BehindMLM: British police issue TelexFree warning
TelexFree has recently been attempting to make inroads in Europe. In addition to heavily promoting the investment scheme throughout Russia, the company’s affiliate investors have also targeted western European countries.
Anticipating Europe to be a primary source of new investor funds with which to pay out existing investors with, TelexFree are even going so far as to hold their next conference in Madrid, Spain this weekend.
Fortunately all this Ponzi pimping hasn’t gone unnoticed, with at least one police department in the UK issuing a public warning against what they refer to as a “scam”.
In their scam warning, issued this month, the States of Jersey Police department warn
The States of Jersey Police have been made aware of a potential fraud which is targeting Jersey’s Madeiran community.
Guernsey Police have issued a similar appeal.
The scheme is under a company name of TELEXFREE and would require initial investments with the promise of big returns.
The scheme originated from Brazil and is currently being investigated by the Brazilian authorities as it is believed to be fraudulent.
Jersey Police know that islanders have been approached to “invest” in the scheme, but as yet have not had any contact from victims of the scam.
If anyone in Jersey has invested money into a TELEXFREE scheme they should contact the Joint Financial Crimes Unit on Tel: 01534 612250 (during office hours) or Police headquarters on 01534 612612 (at other times).
The last paragraph of the scam alert would indicate that the police are looking to gather information on TelexFree, perhaps for investigative use later should the investment scheme gain traction locally.
On their “About Us” website page, the States of Jersey police department write
The States of Jersey Police serves a resident population of nearly 98,000 people as well as over 700,000 visitors to Jersey each year.
At face value, the challenges involved in policing Jersey may seem to equate to policing a small town in the United Kingdom. But Jersey’s status as a Crown Dependency with its own government and legislation create a distinct policing environment:
The main difference is that the States of Jersey Police must be largely self-sufficient in developing and maintaining services that are provided through a local, regional and national level police service infrastructure in the United Kingdom.
Whether or not the department will take any further action against the company and any local promoters remains to be seen.
Footnote: My thanks to BehindMLM reader Frontier for providing us with this news tip.
AP- Website of Bitcoin exchange Mt. Gox offline
By YURIKO NAGANO and STEPHEN WRIGHT | Associated Press – 6 hrs ago
TOKYO (AP) — The website of major bitcoin exchange Mt. Gox is offline Tuesday amid reports it suffered a debilitating theft, a new setback for efforts to gain legitimacy for the virtual currency.
The URL of Tokyo-based Mt. Gox was returning a blank page. The disappearance of the site follows the resignation Sunday of Mt. Gox CEO Mark Karpeles from the board of the Bitcoin Foundation, a group seeking legitimacy for the currency.
At the Tokyo office tower housing Mt. Gox, bitcoin trader Kolin Burgess said he had picketed the building since Feb. 14 after flying in from London, hoping to get back $320,000 he has tied up in bitcoins with Mt Gox.
“I may have lost all of my money,” said Burgess, next to placards asking if Mt. Gox is bankrupt. “It hasn’t shaken my trust in Bitcoin, but it has shaken my trust in bitcoin exchanges.”
A “crisis strategy” report shared widely online that purports to be an internal Mt. Gox document says more than 740,000 bitcoins are missing from the exchange, which froze withdrawals earlier this month. It says the theft went unnoticed for several years and turned on disguised withdrawals.
A theft of that magnitude would equate to losses of $350 million at current bitcoin prices, but in practice such a figure is highly uncertain because of Bitcoin’s extreme fluctuations in value and its lack of broad acceptance as an alternative to money.
The cloud hanging over Mt. Gox is a possibly fatal blow to Bitcoin, which was started in 2009 as a currency free from government controls. Supporters have said Bitcoin’s cryptography makes it immune to theft or counterfeiting.
On bitcoin exchanges, the currency’s value has fallen to about $470 from $550 in the past few hours.
Several bitcoin exchanges and related organizations released a joint statement that said they are working to “re-establish the trust squandered” by the failings of Mt. Gox.
The bitcoin operators said funds under their control are held securely. Mt. Gox should not be considered a reflection of the value of Bitcoin or the digital currency industry, they said.
A second man protesting outside Mt. Gox’s office in Tokyo said he was in arbitrage, which is a type of trading, but would only gave his first name, Aaron.
A security officer said no one from Mt. Gox was in the building. Tibbane, an Internet company that Karpeles is CEO of, still has its named listed on the building’s directory.
“I have no idea” where they are, said Burgess. “I’m both annoyed and worried”
Bitcoin had been inching toward broader acceptance despite wild swings in value in the past year. For most of the currency’s history, each digital coin had been worth less than $10.
New bitcoins are “mined” or generated by computers. They get harder to generate all the time, which means the inflow of fresh bitcoins keeps falling.
There are about 12.4 million bitcoins in circulation today, according to Blockchain, a public registry of bitcoin transactions. The maximum number of bitcoins that can be generated is 21 million and by 2032, 99 percent of those will have been created.
BehindMLM: Global Unity: Kingdom777 rebooted (again)
It’s getting rather difficult to keep up with the continuous changes Phillip Ming Xu keeps making to his global Ponzi empire. After regulators around the world began to target Xu and his WCM777 Ponzi scheme late last year, he changed its name to Kingdom777 and hid behind the skirt of newly appointed CEO, James Tenorio.
What became of Tenorio remains unclear. He published one update on the Kingdom777 website in January, after which rumors claiming he’d abandoned the post began to surface. I was never able to confirm this information, however it seems Tenorio has since gone into hiding as there has been no communication from him since.
That left Ming Xu back in charge, and with Kingdom777 barely over a month old, it appears he’s gone and changed the name of his scheme yet again.
Suspicions were raised when Kingdom777 and its associated sites went offline roughly twenty-four hours ago. Dutra’s The Paper observed that
As of early this morning the websites for Kingdom777 are down. This includes kingdom777.com, kingdomtrade.org and kingdom777.hk. Social media is stating the outage will be for 48 hours and they are making upgrades and changes to the site.
It is unknown how unity.pe plays into this yet, however the domain is listed as repossessed by godaddy.com, the preferred domain seller of Kingdom777 owner Xu Ming.
Further initial investigations into this outage show that many of the sites are moving services to new providers and net blocks.
Worldcapitalmarket.com has relocated onto Google Cloud Services, 1and300.com has moved to a net block assigned to seizuretimegaming, Kingdom777.com has moved to Yahoo hosting, kingdomtrade.org remains at liquidweb, where many of the sites related to this scam have been since the start of the scheme.
A few hours ago emails began to trickle in with information on one of Kingdom777′s top Ponzi pimps trying to covertly shift over his downline to a “new” scheme, named “Global Unity”.
Renato Rodriguez, one of the top leaders in wcm777 might be switching all of people to “his” new company. He said “no information must be shared”.
The Global Unity website domain, “global-unity.net” was only registered just yesterday on February 24th, with much of the site still in development:
Continue Reading →
Credit Suisse and the SEC
Credit Suisse Agrees to Pay $196 Million and Admits Wrongdoing in Providing Unregistered Services to U.S. Clients
FOR IMMEDIATE RELEASE
Washington D.C., Feb. 21, 2014
—The Securities and Exchange Commission today announced charges against Zurich-based Credit Suisse Group AG for violating the federal securities laws by providing cross-border brokerage and investment advisory services to U.S. clients without first registering with the SEC. Credit Suisse agreed to pay $196 million and admit wrongdoing to settle the SEC’s charges.
According to the SEC’s order instituting settled administrative proceedings, Credit Suisse provided cross-border securities services to thousands of U.S. clients and collected fees totaling approximately $82 million without adhering to the registration provisions of the federal securities laws. Credit Suisse relationship managers traveled to the U.S. to solicit clients, provide investment advice, and induce securities transactions. These relationship managers were not registered to provide brokerage or advisory services, nor were they affiliated with a registered entity. The relationship managers also communicated with clients in the U.S. through overseas e-mails and phone calls.
“The broker-dealer and investment adviser registration provisions are core protections for investors,” said Andrew J. Ceresney, director of the SEC’s Division of Enforcement. “As Credit Suisse admitted as part of the settlement, its employees for many years failed to comply with these requirements, and the firm took far too long to achieve compliance.”
According to the SEC’s order, Credit Suisse began conducting cross-border advisory and brokerage services for U.S. clients as early as 2002, amassing as many as 8,500 U.S. client accounts that contained an average total of $5.6 billion in securities assets. The relationship managers made approximately 107 trips to the U.S. during a seven-year period and provided broker-dealer and advisory services to hundreds of clients they visited. Credit Suisse was aware of the registration requirements of the federal securities laws and undertook initiatives designed to prevent such violations. These initiatives largely failed, however, because they were not effectively implemented or monitored.
“As a multinational firm with a significant U.S. presence, Credit Suisse was well aware of the steps that a firm needs to take to legally conduct advisory or brokerage business with U.S. clients,” said Scott W. Friestad, an associate director in the SEC’s Division of Enforcement. “Credit Suisse failed to effectively implement internal controls designed to keep its employees from crossing the line and being non-compliant with the federal securities laws.”
According to the SEC’s order, it was not until after a much-publicized civil and criminal investigation into similar conduct by Swiss-based UBS that Credit Suisse began to take steps in October 2008 to exit the business of providing cross-border advisory and brokerage services to U.S. clients. Although the number of U.S. client accounts decreased beginning in 2009 and the majority were closed or transferred by 2010, it took Credit Suisse until mid-2013 to completely exit the cross-border business as the firm continued to collect broker-dealer and investment adviser fees on some accounts.
The SEC’s order finds that Credit Suisse willfully violated Section 15(a) of the Securities Exchange Act of 1934 and Section 203(a) of the Investment Advisers Act of 1940. Credit Suisse admitted the facts in the SEC’s order, acknowledged that its conduct violated the federal securities laws, accepted a censure and a cease-and-desist order, and agreed to retain an independent consultant. Credit Suisse agreed to pay $82,170,990 in disgorgement, $64,340,024 in prejudgment interest, and a $50 million penalty.
The SEC’s investigation was conducted by senior attorneys David S. Karp and Matthew R. Estabrook under the supervision of assistant director Laura B. Josephs and associate director Scott W. Friestad. The SEC appreciates the assistance of the Swiss Financial Market Supervisory Authority.
From BehindMLM: TelexFree has a new Compensation Plan?
Editor’s Note: Usually, when an “opportunity” changes their compensation plan, it is in an effort to sanitize things at least in their own minds. It rarely results in a withdrawal of governmental regulators from their front door and/or removing that “opportunity” from negative light.
Providing yet more evidence that TelexFree’s AdCentral investment scheme is nothing more than a $20 a week ROI Ponzi scheme, the company appears to be gearing up to release a new compensation plan. [Read the rest of this entry…]
Here’s a very interesting article over at the PatrickPretty.com website; I suggest you read it….. Click the link below:
Another Ponzi Payment Processor Down, More To Go !
In an article on BehindMLM.com, we have another of what I call a “Ponzi Implementing Money Processor” (PIMP) fleeing the scene in the US, much like Liberty Reserve and Payza. I am glad to see these Ponzi scam “enablers” dropping by the wayside, but it’s just not enough in my book. More regulations need to be in place with more direct monitoring of these PIMPs, and lots of jail time for those who willingly break the law for the sake of lining their pockets.
Now, on to the story from BehindMLM:
In less than a year three major darlings of the Ponzi payment processor niche have ceased operating in the US or been shutdown entirely.
Co-incidence or evidence that US regulators are increasing efforts to go after payment processors who are lax with fraud prevention, whether willingly or not?
For those who came in late, last May Libery Reserve was shutdown after a joint investigation between Costa Rican, US and Spanish authorities spanning 17 countries. Six months later Vladmir Kats, co-founder of Liberty Reserve, plead guilty to ‘money laundering and operating an unlicensed money transmitting business’.
Then, in that same month Payza abruptly ceased processing withdrawals and deposits from US based clients. It was initially reported that the Department of Homeland Security had seized Payza’s funds as part of an ongoing investigation, but to date nobody seems absolutely certain of what went down.
What is certain though is that since November 2013, Payza’s US clients’ access to their money has been suspended. The fate of these funds and whether or not Payza will be subject to further regulatory action in the US remains unclear.
Now, EgoPay have just announced they are “closing” all accounts currently held by US clients.
[Read the rest of this entry…]