INTERNET PYRAMID PONZI SCHEMES NAILED BY SEC
AUTOSURF & HIGH YIELD INVESTMENT PROGRAMS (HYIPS)
UR Editor: REMEMBER, SCAMMERS LIKE THESE STEAL OVER 1 MILLION GOOD MLM – NETWORK MARKETING PROSPECTS FROM YOU YEARLY!
ED NOTE: Last year Johnathan Mikula and his NME Global group operated a “HOT” Ponzi scheme autosurf - HYIP program called Phoenixsurf. It takes awhile for the long arm of the law to file formal charges. The end result? The SEC vs. Jonathan Mikula and Gabriel Frankewich. Their lives will be miserable from here out... they will have to cough up the millions they took in! If they stumble with SEC requirements, they could spend some time in Club Fed (prison)!
SEC Charges Operators of Phoenixsurf.com Web Site With Conducting a Massive Internet Ponzi Scheme
WatchDog Report
The SEC (Securities and Exchange Commission) filed fraud charges against the operators of an Internet-based Ponzi scheme that took over $41 million in just four 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.
An SEC representative 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 depend on pulling in new members in to pay money to existing members. Unwary investors world wide should remember: ‘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. investors had to purchase advertising. This was the scam "fig leaf" to disguise it!
2. view at least 15 web pages of advertising per day during the eight-day period.
The SEC reported the suspects operated Phoenixsurf.com primarily as a pure Ponzi scheme — using new investor funds from suckers 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.
Editor Note: We have received four complaints on the AutoSurf programs below. One reporter estimates that $30 million flowed through these AutoSurf programs (not HYIP’s).
WatchDog Reporter (TB) Question: Will the SEC finally go after Bob Krimm of Tri-Star (15HitsDaily, 24SurfPro, Treo-Surf, Tri-Star Moneychangers)? He collapsed his surf deals and went with some guys that were starting an MLM Umbrella marketing program. No doubt Krimm walked with millions and is now collecting money on the MLM deal that will probably collapse like most Umbrella MLM’s. That is not a question.... it is a statement!
WATCHDOG PAST HISTORY OF PONZI - SURF - HIGH YIELD INVESTMENT PROGRAMS
SEC FREEZES MONEY 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, "It was almost a pure Ponzi!" Lee oversaw investigators who filed the original complaint with Federal Judge Manella and got the order to appointment a receiver. The Court appointed Tom Lennon as receiver over 12 Daily Pro. Lennon, who's accounting business is based in Southern California, is already in Charlotte, North Carolina. With the judge's order now in hand, he can take control of all aspects of the Internet venture and start tracking down money. The largest amount of investor's money may be held by Storm Pay. SEC news release:
The Lawsuit itself:
12 DAILY PRO HIT BY SEC – NOT MLM JUST A LOUSY - A PONZI SCAM!
Mar 2006 – For those of you that ignored the MLM WatchDog – you lost! The 12 Daily Pay Ponzi, based on page view clicks, cost late coming suckers millions. At the same time, the State of Tennessee is investigating Storm Pay who was the 12 Daily Pay payment processor. Look for Feds to seize money there too. Your chance of getting any money back? About .00001 cents on the dollar!
