Scam Alert

Fortune Hi Tech Marketing Shut Down In Montana As Pyramid Scheme

Posted on 16. Mar, 2010 by Ty Tribble.

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Fortune Hi Tech Marketing has been ordered to cease and desist operating in the State of Montana according to a report from the AP:

HELENA, Mont. (AP) - Montana has ordered a Lexington, Ky.-based company to cease operations in the state, accusing it of running a pyramid scheme.

Monica J. Lindeen, the state Commissioner of Securities and Insurance, says Fortune Hi-Tech Marketing took nearly $1.9 million from at least 1,295 Montana participants between July 2006 and June 2009.

Lindeen says the company lures new members with income opportunities with companies such as Dish Network and General Electric. But, she says, members only benefit if they recruit others to join in the alleged scam.

Here is a copy of the Montana Complaint Against Fortune Hi Tech Marketing.

Here is a link to the FHTM Statement to Montana Reps.

This action comes on the heals of North Dakota taking similar action back in December where the State Attorney General files a Cease and Desist against FHTM.

Attorney General Wayne Stenehjem has issued a Cease & Desist Order against Fortune Hi-Tech Marketing of Lexington, KY and its principals Paul C. Oberson, Jeff Oberson, and Thomas A. Mills for violations of North Dakota transient merchant, consumer fraud, and home solicitation sales laws. The Order was filed late yesterday, December 10, 2009.

Numis MLM Gold Scam?

Posted on 09. Mar, 2010 by Ty Tribble.

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How quickly we forget the last big Gold MLM Scam: Gold Unlimited

January 22, 1992, saw the incorporation of Gold Unlimited, Inc. ("Gold") as a Delaware corporation based in Madisonville. David Crowe served as the sole officer and director of the closely-held corporation. Martha Crowe acted as office manager for the corporation, which employed a total of 89 individuals over four years. Undaunted by past troubles, the Crowes offered the public the opportunity to participate in Gold's "Gold Earning Program"

("Gold I"). Participants paid $200 toward a $400 gold coin; by recruiting new investors, the original participant earned commissions toward the cost of the coin and could earn cash commissions. At trial, Gold's corporate attorney,

William Whitledge, admitted that this plan was "pretty much identical" to AGE's plan, and the South Dakota Division of Securities Enforcement agreed, calling it "almost identical" and enforcing against Gold the cease and desist order obtained against AGE. In April 1992, the Kentucky Attorney General sued Gold, and the Hopkins Circuit Court enjoined the Crowes from operating Gold.

In the opinion, Judge Charles W. Boteler found that Gold I emphasized recruitment of clients, not sales of products, and thus constituted an illegal pyramid scheme. In October 1993, the Crowes and Gold signed a settlement agreement with the state, agreeing to pay restitution to Gold I's participants and submitting to a permanent injunction against operating pyramid schemes and making unrealistic earnings claims. On October 18, 1993, David Crowe pled guilty in an unrelated criminal proceeding to a state charge of false advertising stemming from his activities with Gold I. He received a suspended sentence.

According to MLM Watch Dog and Expert, Rod Cook, MLM Gold programs have a 0% chance of survival...

"Gold based product = 0 out of 70- 80 gold MLMs survived in U.S. since 1990"

Not looking good for Numis.

Goldquest Pyramid Scammers Arrested in Iran

Posted on 09. Mar, 2010 by Dan Mitchell.

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The Iranian security forces have arrested 30 suspects in connection with Goldquest, a controversial network marketing company which has allegedly defrauded thousands of people worldwide.

The Iranian Intelligence Ministry announced that 30 key members of Goldquest have been arrested on charges of defrauding people "out of more than 5 trillion rials (about $500 million)," IRIB reported.

The Intelligence Ministry added that the suspects were handed over to judicial officials for further investigations and confessed to defrauding many Iranians, especially young people.

The criminals, who said they worked for an investment company called Quest International, served as the main go-betweens connecting members of the illegal Gold Quest pyramid investment company working in Iran and its leaders based in foreign countries.

Goldquest is a global network marketing company that claims to be engaged in selling coins and watches that are said to have numismatic value.

Network marketing companies like Goldquest work on the principle of the pyramid scheme, a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme.

Source: Press TV

Is CieAura Holographic An MLM A Scam Similar to LifeWave?

Posted on 24. Feb, 2010 by Ty Tribble.

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Seems a little mlm hocus-pocus, but you can judge for yourself, is CieAura an MLM Scam?

From the web site:

The CieAura Transparent Holographic Chip™ - employs a revolutionary technological approach to the re-alignment of two of the body's most important functions... the Human Life Functions and the Immune System Functions. Once these functions are re-aligned to where they should be for your given age, the immune system's ability to perform the removal of pathogens in the human body (Bacteria, Viruses, Fungi) is enhanced.

There seems to be a connection between the management of a company called LifeWave and 8ight.com (from another source):

In the meantime, those who look at the new pretender to the throne , CieAura, will see an amazing similarity to the LifeWave management offshoot company 8ight.com.

http://www.8ight.com/

As we know, Warren Hanchey was reported, by Joel in September 2007, to have come up with a similar range of products to LifeWave but using holographic discs.

http://www.museumofhoaxes.com/hoax/forums/viewthread/4333/P33/#252280

“Warren Hanchey has the following catalog of SCAM “holographic data disc” products:

1. An “action” disc (for improved strength and endurance),
2. A sleep inducing disc,
3. A weight loss disc, and
4. A pain relief disc

http://www.8ight.com/category_s/41.htm

That sounds like an exact copy of LifeWave’s SCAM product catalog. How low is this guy Hanche(y)? I mean, he has to SCAM people using his former employer’s SCAM playbook almost exactly.

What’s next, Hanchey? A DefenseDisc that gives a surgery free face lift and protects against malaria and hearing loss, and restores eyesight, just like LifeWave?”

Here we are a almost 2 years later with an upstart company selling a similar product.

How many more will jump on the bandwagon?

So what do you think?

Work-At-Home Scam Artists Busted

Posted on 17. Feb, 2010 by Dan Mitchell.

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Tough economic times usually drive growth in the Network Marketing and Direct Sales industries. Unfortunately, this same economic climate attracts scam artists and hypesters. Buyer Beware! Here's an excerpt from an article about what the FTC is doing to bust the scammers:

If you've ever tried finding a work-at-home job online, you know most all of them are scams. The Federal Trade Commission has now caught on. Today, nearly a dozen lawsuits were filed against companies who were promising to help unemployed customers make thousands of dollars a week, from the comfort of their own homes.

Some of the companies promised they could help you get a federal job, work as a movie extra or mystery shopper. Others promised you could make hundreds if not thousands of dollars stuffing envelopes or addressing postcards.

With the U.S. unemployment rate just under 10 percent, hundreds of thousands of people fell for these schemes.

Here are some of the companies the FTC is suing: Government Careers, Inc., Real Wealth, Inc., Darling Angel Pin Creations, Abili-Staff, Ltd., Entertainment Work, Inc., Independent Marketing Exchange, Inc., Prefferred Platinum Services Network, Job Safety USA, Career Hotline, Inc., Penbrook Productions, International Marketing

Check out the whole article for a complete list of companies the FTC is suing and the allegations against them

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ASEA MLM – An Incredible Product?

Posted on 03. Feb, 2010 by Ty Tribble.

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With Asea (see my previous post for some context) launching a new product, I thought I could launch one too. Check out the video...Ty Tribble, Blogger and MLM Kitchen Chemist...

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Google Scams Making Comeback on Facebook

Posted on 10. Jan, 2010 by Dan Mitchell.

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Here's an interesting article from The Tech Herald about the Google Work At Home Scams:

Since Monday, searches on Google and posts on Facebook have started to crop up with links to a site that uses some clever code and legitimate news to push the now classic “make money with Google” scam.

After being alerted to the rise in the number of links circulating online and on Facebook pitching the scam by security vendor Websense, The Tech Herald investigated further, digging into the site’s code and method of propagation. Was there anything new about this scam? Exactly how does it work?

To start, the links to the website will vary. However, the most common one is binsservicesonline-dot-info. If you follow that link, you are forwarded to another domain, biznews7-dot-org. The biznews7 site comes off as a news portal. The news of the day revolves around the headline, “Jobs: Is Working Online At Home The Next Gold Rush?”

The fake article is sprinkled with quotes touting the ease of working from home, and the money that can be made with “easy Google profit”. However, there is more to the site than the pitch.

The code running it has gone all out for the person reading, adding a bit of local flair thanks to JavaScript pulling data from GeoIP. The GeoIP code will alter the title of the portal, in our case it became the Indiana Financial Journal, as well as tag various parts of the headline story with your local city and state, such as it did for us in the example below.

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Buzzirk Mobile Tries to Shake Its Scammy Past

Posted on 10. Jan, 2010 by Dan Mitchell.

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I found this over at PhoneNews.com:

Buzzirk Mobile reveals itself from the shroud of a Zer01-sized pyramid scheme, to showcase itself at CES.

Unfortunately, when we asked Buzzirk what network they used, they couldn’t answer.

When we asked what frequencies their phones operated on, they gave an answer that can only be paraphrased as “all of them.”

And yes, we have emails that say the same thing from Buzzirk.

Bottom line, once a scam, always a scam. Avoid Buzzirk.

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Pyxism a New Travel Scam?

Posted on 17. Dec, 2009 by Dan Mitchell.

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Has anyone heard of Pyxism? I stumbled on this new Travel MLM yesterday...looks like your typical hype-filled, travel scam with some kind of "revolutionary" matrix compensation plan.

If you have any information let us know and leave a comment. You can check out the company at http://pyxism.com/

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The 12 Scams of Christmas

Posted on 17. Dec, 2009 by Dan Mitchell.

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McAfee recently released their “Twelve Scams of Christmas” list to assist consumers in avoiding being scammed via email and internet this holiday season. Here's the first 5...be careful out there!

Scam I: Charity Phishing Scams – Be Careful Who You Give To

During the holiday season, hackers take advantage of citizens’ generosity by sending e-mails that appear to be from legitimate charitable organizations. In reality, they are fake Web sites designed to steal donations, credit card information and the identities of donors.

Scam 2: Fake Invoices from Delivery Services to Steal Your Money

During the holidays, cybercriminals often send fake invoices and delivery notifications appearing to be from Federal Express, UPS or the U.S. Customs Service. They e-mail consumers asking for credit card details to credit back the account, or require users to open an online invoice or customs form to receive the package. Once completed, the person’s information is stolen or malware is automatically installed on their computer.

Scam 3: Social Networking – A Cybercriminal “Wants to be Your Friend”

Cybercriminals take advantage of this social time of the year by sending authentic-looking “New Friend Request” e-mails from social networking sites. Internet users should beware that clicking on links in these e-mails can automatically install malware on computers and steal personal information.

Scam 4: The Dangers of Holiday E-Cards

Cyber thieves cash in on consumers who send holiday e-cards in an effort to be environmentally conscious. Last holiday season, McAfee Labs discovered a worm masked as Hallmark e-cards and McDonald’s and Coca-Cola holiday promotions. Holiday-themed PowerPoint e-mail attachments are also popular among cybercriminals. Be careful what you click on.

Scam 5: “Luxury” Holiday Jewelry Comes at a High Price

McAfee Labs recently uncovered a new holiday campaign that leads shoppers to malware-ridden sites offering “discounted” luxury gifts from Cartier, Gucci, and Tag Heuer. Cybercriminals even use fraudulent logos of the Better Business Bureau to trick shoppers into buying products they never receive.