A company under investigation in South Carolina amid allegations it sold unregistered securities now is under investigation in Florida.
The Florida Office of Financial Regulation (OFR) confirmed the probe into PPE-Life this morning.
“OFR has an open investigation [regarding] PPE-Life and its principals at this time and cannot go into any additional details,” said Flora Beal, an OFR spokeswoman.
OFR enforces banking, securities and financial laws in Florida.
Last month, South Carolina Attorney General Henry McMaster ordered PPE to “cease and desist” from selling securities and collecting money in the state. The South Carolina Securities Division opened a probe May 14 amid reports the company was holding recruitment meetings in Sumter, S.C.
Attendees at a meeting in a hotel about five miles away from Shaw Air Force Base were told PPE was the marketing arm of an unspecified “international bank.”
When asked to identify the bank, John Barter, a PPE principal, responded that “I am the bank,†authorities said.
South Carolina has had a problem with financial schemes targeted at military personnel and people of faith.
Web records show that recruiting efforts for PPE were not limited to sit-down meetings. Online efforts to recruit members date back at least to January and feature images of a bull and a bear and commentary on celebrated stock trader Warren Buffet.
Buffet is not believed to have any tie to the PPE.
Florida records identify Barter, Walter Martin, Terry Beyer and Janet Palmer as principals of the Ocala-based company. PPE-Life’s corporate registration was filed April 29, at least three months after recruitment efforts began, according to records.
At the same time, a web-based promotion for the firm identified it as “the marketing arm of ppe bank international.”
No such entity appears to have been registered in Florida despite the apparent implementation of a web-based, recruitment-feeder system for PPE-Life in January.
“what does this mean to you?†a classified ad for PPE asked in January. “this means that you can receive a paid position in this ground floor global opportunity for only $66 (one-time) not $599 (one-time). for $66 one- time, you will join a group of experienced entrepreneurs in a simple, forced 2×2, three-phase feeder system that will generate a third phase payout of $1,840. $599 of your $1840 will be used to to pay for your independent associate membership in ppe life.”
Records in Florida show that a financial judgment of $295,785.14 was placed against Barter and Janet Palmer — both principals of PPE — in October 2009, about three months before recruitment efforts for PPE appear to have become active online.
A video promotion for PPE-Life, which is facing a challenge for allegedly selling unregistered securities in South Carolina, references Warren Buffet. Buffet, the chairman of Berkshire Hathaway, is a legendary stock trader. He is not believed to have any tie to PPE. The reference to Buffet as a "game changer" — and images of a bull and a bear — may make it harder for PPE to argue it is not selling securities as the South Carolina litigation proceeds. A PPE prospect or prosecutor reasonably could ask, "If PPE is not selling an investment, why does a video promo reference Warren Buffet and include images of a bull and bear?" Images of bulls and bears are inexorably linked to the investment business
While securities regulators in South Carolina say a murky business known as PPE-Life recently has been holding recruitment meetings in the state, web records suggest that online recruitment efforts actually got under way months ago in anticipation of the company’s launch.
Efforts to promote PPE appear to have begun in January, at least three months prior to PPE’s corporate registration being recorded in Florida and despite the fact virtually nothing was known about the firm’s business practices and business mix.
At the same time, some promoters of PPE-Life appear to be building downlines by using a video that features narration about celebrated investment strategist Warren Buffet. The video is potentially embarrassing — if not problematic — for PPE because the company is facing a challenge in South Carolina amid allegations it is selling unregistered securities.
Because Buffet — who is not believed to have any tie to PPE — is one of the foremost investment experts in the world, prospects and prosecutors alike reasonably could ask why his name is referenced in promotions for PPE if the company is not in the securities business. They also could ask why his name is referenced at all if Buffet has no tie to PPE.
On Tuesday, the office of South Carolina Attorney General Henry McMaster described PPE-Life as a Florida company reluctant to provide details about its business, including the name of an unspecified “international bank” with which it purportedly is affiliated. McMaster ordered the company to cease and desist from selling securities and collecting money in the state.
Advertisements and web records dating back to January, however, described PPE-Life as the “marketing arm” of an entity known as “PPE Bank International.” No such entity appears to have been registered in Florida, although a corporation named “PPE-Life Inc.” was formally registered on April 29, about three months after recruitment ads referencing both PPE-Life and PPE Bank International began to appear online.
Other online references to PPE describe it as an “Agent with an offshore Lending Institution.”
When John Barter, a PPE officer, was asked at a May 20 recruitment meeting in Sumter, S.C., to identify the bank, Barter allegedly responded that “I am the bank.â€
“Barter did not identify any bank and provided no evidence any such bank existed, but instead asserted, ‘I am the bank,’” according to South Carolina securities regulators.
A domain name — PPELife.com — also was registered in January. The domain redirects to a website that displays a video. A message that reads “PPE Marketing welcomes you!” appears in the upper-right corner of the website, and the video includes images and commentary about NBA legend Michael Jordan and Microsoft Chairman Bill Gates, along with an image of a bull and a bear and narration about Berkshire Hathaway Chairman Warren Buffet.
“Warren Buffet didn’t invent the stock market,” the video’s narrator intoned. “He changed the game of investing.” Gates was described as having changed the game of technology, and Jordan was described as having changed the game of basketball.
It is not believed that Buffet, Gates and Jordan have any tie to PPE.
It is common for multilevel-marketing (MLM) companies and affiliates to use images of celebrities and captains of industry in web promotions — even if the individuals depicted in photographs and mentioned by narrators have no connection to the business opportunities being advertised.
The video appears to be a recruitment video to help participants build downlines in PPE and other programs. Although PPE’s name is not mentioned in the video, it is possible that the references to Buffet and Gates could put PPE in the position of explaining why promoters are spotligting the names of individuals associated with publicly traded companies if PPE is not in the business of selling securities. Meanwhile, the images of bulls and bears are inexorably tied to investment opportunities.
“Ppe life is the marketing arm of ppe bank international. as a result of this marriage, banking has gone mlm!”
The ad further claimed that PPE had chosen a service-provider for a recruitment feeder system.
“what does this mean to you?” the ad asked. “this means that you can receive a paid position in this ground floor global opportunity for only $66 (one-time) not $599 (one-time). for $66 one- time, you will join a group of experienced entrepreneurs in a simple, forced 2×2, three-phase feeder system that will generate a third phase payout of $1,840. $599 of your $1840 will be used to to pay for your independent associate membership in ppe life. as an independent associate of ppe life you will receive: *a mastercard or visa credit card with a $1,000 limit (without a credit check)… *a monthly subscription to ppe lif …”
The final words of the ad appear to have been cut off.
Web records suggest that PPE affiliates are using at least two different feeder companies to build downlines in PPE. The presence of the feeder system suggests PPE’s recruitment efforts may be more widespread than initially believed, crossing both domestic and international borders.
McMaster’s office said Tuesday that people who attended a May 20 PPE sit-down meeting in South Carolina were asked to pay $599 as an “initial membership fee†and a $50 per month “maintenance fee†thereafter. Attendees further were advised that returns of “up to $440,000 per year†could be earned through PPE.
Attendees also were told they’d become eligible for loans at a “significant discount†and that funds collected from participants would be used to purchase “debentures earning 40% to 50% interest.â€
People who signed up were told they could earn “1.5% of loan payments on loans made to any members who subsequently join[ed] PPE†and also would receive a “free†credit card with a $1,000 limit, authorities said.
A mysterious, upstart company registered as a corporation in Ocala, Fla., has been ordered by the attorney general of South Carolina to stop selling securities and collecting money in the state.
Attorney General Henry McMaster ordered the company — PPE-Life Inc. (PPE) — to “cease and desist” after the state’s Securities Division opened a probe May 14 amid reports the company was holding recruitment meetings in Sumter, S.C. Sumter, a military town, is home to Shaw Air Force Base.
PPE held a meeting at a hotel about 5 miles away from the base May 20, according to records. It was unclear if members of the military were in attendance, but South Carolina has had a problem with fraud schemes targeted at military members and churchgoers.
Two PPE representatives were named in the cease-and-desist order: John Barter, who is listed as an officer of the firm in Florida records, and Rick Crocker. Barter’s address was listed as Ocala, and Crocker’s was listed as Wilmington, N.C.
Investigators said people who attended the May 20 meeting were told that PPE was the marketing arm of an unspecified “international bank.” When asked to identify the bank, Barter allegedly responded that “I am the bank.”
Attendees also were kept in the dark about other details, which were dismissed as unimportant for the purposes of the meeting.
Barter and Crocker “refused to respond to questions from attendees regarding the method by which PPE would make money or extend loans, or the products that PPE would invest in,” authorities said.
The purpose of the meeting was to “sign up.” Details would be “sorted out at a later time,” authorities said attendees were told.
Attendees were asked to pay $599 as an “initial membership fee” and a $50 per month “maintenance fee” thereafter and advised that returns of “up to $440,000 per year” could be earned through PPE. Â Attendees further were told they’d become eligible for loans at a “significant discount” and that funds collected from participants would be used to purchase “debentures earning 40% to 50% interest.”
People who signed up were told they could earn “1.5% of loan payments on loans made to any members who subsequently join[ed] PPE” and also would receive a “free” credit card with a $1,000 limit, authorities said.
Meanwhile, attendees were told that PPE had spent “at least $1.5 million to ensure that the federal government would not shut down PPE” and that “older” members would benefit as “new members were recruited,” authorities said.
At the May 20 meeting, someone raised a concern that the government could shut down the program, authorities said.
In response to the concern, Barter said, “the Feds love us,” authorities said.
They added that attendees were told that meetings had been held in Sumter for “at least six weeks.”
Neither Barter nor Crocker is licensed to sell securities in South Carolina, authorties said.
A company under investigation in South Carolina amid allegations it sold unregistered securities now is under investigation in Florida.
