprietary is unacceptable. Its own members are claiming plate numbers are “public” information and “training” prospects to drive through “university” parking lots and the lots of retail stores and restaurants to get a supply of tags, which are checked against DMV records.
If you’re shopping at Walmart, for example, your plate number could be recorded and entered in Narc’s database by a Narc participant in search of MLM commissions and interested in recruiting prospects who could record your plate number elsewhere, leading to even bigger commissions and an even greater loss of your privacy. Incredibly, some Narc promoters have anticipated the public’s objection to such a pursuit, answering it with a chilling argument that people who’ve done nothing wrong have nothing to fear.
That is just downright creepy. Is it any of Narc’s business where you park your car because it wants to help the repo man repossess your neighbor’s car? And what if the repo man isn’t Narc’s only client?
What if a company poses as a repo company or a “lien holder” company and has an objective totally unrelated to the repossession of collateral? What if a suspicious husband with a violent streak, for example, wants to monitor sightings of his wife’s car? What if a private investigator wants to determine where you spend your time? What if the government wants to determine if you’re seeing a shrink? What if an unfriendly government wants to monitor the whereabouts of an important government official or scientist?
Narc’s purported assurance that members don’t record the plate numbers of government vehicles is hollow because government employees own private cars and do not always travel in government vehicles. The sensitivity of their jobs does not vanish if they are in their private cars whether on-duty or off, and the prospect that a data profile on the movement of these cars can be created and offered for sale is unacceptable.
It is unacceptable whether the target for monitoring is employed by the government or is just an ordinary citizen employed by any private company. Cars are inexorably linked to their owners. To track the car is to track the owner. Left unchecked, Narc could be used as a data source by private and public entities to monitor people. That is inconsistent with liberty and privacy. It is offensive by its very nature because it potentially puts people who don’t know they are being watched under a microscope, and it is offensive to any notion of propriety because it potentially puts private citizens in the business of spying on other private citizens to qualify for downline commissions. That Narc’s own members are cheerleading for the supposed the riches to be made by helping the repo man theoretically get the neighbor’s car causes one to wonder if America is taking leave or its senses and willing to package and sell anything.
What’s next? News releases from Narc that announce yet-another successful repo brought about by the company’s army of commission-based spies?
A World-Class Example Of MLM Excess
MLM has served up a doozy this time: Peel away the hype and Narc emerges as a private spy-agency-in-waiting. At last count, 52,000 people have expressed a willingness to help Narc build the database and share in the joy of knowing they’ve helped the repo man separate a struggling, single, stay-at-home Mom from the car she shares with her laid-off husband who lost his job when the economy went in the tank.
Lien-holders do have the right to seize their collateral if a car owner is in default. Lenders do have a corresponding duty to be responsible to investors and depositors to protect assets. But to create a cheerleading section for the repo man when unemployment is at 10 percent is something only the darkest minds in MLM could serve up. That people seem actually to be comforting themselves with the thought that they’ve performed some sort of civic duty by ratting out their neighbor to the repo man and somehow made America a better place is one of the surest signs yet that a big pocket of U.S. commerce has become morally bankrupt.
And that’s before the Narc privacy and security issues are examined in any detail.
Does anyone really want Narc to come into possession of data that could be used to create movement profiles on private citizens in any context — all under some implausible theory that the repo man needs extra help?
Sensitive research — including research paid for by the government — is performed by some universities. The data could be used to monitor people who hold sensitive jobs. This makes it the public’s business to determine precisely what Narc is doing and how and why it is doing it.
A ‘GOOGLE Opportunity Like Never Before’
Narc, according to an email members received, also is blaming the media for not understanding what it is doing. Its response to the bad press it has received recently was to tell members not to worry, that Narc remains a “GOOGLE Opportunity like Never before” — and then close the email with insipid, flowery motivational drivel, including this gem: “EVERYTHING is funny when you [sic] making MONEY!”
Even dispossessing your cash-strapped neighbor of his car, apparently, is funny as long as it pays a downline commission.
The email remided us of the now-defunct Surf’s Up forum, which promoted the now-defunct AdSurfDaily Ponzi scheme by instructing members that “there are no prizes for predicting rain, only for building arks.” Perhaps finding the fuel they needed in Surf’s Up’s trite prose, many members of ASD pressed forward, introducing prospects susceptible to the harmful power of trite prose to one Ponzi scheme after another.
As we proceed in this essay, we ask readers to note that check-waving videos and “earnings” reports produced by some members of MLM programs are not evidence of success or honesty. It often is the case in the MLM sphere that promoters who throw caution to the wind and pitch programs they know little or nothing about end up the biggest winners, with the vast majority of participants breaking even or losing both money and time that could be better spent trying to make ends meet by other means.
Moreover, it often is the case that willfull blindness and forced ignorance are the dominant traits displayed by promoters. Incongruously, a lack of knowledge about companies and products is what often drives MLM profits.
Practiced hucksters often prefer ignorance themselves, while also preferring prospects who will not ask hard questions and are willing to pass along hype and unchecked information as though they were the high gospel of truth.
BBB’s Concerns Grow
Although Narc That Car provided the identity of a single, purportedly “major” client to the Better Business Bureau April 27, the BBB now says “the client’s identity only raises more concerns” about the company.
The BBB did not disclose the name of the Narc client or reveal why its doubts were heightened after Narc provided the information. On its website, however, the organization said it is “communicating” its concerns about the client to Narc. The BBB also noted its inquiry into Narc advertising claims remains open. The advertising inquiry began Jan. 18. It has been unresolved for nearly four months.
On March 3, the BBB noted, the organization asked Narc to provide a “comprehensive” list of clients. Narc responded April 27 by providing the name of “one of its major clients,” a development that not only did not dampen the BBB’s concerns that Narc was using a pyramid business model and did not have a product with true value, but also ramped them up.
Narc That Car has identified Rene Couch as its vice president of marketing. He also has been listed by titles such as executive vice president and chief field advisor, leading to questions about whether Narc and its promoters were making things up as they went along.
Narc already has an “F” rating from the BBB, the lowest score on the organization’s 14-point scale. In the past two weeks, at least two television stations in major markets in the United States have aired reports about Narc, questioning Narc’s business practices, the level of knowledge Narc’s promoters have about the Dallas-based company and Narc’s willingness to address the questions in an atmosphere of transparency.
Meanwhile, some Narc promoters have been attacking the BBB and accusing the TV stations of biased reporting — instead of insisting that Narc get out in front of the stories and concerns and put the issues to rest.
BBB Under Attack
One of the promoters attacking the BBB is Ajamu M. “Jah” Kafele. Kafele once was accused in Ohio of practicing law without a license and ordered to pay a civil penalty of $1,000 by the Ohio Supreme Court after the bar proved its case against him.
Attorney or not, Kafele is no stranger to the courts. What follows in the passage below is an exchange between Kafele and the attorney for a law firm he had sued for attempting to collect a debt. The exchange started after the lawyer asked Kafele how old he was. In response, Kafele attempted to assert his 5th Amendment right not to answer the question — in a case in which he was the plaintiff, not the defendant, and a case in which a federal judge admonished him that his “invocation of the Fifth Amendment in response to that question was improper.”
A. [Kafele]. I don’t recall my age. Next question. Q. [Defense counsel]. What was your date of birth? A. I don’t recall my date of birth. Q. Do you have a driver’s license on you? A. No, I don’t. Q. Do you have any form of identification on you? A. No, I don’t. Q. Where were you born? A. I don’t recall. Q. Do you have parents? A. I don’t recall. Q. Do your parents — are your parents living or deceased? A. I don’t recall. Are you going to ask me some relevant questions to the defense and claims or are you going to find out about my livelihood for your personal gain? Q. You’ve indicated you don’t recall whether — A. That’s right. Q. — or not you have parents. Do you have siblings? A. I don’t know. Q. Are you married? A. I don’t recall. Q. Where do you live? A. I don’t recall. Q. What’s your home address? A. I don’t recall. Q. How long have you lived there? A. I don’t recall. Q. What’s your current occupation? A. Who said I had an occupation? Q. Are you gainfully employed? A. Who said I was employed? Q. I’m asking you a question. A. I’m asking you, who said I was employed? Q. Are you employed? A. I don’t recall being employed.
Three-figure, check-waving YouTube video by "Jah," who publicly announced his downline group was "not going to be out here flashing, you know, five-figure checks.†The video, which featured a claim that repping for Narc was like working for the "Census Bureau," later was removed from YouTube's public site. Why it was acceptable to publish a three figure-check but not a five-figure check was never explained.
Strikingly, Kafele, who once believed it was prudent to sue lawyers who were trying to collect on a debt, now has thrown in his lot with Narc That Car, which says it wants to help repossession companies collect their collateral when buyers default on loans. The case cited above did not have a happy ending for Kafele: A federal judge tossed the preposterous lawsuit he had brought, saying Kafele had engaged in “egregious” conduct.
“Plaintiff’s repeated and persistent refusal to participate in the discovery process has clearly been willful and done in defiance of the express and unambiguous orders of this Court,” U.S. District Judge John D. Holschuh said. “As a result, the defendants have been denied virtually all discovery in this case. Moreover, plaintiff has been warned — most recently in the April 4, 2005, Opinion and Order granting defendants’ motion to compel and awarding monetary sanctions against plaintiff, . . . that his continued refusal to participate in the discovery process would result in the dismissal of the action. Nevertheless, plaintiff persists in attempting to transform the litigation process initiated by him into a game. Under these circumstances, no sanction other than dismissal of the action is appropriate.”
Kafele now is telling prospects he is an authority on Narc That Car. He said he has hundreds of members in his downline. He has been conducting meetings in Ohio to recruit even more prospects, according to his website.
Fox TV Reports Exposed Promoters’ Willful Blindness
Not a single Narc promoter approached by Fox 5 in Atlanta in a package aired recently could identify a single Narc data client — and yet the promoters were out in force recruiting people for the firm. Meanwhile, Fox 11 in Los Angeles recently visited YouTube and reported on unsubstantiated claims passed long by Narc promoters to a worldwide audience, noting that California Attorney General Jerry Brown was seeking information on the firm.
It is known that attorneys general from at least three states — Georgia, California and Texas — are aware of growing doubts about Narc’s business practices.
Narc’s approach — and the approaches of its promoters — have caused even longtime proponents of multilevel marketing (MLM) to question whether the often-controversial industry had reached an all-time low and whether participants would buy into any scheme under the sun. It is clear that promoters either do not know if Narc is engaging in legitimate commerce or do not care if it is not
Narc promoter shows prospects that parking lots at the University of Nevada Las Vegas are an excellent source of license-plate data. Narc prospects in this promoter's YouTube video were given no guidance on whether the university or campus police needed to be consulted before recording the plate numbers of students, faculty and employees. The promoter said "libraries" were excellent sources of license-plate data.Â
— as long as commission checks for recruiting members keep streaming in.
As things stand, there is no way to determine if Narc is operating legally. The reason there is no way is that Narc does not reveal the names of clients, will not step out of the shadows, put an executive and attorney on TV or consent to a probing interview by a print journalist to answer the doubters and publish verifiable financial data audited by a CPA that shows inputs and outputs and the sources of revenue.
Any argument that suggests members are not entitled to this data or that the data is proprietary because Narc is a “private” company is not going to fly. The company’s promoters are saying that license-plate numbers are “public” information available for the harvesting by a membership roster of 52,000 people for the purpose of populating a database that Narc itself has said is going to be used to locate people, cars, boats and any item imaginable. That alone makes it the public’s business. Beyond that, promoters say Narc is using government databases to verify data. The assertion that Narc is using the DMVs of America’s 50 states to verify registration data gives the public a compelling reason to demand answers from the company.
Narc has a duty to tell the public through appropriate channels precisely what database it is using to cross-check data entered by members and how it is accessing the database. It also has a duty to reveal the names of its clients, explain how it screens clients, explain how it screens its data-gatherers, explain whether Narc is able to connect a car to a person when members enter license-plate numbers and explain how the data is secured.
Absent complete transparency, the privacy of every person whose tag number is entered by a Narc member is a potential casualty. It is inconceivable that Narc is empowering itself to collect your license-plate number — no matter where you park — because it has secret clients in the business of repossessing cars and there is a small chance that you are behind on your car payments or a person you do not even know parks his or her car in the same parking lot as you and is behind on his or her car payments.
This is the business Narc has chosen to enter — and the public has a compelling interest in knowing precisely how it operates.
Narc Subjecting Own Promoters To Embarrassment; Promoters, Company Blame It On Media
Narc exposed its own Atlanta-area members and prospects to embarrassment after a Fox 5 reporter showed up to a pitchfest with a hidden camera and could not get answers even to basic questions, but the company has not issued a statement that addresses the concerns in any real way and is suggesting the media is to blame.
No part of the Narc story is consistent with transparency or ordinary business practices — and the media attention likely is only now beginning. Viewers in Atlanta and Los Angeles — two of the largest markets in the United States — now have been treated to an appalling lack of professionalism in the MLM sphere, which only will fuel the public’s legitimate doubts about the industry as a whole.
Why wouldn’t the public believe the Internet is just one giant cesspool after viewing the reports on Fox here and here? If you’re a Narc fan and want to argue that Narc was ambushed, you need to know that Narc had plenty of opportunities to answer questions from journalists before they started hiding their cameras. The PP Blog, for instance, has attempted to contact Narc multiple times. The Blog is aware that other news sites have met dead ends in bids to get Narc executives and knowledgeable employees to answer questions, including NBC-5 of Dallas-Fort Worth and others.
The Fox 5 Atlanta report neatly exposed promoters’ willingness to cheer for a program, duck responsibility for their claims and then hide behind the skirt of a company when the heat became too intense.
The trouble with hiding behind Narc’s skirt, however, was that the skirt provided no cover for members. Promoters found themselves in the awkward position of taking heat for a company that did not defend them in any credible way. Narc’s skirt provided no cover at all, and yet some members merrily continue to promote the opportunity and apparently see no incongruity at all.
Let us spell it out: If you’re going to say the media must get answers from the company rather than promoters in the field, you are hiding behind the company’s skirt. And if the company does not provide the answers, you have no cover at all. This creates the appearance that the prospect of making money is the only thing you value. You certainly don’t value transparency if you’re hiding behind the company’s skirt, and the company certainly does not value transparency by ducking questions, avoiding them altogether or spinning things to create the appearance that the media are responsible for Narc’s lack of transparency.
The media are not responsible for Narc’s bad press; Narc and its promoters are. One Narc promoter created a red banner on a .org site to create the appearance that sending money to Narc was like donating to the Red Cross. Other promoters appropriated the name of the AMBER Alert program to do the same thing on a .org website. At one point the message became so impossibly butchered that a promoter urged prospects to “Help AmberAlert and other organizations find repossessed cars.â€
Some Narc members made much ado about a TV anchor referring to Narc as a “job,” but dozens of Narc members posted ads on craigslist that advertised Narc as a job. Promos for Narc have been reprehensible. One member claimed Narc would be used to help the Department of Homeland Security find terrorists. Others claimed that the FBI and the AMBER Alert program endorsed Narc.
These were blatant misrepresentations — plain and simple. If the MLM world wants the rest of the world to take it seriously, it has to quit serving up this slop and stop apologizing for its chefs and the seemingly mindless cheerleaders who cheer for the chefs even when roaches are swimming in the soup.
In the AdSurfDaily case, for instance, the Secret Service said the chef served up a Ponzi scheme. How did the cheerleaders respond? They called the Secret Service, the agency that guards the President and the Treasury, Nazis and “Satan.”
Now, amid a circumstance in which the BBB — one of America’s most recognized business organizations — has questioned whether the Narc chef is serving up a pyramid scheme that potentially affects tens of thousands of people, the cheerleaders are responding by trying to plant the seed that the BBB has a secret agenda and is infested with roaches. It is reprehensible — and it must not stand.
Myriad questions about Narc remain, including these:
Why are Narc promoters so willing to represent a company they know so little about?
Does Narc not understand that vague, ambiguous claims on its own website and its apparent unease in addressing media questions are what’s driving the story?
Why has a Narc PR spokesman not emerged to address media inquiries and become the face of the company? Why aren’t Narc executives stepping out in front of the cameras?
Why have the statements Narc has issued not explained the incongruity of insisting that license-plate data is “public” information while at once insisting the public has no right to know who its clients are, how they are being screened, how data-gatherers are being screened and how the information is being indexed and sold?
Why does Narc insist it has the right to collect your license-plate number and offer it for sale to a third party whose identity and motives are unknown to you?
Why do tens of thousands of Americans suddenly seem so willing to waltz through parking lots of major retailers to record the plate numbers of their neighbors and to recruit others to do the same — when they have knowledge in advance that troubling questions are being asked about the firm?
Why does the repo man suddenly need the help of a commission-hungry MLM army to dispossess people going through lean times?
Any chance that the “buy here, pay here” car business and the title loan business are backing Narc because the industry’s practice of approving anyone for a loan actually is driving repos?
Why are prospects so willing to hand over money when neither sponsors nor Narc itself are willing to provide information that could make the concerns go away?
How many data clients does Narc have and when did the clients become clients? How much revenue do the data clients generate for Narc weekly and monthly?
Is it possible that Narc is selling data to itself through a process in which it formed another company to become a Narc client or is relying on an alter ego of some sort or close association with another firm to create a client out of thin air?
Is Narc closely connected to the “buy here, pay here” automobile business, meaning an entity with a close association with Narc is making high-risk, front-loaded, usurious loans to disadvantaged consumers?
Is Narc closely connected to the title-loan and payday loan business?
Is Narc closely connected to the repossession business?
Does Narc have an investment angel? If so, what is the source of the money and was a private offering involved?
Is Narc making pyramid or Ponzi-style payments to members?
Narc promoter tells prospects the company was started to provide data to the Amber Alert system.
Who are Narc’s executives beyond CEO William Forester?
What are their names, job descriptions and backgrounds?
Do they have high positions in the MLM organization and rely mostly or exclusively on commissions or do they draw a salary?
Who are the members of Narc’s board of directors?
Are police officers involved in Narc? If so, are they collecting information off-duty or on-duty — and are they complying with the policies of their departments and their cities in their efforts to increase their income?
Promoters have claimed that Narc is authorized to verify license-plate data through the DMVs of all 50 states. Is that true? If so, is Narc able to view the names and addresses of vehicle owners and the makes and models of vehicles as police officers could do? If untrue, is Narc verifying the data entered by members through another process — for example, querying databases to determine if a plate number already is “taken” in a state and thus unavailable to any other party, and then concluding the plate is valid simply because it is unavailable to another party?
Is is possible that police officers are querying restricted databases on Narc’s behalf?
The parking lots of these famous companies are sources of license-plate data for Narc affiliates, according to a promoter. Whether any permission is required of store managers or motorists to record plate numbers for entry in a private, for-profit database is left to the imagination.
Are police officers and nonpolice officers alike collecting scores of plate numbers and using their supplies as incentives for people to join Narc? (The PP Blog has observed multiple instances in which Narc sponsors suggested they would supply the first 10 plate numbers to incoming recruits, thus qualifying them for an immediate payment from Narc.)
What part of the approach in the question above is consistent with an attempt to build a valid database, especially if Narc cannot verify that a “gift” plate number actually was viewed in a specific location by the recipient of the gift?
Why has Narc not publicly and loudly renounced the practice of providing the “gift” of plate numbers to incoming prospects? Can Narc tell if entire downline groups are simply trading or recycling existing plate numbers among members and instructing members and prospects to fabricate an address where the plate was sighted?
How can Narc possibly know if the cars members say were parked at a specific location actually were parked there?
What specific event occurred that caused Narc to remove a reference to AMBER Alert in a video promotion and insert the name Code Amber instead?
About Data Network Affiliates . . .
We’ll close this essay by asking a few questions about Data Network Affiliates, Narc’s purported competitor in the business of collecting license-plate numbers:
Is is possible that DNA saw that Narc’s new business of recruiting members to record license-plate numbers was resonating in the MLM universe? And did DNA then engage in a cynical ploy to build a customer base by incorporating Narc’s message — including references to law enforcement and AMBER Alert — simply because it was “working” for Narc?
DNA declares "GAME OVER – WE WIN" repeatedly in a hype-filled email pitch to announce a $10 unlimited cell-phone plan. The company had been in the cell-phone business only days when it claimed to be able to beat virtually every other competitor on earth on cell-phone pricing. Only weeks later DNA claimed it had been hoodwinked into believing it could offer such a price, removing the offer and claiming to be excited about its future.
DNA quickly backed away from emphasizing data collection after it observed Narc becoming the focus of critics who raised concerns about the propriety, safety and legality of Narc — and then DNA morphed into a sort of anti-Narc, saying it existed to help law enforcement only and would never share data with repo companies that wanted to take away cars owned by poor people.
What follows are DNA’s own words (italics added):
“DNA Affiliates STAY ALERT – They are watching out for their neighbors children. If DNA has 1 million affiliates that is 1,000,000 more people watching out for and caring about children world-wide.
“Other companies may collect data to sell to REPO COMPANIES to take cars away from many people who are just down on their luck. A single mom, a dad out of work or 100 other good reasons why good people just can not make a payment. One DNA Affiliate just had his car repossessed because he owed 3 payments and offer to pay two of them and they said no and picked up his car.
“DNA will have no part in such cases. At DNA we collect car data for one purpose and that purpose is that there is a small chance that this data in the right hands could help save a child or help prevent or solve a crime.
“We do not boast of 6 figure contracts with REPO COMPANIES. At the end of the day a DNA Affiliate knows that what they are trying to do will only be a FORCE FOR GOOD in their community…â€
DNA also positioned itself as the “free” Narc, before springing a $127 upgrade on customers to purchase a data-entry tool that worked faster than the clunker provided the “free” members at no cost. Free members were not told they were getting a clunker until the upgrade program was announced. Before long, DNA announced it was in the cell-phone business — and plenty of other businesses willing to sell products to members who thought they were joining a “free” business.
Could DNA’s approach be the most cynical, ribald effort in the entire history of MLM? And does the DNA braintrust not recognize that MLM has so many critics precisely because of the obnoxious and absurd approach of the man behind the green curtain and the men letting him get away with serving up ceaseless, hyperbolic slop?
In our view, DNA is the worst example of wretched excess the MLM trade has ever served up — and Narc is close on its heels for enshrinement in the Hall of Shame. To be sure, Narc is not the next Google, DNA is not the next anything — and the industry has demonstrated once again that many, many of its members think that trite talk about arks is the same thing as building one.
Fox News 11 in Los Angeles visited YouTube to collect information for an investigative report on NarcThatCar, also known as Crowd Sourcing International.
A company that recruits members to record the license-plate numbers of cars for entry in a database now has drawn the attention of the attorney general of California, Fox News 11 in Los Angeles is reporting.
Although it previously was known that Texas Attorney General Greg Abbott was working with the district attorney of Henderson County, Texas, in a Narc inquiry, Fox News 11 became the first outlet to report that California Attorney General Jerry Brown also is seeking information on the firm.
Narc That Car, which recently changed its name to Crowd Sourcing International, was the subject of an investigative report by Fox 5 in Atlanta last week. The Atlanta station interviewed Georgia Attorney General Thurbert E. Baker, who raised questions about the manner in which Narc purportedly was verifying license-plate data through the state’s Department of Driver Services. The station shared video with the Fox station in Los Angeles, which has video from its own investigation into Dallas-based Narc.
As part of its Narc report, Fox News 11 (Los Angeles) aired video from a YouTube sales promo by former Narc promoter Jeff Long, who jumped ship earlier this year and threw in his lot with Data Network Affiliates (DNA).
It is possible that DNA could become part of any government probe that evolves in California, Texas or Georgia because the firms are known to have promoters in common and because of claims made by promoters.
DNA, which uses a Cayman Islands address in its domain registration and a free gmail address from Google to conduct customer service, purportedly is a competitor of Narc. Long started out by pitching Narc, instructing prospects in a YouTube video to record plate numbers on their cell-phone cameras as they strolled through Walmart parking lots, according to his YouTube video.
But Long then switched to promoting DNA, according to the YouTube site.
“This video talks about NARC That Car… 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 on 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!” a screaming message on the website says.
Long, who reportedly went on to become DNA’s largest affiliate, participated in a DNA conference call to tout Narc’s supposed competitor. DNA, which gained a reputation for authoring bizarre communications, suddenly then announced it had gotten into the cell-phone business and was offering an unlimited talk and text package for $10 a month.
Even Dean Blechman, DNA’s former CEO, described some of the communications authored by the company as “bizarre.” Blechman quit in February after only a few weeks on the job. DNA waited nearly a week to announce his departure, then butchered the announcement, Blechman said in an interview with the PP Blog.
DNA claimed on April 26 that it had been snookered into believing that it could offer an unlimited cell-phone usage plan for $10 a month and withdrew the offer. The withdrawal — and the ceaseless hype that has emerged from DNA — has led to questions about what, exactly, the company is offering and whether it was engaging in bait-and-switch tactics.
Questions also have been raised about the worth of both the Narc and DNA databases. Long, for example, said he gathered extra license-plate numbers and offered them for free to prospects so they could qualify for their initial multilevel marketing (MLM) payouts by entering data he supplied.
Other Narc promoters have used the same approach, which could lead to a polluted data stream. If a promoter in Florida supplied plate numbers to a prospect in Alaska, for example, it could lead to a result in which a car sighted in Florida was listed in Narc’s database as having been sighted in Alaska — or any state the prospect chose.
Such an approach could undermine Narc’s claim that it exists in part to assist law enforcement and the AMBER Alert program for missing children. Experts say corrupt or untimely data actually could hinder efforts to locate abducted children, and the Justice Department, which manages the AMBER Alert program, has denied it has any affiliation with Narc — despite promoters’ claims to the contrary.
Even if a Florida sponsor, for example, provided an accurate address at which a car was sighted, the mere fact an Alaska prospect was asked to input the data as though he or she actually had seen the car in Florida leads to troubling questions about whether Narc members were simply gaming the system to earn commissions.
And there may be other questions in any probes that emerge: Are police officers — off-duty and on-duty — helping Narc and DNA collect data? If the officers are collecting data on-duty, is it an appropriate use of their time? If they are collecting data off-duty, are they participating in a pyramid or Ponzi scheme?
Not a single Narc promoter interviewed by Fox 5 in Atlanta could identify a single data client of Narc. Narc itself says its clients identities are proprietary, but the Better Business Bureau, which gave Narc an “F” rating, has received thousands of inquiries on the company. The BBB also said it is concerned about Narc advertising claims.
Some promoters have claimed the firm was endorsed by the FBI and the Department of Homeland Security. Others have claimed it was endorsed by AMBER Alert. Narc removed a reference to AMBER Alert from a sales video after the Justice Department denied it had any affiliation with the firm.
Still other promoters have used craigslist to pitch Narc as though the company were a jobs-provider, rather than an MLM opportunity in which members are independent contractors reliant on their ability to recruit new members to make money. Some members even have started .org websites, as though joining Narc was the same as donating to a charity.
Reckless advertising claims have led to questions about whether both Narc and DNA had come into possession of money as a result lies told by promoters. The claims also have caused some MLM observers to wonder if the industry had reached a new low. Despite the uncertainty about both Narc and DNA, promoters are in the field recruiting members. DNA now says its has more than 125,000 members.
Using language with which followers of the long-running AdSurfDaily Ponzi/pyramid-scheme saga will be familiar, Data Network Affiliates (DNA) has declared its license-plate data program a “loss leader.”
Meanwhile, the company declared it has “no competition” and that members will come to understand its advertising claims are true once it rolls out three-fourths of its program.
“NO ONE or NOTHING could even come close to where we are or where we are going,” the company said in an email laced with sentence fragments and fractured syntax. “When 75% of The D.N.A. Opportunity is fully released. You will know why this statement is more than 100% accurate.”
DNA, a multilevel-marketing (MLM) company, did not say how a statement could be more than 100 percent true. Nor did the company explain why members would not be able to determine it was telling a truth that exceeded 100 percent until 75 percent of the program was released.
At the same time, DNA said “it expects” to pay out more than “$100,000” in “PRO” commissions April 5, adding that the addition of “3rd party” affiliates made it “believe” commissions would “grow to over $1,000,000 (one million weekly).”
Although DNA previously said it has recruited tens of thousands of affiliates for its “free” program that asks members to write down license-plate numbers for entry in a database as a means of helping the “Amber Alert” program recover abducted children, the company now suggests its data may not be all that useful.
“Currently the #1 benefit for D.N.A. collecting such DATA is the small and hopeful chance that it may help save a child or prevent a crime,” the company said in the email.
In a previous email, DNA acknowledged it had erected barriers that made it more time-consuming for “free” members to enter information in the database. The barriers can be removed by paying the company a one-time fee of $97 and a monthly fee of $29.95 for the right to use what the firm describes as a “PRO†data-entry module.
The “PRO” module, DNA says, makes “DATA ENTRY simpler, easier, faster and less time consuming.â€
DNA noted that it was selling other products for which it would pay commissions, including a “$35 to $50 bottle of NUTRITIONAL JUICES at a $10 price” and a “$35 to $50 bottle of LOTIONS & POTIONS at a $10 price.”
In a separate email, DNA said members who came into the company for free because of the license-plate program have nothing about which to complain.
“We receive over 50 e-mails a day saying why did you change from “FREE,’” DNA said. “FACT we have not changed anything from our original ‘FREE’ opportunity except to go from up to SIX LEVELS OF PAY ‘TO’ up to TEN LEVELS OF PAY.
“A person may still sign up as a FREE Affiliate and enter their TWENTY CAR TAGS,” DNA continued. “It will take 5 Minutes per Tag entered since advertising partners is our main source of income from DATA ENTRY. (PRO Affiliates create other sources of income so their per tag data entry time is only 30 to 60 seconds per car tag.[)]”
DNA encouraged members to “be positive.”
Details about how DNA has tied its free data-entry program to “advertising” partners are unclear. Also unclear is why the original group of thousands of members weren’t told when they were signing up for free — while perhaps relying on DNA’s assertion it could help the Amber Alert program — that the company intended to treat the data-entry program as a “loss leader” and make it harder, not easier, for free members to enter data.
Tens of thousands of free affiliates registered for DNA before the “PRO” data-entry module, which comes with an up-front cost of $126.95 and a monthly cost of $29.95 thereafter, was announced.
Using a largely all-caps presentation, DNA said the sky was the limit.
“D.N.A. is so much more than CAR TAG DATA,” the company said. “Many have said it but only one will do it. We will do in 3 to 5 years what took AMWAY 50 YEARS. Here is a partial list of current and future opportunities with D.N.A.
“LOCAL, NATIONAL & INTERNATIONAL ADVERTISING; GOLD FOR CASH; CELL PHONES FOR CASH; LAPTOPS FOR CASH; DIRECT TV; THE DISH NETWORK; SECURITY SYSTEMS; CREDIT REPAIR; DEBT REDUCTION; INTERNET SALES SYSTEMS; 1000’s OF DISCOUNT PRODUCTS; 1000’s OF DISCOUNT SERVICES; ONE STOP SHOPPING; HEALTH BENEFITS; DENTAL PLANS; LIFE INSURANCE; WHOLESALE AUTO BUYING; WHOLESALE TIRES; DISCOUNT DRUGS; TRAVEL and MUCH MORE…”
In the context of MLM, “loss leaders” can be dicey. In August 2008, federal prosecutors referenced AdSurfDaily’s use of the “loss leader” claim in a forfeiture complaint that seized more than $65.8 million from the bank accounts of ASD President Andy Bowdoin.
“In a further attempt to make Bowdoin’s business mode sound legitimate, [ASD attorney Robert] Garner describes ASD rebates as ‘function[ing] something like ‘loss leaders’ in that advertisers are presented [with] a way[ ] to earn their money back, plus a little more, in addition to having their ads viewed on the internet.
“[Undercover agents] have not found any other product or service that ASD sells, aside from new memberships, to cover the ‘losses’ it incurs by allowing its so-called ‘advertisers to ‘earn their money back, plus a little more.’”
DNA has not been accused of wrongdoing. Whether the company has sufficient revenue streams to defeat a pyramid challenge — if one emerges — is unclear. Also unclear is the number of affiliates who signed up for free and then opted for the “PRO” data-entry module.
What is clear is that DNA knows the famous Emma Lazarus sonnet, “The New Colossus,” which is mounted on the pedestal of the Statue of Liberty. The company has its own take on it:
“Give D.N.A. your MLM tired, your MLM poor, your MLM people who are sick and tired of being sick and tired, your huddled masses yearning to breathe free, the wretched refuse of your teeming shore,” DNA said in its email to members. “Send all of these, all who could not make it where they were, the homeless, tempest-tossed to D.N.A. as we lift our golden opportunity for free to all.”
Another MLM company in the license-plate recording business — Narc That Car — is the subject of an inquiry by the Better Business Bureau in Dallas to substantiate advertising claims and determine if the company is using a pyramid model to pay members.
The BBB now notes that Narc That Car is using the name “Crowd Sourcing International” — or “CSI” for short.
Other names associated with Narc That Car include Narc Technologies Inc. and National Automotive Record Centre Inc.
UPDATED 4:48 P.M. EDT (U.S.A.) We’ve been writing about Narc That Car (NTC) and Data Network Affiliates (DNA), two multilevel-marketing (MLM) firms that recruit people to write down the license-plate numbers of cars for entry in a database. The information purportedly is or will be sold to companies in the business of repossessing automobiles.
Neither NTC nor DNA affiliates appear to receive formal training on the propriety, safety and legality of recording plate numbers or any training on the repo business itself — even though they suddenly are part of the repo industry’s information supply chain.
Affiliates for the companies are independent contractors. They use their own vehicles to arrive at places such as Walmart, doctors’ offices, universities, schools and other places cars are parked in a group, and have been instructed by promoters simply to start writing down plate numbers or recording them with video cameras and cell phones for later entry in a database.
Some affiliates have instructed others to behave inconspicuously, which has fueled concerns that the firms are operating as a sort of private Big Brother and are not interested in operating in the plain light of day because the business of recording plate numbers would attract too much attention.
Affiliates’ promotional efforts have focused almost exclusively on how much money can be made by recording plate numbers and recruiting others to record plate numbers. There has been little — if any — training on issues such as whether affiliates need the permission of store managers to record plate numbers on private property, how to behave if confronted by retailers, shoppers and police, whether solicitors’ licenses are required in individual jurisdictions, whether additional insurance protection is required or recommended, whether the videos recording plate numbers should be preserved, whether handwritten notes should be preserved and whether affiliates need to secure a bond, let the police know they are recording plate numbers and make themselves available as witnesses if the information they record later becomes part of an investigation or court case.
Repo cases sometimes lead to spectacular, costly litigation, criminal and civil cases and monumental pain for plaintiffs and defendants. Some litigation has evolved as a result of deaths linked to incidents involving repossessions. Other litigation has evolved because repo agents were alleged to have broken laws.
Unanswered Questions
Paying people to write down license-plate numbers and providing an opportunity to earn additional income by recruiting others to do the same thing is a new business that has surfaced in the context of MLM. Many questions are unanswered:
Who pays if an NTC or DNA affiliate suddenly needs an attorney? Who pays if an NTC or DNA affiliate wrecks his or her car while recording plate numbers and did not tell the insurance company the car was being used for a commercial purpose? Who pays if an NTC affiliate causes a wreck? Who pays if an NTC or DNA affiliate gets struck by a car that is passing through a parking lot or backing out of a space while the affiliate is preoccupied with recording plate data? Who pays if an NTC or DNA affiliate gets involved in a fight with a person who does not want his or her plate number recorded? Who pays if a repo case ends up in court and the repo target subpoenas NTC or DNA or forces discovery to learn how the companies came in possession of the information on where the car was parked? Who pays if a privacy lawsuit gets filed or a lawsuit emerges out of any other context of the NTC and DNA business models?
Some companies that have the need to repossess cars also are in the business of title loans, meaning they finance cars for people with poor credit, arrange weekly or monthly payments and use the vehicle’s title as security to guarantee repayment. The repo man for title-loan companies comes if payments are not made. Banks and other traditional lenders also use repo men.
Context Of Repo Business Vague Or Lacking In Presentations By NTC And DNA Promoters
Three days ago we wrote about “Rena the Realtor,” the mythological borrower depicted and demonized in a video ad for NTC. “Rena,” a blond, blue-eyed, white woman with perfect teeth, presumably overspent to purchase a trophy car to impress her real-estate clients. When she missed her payments, a repo company was able to seize the car — thanks to a mythological NTC member named “John,” also white, who was depicted as having the bearing of a cop.
Implicit in the video was the message that repping for Narc That Car was like being a cop and that NTC affiliates should not feel sorry for “Rena,” who had the money to work out at a gym but not to pay for her car, which she had hidden from the repo man.
Real-life “Renas” do exist, of course — but “Rena’s” depiction as a young, white, single, ambitious Realtor presumably able to qualify for traditional financing who starts hiding her trophy car from the repo man (presumably not parking it at home or her workplace) when she’s not using it to shuttle herself to the gym — may not reflect the experience of a broad set of customers targeted in repo actions, which for the most part are not supervised by law enforcement and the courts.
In real life, people of all races start missing car payments for all sorts of reasons: sudden and unexpected job losses, medical crises, illness, divorce. All of these things can cause a swift descent into poverty.
Is it true that some people buy trophy cars to impress clients and almost immediately find themselves unable to make their payments? Yes. But it is equally true that legitimate misfortune typically plays a role in repo cases — and that people who have their cars repossessed are friends, neighbors, family members and acquaintances who have no ill intent.
Repo Agents Are Not Cops
There have been claims that repo agents have “pulled over” cars as though they were cops, treated subjects of repos as though they were prey and threatened repo subjects with “jail.” Some repo agents have been charged with crimes and put on trial amid allegations they broke the law while repossessing cars. Not all repo agents behave officiously or reprehensibly, but to pretend there is not a Wild West element in the repo business is to discard the truth.
NTC’s mythological “John” recorded “Rena’s” plate number after exiting a hair salon. “Rena” worked out at a gym near the salon. The clear message of the video was that “John” was performing a civic duty that resulted in a happy ending for the company that retrieved its collateral as a result of NTC’s man in the field.
Writing down license-plate numbers was portrayed in the video as fundamentally a carefree and easy business — just another way to make money while performing a critical service. Dollar signs were superimposed over cars in the video.
Sometimes, though, the endings in real-life repo incidents aren’t happy. Heavy machinery is involved. Emotions are involved (on both sides of a repo transaction). Children sometimes are involved. Uncertainty is involved. Unlicensed people (sometimes people with criminal records) are involved. Safety often is ignored.
Repo companies sometimes engage in activity that can be described as prowling late at night on private property or exercising police powers they do not lawfully possess. People sometimes get killed, injured and traumatized. African-Americans and other minority groups have been among the victims of repo cases run amok.
National Consumer Law Center Describes Underbelly Of Repo Business
Screen shot: A report by the National Consumer Law Center notes episodes of violence and instances in which children were towed away in repossessed automobiles in these Midwestern states and other states across the United States..
Six people have been killed in the United States since 2006 in incidents involving the repossession of automobiles. Dozens more have been injured, traumatized or arrested. Children have been hauled away by repo men. Rifles, shotguns, pistols, fists and the cars themselves have been used as weapons — against both the target of the repo and the repo agent.
So says a new report by the National Consumer Law Center (NCLC), a nonprofit advocacy group that concentrates on consumer justice and fair treatment for people “whose poverty renders them powerless to demand accountability from the economic marketplace.”
Poverty and questionable or nonexistent due process often are factors in repo cases, NCLC says. Borrowers who lack access to traditional financing channels may turn to to “buy here, pay here†car dealers.
“Not a single state guarantees automobile owners a day in court before a repossession,†said John Van Alst, a lawyer for NCLC and principal author of the report. “Only a handful of states have even minimal consumer protections such as requiring that repo agents have licenses, bonds or insurance.â€
NCLC’s footnoted report chronicles repo cases that have ended in misery for both the subjects of repos and the repo agents.
“What we have now is vigilante repossession run amok,” said Rosemary Shahan, president of Consumers for Auto Reliability and Safety (CARS), a nonprofit organization that advocates for consumer safety and against auto fraud and abuse.
NCLC is calling for states to enact “laws that would require secured lenders to obtain court
orders or at least provide consumers minimal due process prior to seizing automobiles.”
In addition, NCLC says, “states should require that such repossessions, when authorized by courts, be done by sheriffs, police or other law enforcement officials.”
Here are a few of the NCLC’s observations in a March 2010 report titled “Repo Madness”:
Self-help repossession makes automobile loans dangerous — especially for low-income
consumers and others who purchase cars from “buy here pay here†dealer-lenders who promise easy terms but frequently resort to tough tactics to extract payments from borrowers.
Self-help repossession stacks the deck in favor of lenders and dealers. They regularly seize cars without having to prove or even substantiate their claims.
Because self-help repossession does not require a lender to go to court to show it should be allowed to take a car, a car owner usually faces the daunting prospect of bringing a court action after repossession to show he or she is entitled to get their own car back. Without any procedure to ensure due process prior to repossession, a car owner has no opportunity to assert claims or defenses that might entitle him or her to keep possession of the car. Working families, typically without access to a lawyer, often are unable to initiate a court case on their own to get back a repossessed car. Too often, a family is left without a car and unable to afford a replacement.
The current system, unfair to families subject to repossession, also endangers repo agents, other car owners and bystanders. With most repossessions occurring without the involvement of law enforcement, parties often assert their rights in a sort of vigilante justice.
The NCLC report spotlights a number of cases, including the case of a 17-year repo man who pulled over a car targeted for repo by flashing his high beams while driving an ordinary automobile occupied by four teen-aged boys and the youthful repo man’s 20-year-old brother. The target vehicle was a Ford Focus driven by a 25-year-old woman who had purchased the car three months earlier at a “buy here pay here†dealer.
Inside the Focus were the driver, her boyfriend and their five-year-old daughter. The driver, confused and frightened, stopped her car. The youthful repo man approached the car on foot, reached through a window that was partially open to hand the woman paperwork and shift the car into park. The woman drove off, and stopped at a red light. The incident occurred in Massachusetts.
At the red light, another person exited the car driven by the youthful repo man and stood in front of the woman’s Focus. The woman, Sara Bradley, drove off again, and the person standing in front of her “jumped on the hood” and remained there while Bradley drove to the police station.
Bradley’s boyfriend gave this account: A “boy” ran up to the car and barked, “We’re taking your car, and you’re going to jail.†Bradley, meanwhile, described her encounter with the repo man this way, “It was exactly like a car-jacking,†NCLC reports.
No one was killed during the encounter. Two of the repo men — brothers Michael and Robert Simeone — were charged criminally in 2007. They were acquitted last year after nearly two years of living under indictment.
Although the repo men were acquitted, they spent months living under a cloud.
Clouds are not uncommon in the repo business.
“Self-help repossession poses a threat to consumers in every state,” NCLC says.
A case of mistaken identity in Texas led to the repossession of the wrong car, which was towed away with two boys — six and 10 — inside, NCLC reports.
“Only after noticing that the engine was running in the repossessed SUV did the repo man discover the children, and return them to their tearful mother,” NCLC says.
Meanwhile, in a Maryland suburb of Washington, D.C., a 36-year-old man was shot to death after a police dispatcher did not send officers because the victim’s 911 call was treated as a report from a man whose car was being repossessed, NCLC reports.
In 2006, the victim was awakened by the sound of his car alarm, NCLC says. He peered outside and observed his car being hooked up to a tow truck. The victim, Raymond Scott Brown, who was not behind on his car payments, called police to report a theft-in-progress.
“[I]nstead of sending help, one of the [police] operators asked twice whether Brown was late on his payments and whether the car was being repossessed instead of stolen,” NCLC reports. “After barely a minute of conversation, the 911 operator told Brown to ‘call back within two hours’ to find out which tow company had taken his car and why.”
Brown and his wife were reluctant to do nothing, and he and his wife hopped into her car and followed the tow truck. The tow truck was stopped at the side of the road, with the car attached, and Brown approached the truck to explain to the driver that a mistake had been made.
“[A] pistol shot struck him in his chest and mortally wounded him,” NCLC says. “As his wife rushed to his side, the tow truck drove off — with Brown’s car still attached.”
Elsewhere, Jimmy Tanks, 67, was shot and killed by a repo agent in the tiny, predominantly
African-American town of Lisman, Ala.
Kevin Alvin Smith was charged with murder. He is claiming the shooting was in self-defense.
Tanks owed “$10,400 on a car with a ‘loan value’ of $7,400,” NCLC reports, citing an affidavit filed in the case.
The shooting occurred in the middle of the night, NCLC says. Tanks was a retired railroad worker who got married only two weeks before his death.
James Lovette, the sheriff of Choctaw County, said in an interview that Tanks, whom he knew, got “killed over a durn car,â€Â NCLC reports.
You might find yourself a rank amateur in the new business of writing down the license-plate numbers of your neighbors for entry in a database if you don’t pay Data Network Affiliates (DNA) a one-time fee of $97 and a monthly fee of $29.95 for the right to use what the firm describes as a “PRO” data-entry module.
News about the “PRO” module began to spread yesterday, only days after DNA told members who listened to an “Oscar” night conference call that the company’s “free” affiliates would “receive the same kind of commitment and respect from our DNA management team” as paid members received.
Whether the company’s current membership roster of 69,000 — all members of which were targeted in ads and presentations to join DNA for free — will consider the appeal for them to reach into their pocketbooks for $126.95 an example of commitment and respect to free members is unclear.
The “PRO” module is part of what the company is dubbing the “Business Benefit Package” (BBP), which DNA described as an “awesome” value.
“Upon close inspection of the B.B.P. you will find a minimum of 10 times the cost of such package to the end user in value savings and benefits,” DNA said in an email to members. “The two that stand out the most is (sic) the FREE 1000 REWARD DOLLARS with FREE REFILLS and the $402 Travel Agent Value Package for only $49.”
Indeed, DNA is cross-pollinating the data-entry portion of its business with other opportunities, according to the email.
The “PRO” module is included in the BBP upgrade package “at no additional charge . . . to make DATA ENTRY simpler, easier, faster and less time consuming,” DNA said.
DNA’s “free” members may remain as such or get started with the BBP package for an initial outlay of $126.95, including the one-time fee of $97 and the monthly fee of $29.95.
DNA described the free data-entry module as a clunker, compared to the “PRO” module, which the firm asserts has bells and whistles and crunches information faster.
Here is how DNA described the benefits of the upgrade package (italics added):
With PRO Upgrade Software an entry takes up to 1 minute. Without takes up to 3 to 5 minutes.
With PRO Upgrade Software you may repeat address for entry with a click of a button. Without you need to re-enter all address data manually.
With PRO Upgrade Software many fields will be already filled in. Without you need to re-enter all address data manually.
With PRO Upgrade Software you may enter as many entries as you wish at one time. Without you are limited to 5 entries per day.
With PRO Upgrade Software you may enter data for others who also have PRO Upgraded Software. Without you can only enter for yourself and not receive any entries from anyone else who may wish to help.
DNA’s email yesterday also implied that it might not be able to trust some of its own members who entered license-plate data. The company, a multilevel-marketing firm that does not have a contact form on its website and uses an address from Google’s free gmail service as its support address, urged its data-collectors in the field to be honest.
“WARNING,” the company blared in yesterday’s email. “Anyone caught entering bogus tag data information will be automatically suspended from D.N.A. pending a 30/60 day review. We are not talking about a possible error or a potential mistake. We are talking about outright fraudulent entries. You may say who would do such a thing. We say hopefully no one.”
The company did not explain why members caught entering “outright fraudulent” data or “bogus tag data” would merely be suspended pending a review that could take up to two months, rather than banned immediately for life and reported to the police for a criminal attempt to defraud the company.
DNA pitchmen have described the parking lots of major retail stores, churches and doctors’ offices as excellent places to record license-plate numbers. Implicit in the pitches is the suggestion that license-plate data is public information available for the taking from virtually any venue by any DNA member.
Some DNA promoters have suggested that the company’s plate-recorders should behave “inconspicuously” when writing down numbers with a pen and pad or taking pictures of them with cell phones and video cameras for later entry in the database.
The claims have sparked privacy concerns that the data could be used to create profiles on the movement of people. If the data is sold to a company in the business of repossessing automobiles, for instance, the repo man might be able to determine where a car owner shops, receives medical treatment, picks up prescriptions for medicine, receives psychological or spiritual counseling and visits for any purpose under the sun.
Billed as the “Oscar” night presentation because it coincided with the Academy Awards, a conference call hosted by Data Network Affiliates (DNA) lasted for a total of roughly 32:10.
Almost all of the call — about 28 minutes — consisted of hype. (Looking it as a percentage, about 87.5 percent of the call was hype.) Roughly the first three minutes were consumed by people announcing their presence on the line, with the encouragement of a pitchman. The balance of the call largely consisted of hype from two DNA pitchmen, with discussion of issues such as privacy concerns spoken about only indirectly through a reference to Google.
One of the pitchmen made the broad point that Google collects data. DNA says it collects the license-plate numbers of cars for entry in a database. The parallel between what Google does and what DNA does was not made clear in the call, and the pitchman appeared to be trying to make the point that data collection was just a part of life.
The same pitchman — in a previous call — described the parking lots of giant retail stores, churches and doctors’ offices as sources of license-plate data. Those comments, coupled with claims by other DNA promoters that have ignored privacy and other concerns or pooh-poohed them — are among the things fueling critical commentary about the firm.
When Kurek came on the “Oscar” call at roughly the 21:30 mark after more than 18 minutes of hype by the pitchmen, he spoke for about four minutes, covering his business experience that previously had been covered by both pitchmen.
The balance of the call was more hype. No issues raised by critics on matters such as the propriety, safety and legality of DNA were addressed directly. Kurek did say he had experience with companies that maintained private data and that his business experience had taught him about “accountability” and “organization.”
Kurek did not participate in the hype. He thanked members for listening in — and the thanked the pitchmen and DNA’s 63,000 affiliates.
“My true talent is also finding the right people to get the job done,” Kurek said. “I truly believe we’ve assembled the best MLM minds in the world.”
His vision, he said, was to provide services and benefits never before thought of. Kurek spoke with an even voice throughout his time on the line. He did not address comments made last week by Dean Blechman, DNA’s former CEO, that the company had a “back door guy” within its operation and that some communications put out by the company were “bizarre” and misleading.
Because the lines were muted, no caller asked a question. Neither the pitchmen nor Kurek solicited listeners to ask questions during the call. After the call ended, several issues were left dangling, including whether Phil Piccolo somehow had become involved in DNA.
Piccolo is a lightning rod for MLM critics.
Blechman did not rule out last week that Piccolo was involved. When pressed for a definitive answer, Blechman suggested that one could be forthcoming.
Piccolo is the subject of considerable scorn online. Whether he is part of the company remains unclear, and rumors of his involvement continue to swirl.
In other DNA news, some affiliates of the company appear to be pulling their ads from craigslist. Other craigslist ads by DNA affiliates have been labeled “flagged for removal.” Still others have expired.
Some craigslist ads remain. One of them — dated Feb. 26, two days after Blechman’s departure as CEO — is posted in Los Angeles. The ad claims that its contents came from a DNA “press release” dated Feb. 25.
“A very high powered CEO with Public Company Experience is stepping up to the plate with exciting plans being put into place to make D.N.A. one of the most powerful Viral Affiliate Marketing Companies in the U.S.A. and around The World,” the ad reads.
“The D.N.A. company is signing a MEGA MILLION DOLLAR DEAL with a publicly known industry giant. Between this agreement being sign and the D.N.A. Top Secret Product being announced on March 27th, 2010. D.N.A. is positioning itself to be Global Giant.”
Blechman noted last week that the company did not announce his Feb. 24 departure until March 2. He questioned why the company had waited so long.
At roughly the 3:26 mark of the call, one of the pitchmen said, “I mean, I gotta tell ya, if they were giving out some Oscar awards in multilevel marketing, or, you know, something special, I believe DNA would definitely get something tonight.”
The Oscar awards, of course, are for proficiency in acting.