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Tag: PerfectMoney

  • URGENT >> BULLETIN >> MOVING: SEC Charges Alleged HYIP Operators Who Ran ‘Profits Paradise’ From India; Scammers Allegedly Used Fake Names And Engaged In Wanton Deception

    From an SEC exhibit in the Profits Paradise complaint.
    From an SEC exhibit in the Profits Paradise complaint.

    URGENT >> BULLETIN >> MOVING: (Updated 9:33 p.m. ET U.S.A.) The SEC has charged two Indian nationals with running an HYIP scheme known as “Profits Paradise” that reached into the United States and offered “extraordinary” returns of up to 480 percent in 240 days, plus “compounding.”

    As is typical in HYIP schemes, the “program” gained a head of steam on social media, the SEC charged. (A quick Google search shows that ProfitsParadise also had a presence on well-known Ponzi forums such as TalkGold and MoneyMakerGroup.)

    ProfitsParadise operated between April 2013 and early February of 2014 and offered “guaranteed” payouts, the SEC alleged.

    The scam “invited investors to deposit funds that supposedly would be pooled with money from other investors and traded on foreign exchanges as well as in stocks and commodities,” the SEC alleged.

    Pitches on Facebook, YouTube and Twitter were “pervasive” and resulted in investors being exploited, the SEC charged.

    The named respondents are Pankaj Srivastava of Mumbai and Nataraj Kavuri of Hyderabad. They also are accused of promoting the scam through Google Plus.

    Srivastava “used the pseudonym “Paul Allen,” the SEC charged. Kavuri called himself “Nathan Jones.”

    It was not immediately clear from the complaint whether the HYIP scammers intended to trade on the name of Microsoft co-founder Paul Allen. HYIP schemes, however, are infamous for trading on the names of prominent individuals.

    “Srivastava and Kavuri used excessive secrecy in their effort to swindle investors through social media outreach and a website that attracted as many as 4,000 visitors per day,” said Stephen Cohen, associate director of the SEC’s Division of Enforcement.  “Our investigation stopped the constant solicitations once the website disappeared, and successfully tracked down the identities of the perpetrators behind those fraudulent solicitations.”

    Bogus names also were used to register websites, the SEC charged.

    Srivastava caused the Profits Paradise website to be registered through GoDaddy in the name of “Jane Roe” of Seattle, the SEC charged.

    “Jane Roe is a fictitious name, and there is no connection between Profits Paradise and the dwelling at 300 Boylston Ave E., in Seattle, Washington, or its residents,” the SEC charged. “The telephone number provided to GoDaddy is a toll-free number for a conference call center that is unrelated to Profits Paradise,” the SEC charged.

    Meanwhile, a Gmail email address linked to the supposed Seattle street address was associated with IPs “located in India, not Seattle,” the SEC charged.

    At the same time, the agency charged, “Kavuri disguised Profits Paradise’s physical location by providing the false ‘whois’ data, indicating that Profit Paradise’s operations were within the United States when they were not.”

    From the SEC’s civil administrative complaint (italics added):

    “The phony name and address served a dual purpose. In addition to concealing the fact that Srivastava and Kavuri were behind the Website, the domain name registration to Jane Roe at a Seattle address was meant to attract American investors. Additionally, to create the illusion that mainly American investors were visiting the Profits Paradise Website, Srivastava instructed the web designer to ensure that the ‘Alexa detail’ showed the Website’s ‘rank in the United States’ rather than its ‘rank in India.’ “Alexa” refers to a website (www.alexa.com) that ranks other websites, by country, based on the amount of Internet traffic directed to the website.”

    Also typical of HYIP scams, payment processors such as Liberty Reserve, PerfectMoney and EgoPay were used. Dates cited in the SEC complaint suggest Profits Paradise opened its Liberty Reserve account just prior to federal prosecutors bringing criminal charges against Liberty Reserve in May 2013.

    Liberty Reserve has been described by prosecutors as a $6 billion money-laundering operation that propped up HYIPs and other frauds.

    Srivastava, in 2005, worked for Quixtar.com in Minneapolis, but returned to India in 2007, the SEC said.

    Read the SEC complaint,  which alleges the Profits Paradise scheme also was “structured so that under certain conditions investors could never recover their principal investments.”

    The SEC also has updated its Investor Alert on fraud schemes that trade on social media.

  • Spammers Push Bitcoin-Themed Reload Scams

    cautionflagYou’ve probably heard about the debacle at Mt. Gox, a Bitcoin exchange. Reuters, meanwhile, is reporting that a Bitcoin bank known as Flexcoin is shutting down after it lost $600,000 to a hacker attack.

    Elsewhere there are stories about the tragic death of 28-year-old Autumn Radtke, CEO of First Meta Pte Ltd, a Bitcoin exchange.

    Uncertainly about the future of Bitcoin and exchangers appears to be driving reload scams. These may be positioned as ways to recover Bitcoin losses incurred through Mt. Gox.

    Something styled “BitcoinInvestmentFund” at a .net has appeared online. One of the links on the site, which appears have been registered in January 2014, leads to a forum in which this claim is made (italics added/verbatim):

    Make millions EgoPay PerfectMoney Bitcoin SolidTrustPay in paying hyips fastest Real Investment

    The PP Blog reported yesterday about a scam known as “Mutual Wealth” that allegedly was gathering cash though EgoPay, PerfectMoney and SolidTrustPay, which often are facilitators for fraud schemes.

    Nothing is sacred in HYIP Ponzi Land. In a disturbing tale of disconnect, some promoters of TelexFree, an MLM “program” under investigation in North America, South America, Africa and the subject of warnings in Europe, more or less tried to cherry-pick recruits by posting in media accounts in Brazil about the suicide deaths of two TelexFree promoters.

    Tacky doesn’t begin to describe it.

    At 12:10 a.m. today, the PP Blog received a spam from someone (or something) tying to post in the Comments thread below this story about thousands of people being sued as a result of the Zeek Rewards scam. The would-be poster used the would-be user ID of “Hyip Egopay” and sought to plant a link to the purported Bitcoin recovery venture at the .net.

    Within the would-be post was an assertion about “Investment Insurance.” It also issued this appeal: “Cover Your Lost [sic] on MTGOX.”

    The would-be post appeared to solicit sums of between $300 and $250,000 — and the purported payouts were in the thousands of percent per hour.

    Among the claims on the actual .net site is this: “Bitcoin Investment Fund is short term, high yield private loan program, backed up Our Newest system of Forex trading.”

    Words fail me . . .

  • BULLETIN: ‘PerfectMoney,’ Fraud-Scheme Processor Purportedly Based In Panama, Says It Is Banning U.S. Customers

    breakingnews72BULLETIN: On the heels of the apparent shutdown of Costa Rica-based Liberty Reserve as part of an international money-laundering investigation, “PerfectMoney” says it is banning users from the United States. Perfect Money purportedly operates from Panama. (More below.)

    In an announcement dated today on its website, Perfect Money says that “due to changes in our policy we forbid new registrations from individuals or companies based in the United States of America. This includes US citizens residing overseas. If you fall under the above mentioned category, please do not register an account with us.”

    How PerfectMoney intends to treat existing U.S. users was not immediately clear, and the firm did not explain why it suddenly had changed its policy. The company is favored by criminals and HYIP scammers and has a history of advertising on behalf of purported Forex “opportunities” that have been the subjects of sweeping court actions in the United States.

    In January 2013, the Superintendency of the Securities Market of the Republic of Panama (SMV) warned that Perfect Money “has not been granted any kind of license by the SMV, nor has been authorized to carry on activities of intermediation, administration, or advisory in securities, financial instruments or forex, in or from the Republic of Panama, within the scope of the Securities Law.

    “PERFECT MONEY FINANCE CORP. does not have [its] own offices in Panama, the office and its P.O. Box claim in its website [deleted by PP Blog], belong to the companies Azuero Business Center, Inc. and Panama Net Buy, which provides online shopping services,” SMV said.

    In 2011, the PP Blog reported that an individual referenced as a Perfect Money contact person is referenced in federal court filings that tie money from the alleged EMG/Finanzas Forex fraud scheme to an international narcotics probe that led to the seizure of at least 59 bank accounts in the United States and the companion seizure of 294 bars of gold and at least seven luxury vehicles.

    PerfectMoney’s name also is referenced in case filings from the SEC’s 2010 fraud complaint against Imperia Invest IBC, a scam purportedly operating offshore. Deaf people lost millions of dollars to Imperia, the SEC said.

    A quick check today by the PPBlog showed dozens of HYIP sites that claim to accept PerfectMoney. Many of the same sites also claimed to accept LibertyReserve. How the “programs” — all of which advertise preposterous returns — will contend with the absence of LibertyReserve and the new restrictions imposed by PerfectMoney was not immediately clear.

    Liberty Reserve operator Arthur Budovsky Belanchuk is reported to be under arrest in Spain as part of a probe by authorities in Costa Rica and the United States.

    Based on U.S. court files and certain extrapolations, murky HYIPs may be raking in billions of dollars. In August 2012, the SEC alleged that the Zeek Rewards “program” gathered at least $600 million. Legisi, another HYIP scam, gathered at least $72 million before its 2008 collapse. Pathway To Prosperity appears to have churned at least $70 million prior to its 2010 collapse. The 2008 AdSurfDaily scheme gathered at least $119 million, according to federal prosecutors.

    Zeek and ASD — at least — did business with AlertPay and SolidTrustPay, processors based in Canada.

    In April 2013, the SEC alleged that a murky “program” known as Profitable Sunrise may have gathered tens of millions of dollars. Profitable Sunrise is the subject of regulatory actions or Investor Alerts in at least five countries: the United States, Canada, the United Kingdom, Italy and New Zealand.

    Profitable Sunrise pitchmen may not even have known for whom they were working to glean commissions, the SEC alleged.

    There may be hundreds or perhaps thousands of HYIP scams operating online at any given point in time. Some of them — like Profitable Sunrise — even advertise they accept bank wires. HYIP scams often have promoters in common, a situation that sets the stage for banks to come into possession of funds tainted by a revolving door of fraud schemes.

    In recent weeks, the PP Blog has reported on a number of reload scams aimed at victims of the Profitable Sunrise scheme. Virtually all of the schemes accepted PerfectMoney, LibertyReserve or both. Some also advertised they accepted SolidTrustPay and EgoPay.

    These schemes included BiwakoBank Limited, SuperWithdraw, Whos12, Fairy Funds, Roxili, OptiEarn, AVVGlobal, ProForexUnion, MajestiCrown and TelexFree.

  • UPDATE: HYIP Known As ‘Insectrio’ Has Collapsed; Website Of LibertyReserve- And PerfectMoney-Enabled Scheme Pushed On Ponzi Boards Goes Missing; Both Payment-Processing Firms Referenced In SEC’s Complaint Against Imperia Invest IBC

    The 'Insectrio' HYIP used the logos of the MoneyMakerGroup, TalkGold and DreamTeamMoney Ponzi forums in its sales pitch.

    UPDATE: (UPDATED 11:53 A.M. EDT (U.S.A.) RealScam.com is reporting that the website of a bizarre HYIP known as “Insectrio” will not resolve.

    As the PP Blog reported on May 27, Insectrio was emerging as a darling on the Ponzi boards. The purported “opportunity” even used a graphic showing the logos of TalkGold, MoneyMakerGroup and DreamTeamMoney in its vomitous sales pitch.

    Insectrio advertised an “Egg” plan purported to pay 103 percent after one day, a “Larva” plan purported to pay 120 percent after five days and other plans advertised to pay even more. It was enabled by the offshore processors LibertyReserve and PerfectMoney, both of which are listed in the SEC’s October 2010 complaint against Imperia Invest IBC as processors that allegedly gathered money for Imperia.

    Imperia was accused to stealing millions of dollars from deaf people. Its “program” also was promoted on the Ponzi boards.

    Efforts to popularize Insectrio on the Ponzi boards were beginning at roughly the same time the popularity of Club Asteria was waning on the fraud cesspits. Club Asteria targeted its offer to the world’s poor. It reportedly suspended payouts weeks ago, although some members of the Ponzi boards say they continue to get paid through AlertPay, a Canadian processor.

    Visit RealScam.com.

  • CAUTION FLAG: Murky Website With .Org URL Pops Up Online; OnlineInvestmentBank.org Registration Data Hidden Behind Proxy; Claims Huge Commission And Interest Payments — And Exemptions From U.S. Law

    An apparent investment and banking website whose domain registration is hidden behind a proxy appears to be preparing to accept money from investors worldwide by planting the seed it is a charitable enterprise.

    The website of OnlineInvestmentBank.org appears to have been registered just days ago — on Jan. 21. The site suggests it is both “private” and eager to do business with Americans and others worldwide. Meanwhile, the site suggests it does not have to comply with U.S. law when soliciting U.S. residents.

    Examples of fractured English syntax appear across the site.

    “Don’t post bad vote on Public Forums and at Gold Rating Site without contacting the administrator of our program FIRST,” the site prompts prospects. “Maybe there was a technical problem with your transaction, so please always CLEAR the thing with the administrator.”

    Other examples of the awkward use of the English language appear on the site. At the same time, OnlineInvestmentBank.org  appears to be issuing an appeal for customers to embrace a culture of both spamming and secrecy.

    “You agree that all information, communications, materials coming from onlineinvestmentbank.org are unsolicited and must be kept private, confidential and protected from any disclosure,” the site advises prospects.

    The site also claims an exemption from U.S. law:

    “As a private transaction, this program is exempt from the US Securities Act of 1933, the US Securities Exchange Act of 1934 and the US Investment Company Act of 1940 and all other rules, regulations and amendments thereof,” the site claims. “We are not FDIC insured. We are not a licensed bank or a security firm.”

    Money can be sent to the firm via Liberty Reserve and Perfect Money, according to the website.

    Why a purported investment company and banking firm would use a .org domain was not immediately clear. On its website, OnlineInvestmentBank.org says it is offering a referral program and promises to pay participants “5% of your referrer’s deposit.”

    “Everyone can participate in this program,” the website claims in its FAQ section. “We accept members from any country in the world.”

    The site says it accepts a minimum deposit of “USD 10” and a maximum of “USD 500000.”

    How it purportedly earns money and is able to give away 5 percent of its deposits in the form of commission payments are unclear.

    Bizarrely, the website also appears to claim that customer deposits are locked down, but earn spectacular sums of interest daily — in addition to the 5 percent commissions paid for referrals.

    Under an FAQ that reads, “What do you mean xxx% on your plans? can (sic) I withdrawal (sic) Principal (sic) too?”, the website notes:

    “You can’t withdrawal (sic) your principal money. For example 102% after 1 day is (sic) means 100% which is your principal money plus 2% as profit.”

    And the website also says it favors “e-currencies” because they attract less attention from two notable groups of potential meddlers: “hackers” and “any of the governmental organizations (like tax structures).”