Archives on November, 2013

More on US Payza Money Seizures

Posted by ASDUpdates on November 29, 2013No Comments

This comes from the website of Ultralight Financial Systems:

Attention MH Pillars dba Payza customers:  

The US Department of Homeland Security has seized all MH Pillars dba Payza money on deposit with UltraLight FS.  Additional information will be published as we receive it.

So, things are pretty much as they seem….

Update from The Payza Website – Limited Services for Certain US States

Posted by ASDUpdates on November 28, 2013No Comments

From the Payza website:

Important Update: Limited Services for Certain U.S. States

As you may be aware, Payza members in certain U.S. states have had access to the funds in their Payza accounts restricted. We are working to resolve this issue.

Please note that this issue only directly affects a small percentage of our global member base. We are working with these members and the various State Regulators to provide them with a means to receive their funds.

Members in the affected states: There is further account-specific information available to you when you log into your Payza account, which you still have full access to, as well as contact information for your State Regulator.

We apologize for this inconvenience.

Payza is Here to Help

If you have any questions about this issue, our dedicated Customer Support team is available to assist you. You can contact Customer Support by phone, email, live chat or on Twitter:

In addition to these resources, the Payza Community, Payza’s interactive online support forum, is here to help.

 

From BehindMLM: DHS Seizes US Payza Funds

Posted by ASDUpdates on November 28, 2013One Comment

Dept. of Homeland Security seizes US Payza funds

Nov.28, 2013 in payment processors

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Reports from Payza clients began to filter in yesterday about the payment processor having problems in some US states. In an announcement sent out to clients in the affected states, Payza advised

Regarding your funds

The funds you currently have in your account are secure and safeguarded under, and according to, the regulatory guidelines of your state.

We are unable to complete any requests to withdraw or transfer these funds at this time, as they are currently being withheld by Ultralight Financial Services, formerly known as Obopay Inc., a licensed U.S. money transmitter of which Payza was an agent.

In order to provide payment services to our U.S. clients in your state, Payza entered into an agreement with Obopay Inc., a long standing and highly reputable money transmitter.

However, following a change in management and in name, Obopay Inc., now known as Ultralight FS, is currently refusing to process any customer transaction requests from the Payza platform, and refusing to release your money to you.

We have tried repeatedly, and to no avail, to resolve this problem by contacting their management, their legal team and your state regulator.

We are pursuing legal action against Obopay Inc., Ultralight FS, their officers and the CEO of both entities, Carol Realini. This legal process, however, is lengthy and will take some time to resolve.

Your state regulator has told us they will not intervene unless they hear from you, the owner of your funds. Our only recourse is to ask you to demand action from both Ultralight FS,formerly known as Obopay Inc., and your state regulator.

Please use this message to send to your state regulatory:

Dear [State Regulator],

Payza has let me know that Ultralight FS, formerly known as Obopay Inc., is refusing to make my money available through my bank account or my Payza account.

I am writing to ask you to take immediate action to solve this problem.

Thank you,

[firstname] [last name] 

We want to stress that your current funds are entirely secure and safeguarded by the Issuing Agency of your state. With your help we are confident this problem can be resolved quickly.

Please contact your state regulator to request that they intervene to allow us to transfer your funds to your bank account immediately.

I held off reporting on this initially as the problem appeared to be, at least according to Payza, between themselves and Ultralight FS (Obopay Inc.). Pending further information about Payza’s claimed legal action, or an announcement from Ultralight FS, there wasn’t much else to go on.

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From Ponzitracker: Proposed Ponzi Legislation

Posted by ASDUpdates on November 26, 2013No Comments

Proposed Ponzi Legislation Seeks Sweeping and Controversial Reforms

Jordan D. Maglich Sunday, November 24, 2013 at 7:38PM

A group of bipartisan lawmakers from the House of Representatives and Senate has proposed legislation that would enact a series of sweeping reforms designed to aid victims of Ponzi schemes – and at the same time, force the use of several methods that have typically been disfavored by courts and regulators.  The Restoring Main Street Investor Protection and Confidence Act (the “Bill”), co-sponsored by Louisiana Republican Sen. David Vitter, New York Democratic Sen. Charles Schumer, New Jersey Republican Rep. Scott Garrett and New York Democratic Rep. Carolyn Maloney, is specifically designed to provide additional relief to fraud victims involved in Securities Investor Protection Act (“SIPA”) liquidations – such as the Ponzi schemes perpetrated by infamous fraudsters R. Allen Stanford and Bernard Madoff.  However, a closer look at the Bill also reveals that several of the envisioned reforms could have potentially troubling consequences on the current Ponzi jurisprudence.

The History of SIPC and Recent Disputes

The Bill is the product of recent contention between the Securities and Exchange Commission (“SEC”) and the Securities Investor Protection Corporation (“SIPC”).  SIPC was formed in 1970 as a non-profit, non-government group funded through mandatory assessments on member broker-dealers.  In the event of the insolvency of a member broker-dealer, SIPC utilizes its accumulated reserves to provide compensation to afflicted investors –  limited to $500,000 per customer, including up to $250,000 for cash. Most recently, in the collapse of Bernard Madoff’s broker-dealer, Bernard L. Madoff Investment Securities, SIPC provided hundreds of millions of dollars in advances to thousands of defrauded victims.

However, it was the case of another notorious fraudster, R. Allen Stanford, that vaulted SIPC into the national spotlight.  Stanford, who masterminded a massive Ponzi scheme that purported to sell risk-free certificates of deposit worldwide, was arrested in June 2009.  A dispute soon arose as to whether Stanford’s victims were entitled to SIPC fund disbursements, with SIPC successfully arguing to a Washington, D.C., federal court that Stanford customers did not meet the definition of “customer” espoused in SIPA.  The SEC recently argued to a federal appellate court that this result was incorrect.

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From BehindMLM: TelexFree

Posted by ASDUpdates on November 22, 2013One Comment

Judge rejects TelexFree’s mediation proposals

Nov.22, 2013 in TelexFree 9 Comments

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With Acre’s Public Prosecutors rejecting Carlos Costa’s mediation proposals late last week, it fell on Judge Thais Khalil to go over the proposals and make a decision.

Khalil’s decision was handed down yesterday in the shadow of Carlos Costa running all over Brazil to declare “god used him” to create TelexFree and that “nobody will take it” away.

This was followed up by a rather amusing “the battle is coming to an end” video, which was published on TelexFree’s Facebook page:

The battle is coming to an end. We trust in God, we trust in justice.

In stark contrast to the deceptive narrative TelexFree are shoving down their affiliate’s throats, common-sense has once again trumped the company’s marketing theatrics.

Appearing personally at the mediation conference, Costa first proposed that TelexFree be continued to run their Ponzi scheme as if the authorities had never intervened.

The second proposal was a bit less laughable, with Costa proposing that the company be permitted to pay out existing affiliate investors, who would then be required to re-register in the US to continue to invest with TelexFree.

Basically in both instances Costa pushed for a restart of TelexFree’s Brazilian business operations, so it’s not really surprising that Judge Khalil rejected both proposals.

Short of being permitted to lure new Brazilian affiliate investors into the scheme, TelexFree’s gameplan appears to be get their funds unfrozen and transfer as much of it as possible offshore. For reasons unknown, TelexFree appear to believe their US operations will not attract the attention of the SEC.

In addition to sending Costa on his way and in a rather surprising move, Khalil also blocked the previously permitted release of TelexFree funds to pay off a construction firm to retain TelexFree’s stake in the project.

It had been previously ruled that the Acre court would use TelexFree’s funds to pay off the construction firm, looking to preserve TelexFree’s stake in the project to be used at a later date to refund affiliate investors.

I’m not really sure why this decision was “suspended”, but I can only presume Public Prosecutor’s must have presented evidence that shows the construction company had other plans for the money (of the “wink wink, nudge nudge” variety).

Looking forward, Judge Khalil’s decision yesterday now paves the way for the civil action to continue against TelexFree. TelexFree had argued that Acre’s Public Prosecutor’s had no business suing the company, but this argument was rejected by Khalil.

As the case continues, it is expected that a trial will occur sometime in 2014. Judge Khalil is currently going through over 40,000 documents of evidence Acre’s Public Prosecutors have provided her for review.

Personally I think yesterday’s decision sends a pretty clear signal a to how Judge Khalil sees the case. It would appear the issue of whether or not TelexFree is a Ponzi scheme has been determined, now it’s just a matter of putting together the evidence to cement it in court.

Telexfree’s business model alone should be enough for that.

Stay tuned…

From BehindMLM: WCM777

Posted by ASDUpdates on November 21, 2013No Comments

WCM777 confirm “we are illegal in the US”

Nov.21, 2013 in WCM777

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Following what can only be described as a PR nightmare spanning multiple countries and continents, WCM777 have themselves come clean and acknowledged they were selling unregistered securities in the US.

All but confirming the company operated as a Ponzi scheme, owner Phil Ming Xu’s latest update on the WCM777 website is a bit… strange.

response-to-massachusetts-order-of-consense-nov-2013-wcm777

Xu begins his update by declaring that

The negotiations between our lawyers and the Massachusetts’ Office of the Secretary went well. We have reached a settlement with Massachusetts.

“Went well”? Huh?

As reported late last week, the Massachusetts Securities Division recently concluded an investigation into WCM777′s business activities.

The end result?

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From The Dispatch: Zeek Rewards Auction Catalog Now Online

Posted by ASDUpdates on November 20, 2013No Comments

 

Zeek Rewards auction catalogue is now online

Published: Friday, November 15, 2013 at 3:08 p.m.
Last Modified: Friday, November 15, 2013 at 3:08 p.m.

Those interested in the upcoming Zeek Rewards auction can now view auction items online.

Iron Horse Auction Co., which will hold the auction from Dec. 16-17 at Zeek’s former Lexington warehouse, can view the items at the following websites: www.ironhorseauction.com/ZeekReceiverDay1 and www.ironhorseauction.com/ZeekReceiverDay2.

The auction will start at 9 a.m. both days at the warehouse, which is at 4095 Old Salisbury Road. The warehouse and Zeek’s former headquarters will be sold at noon Dec. 16. More than 1,000 items, ranging from office furniture to country-music memorabilia, will also be sold throughout the two-day period.

The federal government shut down Zeek Rewards and its parent company, Rex Venture Group, in August 2012. The U.S. Securities and Exchange Commission alleged the company raised more than $600 million through the sale and offer of unregistered securities. The SEC also accused the company of operating a large pyramid and Ponzi scheme.

For more information, go to www.zeekrewardsreceivership.com.

InternetClowns And More Craddock Crap

Posted by ASDUpdates on November 19, 2013No Comments

Having recently visited Robert Craddock’s new website, “internetclowns.com”, I noticed another example of his brilliant detective skills, skills that I would compare with those of Robert Guenther of ASD notoriety.  Both of these Roberts proclaim their ability to ferret out the truth and profess their willingness to expose those who have any contrary opinion or views; both are ultra conservative and deluded.

A few days ago, Craddock posted an article entitled “If there ever was a bigger Internet Clown” and began imparting his personal perception of RipOffReport.com and how they are “one that allows false and defaming information to be posted on the web it is this company fuelled by desire for profits from advertising revenue.” Spelling and punctuation aside, this is just his opinion, something he is well-known for having.

Further down the article. he makes this mind-numbing statement:

What you may not realize is there is no person or company that they will not encourage people to post negative information regardless if it is correct or false.

Does he mean that RipOffReports encourages persons and companies to post negative information? And where did he gather the information that made him arrive at this conclusion?  Or is it just his opinion, backed up by no facts at all?  The entire purpose of RipOffReports is as a avenue for disgruntled consumers to voice their disgruntlement. Being their own personal opinion, the validity of what they say is not as important as their right to say it. This is a free country, after all.

After a full-page of “information”, the article ends with this:

What you should learn from this is, the information on ripoffreports.com is nothing more than an open forum for people to say, or do anything without having to prove or back up the claim. The unsuspecting public is left not knowing who to believe.

Please explain to me how the InternetClowns website is any different. Craddock can say whatever he wants and provide no actual proof.  Doesn’t that mean he is his own worst enemy? Maybe he will next write an article about himself.

And a few days after this posting on RipOffReports, he posts another article entitled “Special Announcement: New Clown on the Web!”  Oh, goody, a new Clown!!  And I am even more giddy to learn that:

“Internet Clowns is the website where you can go to get the facts and information on person(s) and companies that are behind the slanderous postings designed to cast a dark cloud on the companies being attacked.”

The company being “Attacked” is BTG180 (aka Bids That Give), described on the net as:

BTG 180 offers a unique revenue sharing business model designed to be a true partnership between children’s causes and the affiliates that promote it.”

OK, I’ll bite, what is the source of this revenue to be shared, if this truly is a charitable giving program?? I have an idea, it works by recruiting new people with new money and that’s where the “revenue” comes from, new affiliates. Can you say Pyramid/Ponzi scheme?

The next company being disparaged is Craddock’s ex-step child, OfferHubb. Apparently, Craddock believes OfferHubb, or one of its affiliates, is spreading false information. He eludes to that, anyway and mentions an email, the contents of which he fails to post. The article continues with several links that indicate that OfferHubb was ran by criminals and tax evaders.

Wait, wasn’t Robert Craddock and his buddy Greg Baker having numerous conference calls espousing the wonders of OfferHubb and how it was so much better than Zeek Rewards? Say it isn’t so!!!  And, if that isn’t bad enough, he posts 2 links to RipOffReports which he uses a proof of what he says.  So, is he now saying that we can believe what is posted on RipOffReports? You cannot have it both ways, Craddock!

Craddock then says an OH Affiliate is spreading the lies about BTG180:

Richard Beckman, one of OfferHubb affiliates has started sending this same email in an attempt to distract people. One can only assume his motivation is to distract the current affiliates at OfferHubb about OfferHubb’s own set of issues now plaguing them.

As you can see, these rumors get started and good people need an independent source, like Internet Clowns to provide the truth and expose the false information posted online.

Independent, my ass! Craddock always has an agenda and always will. To close the article, he provides us with “Proof”, a PDF file made by BTG that shows they are doing just what they say they are doing.

If this is what he calls proof, he is no independent source.  But we already knew that.

 

From BehindMLM: Carlos Costa: “God used me” to create TelexFree

Posted by ASDUpdates on November 18, 2013No Comments

 

Carlos Costa: “God used me” to create TelexFree

Nov.18, 2013 in TelexFree, WCM777

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If I’ve learnt one thing over the past year it’s that if you want to launch a Ponzi scheme targeting South Americans, you definitely need to have the “god factor”.

Forget speaking Spanish or Portuguese, forget having a local presence, forget even having a business model that makes financial sense, as long as you profess that god sent you there’s a seemingly endless queue of South Americans waiting to throw their life savings at you.

These people don’t give a damn where the money you promise them comes from and, particularly once the “god factor” has been established, they’re also inclined to believe anything you say.

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