Various claims about Narc That Car "training" have appeared online, as have videos of checks and even the postmarked envelopes in which the checks were enclosed.
Narc That Car, also known as Crowd Sourcing International, did not provide the Better Business Bureau “specific information which would eliminate the BBB’s suspicion of the existence of a pyramid promotional scheme,” the BBB reports on its website.
The BBB has closed its inquiry into Narc, leaving the company’s “F” rating intact and saying Narc also “admitted that they could not substantiate the claim that any major motor manufacturer was a client of Narc Technologies.”
An “F” is the lowest rating on the BBB’s 14-point scale.
Claims appeared online that Narc was working with Ford Motor Co., Nissan Motor Co. and Toyota Motor Co. Narc blamed the claims on affiliates who violated its advertising policies, saying it had a process to weed out false claims, the BBB said.
Although Narc claimed to have hundreds of clients for its database product, the company had not substantiated the claim as of May 25, the BBB said.
Narc, whose Crowd Sourcing International identity often is referred to by the acronym CSI, had been the subject of a BBB inquiry since January. The company purports to be in the business of paying people to record the license-plate numbers of cars for entry in a database used by companies that repossess vehicles.
For its part, Narc says on its website that it is getting a bum deal from the BBB.
“America was founded to create new opportunity,” the company said. “Our government created the Small Business Administration (SBA) to help new businesses. Over 2,000,000 people lost their jobs in 2009. New businesses create jobs. New businesses accounted for 70% of job creation over the last 10 years, stated by President Obama on March 17, 2009. Yet, the BBB penalizes new businesses.”
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.”
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.
EDITOR’S NOTE: We encourage readers of the PP Blog to view these new reports on Fox 5 in Atlanta, which hit a stone wall when investigative reporter Dana Fowle tried to get answers from Narc That Car members and company management.
One of the striking things about the reports below is that not a single Narc member Fowle interviewed could name a single client of the company. Some members got testy with Fowle, despite the fact her questions were reasonable. She asked for minimal information. No one provided it.
Some people Fowle attempted to interview seemed offended that she dared even to ask questions. Despite the fact that Narc promoters routinely claim that lots of money can be made, there is an information vacuum on the company’s business practices. Some Narc members answered Fowle’s questions with questions, not providing a single, verifiable shred of information.
A woman who sponsored a well-attended Narc meeting said Fowle would have to get answers from Narc management — even though the woman was promoting the opportunity. No answers were forthcoming from the company, meaning no one with executive authority has come forward to answer even a single question.
Meanwhile, Narc reps are in the field promoting the company while both promoters and management remain mum. People literally appear to be promoting an opportunity they know absolutely nothing about — except that there is a way to make money with Narc. NOTE: Some readers may be interested in what Georgia Attorney General Thurbert E. Baker says in Part 2 of the Fox 5 package below.
Narc That Car promoter “Jah,” who previously declared that repping for the company was like working for the “Census Bureau” and that his downline group would cap earnings claims in check-waving videos on YouTube at three figures because “we’re not going to be out here flashing, you know, five-figure checks†now suggests at Scam.com (see link below) that the firm’s critics merit a promotion.
If you criticize Narc That Car, which also is known as Crowd Sourcing International, you’re no longer a simple “naysayer.” According to Jah, you’re a “naysayer scammer.”
It was not immediately clear if other Narc That Car promoters or promoters of other questionable business opportunities would follow Jah’s lead and add the word “scammer” after the word “naysayer” in their efforts to cloud issues and discredit critics.
Also unclear is whether Jah had come to believe that the word “naysayer” alone had run out of steam and needed a boost from a word that packed an extra wallop.
At one time, Jah incorporated a strategy of actually calling Narc That Car a scam to refute claims that the company might be using a questionable business model associated with pyramid schemes. That approach apparently fizzled. His NarcThatCarIsAScam.info website has not been updated since it bashed the Better Business Bureau March 27, and Jah apparently has turned to an approach that labels NarcThatCar critics as scammers, as opposed to calling the company itself a scam to prove his point that it is not.
It is too soon to tell whether “naysayer scammer” will gain traction and emerge as a sort of perfect insult that will cause critics to acknowledge they’d lost both the PR war and the intellectual confrontation before retreating and scattering to the winds to nurse their wounds in private.
Jah also is persistently attacking the Better Business Bureau, which gave Narc That Car an “F” rating. And he has attacked the PP Blog, repeatedly asserting that the Blog lied about Narc That not being affiliated with Code Amber in a bid to discredit the company.
The PP Blog never asserted NTC had no relationship with Code Amber, which means Jah is arguing against a claim the Blog never made. The Blog reported that the U.S. Department of Justice denied that the federally managed AMBER Alert program, which NTC referenced in a promotional video, had any affiliation with NTC.
Jah previously has dismissed critics as simple “naysayers” and “haters.” He has never explained how such terms were consistent with a professional approach to public relations. Oddly, Jah persistently attacks critics for producing what he describes as hearsay — all the while attempting to bolster his hearsay case against critics by passing along third-party assertions purportedly from his upline.
Narc That Car says it is in the business of paying people to record license-plate numbers for entry in a database purportedly used by companies in the business of repossessing automobiles. Tactics employed by some repo companies are controversial, and the National Consumer Law Center has linked the repo trade to six deaths since 2006.
Meanwhile, the repo business has ties to to so-called “buy here, pay here” business in which used-car lots finance purchases for high-risk borrowers, often in areas of high poverty and unemployment.
Like members of the AdSurfDaily, AdViewGlobal and AdGateWorld autosurfs, Jah has seized on the name of the PP Blog to discredit it, describing it on the WorkAtHomeForum as authored by “Patrick the pretty guy.”
Other critics of the Blog have referred to it as “Pretty Patrick.” Some have suggested it should be dismissed because its author either is gay or confused about his gender. Among other things, the author had been called a “fag,” an “it” and just plain “ugly.” One critic of the Blog suggested the world might have been a better place had the author’s mother aborted him.
Virtually all of the Blog’s critics have purported to be professional business people. Regardless, many of them have raced from one scam to the next, dragging their downlines with them and subjecting themselves and their downline members to both civil and criminal prosecution.
Visit Scam.com to observe Jah toiling with the critics.
The PP Blog attempts to write serious stories about serious subjects. In recent weeks, we have reported very little on events at Data Network Affiliates (DNA). Perhaps the biggest reason we have published fewer updates on events at DNA was because things had gotten so strange that sharing news with readers almost seemed like a disservice.
In our view, nothing that DNA says should be taken seriously. The company plays into every negative stereotype about multilevel marketing (MLM), seems neither to notice nor to care, and has reinvented itself more times than Elizabeth Taylor has been married — and this in a compressed time frame of only weeks.
DNA, which started its MLM journey earlier this year by telling members it was the business of paying them to record the license-plate numbers of cars for entry in a database because 100 million plate numbers could equate to $1 billion in revenue, sold itself as a sort of “free” Narc That Car.
DNA, though, oversold the “free” part. It then tried to inspire members to buy a $127 upgrade by telling them its free module to enter plate data was a clunker. Its affiliates have done other strange things, such as attempting to persuade prospects that Oprah Winfrey and Donald Trump endorsed the company.
Narc That Car (referenced above) is another MLM company that collects plate data. Like Narc That Car, DNA said it saw itself as an excellent tool for law enforcement and the AMBER Alert program for missing children. At first, DNA suggested AMBER Alert, which is administered by the Department of Justice and the National Center for Missing & Exploited Children, was doing a poor job.
DNA then backed away from that claim, went through a phase it which it positioned itself as an anti-Narc That Car, and finally got around to saying that its database would have limited utility when it came either to helping law enforcement or abducted children and their families.
All of this was done in the name of MLM profits. It also went through a phase in which it threatened reporters with lawsuits. After Dean Blechman, its original CEO, resigned and later said the company was sending out “bizarre” communications authored by a “back door guy,” DNA sought to regroup. Before long, it announced it was in the cell-phone business.
All of this came on the heels of claims by the company that church parking lots and the parking lots of doctors’ offices were wonderful places to record license-plate numbers if for some reason you couldn’t get to Walmart to get your supply. Coupled with the cheerleading on conference calls, it was enough to make a person wonder whether MLM had reached a new low.
DNA Cell-Phone Plan Now DOA
DNA now says it was snookered into believing it could offer an unlimited cell-phone talk and text plan for $10 a month and, for $19.95 a month, could offer unlimited talk, unlimited text and 20 MB of data.
Yes, unlimited for $10 a month.
By comparison, Walmart offers an unlimited talk and text program with unlimited mobile web access called Straight Talk for $45 a month. Straight Talk is part of the Tracfone Wireless Inc. companies. The system runs on the Verizon network, and the pricing has electrified U.S. customers accustomed to paying much higher rates. Walmart has reported that more than 1 million people have joined the Straight Talk program.
If you are a DNA member, did you really believe that DNA, which changes its message like children consume jellybeans at Easter, was going to sell an unlimited plan for $35 a month less than Walmart does through its Straight Talk affiliation and Tracfone’s buying clout with Verizon? Tracfone itself does not undercut the pricing. It has Walmart’s huge economies of scale, its own Straight Talk marketing arm and ample access to the Verizon network behind it now. The program, which started regionally, now has gone national.
An email sent by DNA today — weeks after members were lured by all the talk about cell-phone plans priced four and a half times under Straight Talk and other low-price leaders — confirms that the DNA pricing is impossible. DNA blamed an exuberant reseller for making it believe the pricing was possible.
The pricing was obviously impossible — weeks ago. We try not to be rude on this Blog, but there is just no way to be gentle with this one: If you believed DNA, you are a fool. The crap it sends to your inbox is exactly that: crap. DNA’s crap from the very beginning has been uniquely ripe.
The DNA email was a thing of wretched beauty. The company furiously tried to spin its announcement as good news, but the announcement was just another in a long line of strikingly pungent missives from the firm.
Oh, by the way, the company also announced that Phil Piccolo was involved in DNA. The note announcing both the death of the cell-phone plan and the presence of Piccolo was signed by DNA’s CEO George Madiou. DNA said it was happy to have Piccolo on board.
Here are some highlights (italics added):
We had a call came in from one of our PRO Leaders and asked if we would consider the cellular industry for one of our divisions. She had information that a BIG “MVNO” VENDOR (a reseller of cell service) was not happy where he was and that he not only could bring in the best and lowest prices but that he could bring in thousands of affiliates into our program. We agreed to meet with him.
After meeting [the reseller,] everything seemed to be too good to be true. The names he was tossing around and the prices he said he could deliver were just unbelievable. Let’s face it a $10 a month unlimited talk and text plan, a $19.95 a month unlimited talk & text with 20 MB of DATA plan, were two unbelievable products that got us very excited, and we knew it would get our affiliates thrilled also. The excitement was contagious and we immediately put our full I.T. Division along with our entire Web team on the DNA Cellular Project.
Well the dream turned into a nightmare. After selling hundreds, or should we say thousands of cellular agreements, [the reseller] said he could not deliver either product. He stated that Sprint had terminated his reseller agreement. In fact further investigation on our part, of [the reseller] and his so called $10 and $19.95 monthly service agreements, we found that there are no such service plans to be found by any carrier, anywhere on the planet, by any company in the industry. He also said his good friend of 20 years [name deleted] of Sprint found out that “DNA Affiliates” were raiding the Liberty International, WOW Mobile downline groups. He also stated that [name deleted] found out that “Phil Piccolo” is the lead consultant to the corporate team.
[The reseller] even provided what seemed to be personal e-mails directly from [name deleted], [title deleted] of Sprint to DNA. D.N.A. even received an e-mail supposedly from [name deleted] of Sprint. This entire series of correspondence immediately seemed fraudulent. We plan on contacting [name deleted] because we at D.N.A. feel that there may be foul play with all of these so called [name deleted] communications that are going around.
How would the D.N.A. management be fooled like this? When you believe you are talking to the [title deleted] of Sprint, when you believe you are receiving legitimate email communication with the [rank deleted] of Sprint, it’s easy to be fooled at first. Thankfully there was enough red flags that this foolishness was quickly exposed for what it was.
Addressing the allegation of D.N.A. Affiliates raiding the Liberty International WOW downline, this is another untrue comment. It would be impossible to have 120,000 Affiliates (from D.N.A.) who would not know any WOW Affiliates, so there was a lot of discussion in the field from both companies. There is a very open relationship and mutual respect for Randy Jeffers the owner of WOW Mobile and myself.
In regard to Phil Piccolo, it is no secret that Phil Piccolo is a lead consultant to the D.N.A. corporate team and we are happy to have him on our team. As far as my D.N.A. Corporate team is concern, we do not judge people by what others say about a person, especially on the wild wild west of the Internet, but by the content of their character and their accomplishments. We hired Mr. Piccolo for his genius ability to develop the best compensation plan for our affiliates and his incredible leadership and customer relationship ability. I have also known Mr. Piccolo personally for years and know him as a man of integrity and have watched him help 3 different companies reach the billion dollar level. He is an industry expert that goes back 34 years and we are proud to have him on our team to spear head us to a million affiliates by years end.
We were blinded by excitement and did not believe the rumors that flooded into D.N.A. about [the reseller]. Not only from hundreds of affiliates but from other owners of companies. We thought at first they were just jealous of our newest, greatest and latest deal with [the reseller]. However now with personal experience along with written, documented facts backed up with recorded conference calls, e-mail and voice mail messages. We can truly say that [the reseller] is a fraud and we have cut all ties with him. We are also looking at all legal options to protect D.N.A. from this man including to see if there are any criminal and civil charges that can be explored.
We plan to turn over all of our evidence to the proper authorities. Our intent is to make sure all of our D.N.A. affiliates are fully protected from unethical characters like this man.
We also apologize for [the resellers’] crude language on our conference calls. You have our word that this will never happen again. That anyone we expose to our D.N.A. Family will be 100% checked out and vetted by a very high standard.
Again, we are very excited about being in the cellular industry and we are pleased with the development of D.N.A. Cellular becoming it’s own MVNO in full control of our wireless future! Stay tune for some more great news in the days to come.
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.
Narc That Car (NTC) told the Better Business Bureau in Dallas that it would take a “few weeks” to respond to the BBB’s request to provide the organization a “comprehensive list of third-party clients,” the BBB said today on its website.
The information was requested from NTC March 3 in an effort “to determine if the company is selling a bona fide product with a true market value,” the BBB reported.
The BBB opened an inquiry into NTC Jan. 18 to determine whether NTC was “functioning as a pyramid promotional scheme.” BBB lowered NTC’s rating to “F” — the worst possible score on the BBB’s 14-step rating scale — earlier this month.
Meanwhile, the BB said it also asked NTC Jan. 18 to “substantiate some claims made in its advertising.”
Two months later, the advertising inquiry remains open, the BBB noted.
Some NTC affiliates said last week that NTC was changing its name to Crowd Sourcing International — or CSI for short. The name-change announcement was made a week after the BBB issued the “F.”
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.
UPDATED 4:32 P.M. EDT (U.S.A.) A video Narc That Car promoters may rent for $12.95 a month and a onetime set-up fee of $15 through a third-party provider demonizes a fantasy deadbeat named “Rena the Realtor” for stiffing a bank on her car loan and says some members of the multilevel-marking company are making more money than the President of the United States.
Narc That’s Car’s name is not mentioned in the video, which does not name the NTC reps out-earning the President.
“Rena” is depicted as an attractive, sweet-faced young woman with blue eyes and perfect teeth. She buys a car to impress her real-estate clients, makes payments for a couple of months — and then misses three payments in a row and hides the car to save herself from the repo man.
The video depicts a glum-faced collection agent who had no luck getting “Rena” to cough up her payments, and it becomes time for the bank to dispatch the repo man. But where to start searching?
Thanks to a Narc That Car member named “John,” who is depicted as having the bearing of a plainclothes cop and happens to write down Rena’s license-plate number as he exits a hair salon a few doors away from the gym at which “Rena” works out, the information is entered in the NTC database.
Through a process that the video does not make clear, it is established that “Rena” works out at the gym every day at 7 p.m.
This sets the stage for the repo company to snatch the car. The video shows a car (presumably Rena’s) being hauled off by a repo truck — a successful conclusion from the lender’s point of view, but a stinging defeat for “Rena the Realtor,” who didn’t make her car payments but still had the money to stay toned by working out at the gym.
The video displays scores of cars backed up during Rush Hour — each one of them with a dollar sign superimposed. The video also implies that an NTC sponsor will give prospects their first 10 plate numbers to enter into the system — if the prospect does not have time to get 10 on his or her own.
How the data can be validated if a sponsor provides the plate numbers is not made clear in the video. Such an approach would mean that the prospect would have to accept as truth the address at which the sponsor said the car was sighted, since the prospect neither saw the car nor recorded the plate number.
Also unclear was whether the sponsor could share the same 10 plate numbers with other incoming prospects and perhaps simply instruct them to enter a fabricated address at which the plate was sighted.
“Either contact your sponsor, who will provide you with your first 10 plates to enter into the system, or you can do it yourself,” the narrator says.
And the narrator said a handsome wage is possible:
“Several people saw this opportunity and dropped everything they were doing on the spot,” the narrator says. “Ninety days later, they’re making more money than the President — and without the stress.”
The video displays a picture of the White House, the official residence of the President and the office from which he makes $400,000 a year, and has an expense account of about $169,000. The video does not say how much the President makes.
The video’s ending was a little flat — a businessman was depicted walking on a tightrope, and another businessman (presumptively) with a briefcase was pictured falling into a safety net.
It might have made for a better ending had “Rena the Realtor” redeemed herself by deciding to join NTC after her car was repossessed — as a means of making sure nothing like that ever could happen again.
Then again, how could she? Deadbeat “Rena,” her blond hair, blue eyes and perfect smile notwithstanding, no longer had a car, no way to get to work, no way to get to the gym to record plate numbers.
Too bad. The parking lot in front of the gym and the hair salon could have been a wonderful place to record numbers every night at 7Â — and perhaps the next time around she could have returned the favor by getting “John’s” plate for NTC.
Who knows if the repo man — or someone else — might one day have benefited from knowing where John got his hair cut?
See the news release dated today with the video attached. The video appears to have been produced by this site, which says it has done promotional work for teams and companies such as Ad Surf Daily, AdGateWorld, BizAdSplash.Ad-ventures4U, TVI Express and Global Verge/Buzzirk Mobile, among others.