ASDUpdates.com

My Journal of Internet Schemes/Scams and things that really annoy me

Zeek Rewards: Defendants File Reply in Support of Motion to Dismiss

Posted by ASDUpdates on August 20th, 2014

As if this case could get any more odd, we have this filing (ZeekDoc75) in which defendants:

Trudy Gilmond, Trudy Gilmond, LLC, Jerry Napier, Darren Miller, Durant Brockett, Rhonda Gates, Innovation Marketing LLC, Aaron Andrews, and Shara Andrews (“Defendants”) file this Reply in Support of Defendants’ Motions to Dismiss in response to the Receiver’s Consolidated Response in Opposition to Defendants’ Motion to Dismiss (“Response”)(Doc. No. 67) and in further support of Defendants’ Motions to Dismiss Pursuant to Rules 9, 12(b)(1) and 12(b)(6) (Doc. No. 21) (“Motion”) and Memorandum in Support of Defendants’ Joint Motions to Dismiss Pursuant to Rules 9, 12(b)(1), and 12(b)(6) (Doc. No. 25) (“Brief” or “MTD Brief”).

I got tired just typing that….. but, I digress… One of the more moronic defense points made is this:

the real issue is this: must the Court finally consider whether the SEC Action1 involved a security? The only asserted basis for subject matter jurisdiction in the SEC Action was the SEC’s unsupported claim that the case was based on securities. No security; no jurisdiction. (I wonder if anyone else ever used this self-same argument??)

Since subject matter jurisdiction can be raised at any time and cannot simply be agreed to by the parties, the Court should consider now whether these cases are based on securities. At a July 23, 2013 hearing in the SEC Action, the Court said it would do so. See infra, Section II.B. At the same hearing, both the SEC and the Receiver (contrary to what he now claims) agreed that the issue could be considered now on the merits. See infra, Section II.B. Defendants attach the entire transcript of that hearing as Exhibit A.

I will refrain from going further with snippets from the filing; if you would like to read the Motion and the Hearing Transcript (Exhibit A) as mentioned above, they are both available on the Files website.

 

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Posted in HYIP, MLM, Other Ponzi Scams, Payment Processors, Payza, PIMPs, Pyramid Schemes, Scams, Serial Promoters, Tax Dodgers, Zeek Crazy Stuff, Zeek Rewards Federal Court Cases | No Comments »

TelexFree: Government Motion to Use Alternative Potential Victim Notification

Posted by ASDUpdates on August 20th, 2014

Another motion filed on August 18th is a Motion for Authorization to Use Alternative Procedures to Notify Potential Victims, and requested to use these methods:

The alternative victim notification methods suggested by the government are the following:

a. Department of Justice Victim Notification System: To date, the government has ascertained the identities of some individual potential victims who bought into the TelexFree program. Typically, the government uses its Victim Notification System (“VNS”) to give individualized notice to such people and it will do so in this case, to the extent it is able, as a supplement to the notification methods discussed below. The VNS enables the government to inform victims entered in the system of scheduled court dates and the outcomes of significant court events.

b. TelexFree Information Web Site: Using a portal on the web site operated by the Federal Bureau of Investigation (“FBI”), the government has set up a web page for those who claim to be victims of the scheme alleged in the indictment. The site page 2 posts publicly available  information about the case and invites  alleged victims to enter basic information about their experience with TelexFree.

The site was included in the government’s press release in this case dated July 23, 2014, and it is the first unpaid site to come up on a Google search using the terms “TelexFree victim.” Undersigned counsel is informed that the Massachusetts Securities Division (“MSD”) maintains a similar site; 3 the government will request victim information provided to the MSD and reconcile it with data entered on the FBI’s site. Similarly, the U.S. Securities & Exchange Commission (“SEC”) has filed a civil enforcement action against James Merrill, Carlos Wanzeler and others. The government will seek from the SEC whatever information it has received on its tip line or otherwise from alleged victims.

c. Toll-Free Telephone Number and Victim Assistance Email Address: The U.S. Attorney’s Office has a toll free phone number potential victims can call to listen to a recorded message providing the status of the case and instructions on how to contact the U.S. Attorney’s Office by email. That information is also included on the U.S. Attorney’s Office website. Similarly, there is an email address for victim inquiries (USAMA.victimassistance@usdoj.gov), which was included in the government’s press release dated May 9, 2014. Alleged victims who contact that address are directed to the site hosted by the FBI.

2 http://www.fbi.gov/stats-services/victim_assistance/seeking-victim-information/telexfree-inc.-case
3 http://www.sec.state.ma.us/InvestorComplaint/telexfree.aspx

d. Press Releases and Newspaper Notices: As noted above, the U.S. Attorney’s Office has issued two press releases so far in this case, both of which have noted resources available to alleged victims. The government will also post notice in certain newspapers or other periodicals, alerting readers to the case and providing contact information if any reader believes he or she is a victim.

e.Outreach Efforts: The alleged victims in this case are concentrated in certain immigrant communities, primarily Brazilians and other Latin American immigrants. At least on a local level, the government will coordinate with organized groups in these communities to host informational meetings for people who are concerned about the case. During these efforts, the government will encourage concerned people to make use of the resources summarized above.

f. Depending on the case event for which the government is trying to give notice, the government may try to develop a system in which it can send “blast emails” to those alleged victims for whom it has email addresses.

WHEREFORE, the United States respectfully requests that the Court (a) find that the procedures itemized in ¶ 4 above are a reasonable means of satisfying the government’s obligations under 18 U.S.C. § 3771, and (b) authorize the government to implement those procedures alternative methods for notifying potential victims in this case.

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Posted in HYIP, MLM, Money Laundering, Online Marketing, Other Ponzi Scams, Pyramid Schemes, Scams, Serial Promoters, Tax Dodgers, TelexFree, TelexFree Criminal Case | No Comments »

TelexFree: Motion for Complex Case Designation and Exclusion of Time

Posted by ASDUpdates on August 20th, 2014

On Monday, August 18th, the government filed a motion (Doc 105) which contains these points:

The government hereby moves to have this matter treated as a complex case pursuant to 18 U.S.C. § 3161(h)(7)(B)(ii) and to have the Court enter an interim order of excludable delay pursuant to 18 U.S.C. ’3161(h)(7)(A).1 As grounds therefore, the government states that this case is sufficiently unusual and complex that it is unreasonable to expect adequate preparation for trial within the time limits established by 18 U.S.C. § 3161:

1. The Indictment in this case says in part that the defendants operated a company, TelexFree, Inc., and related entities (“TelexFree”), that sold telephone service based on a voiceover-internet (“VOIP”) protocol, but alleges that TelexFree was in fact a pyramid scheme. The company was global, with approximately 785,000 participants in dozens of countries. Telexfree also operated out of countries besides the United States, most prominently Brazil, where a TelexFree owner and several employees live.

……..

5. Because the evidence underlying this case is closely tied to certain foreign countries, especially Brazil, it is likely that the parties will need to review evidence in foreign countries and arrange for foreign witnesses and/or law enforcement officers to travel to the United States to testify at trial. If the parties require authenticated evidence from foreign countries, the process for securing that evidence by formal request is extremely time-consuming, including review of the request by U.S. authorities (locally and at the Office of International Affairs), review by authorities in the host country, collection and transmittal of the evidence, and certified translation.

WHEREFORE, the government respectfully moves the Court

a. To treat this case as a complex case pursuant to 18 U.S.C. § 3161(h)(7)(B)(ii), for purposes of Speedy Trial Act calculations; and
b. Pursuant to 18 U.S.C. § 3161(h)(7)(A), to enter an order of excludable delay of 90 days, commencing on September 10, 2014, after which either party may seek a further extension of the tolling period depending on their progress on the above issues.

So far, that Order has not been issued by the Court. I will keep an eye on this situation.

 

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Posted in HYIP, MLM, Money Laundering, Online Marketing, Other Ponzi Scams, PIMPs, Pyramid Schemes, Scams, TelexFree Criminal Case | No Comments »

Zeek Rewards: Net Winners Oppose Dismissing Their Counterclaims

Posted by ASDUpdates on August 15th, 2014

And the silliness continues….. it seems the civil suit entitled “Bell v Disner et al” has some recent activity from the people who took a ton of money out of Rex Ventures and who do not want to have to cough it up.

The Motions filed are “Oppositions to the Receiver’s Consolidation to Dismiss Counterclaims” that these defendants pieced together from bits of string, bird poop and other sources.

These defendants are Durant Brockett, Rhonda Gates, Aaron Andrews, Shara Andrews and Innovation Marketing, LLC., Trudy Gilmond, Trudy Gilmond, LLC, Jerry Napier and Darren Miller.

I have uploaded these nonsensical filings onto the Files Website.

 

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Posted in HYIP, MLM, Online Marketing, Other Ponzi Scams, Pyramid Schemes, Scams, Tax Dodgers, Zeek Clawbacks, Zeek Crazy Stuff, Zeek Rewards Federal Court Cases | No Comments »

Zeek Rewards: Judge Signs Order Allowing International Net Winner Actions

Posted by ASDUpdates on August 15th, 2014

BREAKING NEWS:

The receiver filed a “REQUEST FOR LEAVE TO INSTITUTE ACTIONS AGAINST INTERNATIONAL NET WINNERS” today and Judge Mullen granted it. Here is part of what Kenneth Bell filed:

The Receiver has previously filed actions against the insiders who created and operated ZeekRewards, the net winners who won more than $1000 (asserting claims against the largest net winners as individual defendants / class representatives and a defendant class of the remaining net winners) and certain attorneys involved in advising RVG and promoting the scheme. By this request, the Receiver seeks leave to file one or more actions in this Court and in foreign courts to pursue claims for the return of fraudulently transferred money and disgorgement of net funds received against significant “net winners” who reside outside the United States. The foreign “net winners” to be pursued all won at least $1000, the threshold previously approved by this Court. With due regard for the interests of efficiency, cost and judicial economy, the Receiver intends to consolidate cases against net winners from each foreign country and from more than one country when possible and appropriate.

Judge Mullen approved this action thus:

ORDER

THIS MATTER is before the Court upon the Receiver’s Request for Leave to Institute Actions Against International Net Winners. The Receiver alleges that these persons and entities won money in the ZeekRewards program and should be required to pay their net winnings back to the RVG for the benefit of ZeekRewards’ victims. For good cause, the Court will grant the Receiver’s request.

IT IS, THEREFORE, ORDERED that the Receiver is hereby granted leave to file the actions for which leave has been requested.

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Posted in HYIP, MLM, Online Marketing, Other Ponzi Scams, Payment Processors, PIMPs, Scams, Serial Promoters, Tax Dodgers, Zeek Clawbacks, Zeek Rewards Federal Court Cases, Zeek Rewards Suits | No Comments »

Zeek Rewards: Non-party “Preferred Merchants Solutions, LLC” Requests Leave to File Suit Against Kenneth Bell

Posted by ASDUpdates on August 14th, 2014

Showing up on the docket recently in the original SEC case (12-cv-519) is a request from a non-party entity to “Lift Stay and Leave to Commence Lawsuit Against Kenneth D. Bell As Receiver of Rex Ventures Group, LLC”.  This filing has been uploaded onto the Files website, ZeekDoc230 and 230-1

In this filing, they ask the Court to:

lift the stay imposed in this action and grant Preferred leave to commence a declaratory judgment action against Kenneth D. Bell in his capacity as receiver of Rex Venture Group, LLC (“Receiver”). A copy of Preferred’s proposed declaratory judgment complaint is attached to this Motion as Exhibit 1. For the reasons detailed in the accompanying Memorandum in Support, which is hereby incorporated by reference, the Court should lift the stay for the limited purpose of Preferred’s declaratory judgment action against the Receiver and grant Preferred leave to commence its declaratory judgment action against the Receiver.

Here are a few tidbits from the filing, explaining their position:

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Posted in HYIP, MLM, Online Marketing, Other Ponzi Scams, Payment Processors, PIMPs, Pyramid Schemes, Scams, Serial Promoters, Tax Dodgers, Zeek Clawbacks, Zeek Crazy Stuff, Zeek Rewards Federal Court Cases | No Comments »

Zeek Rewards: Receiver Files 2014 Second Quarter Expenses

Posted by ASDUpdates on August 14th, 2014

Filed today are about 296 pages of documents and exhibits from Kenneth Bell detailing his “Application for Fees and Expenses for 2nd Quarter 2014“.  I did not get all of the Exhibits as it was about $12.00; I will check the receiver’s website as he should be posting them in a few days for free.

I have uploaded the filing onto the Files Website, case 12-cv-519.

 

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Posted in HYIP, MLM, Online Marketing, Other Ponzi Scams, Pyramid Schemes, Scams, Zeek Clawbacks, Zeek Rewards Federal Court Cases | No Comments »

TelexFree: Faith R. Sloan Files Objection to ‘Lis Pendens’

Posted by ASDUpdates on August 13th, 2014

Noted “Ponzi Princess” and Serial Promoter, Faith R. Sloan, has filed an objection to the “Lis Pendens” motion filed by the SEC. For those of us, including me, who are unsure of what that means, here is the definition from law.com:

lis pendens
(lease pen-dense) n. Latin for “a suit pending,” a written notice that a lawsuit has been filed which concerns the title to real property or some interest in that real property.

Below is the filing:


 

DEFENDANT FAITH R. SLOAN’S OPPOSITION TO PLAINTIFF
SECURITY AND EXCHANGE COMMISSION’S MOTION FOR
MEMORANDUM OF LIS PENDENS

The Defendant, Faith R. Sloan (“Sloan”), hereby opposes the Motion of the Securities and Exchange Commission (the Plaintiff) that the Court endorse the Memorandum of Lis Pendens filed with its Motion as Document No. 229 for the following reasons:

1. The real estate described in Plaintiff’s motion was conveyed to the Chicago Title Land Trust by deed of Wieslaw Murzanski on March 19, 2014. The power of direction concerning said property has stood in the name of Antoinette Sloan, not the Defendant, since May 12, 2014. See Exhibit A.

2. Sloan is already subject to the Preliminary Injunction entered by the Court against her on May 8, 2014 (Document No. 88) freezing all of her assets, arguably including the real estate referred to in Plaintiff’s Motion.

3. Sloan was not served with a copy of the Court’s Preliminary Injunction until May 23, 2014.

4. Sloan has not been found liable to the charges set forth in Plaintiff’s Amended Complaint.

5. Sloan’s Motion to Dismiss Plaintiff’s Amended Complaint has been scheduled for oral argument on September 5, 2014, some three weeks hence. Accordingly, Plaintiff’s motion is simply another attempt to abuse the Defendant, Sloan, who is financially unable to defend herself, because the Court has frozen all her savings, including the retainer that she has given to her attorney.

6. Moreover, if the Court shall allow Sloan’s Motion to Dismiss, she will incur further trouble and expense to clear her title of the Memorandum of the Lis Pendens that the Securities and Exchange Commission wishes to file against her.

Honestly, this is but more of the same “no one told me” bullshit that Sloan has already filed in this case. She continues to claim that she was not served, didn’t know anything, and that, apparently, the May 8th injunction does not apply to her ?

This reminds me a lot of some of the “defenses” used in the ASD case, the reason I started this website.  The idiocy and ramblings put forth in that case are once again rearing their nonsensical heads as they have done in later Ponzi cases.

The “best” of these was the “you were supposed to let me know I was violating the law and then give me time to correct it” defense once proffered by Thomas Anderson Bowdoin, the founder of ASD and several other scams.  He also tried “rescission” and tried to get a “do over” after he plead guilty; that did not work out so well for him, as he now sits in Federal Prison at the age of 79, with a scheduled Release Date of 02/07/2018.

I hope that all the defendants in this case get the opportunity to have an extended stay in Federal prison.

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Posted in HYIP, MLM, Money Laundering, Online Marketing, Other Ponzi Scams, Pyramid Schemes, Scams, Serial Promoters, TelexFree, TelexFree SEC Case | No Comments »

TelexFree: Joseph Craft Answers SEC Amended Complaint, Again?

Posted by ASDUpdates on August 13th, 2014

I am not totally sure why there have been 3 recent filings by Mr Craft in which he answers the Original Complaint once and the Amended Complaint two times.  All the filings are precisely 20 pages long, and from outward appearances, they are little to no differences between them. One would think that one filing of his Answer would suffice.

One common thread among these three filings is this, he disavows any knowledge of wrongdoing: (emphasis added by me)

The Defendant did not know that the scheme described in the Complaint qualified as an illegal Ponzi scheme and was involved in the unregistered sale of securities when he became TelexFree’s accountant, and did not conclude that it was until approximately March, 2014. He admits that various individual defendants cited in Paragraph 1 appear to have been engaged in a multi-level marketing enterprise, which purported to be in the business of selling telephone service plans using Voice-over Internet Protocol (“VoIP”) technology. The Defendant admits the allegations in paragraph 1 that assert that the Debtors were headquartered in Marlborough, Massachusetts and that at least from April 2012, the owners of the defendant corporations were James Merrill and Carlos Wanzeler.

The Defendant denies that he was a principal or insider in the enterprise at any time, and says that he performed honest and legitimate accounting services for the corporations named in the Complaint. He denies that he assisted any wrongful activity. He was kept in the dark about the true nature of the enterprise’s activities and was a victim of misrepresentations for most of the time that he served as TelexFree’s accountant. He was not an insider, employee, owner, principal or promoter.

I have uploaded this new Answer onto the Files website (Doc 233)

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Posted in HYIP, MLM, Money Laundering, Online Marketing, Other Ponzi Scams, Pyramid Schemes, Scams, TelexFree, TelexFree SEC Case | No Comments »

From PatrickPretty.com: More TelexFree Lies

Posted by ASDUpdates on August 13th, 2014

Trustee Confirms TelexFree Did Not Own Building

Despite worldwide promos implying otherwise, TelexFree was neither the sole occupant nor owner of this Massachusetts building.

Despite worldwide promos implying otherwise, TelexFree was neither the sole occupant nor the owner of this Massachusetts building.

One of TelexFree’s alleged reality-distortion fields has been formally exposed.

Perhaps you saw the recruitment promos (both corporate and affiliate) that planted the seed TelexFree was the sole occupant of a large building in Marlborough, Mass.

Former President James Merrill was shown posing in front of the structure. A caption on TelexFree’s website read, “The Company HQ: United States.”

Read the full story here……

 

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Posted in HYIP, MLM, Money Laundering, Online Marketing, Other Ponzi Scams, Pyramid Schemes, Scams, TelexFree, TelexFree Bankruptcy, TelexFree Class Actions, TelexFree Criminal Case | No Comments »