Archives on July, 2013

Zeek Receiver Files Quarterly Report

Posted by ASDUpdates on July 31, 2013No Comments

This Quarterly Report  is a lengthy document, along with 2 Exhibits.  I will upload them onto the Files website.  These are an interesting 2 paragraphs from the report:

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Not Much Going On Right Now

Posted by ASDUpdates on July 30, 2013No Comments

I check PACER at least once a day, and the only recent activity has been with Zeek Rewards and the Motion to Intervene/Dissolve the receivership.  That Motion went as expected and so far, Ira Sorkin has not filed an Appeal of the decision.

The other cases that I am watching, eAdGear/GoFunPlaces, Profitable Sunrise, and Liberty Reserve have been static for a while, at least as far as the case docket is concerned.  I certainly hope there will be some action soon, so I can justify my PACER bill.

I am also watching Nanci (Ponzi) Jo Frazer and her Ohio charges, which may soon morph into Federal charges against her and her Focus Up Ministries, Inc.

I will post something on these topics as soon as I locate new information.

 

 

From BehindMLM: Empower Network battles affiliates over compliance

Posted by ASDUpdates on July 19, 2013No Comments

Empower Network battles affiliates over compliance

Jul.19, 2013 in Empower Network

empower-network-logo

On the eve of Empower Network’s Denver affiliate conference, an interesting feud has been brewing between Empower Network and some of its affiliates.

Firing the first shot on the 12th of July, Empower Network published the following ‘important announcement from Empower Network Compliance‘ on their website:

Empower Network Compliance is in the process of investigating Project A.W.O.L. and empowerville.com and its affiliated Empowerville Facebook page for violation of our Terms of Service and Affiliate Policies and Procedures.

It is very important for all affiliates and customers to understand that Empower Network is in NO WAY affiliated with either system or offer.

Empower Network does not endorse, sanction or otherwise condone this type of activity. Nor does Empower Network make any guarantees for income or success.

So you’re not affiliated with either “system or offer”, got it. But what exactly did Project A.W.O.L. and Empowerville do?

[Read the rest of this entry…]

From PatrickPretty: TelexFree has blocked members’ access to their back offices

Posted by ASDUpdates on July 18, 2013No Comments

REPORTS: TelexFree Blocks Members’ Access To Back Offices, Claims Hacking Attempts

By 5:47 pm Jul 17, 2013

UPDATED 6:23 P.M. EDT (U.S.A.) There are at least three reports in Brazilian media today that say TelexFree has blocked members’ access to their back offices.

A company attorney said the blockages were necessary because hackers had attempted an intrusion, according to reports in Portuguese translated to English by Google Translate.

Here is a link to one of the reports, with the corresponding Google translation. (Please note that Google translations often are imperfect, may appear stilted and may lack subtleties of language.)

Narratives about hackings often accompany HYIP schemes. The AdSurfDaily Ponzi scheme in the United States once claimed it could not make payments because hackers had stolen $1 million. ASD President Andy Bowdoin never reported the alleged hacking bids to police, federal prosecutors said.

In 2012, reports surfaced that the JSS Tripler/JustBeenPaid scheme that purported to pay 730 percent a year (precompounding) had been targeted by hackers. There also were reports in 2012 that accounts at Zeek Rewards (1.5 percent a day) had been hacked and that at least one individual had presented a bogus financial instrument to Zeek.

Read the full story here….

 

Reminder: Zeek Rewards Hearing

Posted by ASDUpdates on July 18, 2013No Comments

The Hearing for entertaining oral arguments for the “Motion to Intervene and to Dissolve the Receivership” filed by Kellie King and Trudy Gilmond is set for July 23rd, next Tuesday.

I am hoping that there is some relatively quick action following the hearing, but as Ira Sorkin, King and Gilmond’s high powered lawyer, has said,  no matter which way the Motion goes, the other party will appeal.

From BehindMLM: FTC: “Herbalife’s business practices are disturbing”

Posted by ASDUpdates on July 17, 2013No Comments

FTC: “Herbalife’s business practices are disturbing”

Jul.17, 2013 in Herbalife

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One of the common questions we get here at BehindMLM whenever we call out a company that is not under investigation is that, if analysis of the business model reveals such blatant questions of legitimacy, how come regulators have not investigated the company.

Not being a regulator there’s no clear-cut way to answer this. Affiliates take full advantage of this and use a lack of regulatory investigation as a rubber stamp of legitimacy, with the more extreme examples even citing approval in the absence of action.

Naturally the idea that regulators haven’t stepped means nothing dodgy is going on is about as absurd as claiming murder is legal unless someone catches you. But the fact remains, the manner in which resources are allocated by regulators of the MLM industry are a mystery.

Here at BehindMLM i can report analysis and draw conclusions, but it is only a reactionary response readers get to regulatory action when it occurs. Predicting such action in a timely manner is nigh on impossible given the secrecy that surrounds such investigations.

Earlier this week Hispanic consumer groups and politicians who represent large Hispanic populations met with the FTC to discuss their concerns about Herbalife. At the heart of these concerns is the charge that Herbalife operates as a pyramid scheme and in particular, targets Hispanic communities that these consumer groups and politicians primarily represent.

The outcome?

The FTC slammed Herbalife’s business practices as “disturbing”. Apart from serving up the most damning commentary on Herbalife’s business practices yet from any US regulator, the FTC also revealed one of the primary challenges it faces in regulating the MLM industry.

It’s a question of resources.

[Read the rest of this entry…]

From Ponzitracker: Rothstein Victims To Recoup 100% of Losses Under Approved Liquidation Plan

Posted by ASDUpdates on July 15, 2013One Comment

 

Rothstein Victims To Recoup 100% of Losses Under Approved Liquidation Plan

Jordan D. Maglich Saturday, July 13, 2013 at 7:58AM

“For the first time in history, period, a bankruptcy trustee has returned 100 percent payout to the victims of a Ponzi scheme.  It’s made more remarkable by the Rothstein Ponzi case being the fourth largest in history.”

 Charles Lichtman, Attorney for Trustee Herbert Stettin

In an unprecedented turn of events, victims of Scott Rothstein’s massive $1.4 billion Ponzi scheme are set to recoup 100% of their losses under a liquidation plan approved Thursday by a south Florida bankruptcy Judge.  The recovery represents a stark contrast to the prospects faced by victims back in late 2009, after Rothstein was arrested for the largest Ponzi scheme in Florida’s history and his once-prominent law firm crumbled declared bankruptcy.  Now, after U.S. Bankruptcy Judge Raymond B. Ray’s approval of a compromise between the trustee and various creditor groups, victims will receive all of their losses back in an outcome that stands in a class of its own in Ponzi scheme jurisprudence.

Background

The approval of the liquidation plan hinged on wrangling over the contribution of TD Bank, which had been accused of serving as an indispensable part of Rothstein’s scheme.  In the initial liquidation plan proposed by Trustee Herbert Stettin back in February, TD Bank agreed to pay $72.45 million to be used to compensate victims in return for a ‘bar order’ which would permanently enjoin any pending or future litigation against the bank based on Rothstein’s scheme.  This bar order would be a significant benefit for TD Bank, which still faces suits from numerous investors and is already on the hook for over $200 million in judgments and settlements to date.  Many creditor’s groups balked at this initial proposal, claiming that the bank was effectively buying peace – at a bargain – for its role in the massive scheme.  Judge Ray rejected the plan, and the parties continued to negotiate.

After a marathon two-day negotiating session, lawyers submitted an amended liquidation plan that satisfied the concerns of creditor groups.  Among the concessions made, the proposed bar order would allow lawyers to continue their quest for sanctions against TD Bank in pending cases for alleged document discovery violations.  Additionally, the bank agreed to pay $54 million to settle a group of pending cases in state court filed by victims.  That settlement brings the total amount of settlements obtained by creditor’s attorney Bill Scherer to a whopping $257 million.

Continue Reading →

From northwestohio.com – More on “Ponzi” Jo Frazer

Posted by ASDUpdates on July 10, 2013No Comments
NW Ohio charity and solicitors charged in fraud scheme
Posted: 07.09.2013 at 8:56 PM

BRYAN, OHIO — On Tuesday, Ohio Attorney General Mike DeWine and the Ohio Department of Commerce announced a joint lawsuit and temporary restraining order against Nancy Jo Frazer, David Frazer, Albert Rosebrock, and their charity, Defining Vision Ministries, formerly known as Focus Up Ministries, Inc., for violations of Ohio’s charitable and securities laws.

WNWO reached out to Nancy Jo Frazer, of Bryan, Ohio, on Tuesday evening about the accusations and Frazer said, in part, “we meant no harm, we were the biggest victims of all.”

State officials, however, say that the Frazer’s and Rosebrock were behind a pyramid scheme called Profitable Sunrise which, authorities allege, was touted as Christian company that used investment proceeds to help charities while also providing investors with large returns.

Nancy Jo Frazer claims that she, her husband and Rosebrock “did not know what was happening”.

In a phone interview with WNWO, Frazer said she did not want to go on camera at this time, the self-proclaimed television spokeswoman said that it all started when she was introduced to a man named “Roman Novack” by phone.  

Frazer says that “Novack” was referred to her as a “reputable collateral lender out of the UK” and says he offered her “free advertising” on his many websites “in exchange for being a group leader for his program” called Profitable Sunrise.

Mrs. Frazer says she never met “Novack”, face to face, but looked him up online and said he “had a good reputation on the internet”.

Frazer says  that after signing on with “Novack” he began using her name and her ministry for other things, without her knowledge.

According to the state’s complaint, however, it was the Frazer’s and Rosebrock who used Focus Up Ministries’ to solicit donations and investments for Profitable Sunrise.

Frazer, however, claims that she is only taking the fall now because “Novack” disappeared when US authorities started sending him cease and desist orders.

“My face was out there,” Frazer says of why she thinks state officials have sought legal action against her and her ministry.

Attorney General Mike DeWine says that Profitable Sunrise “defrauded Ohioans and others out of millions of dollars” but says the [Frazer’s and Rosebrock] promised “outrageous returns and [told] investors that their donations and investments would help charities.”

Frazer says she fully cooperating with state authorities on the case and “wants this resolved…we want to do the right thing”.

“We’ve been so pleased with how [state officials] have treated us..they are just doing their job…We’re hoping we can resolve this to the satisfaction of everyone,” Frazer added.

The lawsuit against the trio, however, also alleges that the defendants used funds, donated to Focus Up Ministries, for personal expenses and other unlawful purposes.

The Attorney General’s Office says it is now trying to find “victims” who invested in Profitable Sunrise or were solicited as potential investors as they investigate the situation.

Those with that kind of information are being asked to call the Attorney General’s Charitable Law Section at 614-466-3181.

A preliminary injunction hearing, in the case, has been scheduled for July 22 at 10 a.m. in the Williams County Common Pleas Court.

Frazer says she hopes it “doesn’t get to that point”.