Friday, July 12, 2013

Profitable Sunrise Pitchwoman Nanci Jo Fraser Charged by Ohio Attorney General as Fraud Front

According to PatrickPretty, com, citing multiple sources, Nanci Jo Fraser, who ran a "Focus Up Ministry", was charged by Ohio Attorney General for defrauding the public for her part in the Profitable Sunrise ponzi scheme. Full asset freeze was ordered.

This came 2 months after the Feds closed down Profitable Sunrise and froze its assets all over the globe (but most of that had disappeared/laundered).

Fraser, along with another pitchman Albert Rosebruck, were appearently head of this group that claimed to be a "Christian Enterprise" that recruited locals into contributing milions into this scheme, never disclosing she profited heavily from the recruitment.

Rosebruck had previously complained that it was the SEC that ruined everything (i.e. closed Profitable Sunrise), and Ohio alleged that Rosebruck was previously Ad Surf Daily ponzi and Zeek Rewards ponzi member. Indeed, "blame the SEC" was a position frequently advanced the more ardent Zeekheads who, to date, still refuse to admit Zeek is a Ponzi scheme.

Makes you wonder why, doesn't it? Perhaps it's because they had a good thing going?

HYIP Pitchpeople Beware: Legisi HYIP Pitchman Gagnon got 5 years FEDERAL PRISON SENTENCE

It seems the Feds are really going after the criminals... Not just the ringleaders who start up the HYIP scams, but also their primary pitchmen (and pitchwomen).  Many of these HYIPs were created and ran out of Europe, but the US authorities can get their hands on the LOCAL perps... Such as Gagnon here, who pitched the Legisi HYIP (Ponzi) for all its worth, as well as ran his own scams.

Gagnon claimed to run an "internet income opportunity review website", but in actuality he colluded with McKnight's Legisi ponzi scheme and shared the profits, while giving Legisi a clean bill of health (when he clearly do not have such information to base his ratings on). Gagnon also is believed to have ran a Forex scam and a resort investment scam in addition to being a pitchman for Legisi ponzi.

Gagnon is now ordered to pay back 44.5 million in restitution, AS WELL as spend 5 years in a Federal prison.

So those people who think that the Feds only go after the Ponzi organizers... So you can PITCH the HYIPs in safety... Beware! The Feds may be after you next!

Wednesday, July 10, 2013

BREAKING NEWS: Brazil shuts down BBOM, another pyramid scheme (pretending to sell GPS trackers)

According to The Gazette in Brazil, the courts in Brazil must be working overtime, as they just shut down BBOM, a suspected financial pyramid scheme. It's only a few weeks ago that another court shut down TelexFree, a suspected financial pyramid scheme.

This link is in Portuguese:

Tuesday, July 9, 2013

MLM Mythbusting: Did Harvard Business School Really Develop 3 Criteria of Successful MLM Companies? (No, they did not!)

English: Harvard Business School
English: Harvard Business School (Photo credit: Wikipedia)
Here's one of the most often repeated MLM myths: Harvard Business School teaches Network Marketing. That is a LIE. HARVARD BUSINESS SCHOOL DOES NOT TEACH Network Marketing, Multi-Level Marketing, or any such similar schemes.

MLMers who tries to legitimize the industry often repeat the claim that "network marketing is taught in 200 schools around the US, including Harvard Business School", and "HBS studied network marketing in detail and have developed a 3 item checklist to locate the successful ones."  Sometimes the list is also supplemented by a "4 stages of business success".

This is repeated ad infinitum by MLMers attempting to legitimate their own particular scheme, be in neutraceuticals and next uberfruit juice to woo bracelets and body wraps to... anything! In fact, search in Google for "Harvard Network Marketing" and you'll get bazillion hits. Okay, about 12 million hits. Almost all of them are lies.

Here's the honest truth:

There is only ONE SCHOOL in the US, that I know of, that offers a a degree in network marketing. It's a tiny little community college in Kansas called Bethany College. Technically it isn't even that. It's degree in marketing, with emphasis on network marketing.

(If you can cite another one, please show proof: magazine or newspaper article, school syllabus, etc.)

Harvard Business School (HBS) themselves are VERY TIRED of network marketers claiming something they do NOT do. In fact, if any MLM business claim so, it will very likely face a LAWSUIT from HBS, as this article (back in 1995!) had already busted. Quoting from the article:
 ``If the registrar's office had a dollar for every call we've had over the years over whether Harvard Business School teaches multilevel marketing or has studies on it, we could throw a very nice Christmas party,'' reads one internal business-school memo. ``This claim is harder to kill than a dandelion.''
What was once a nuisance now looks like grounds for potential defamation or libel lawsuits, says Frank J. Connors, a Harvard lawyer. Some handouts, for example, now claim _ falsely _ that Harvard has conducted ``extensive research in the network marketing industry,'' and that the business school calls multilevel marketing ``a once-in-a-lifetime opportunity.''


Okay, where did this came from? How did this nasty rumor got started? 

From a network marketer, of course. 

TelexFree just gotten even more bizarre... to the observers

TelexFree claims to be a communciations provider (sells VOIP packages), but also offers "AdCentral", which is a clone of Ad Surf Daily "auto surf" ponzi. They were recently issued an injunction by court in Acre, Brazil to stop paying the recruiters.

And the TelexFree participants went absolutely bananas.

According to, Brazilians are spamming all major Western media  Facebook presenses, including NBC, CBS, CNN, NYTimes, etc. claiming they are being persecuted.

Some even made Youtube Videos, which are rather entertaining, but hilarious when you consider their source:

  • One video used "cattle encircle to protect calf from lions" metaphor to tell judges to leave them alone, stealing the video from NatGeo in South Africa. 

  • Another guy walked into the virtual office (provided by Regus) of TelexFree in Massachussets, US, and pretend that the entire building works for TelexFree. As he's speaking Portuguese, nobody challenged him. 
  • Another video had a member cosplay as Rambo (with an LED lighted "weapons") claiming to defend democracy (i.e. TelexFree) and ask people to 'stand up for their rights'