SECTION 4 U.S. CODE - OLD LAW NEW USE
FOR PONZI'S & PYRAMID - "Misprision"
SCARY NEW TWIST TO PONZI SCHEMES FOR PARTICIPANTS
3/21/2013 After the cash flowing success of Zeke Rewards the Watchdog is predicting and explosion of Ponzi Schemes in 2013 & 2014. If you missed the latest greatest thing – hang on there will be more coming.
UR ED :HOWEVER! In a case that could send shockwaves across the culture of promoting scams and accepting payments from scams, a New York woman who turned a blind eye to Richard Piccoli’s long-running Ponzi scheme in New York state has been sentenced to 18 months in federal prison for misprision of a felony and willful failure to file tax returns. Kathleen Fuoco, 60, of West Seneca, N.Y., pleaded guilty to the charges in June. She was sentenced today in Buffalo. Piccoli, 83, was sentenced to 20 years in prison last year. He became infamous in the Buffalo region for targeting people of faith in the scheme. Fuoco knew Piccoli was operating a scam, but did not report him, prosecutors said in June. Her failure to report the scheme brought about the misprision charge and also resulted in an agreement with prosecutors in which a financial judgment of $25 million would be placed against Fuoco, the total amount of restitution due victums. She also provided assistance to law enforcement and to the Securities and Exchange Commission in identifying victims and losses.
YOU CAN RUN BUT NOT HIDE
Misprision of a felony is a crime the government can use to prosecute underlings who engage in willful ignorance and participate in an enterprise even knowing it is a fraud. Promoters and staff members of Pyramid & Ponzi schemes such as HYIP frauds who turn a blind eye are at risk of being charged with misprision of a felony. So are forum operators, software programmers & website builders. Distributor “ shills” who hype such scam programs can also be fined and jailed.
Here is how “misprision of felony” reads under Section 4 of the U.S. Code: “Whoever, having knowledge of the actual commission of a felony cognizable by a court of the United States, conceals and does not as soon as possible make known the same to some judge or other person in civil or military authority under the United States, shall be fined under this title or imprisoned not more than three years, or both.
LATEST VIEWED APARENT SCAMS UNDER INVESTIGATION
EDUCATION AND WARNINGS!
Editors Note: These are posted as an educational tool and for you to pass to friends as a warning. If you join them I will personally break your typing fingers!
1 Sept 2008 - All the money shown on this scammy site should be a good warning CASH LEVERAGING NETWORK!
PAST HISTORY INTERNET PYRAMID PONZI SCHEMES NAILED BY SEC
AUTO SURF & HIGH YIELD INVESTMENT PROGRAMS (HYIPS)
UR Editor: NOT MLM! PYRAMID SCHEMES = PONZI WITH SALESPERSONS
KRIMM'S TRI STAR MEDIA SCAM
Robert Krimm WAS a self-proclaimed multimillion dollar CEO based in Florida. He once ran at least half-dozen autosurfing Web sites. In court papers one victim said, “He’s ripped me off for close to $80,000. He and 100's of others got involved with Krimm and his autosurfing company, http://www.10news.com/news/13422465/detail.html
SEC NAILS OWNERS OF
Phoenixsurf.com Web Site With Conducting a Massive Internet Ponzi Scheme
The SEC (Securities and Exchange Commission) filed BIG fraud charges against the operators of an Internet-based Ponzi scheme that took over $41 million in just four (4) months from more than 20,000 suckers worldwide. Ed. Note: The disguise these guys used for the scam was that the money suckers put in was for advertising to build your business. The last people in the scheme lost the missing $5 million below. Over 300 of the top earning distributors had their information turned over the Internal Revenue Service.
An SEC INVESTIGATOR reported, “Paid autosurf programs based on ads (as a disguise) have become an enormous industry on the Internet. In this case and others however, paid autosurf programs have been exposed as Ponzi schemes. Ponzi schemes pull in new members in to pay money to existing members. Unwary investors world wide should remember THE OLD SAYING: ‘If it looks too good to be true, it is.’ In reality, double-digit returns in a matter of days or weeks are virtually impossible and the investors should be wary.” Ed Note: The first people to get money are the "rat pack" insiders that jump in when the Ponzi starts. By the time the public hears about this "fabulous deal" the "rat pack insiders" already made off with the loot and you are going to be left holding the bag.
SEC OUT OF LOS ANGELES NOW TAKING OVER INTERNET PONZI SCHEMES?
The SEC’s action, filed in Federal U.S. District Court in L.A. says that, all four defendants operated a Web site — Phoenixsurf.com — that offered investors a 120% return in just eight days on investments ranging from $8 to $6,000 in a purported “traffic exchange program.” Ed. Note: The 120% is impossible to do legally, that should be a training point!
A great summary from the FTC said, “The Phoenixsurf.com program had to collapse because it needed new investors to pay earlier investors. The SEC cautions investors about ‘get-rich quick’ schemes offered on the Internet. Ed Note: Although this release talks mainly about Autosurf programs, High Yield Investment Programs (HYIP) operate the same without the advertising disguise.
The Commission’s complaint against Jonathan W. Mikula, 21, of Athens, GA, Gabriel J. Frankewich, 29, of Byron, GA., New Millenium Entrepreneurs, LLC, and Phoenixsurf.com alleged that:
1. New investors had to purchase advertising. This was the scam "fig leaf" to disguise it!
2. Then view at least 15 web pages of advertising per day during the eight-day period.
The SEC reported the indicted owner operated Phoenixsurf.com primarily as a pure Ponzi scheme — using new investor funds from suckers were used to pay the promised returns to the first investors. The complaint alleges that the defendants paid investors $36.7 million, almost all of which came from advertising purchases from new investments in the scheme. Ed. Note: Again, the advertising purchases were a “Fig Leaf” to try to disguise the scam.
WATCHDOG PAST HISTORY OF PONZI - SURF - HIGH YIELD INVESTMENT PROGRAMS
SEC FREEZES $$$$ BOTH: STORMPAY & 12 DAILY PRO
Mar 2006 – For researchers and students... here is how the Feds freeze scammer's money when they are caught doing a Ponzi scheme. Randall Lee, Regional Director for the Securities and Exchange Commission in Los Angeles said, "Ia pure Ponzi!" Lee oversaw investigators who filed the original complaint with Federal Judge Manella and got the order to appointment a receiver. The largest amount of investor's money may be held by Storm Pay and it will probably be shut down too - forever. news release: http://www.sec.gov/litigation/litreleases/lr19579.htm
The Lawsuit itself:
12 DAILY PRO HIT BY SEC – NOT MLM JUST A LOUSY - A PONZI SCAM!
Mar 2006 – You ignored the WatchDog – you lost! The 12 Daily Pay Ponzi, based on page view clicks, cost late coming suckers millions. The State of Tennessee and Federal Government investigated Storm Pay who was the 12 Daily Pay payment processor and threw owners in the lockup. Feds to seized Storm pay money there too. Your chance of getting any money back? About .00001 cents on the dollar!
web tags: ponzi, pyramid, scams, surf, sec, pramids, ASD, ADSURFDAILY, AD SURF DAILY