Saturday, April 6, 2013

BREAKING NEWS: Multiple Profitable Sunrise Pitchmen subpoenas to appear in Federal Court investigation

According to Federal docket filed by SEC against Profitable Sunrise, which the Feds call "international pyramid scheme", SEC has subpoenaed multiple PS pitchmen in multiple jurisdictions (Utah and Florida was mentioned).

This is a reminder that those pitching HYIPs... that while the Feds may not get their hands on the perpetrator, they *can* get their hands on the local pitchmen.

Thanks to

BREAKING NEWS: Security Exchange Commission declared Profitable Sunrise "international pyramid scheme"

English: Mug shot of Charles Ponzi (March 3, 1...
English: Mug shot of  Charles Ponzi
(March 3, 1882 – January 18, 1949).
(Photo credit: Wikipedia)
SEC has filed lawsuit against Profitable Sunrise, making a FEDERAL fraud case, joining 34 states / provinces in US and Canada, and various other countries declaring this HYIP internet Ponzi scheme to be illegal.

What's more, SEC has also requested international help in freezing over 11 million dollars of assets in Hungary and is getting help from UK Scotland Yard in their investigation of Profitable Sunrise UK maildrop. Accounts linked to this illegal enterprise are scattered throughout Czech, China, Latvia, and Hungary.

The SEC complaint is quite detailed, as it related all the different versions of stories related by various "promoters" of PS on the web and Youtube videos. Some claimed PS had been around for six years even though the alleged company, Inter Reef DBA Profitable Sunrise, was only registered 19 months ago. It was also registered in the Seychelles, a known tax haven / shell company registrar. There are at least 4 other companies also linked to this scam.

Friday, April 5, 2013

BREAKING NEWS: More confirmation for doom of "Profitable Sunrise", linked to religion

Colorado officially notified Profitable Sunrise that it is under investigation for alleged illegally selling securities to Colorado citizens. It scheduled a hearing. Not surprising at all, Profitable Sunrise didn't show up or sent a document requesting postponement. The Colorado filings and cease and desist order is now available online.

Perusing the documents revealed that the scam was heavily marketed to the Christians, with some of the promoters claiming to be "non-profit Christian community", claiming to turn $500 into over 18000 in 170 days. "Click to see my payment proof!" the various free blogs stated. Most of these are still available online, in a wide variety of alleged addresses all over the nation, not merely Colorado.

Thursday, April 4, 2013

Real Estate, Ponzi, and Rich Dad (advisor)

Perhaps it's serendipity, but it just happens that the past few days we were discussing real estate, Ponzi, and Robert "Rich Dad" Kiyosaki, that I found a bit of news that tied them all together.

Wayne L. Palmer, one of Kiyosaki's advisors, and wrote 3 chapters of that "Big Book of Real Estate", was charged by SEC for running a 100 million Ponzi scheme back in June 2012.

Wednesday, April 3, 2013

BREAKING NEWS: Zeek Expose by Anderson Cooper 360 bumped due to North Korea Tension

No idea when it'll be airred at the moment, but it seems the segment has been rescheduled for a later date.

BREAKING NEWS: Zeek Reward Ponzi to be featured on Anderson Cooper 360

Anderson Cooper is a CNN investigative reporter and apparently will feature Zeek Rewards ponzi scheme on his special segment "Anderson Cooper 360" tonight, April 3rd, 2013.

BREAKING NEWS: Lyoness in trouble in home country Austria?

Lyoness, founded in Austria in 2003, is a very strange mix of business. Majority of the business appears to be a shopping loyalty program that basically has the merchant offering rebates, and some of the rebate goes to the shopper, and some of the rebate goes to the shopper's upline. Shopping builds up "units", which results in gift certificates that can be redeemed at more Lyoness participating merchants. However, it is the ability to directly PURCHASE the units that made Lyoness a potential Ponzi scheme.

It was revealed that on March 30th, 2013, ten years after Lyoness opened, hundreds of Lyoness members are banding together to launch class action lawsuits against Lyoness. And it is confirmed that Lyoness had previously settled many of these cases out of court and just refunded the members' money, presumably for the "purchased" units.

Search of news archives also revealed that the Lyoness is also under investigation for being a Ponzi/pyramid scheme by the Public Prosecutor's Office (White Collar Crime division).

Details at
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Tuesday, April 2, 2013

BREAKING NEWS: Zeek Receiver stated clawbacks starts June 2013

In a new letter posted to Zeek Receiver website, Ken Bell stated that he is extending the deadline for the "net winners" to return money to the Zeek estate by 2 months, but the window WILL CLOSE on May 31st, 2013.

The letter stated that if any one had NOT voluntarily gave back the money by then, or at least offered to settle with him / his lawfirm to return at least a large portion of the money to the Zeek estate to be distributed to the victims, he will assume that they will not do so voluntarily, and thus be subject to clawback lawsuits.

See for more details.

BREAKING NEWS: Where is Zeek head Paul Burks?

According to WFMY Channel 2 news, Paul Burks, head of Zeek Rewards, is no longer in Lexington. They moved out a month ago, and his house is for sale, his current location unknown.
News 2 went to Paul Burks' home in Lexington on Monday. Last time we were there in August, there was a security guard out front. On Monday, no one answered the door and a "for sale" sign was on the front lawn.

I hope the Feds knows where he is, or the NC AG!

Monday, April 1, 2013

Bad Argument: The myth of "no saturation"

One of the simplest argument against pyramid schemes (and similar schemes that requires chain recruiting) is that sooner or later the market will saturate, and you run out of people who's not in the scheme and may want to be, i.e. "leads", "prospective members". That is why some of the more ridiculous counterarguments are against this specific fact. Some MLMers actually believe "there is no saturation".

First, let us examine the idea of "saturation", then examine the various counterarguments that MLMers proclaim.


Saturation in general refers to the condition when the market is "overserved", that there are too many sales reps competing for the same number of customers.

However, in MLM and chain-recruitment schemes, it could also refer to "lack of prospective new members" that will join because local market have been "mined out". Clearly, it is a valid and potentially disastrous condition for recruitment based schemes.

Consider this: Let's say in a town of 1000, 5%, or 50 may be willing to join a MLM. Clearly, the first guy in will try to reach all 50 people possible. And obviously the town can't take 2 or 3 different reps all trolling for recruits. There are simply no more people to be had. It is saturated.

So how do some of these diehard arguers claim saturation does not exist? Primarily through two arguments: international reach, and new customers.

Sunday, March 31, 2013

USA Today / AP stated NC Town Poorer after Zeek Rewards Ponzi

According to USA Today report, authorities have received word that Zeek Rewards was a scam back in November 2011. Attorney General of North Carolina passed the buck to other agencies, and none took any action. It took another 9 months (and hundreds of thousands more victims and millions of dollars fed into the Ponzi) before it was finally shut down.

Even today, Paul Burks blames the victims for losing their money. According to the story:

"I never told anyone to invest more money than they could afford," Burks snapped. "I didn't tell them to do that. Never."
He said if they lost money, "it's their fault. Not mine. Don't blame me."

How can people NOT blame the head of the largest Ponzi scheme in the US (in terms of victims, at over a million) for the Ponzi?

That's like blaming rape victim for "acting slutty", or mugging victim for "being weak", or shooting victim for "begging to be shot".

That is just bogus, and bull****.