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Archives 1999, 2000

SEC MOVES AT AMAZING SPEED ON PYRAMID SCHEME

Le Club Prive -- LCP

Sept 11 2000 - The dummies running the LCP club pyramid scheme claimed to be offshore, some of the members even bragged to me your MLM Watchdog -- the U.S. Government couldn't touch them! Wrong! The pyramid scheme club claimed to be offshore but it turns out they were dumb enough to have their money in U.S. banks. Evidently about $12 million worth that the Feds Grabbed! These same pyramid scheme clodhoppers were on their third money game or so. They started with good old Fred Verigan and his revival of the Commonwealth Scam. The SEC charges state that LCP and the company's alleged principals Zdenek Kieslich, Ron Z. Mendelson and Eugene G. Chusid made illegal offerings of Mutual funds and MLM Pyramids. LCP ripped off American Investors for about $5.6 million (wow! - the Feds are about 6 million ahead). Now the humor begins, the SEC got the federal court to send these guys notice by email, of the court charges! MMMMM wonder if the trial will be by email!

This SEC activity was amazing, this LCP only rolled out last Dec or so! Global Prosperity, Global 2000, and that whole bunch have been running around for years hustling offshore investments and Tax dodges. They have made fools of the FBI, the SEC, FTC and 13 some state AG"S. THEIR TAKE IS ESTIMATED AT OVER A BILLION DOLLARS in all their incarnations. SEC could we have a little better Priority on scam hitting here!

2 Extreme Performance

(2xp) & FTC - Both Guilty of Fraud?

December 1999 - Your Editor Rod Cook is flat mad about this one. We started after the 2XP pyramid scheme ( 2 Extreme Performance) almost 3 years ago and had people file charges with their AG's in their states and the FTC. It fell on deaf ears!

After 2XP folks, is passed on to a shell sham company and John Polk is in jail for another matter, the FTC finally gets around to doing an "Internet Surf" and busting the pyramid scheme 2XP and group in Dec 99. What a sad Laugh!

Got a complaint that 2XP ripped you off? Well we have 2 fraud players here. The first is 2xp obviously! The second is the FTC for sitting on their duffs until million$ were stolen. Your money included!

Read on...

The FTC was a dollar short and a dollar late on their so-called 2XP "Internet Bust." They had literally 100's of complaints over a year before. It appears that they pulled out the "Internet" charges after the fact. Almost a year after the fact in fact!

Questions to the FTC

1. When did you first receive complaints about 2XP?

2. Regional Offices and National?

3. What were the dates of the complaints?

4. Why did you wait till the 2XP scam was "dead" to take action?

Facts:

1. The FTC had John Polk in jail for a previous scam months before the FTC 2XP activity occurred.

2. The FTC ignored over 100 complaints about 2xp before Polk was convicted. Your editor helped people file them online, with regional FTC offices and with FTC in Wash, D.C. The Texas Attorney General had over

100 complaints over a year ago. The BBB in Dallas had tons more complaints. Yet it took an "Internet Surf" to find the scam?

3. Polk is supposedly bragged to associates that he moved money offshore.

4. The FTC reports no activity to keep Polk in "Club Fed" (Jail) until off shore money is returned and victims reimbursed.

5. The FTC has taken no activity to help 2xp scammed people that are paying for credit card accounts, processing equipment and computers. Good folks were scammed on the promise of high returns on Polk's scam marketing scheme. The FTC needs to charge the credit card and leasing companies with being accomplices to fraud. This would help an estimated 20,000 people from continuing to pay scam charges or get credit card reversals. The credit card companies will probably be better at finding the "hidden accounts and offshore money" than the FTC. Note update: Later the credit card machine issue was dealt with the credit card vendor was warned and told to return money.

OK, now that the venting is over we know that regulators are overworked, that pyramid schemes like this look like child's play compared to some others that they have to deal with. Could we form a early warning scouting team for some of these? Sort out complaints by # of people that send in written complaints? Something to speed up the process where scamsters are hitting people for over $10,000 by the time the package is done?