Archives on June, 2013

More From Zeek Receiver’s Motion, $1,000 Qualifies You As “Net Winner”

Posted by ASDUpdates on June 30, 20134 Comments

In the most recent filing, Kenneth Bell, upon consulting with the SEC, has established the threshold for qualification of a “Net Winner” as winning $1,000 or more. I bet that throws a wrench into the spinning wheels of the HYIP world. For far too long, purveyors and promoters of these schemes have gotten away with things, but not any longer it would appear. If this Motion is approved by Senior District Judge Mullen it could spell DOOM for HYIP’s, both now and in the future.

At this time, the primary focus is on the money, but it will soon shift towards criminal/civil culpability and possibly more charges against the knowing and willing participants in this Auction/Bids Ponzi Scam.

As the old poker saying goes, “Read ’em and weep”.

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Zeek Rewards Receiver Files Motion To Approve Settlement Agreements

Posted by ASDUpdates on June 29, 2013No Comments

On Friday, June 27th, Kenneth Bell filed “Receiver’s Motion to Approve Settlement Agreements and Leave to Settle Certain Claims Against Net Winners”.  Along with the Motion, there are 2 separate exhibits; the first a sample Settlement Agreement and the second is a listing of 136 initial Settlements made, the amount of the settlement and a payment schedule; the Receivership is cooperating with “net winners” and allowing them to pay things out.

Here’s part of the proposed agreement:

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I have added these new filings onto the Files Website.

From Ponzitracker: Introducing ‘BriefCache’

Posted by ASDUpdates on June 28, 2013No Comments

Introducing BriefCache by Ponzitracker

Two years ago, Ponzitracker was launched with a simple goal in mind – to serve as a comprehensive resource on the proliferation of Ponzi schemes.  This has included regular reporting on schemes across the world, as well as other educational information regardless of whether the audience was a victim, litigant, or lawyer. (This audience apparently also included perpetrators, as one recent decision from the Seventh Circuit Court of Appeals showed.)  This information has remained free of charge, and free of advertisements or other distractions.  Since its launch, Ponzitracker has strived to stay at the forefront of Ponzi litigation, and in doing so has been recognized as a Top 25 Business Blog by Lexis Nexis and is routinely ranked as one of the top blogs by Avvo.  Today, it will go one step further by introducing Briefcache.

With a steadily-growing library of 500+ articles, the thought recently occurred as to how Ponzitracker could function as a resource not only for the casual reader, but for practitioners in the rapidly growing niche industry of Ponzi litigation.  As hundreds of Ponzi schemes have been uncovered in the past several years, a strengthening legal jurisprudence is emerging.  However, much of this information is not easily available.

Today, Ponzitracker will launch Briefcache, which is the beginning of efforts to make the burgeoning jurisprudence of Ponzi litigation available to all.  Briefcache features thousands of legal documents categorized by topic that have been filed, litigated, and decided in Ponzi scheme receivership and bankruptcy cases.  From the sale of airplanes to status reports to recovering land to returning funds to victims, these documents are all now available after months of preparation and indexing.

Best of all, Briefcache will be free of charge.  While it will remain a work in progress, it is my sincere hope that it may function as a valuable and worthwhile resource to whatever audience may decide to utilize it.

A link to Briefcache is here.

From BehindMLM: Police Investigate TelexFree For Money Laundering

Posted by ASDUpdates on June 28, 2013No Comments

Police investigate TelexFree for money laundering

Jun.28, 2013 in TelexFree

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With TelexFree expected to file a formal appeal against the injunction that has effectively shut down the business in Brazil, news broke today that police in Acre are now investigating the company for possible money laundering activity.

The Acre division of the  Specialized Police in Combating Organized Crime Taskforce (known as DECCO), announced yesterday that they had

opened an inquiry into whether the management of Telexfree committed crimes against the economy and money laundering, among other crimes.

The inquiry investigation marks the second criminal investigation into TelexFree that is publicly known. The first being initiated by the Brazilian Bureau of Consumer Protection, which resulted in the detection of ‘evidence of crimes‘.

The opening of the police investigation, made at the request of the Special Action Group for Combating Organized Crime (GAECO) of MP-AC means the entry of the criminal sphere organ in these investigations.

Also revealed in the iG news report was the conclusion of the previous criminal investigation into the company. After the Bureau of Consumer Protection forwarded their findings to the Ministry of Justice and Finance, the Bureau of Defrauding opened up a case which resulted in the request of arrest warrants for certain “members” of TelexFree. [Read the rest of this entry…]

From BehindMLM: Zeek’s Dawn Wright-Olivares Now Marketing @ iWowWe

Posted by ASDUpdates on June 27, 2013No Comments

Zeek’s Dawn Wright-Olivares now marketing @ iWowWe

Jun.27, 2013 in iWowWe, Zeek Rewards

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Shortly after she pretty much admitted Zeek Rewards was paying existing affiliates with new affiliate money, Zeek Rewards’ Chief Operating Officer Dawn Wright-Olivares disappeared from the public spotlight.

Whether she knew of not of the impending action against the company by the SEC, by the time they moved in to shut down Zeek Rewards Wright-Olivares was nowhere to be found.

A few months later reports began to trickle in about Wright-Olivares’ new business venture, Savage Smokes. Marketing electronic cigarettes (non-MLM), in light of the revelation she was COO of a $600M Ponzi scheme, it appeared Wright-Olivares had moved on from the MLM industry.

The Savage Smokes website is still up although things seems to have stalled with the last recorded blog entry on the site dates back to the 14th of January. With the future of Savage Smokes remaining uncertain, it appears Wright-Olivares might again have moved on, and this time she’s making an MLM comeback.

[Read the rest of this entry…]

From BehindMLM: US TelexFree Affiliates Fed More Misinformation

Posted by ASDUpdates on June 26, 2013No Comments

US TelexFree affiliates fed more misinformation

Jun.26, 2013 in TelexFree

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Following TelexFree corporate’s attempts at shovelling a mountain of misinformation onto their US affiliates last Saturday, that we’d begin to see some sort of coherency between what was pushed onto affiliates and what was happening in Brazil.

Following the release of a TelexFree US affiliate conference call held last Sunday though, that seems to be far from the case.

The call featured in this article was hosted by TelexFree US affiliate Randy Crosby and uploaded by Faith Sloan. Both are in the “TelexFree Global Team”, with Sloan declaring on her personal blog that ‘TelexFree is going to be my deal of 2013‘ back in February.

The major focal point of the call appears to be a purported signing of a contract between TelexFree and an unnamed insurance company. For reasons unknown, apparently acknowledging the signing of the contract is ok, but nobody is permitted to publish anything about it: [Read the rest of this entry…]

From BehindMLM: Brazilian Court suspends TelexFree operations

Posted by ASDUpdates on June 20, 2013No Comments

Brazilian Court suspends TelexFree operations

Jun.20, 2013 in TelexFree

When news broke back in February that TelexFree was under criminal investigation in Brazil, many TelexFree affiliates went into a panic with the company’s then recent attempt at US market penetration stalling.

Then, after the Ministry of Finance came out and publicly declared that TelexFree was “not sustainable” and “a Ponzi scheme”, court action escalated and, to the best of my knowledge, somewhere along the line an order was passed prohibiting the Ministry of Finance from issuing any further statements on the case (which remained in progress), and to take down information they had already published.

As is common with Ponzi schemes, affiliates with the most to lose in the company and fearful of the impact the Ministry of Finance’s statements would have on their investor recruitment efforts, news of the above order somehow got turned into this:

It’s official! The investigation on TelexFree has been absolved of what Behind MLM has researched and posted.

Comments like the above were widely circulated by TelexFree affiliates in a campaign of misinformation, aimed at reassuring existing and prospective investors that TelexFree’s Brazilian regulatory problems were over.

Cue breaking news of continued Brazilian regulatory action against TelexFree in 3… 2… 1…

[Read the rest of this entry…]

 

Kenneth Wayne Leaming Gets Another Motion Denied

Posted by ASDUpdates on June 19, 2013One Comment

It appears that Leaming’s attempt to stay the Forfeiture of his “property” has not met with favor.  Here’s what Judge Leighton had to say:

No. 12-cr-5039-RBL
ORDER DENYING MOTION TO STAY FORFEITURE
(Dkt. #269)

Defendant “directs” the Court to stay forfeiture of his property pending appeal (because he is quite certain that there are “fundamental jurisdictional issues” concerning whether a federal court has the authority to hear federal criminal trials). The property at issue is Defendants’ firearms and regalia related to his sovereign citizen club, including pretend law enforcement badges. Defendant, already a felon before this conviction, offers no reason to stay forfeiture.

Well, that answers that. I really like Judge Leighton, he doesn’t mince words.

Pro-Sun: James Paul Schilling’s Motion To Get His Money Back Is Denied

Posted by ASDUpdates on June 19, 2013One Comment

As some may recall, around the end of April a ProSun affiliate, James Paul Schilling, filed a Pro Se Motion to Release $57, 300 that he had Wire transferred to Profitable Sunrise.  Today, he received an answer from Judge Thrash, as follows:

ORDER

This is an SEC enforcement action. It is before the Court on the pro se Motion to Unfreeze and Release Cash Wire Transfers [Doc. 13] of James Paul Schilling. This attempt to intervene is prohibited by 15 U. S. C. § 78u(g). The Motion to
Unfreeze and Release Cash Wire Transfers [Doc. 13] is DENIED.

SO ORDERED, this 19 day of June, 2013.

From MLMAttorney – FTC’s Disclosure Guidelines for Online Marketing: How to get it right (Part 2)

Posted by ASDUpdates on June 18, 2013No Comments

The second installment of Kevin Thompson’s atricle regarding the FTC’s guidelines for online marketing has arrived.

by on June 18, 2013

FTC’s Disclosure Guidelines for Online Marketing: How to get it right (Part 2)

This article was written by +Kevin Thompson in collaboration with our stellar summer associate, Jake Perry.

FTC Disclosure GuidelinesIn the last article, FTC’s Disclosure Guidelines for Online Marketing: How to get it right (Part 1), we walked through the Federal Trade Commission’s recently published .com Disclosure Guidelines (fully included below). In this installment, we’re going to walk through five hypothetical examples of common marketing claims made in the MLM industry. The goal of this post is to provide you with practical, easy-to-understand tips on how to make proper claims.

The format is simple: I’m going to give you common fact patterns of how claims are made in the MLM industry. Then I’ll show you what most distributors would WANT to do as far as making disclosures. Then I’ll show what they SHOULD do, as per the .com Disclosure Guidelines. These guidelines apply whether the company is an MLM startup or a well-established company.

Read the rest of the article here..