Sunday, September 7, 2014

News Update 07-SEP-2014: Herbalife problem in Norway; TelexFree Brazil Exposed; Zeek, TelexFree, and WCM ponzi updates

Remember folks, when you read "news", they better have a source, and it better be a reputable source (or links to a reputable source), and I do try to do that. If I don't, let me know and I'll fix it. If the sources you read don't cite sources... Well, maybe you shouldn't trust them.

I know I haven't updated this blog for a week, so here's some belated updates:

Herbalife Scandal in Norway; False Claims that former Norwegian PM joined Herbalife

Norwegian magazine Kapital broke the news that Gro Harlem Brundtland, former three-time Prime Minister of Norway and former director general of World Health Organization (WHO) was completely unaware that her name was used on the website "Herbashop Norway" where one of the replicated websites proudly claims "Welcome to Gro Harlem Brundtlands Herbashop! ... After only three months I had controlled my weight down and changed pant size from 42 to 36"

Screenshot of the said Herbashop Norway, courtesy of Kapital magazine
page has been since removed
The page had since been removed from the Herbashop website. However, there is no word on whether Brundtland will take further action against Herbalife or Herbashop, or whether Herbalife itself may take some sort of action against Herbashop, which is an independent operation based in Norway by affiliate Dan Ove Tuven. Herbalife has promised an investigation.

Norwegian news Dagbladet claims that several other Norwegian celebrities were also used in various claims regarding Herbalife products, probably without their permission.

In March 2014 Ray Liotta sued Nerium, when he found that Nerium affiliates claimed for months in late 2013 that Ray Liotta's skin condition improved due to use of Nerium products.

(First reported by BehindMLM)

Brazilian News Revealed Shell Companies Allegedly Used by TelexFree for Money Laundering
Coat of arms of Brazilian Federal Police
Coat of arms of Brazilian Federal Police
(Photo credit: Wikipedia)

Globo news in Brazil have published allegations from Brazilian Federal Police that they believe TelexFree has engaged in money laundering and concealment of assets through various shell corporations by using relatives of Carlos Costa, head of Ympactus, i.e. "TelexFree Brazil". At least two companies are registered to Carlos' daughter Leticia Costa: AgroFruta and Brasil Factoring, and their stocks are allegedly worth millions despite her only declaring income of 60K a year. It's also worth noting that Carlos' wife Jozelia is named as the biggest creditor in the original TelexFree US bankruptcy application.

Brazilian Federal Police suspect that money that was ordered frozen by Brazilian court back in 2013 may have been used illegally to fund these alleged shell companies in order to hide them from authorities. Many of the directors in these companies are TelexFree top promoters, said the police.

You can read the Globo report here in Portuguese

Progress in TelexFree, Zeek, and WCM777 Ponzi schemes

One at a time... First Zeek

Zeek Rewards executive team Darryle Douglas, who had not been seen since a few months before Secret Service raided Zeek headquarters back in 2012, has been hit with a 2.2 million "default judgment" for not even bothering to defend himself.  That's about 2 million of the money he got, plus another 300K for interest. And the amount will continue to accrue interest until it's paid or settled.

A few months before the end of Zeek (August 2012) Douglas dropped out of sight, citing "health reasons". Before then, he had participated in several MLMs, and is believed to have joined Burks through his creation of "MyBidShack" penny auction website which later merged into Zeekler.


In other news, "Phil" "Rockefeller" Ming Xu has signed a consent to judgement that barred him from ever messing with securities, defraud anybody, etc. etc. He will serve no jail time, but he will have to cough up (disgorge) any ill-gotten gains (to be determined later).

However, in a recently discovered blog entry in Chinese, Ming Xu may not be done just yet. He claimed to have reached a settlement (well, I guess signing a judgement is sorta settlement) with SEC and his master plan shall continue, and he'll create a multi-national economic zone with some sort of new currency. Here's the translation of the first portion of the blogpost
Thanks to all the brothers and sisters for the care and prayers.
Recently the Wangtong (Vantone / WCM) series of companies was investigated by the US government, and company was stopped.
At the moment, I have reached a settlement with the American SEC
The truth will be revealed.
The truth will make us free. Now is recovery.
I will step forward, and shoulder my responsibility that is mine, and recover everybody's losses.
My plan is to turn everybody's investment losses into KingdomLoveCoin, similar to Bitcoin, and establish a Kingdom Economic Zone. 
That doesn't sound like he's done, does he?

And finally... TelexFree US case is so complicated Authorities Needs More time and wants to prosecute criminally first. The filing also revealed that TelexFree first got investigated by Homeland Security back in June 2013... probably around the same time they got frozen in Brazil. Six months later SEC launched its own separate investigation, until TelexFree filed for bankruptcy and forced both agencies to conduct the full raid fearing destruction of evidence and dissipation of assets.

This means the criminal case may not start trial until 2016... And that's assuming of neither party files for more delays.


This concludes the update. It sure has been an interesting week! Stay tuned.

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