Wednesday 28 November 2007
Friday 2 November 2007
Tracking Down The Real Internet Crooks Capital Enhancement Club (CEC)
Peeling an onion, much like uncovering a scam, is never a pleasant experience and can bring tears to your eyes. Sometimes, as in the case of CEC, after all the scam layers are gone and you pull aside the curtain to see who is really operating the scheme…the answer might just surprise you!
Securities and Exchange Commission v. David Tanner, individually and d/b/a Capital Enhancement Club, Rocky D. Spencer, Marroc Corp. and Richard P. Kringen, Defendants, and, Omnibus, LLC, Vectra Resources, LLC and Dynamic Environmental Solutions, Inc., Relief Defendants, Civil Action No. 05-4057-SAC
This SEC document identifies, three civil defendants, David Tanner an unknown, Rocky D. Spencer, a convicted felon and recidivist fraudster, and Richard P. Kringen (”Kringen”), one of CEC’s salesmen.*ceclubreceiver
When you first look at this SEC Document, Civil Action No. 05-4057-SAC, it is not possible to fully understand the events and people involved by reading only the header as shown here. It displays only names and often dates.
Let’s peel away a layer and look deeper.
Please Remember - This is just a civil action and no criminal charges have been filed. Also in the interest of fairness, please note that Rocky Spencer and his mother Margaret without admitting or denying the allegations in the Commission’s Complaint have both reached a mutual settlement with the SEC. The settlement between the SEC and Rocky (Defendant) required him to return $454,158.54, representing profits gained as a result of the conduct alleged in the Complaint. The receiver tells me that they no longer have an interest in or the authority to investigate Spencer’s current activities. Just in case you want to take a look, here are some of the web businesses he currently operates……
- http://www.instantgold.net (Instant Gold Exchange)
- http://www.igecard.com (IGE Card)
- http://www.progressivegoldcasino.com [offshore Internet gambling]
- http://www.ultimategoldgoldcasino.com [offshore Internet gambling]
- http://dwgcard.com (dwgcard)
- http://allmenformen.com (gay men’s forum)
Background on Defendants and the case
Richard P. Kringen - On December 16, 1994, the Securities Commissioner of the State of Kansas filed a cease and desist order, showing that through Diversified Consultants, Richard P. Kringen around 68 years of age at the time, solicited the Kansas Public Employees Retirement System to invest in a transactions involving Prime Bank Guarantees with the “top fifty World Banks” and promised his investors an annual return of 50%. Docket No. 95E042 *ceclubreceiver (.pdf) The SEC has repeatedly deemed prime bank schemes a security in enforcement actions, and high yield investment schemes are so similar to prime bank schemes that they should be treated the same. Richard’s final judgment in the CEC scam shows he was ordered to disgorge the amount of $226,113.30 representing his ‘cut’ plus an additional interest amount of $17,410.66.
Rocky D. Spencer - On July 22, 1994 Rocky D. Spencer (Instantgold.net) plead guilty to conspiracy to defraud the Unites States, money laundering, wire fraud and structuring transactions to evade reporting requirements. Spencer served 60 months in prison. This conviction was the result of an successful investigation and prosecution by the Criminal Investigation Division of the Internal Revenue Service. The Marroc Corp. is a Virginia corporation, controlled by Spencer with its principal place of business at Spencer’s residence in Newport News, Virginia. He is listed as president and secretary.
David Tanner - This is an alias and he is considered a recidivist securities law violator. His background requires much more than just a paragraph so please keep reading and you will eventually come to his ‘resume’.
May 2005
The SEC filed an emergency civil enforcement action [SEC Complaint] on May 4, 2005 in the United States federal court in the District of Kansas. On that same day, United States District Court Judge Sam A. Crow issued an order [SEC Memorandum In Support of TRO] temporarily restraining defendants David Tanner, individually and doing business as Capital Enhancement Club (“CEC”), Rocky D. Spencer, Marroc Corp. (“Marroc”) and Richard P. Kringen from violating the antifraud provisions of the U.S. federal securities laws.
How To Choose A Bidder For Outsourcing Your Project?
You have taken the decision to outsource your writing job to a freelancer in a far away land. It seems that this freelancer can write in the language you prefer and the initial impression is favorable. The bidder has given a reasonable cost and time span within which you should receive the content. So far so good and you appear to be satisfied! Now you wait for the results to come back at the stipulated time span, thereby enabling you to implement your much cherished goal of having a web site that will become the envy of others!
Days go by, even a couple of weeks have passed and you have heard nothing from the bidder you so carefully chose to write your web content. You are frustrated and know that nothing can be done since the distance that separates you from your bidder is no easy deal. No replies to your desperate emails and no way you can find out what happened! You now wish that you had first learn how to choose a bidder in this business!
The Seven Steps to the top of the Outsourcing Ladder!
We all wish there was a fool proof method of doing business on the Internet but there is not! We have still to rely upon the "word of mouth" as a means of realizing an outsourced deal. There are many agencies dealing with outsourcing, bidding sites, and freelancers who strive to make it big in the business world. It is therefore good to think of the seven golden rules for choosing a bidder from the multitude of freelancers who reply to your project query. It is like climbing the 7 rungs of the ladder to success, knowing fully well that each rung could give way and you would fall all the way down like in the game of "snakes and ladders"! How do we keep climbing this proverbial Outsourcing Ladder?
• When you choose a bidder to your project, do look at the profile a bit more carefully than just a cursory glance. Read between the lines and try to get into the shoes of your bidder - and what you would do if you were the bidder in this project. In short - know your bidder as you would love to know your client!
• It is a very luring world in the outsourcing field as several bidders will give you attractive propositions. You must remember that it's the "meat" in their bids that is important and not the number of words they write to win your bid. Few words that say a lot is the cue to making a good deal with outsourcing bidders.
• India, Pakistan, China, The Philippines, and other South East Asian countries have made a mark in freelancing due to their lower overheads and cost of living. This is one of the reasons why outsourcing has become such an attractive alternative for the developed nations of the world. Understanding the criteria that guides these freelancers or companies can give you a more viable outsourcing of your project.
• English is a language spoken in many parts of the outsourcing world. If you are in the western hemisphere like US, Canada, or UK - or in Australia where English is the medium of conversation, it is necessary to hire or outsource to freelancers who are proficient in the language. Check out this point before you decide on the final bidder.
• The financial aspects are most important as a fallout in this context can lead to misunderstanding and breakdown of the outsourcing concept. Escrowing funds, PayPal, Moneybookers, fund transfer medium are points worth clarifying prior to sealing the outsourcing deal.
• Check out the credentials of the freelance bidders as that gives valuable information.
• Last but not the least; try to have a direct contact with the freelancers. This is now viable through Instant Messengers, Skype, Google Talk and other cheap communication means!
Nothing is more frustrating than a outsourced project collapse and we must all try to avoid this by taking the right steps in processing our projects.
Article Source: http://www.articlesbase.com/business-articles/how-to-choose-a-bidder-for-outsourcing-your-project-226898.html
Tracking Down The Real Internet Crooks Capital Enhancement Club (CEC)
Peeling an onion, much like uncovering a scam, is never a pleasant experience and can bring tears to your eyes. Sometimes, as in the case of CEC, after all the scam layers are gone and you pull aside the curtain to see who is really operating the scheme…the answer might just surprise you!
Securities and Exchange Commission v. David Tanner, individually and d/b/a Capital Enhancement Club, Rocky D. Spencer, Marroc Corp. and Richard P. Kringen, Defendants, and, Omnibus, LLC, Vectra Resources, LLC and Dynamic Environmental Solutions, Inc., Relief Defendants, Civil Action No. 05-4057-SAC
This SEC document identifies, three civil defendants, David Tanner an unknown, Rocky D. Spencer, a convicted felon and recidivist fraudster, and Richard P. Kringen (”Kringen”), one of CEC’s salesmen.*ceclubreceiver
When you first look at this SEC Document, Civil Action No. 05-4057-SAC, it is not possible to fully understand the events and people involved by reading only the header as shown here. It displays only names and often dates.
Let’s peel away a layer and look deeper.
Please Remember - This is just a civil action and no criminal charges have been filed. Also in the interest of fairness, please note that Rocky Spencer and his mother Margaret without admitting or denying the allegations in the Commission’s Complaint have both reached a mutual settlement with the SEC. The settlement between the SEC and Rocky (Defendant) required him to return $454,158.54, representing profits gained as a result of the conduct alleged in the Complaint. The receiver tells me that they no longer have an interest in or the authority to investigate Spencer’s current activities. Just in case you want to take a look, here are some of the web businesses he currently operates……
- http://www.instantgold.net (Instant Gold Exchange)
- http://www.igecard.com (IGE Card)
- http://www.progressivegoldcasino.com [offshore Internet gambling]
- http://www.ultimategoldgoldcasino.com [offshore Internet gambling]
- http://dwgcard.com (dwgcard)
- http://allmenformen.com (gay men’s forum)
Background on Defendants and the case
Richard P. Kringen - On December 16, 1994, the Securities Commissioner of the State of Kansas filed a cease and desist order, showing that through Diversified Consultants, Richard P. Kringen around 68 years of age at the time, solicited the Kansas Public Employees Retirement System to invest in a transactions involving Prime Bank Guarantees with the “top fifty World Banks” and promised his investors an annual return of 50%. Docket No. 95E042 *ceclubreceiver (.pdf) The SEC has repeatedly deemed prime bank schemes a security in enforcement actions, and high yield investment schemes are so similar to prime bank schemes that they should be treated the same. Richard’s final judgment in the CEC scam shows he was ordered to disgorge the amount of $226,113.30 representing his ‘cut’ plus an additional interest amount of $17,410.66.
Rocky D. Spencer - On July 22, 1994 Rocky D. Spencer (Instantgold.net) plead guilty to conspiracy to defraud the Unites States, money laundering, wire fraud and structuring transactions to evade reporting requirements. Spencer served 60 months in prison. This conviction was the result of an successful investigation and prosecution by the Criminal Investigation Division of the Internal Revenue Service. The Marroc Corp. is a Virginia corporation, controlled by Spencer with its principal place of business at Spencer’s residence in Newport News, Virginia. He is listed as president and secretary.
David Tanner - This is an alias and he is considered a recidivist securities law violator. His background requires much more than just a paragraph so please keep reading and you will eventually come to his ‘resume’.
May 2005
The SEC filed an emergency civil enforcement action [SEC Complaint] on May 4, 2005 in the United States federal court in the District of Kansas. On that same day, United States District Court Judge Sam A. Crow issued an order [SEC Memorandum In Support of TRO] temporarily restraining defendants David Tanner, individually and doing business as Capital Enhancement Club (“CEC”), Rocky D. Spencer, Marroc Corp. (“Marroc”) and Richard P. Kringen from violating the antifraud provisions of the U.S. federal securities laws.
Fraud Alert - The CyberSpaceATM (Illegal and Unlicensed Money Transmitter)
Be warned about using the unlicensed money transmitter CSATM (thecyberspaceatm.com) and any ponzi sites accepting this processor. The first reason, there is absolutely *NO* contact detail given anywhere on the website or in the whois information. No address, no phone number, no nothing but an email address (which is worth squat when the site goes down and the operator is laughing at all the fools who trusted him with their money). Use your God given brain and realize E-Gold, Paypal, Webmoney, Alertpay, Pecunix, E-Bullion, etc (even the lowlifes at CEPTrust) all have their real contact address and phone numbers on the site as well as in their whois information.
Second, CSATM is owned and operated by Andy, the scammer behind XLO autosurf (http://www.xlentopps.net) and The Finer Things (http://xlentxtra.com) who cheated members out of hundreds of thousands of dollars, and then sold XLO for $25,000 to master scammer Bob Krimm who shelved the program. Andy’s sole purpose in opening CSATM is to facilitate a “skim mechanism” similar to CEPTrust that is used to process funds for the ponzi schemes that he is currently operating. It seems Andy learned from the clever little Baptist boys at CEP and from Bob Krimm’s Tri-StarMoneyChangers, that a small percentage could be skimmed and pocketed from each and every transaction conducted into his pyramid schemes.
Mark Herpel at Digital Money World blog recently conducted a very well written and interesting two part interview with the *Andy* (who did not give a name and did the interview anonymously) here. In the interview Mark directly asks, “Do you allow your users to work with HYIPS and AutoSurf/Investment programs? Or do you really know what the users are doing with their accounts?” to which the *Andy* openly replies “CSATM works with HYIPS and autosurfs”. Of course it does, there is no other legitimate businesses that would use a money transmitter that does not provide contact details or a support phone number. Again, the similarity to CEPTrust and Tri-StarMoneyChangers is that there are *no* legitimate businesses using any of these ponzi skim processors.
Also be warned that the blogger TDinoz who runs the blog http://tdinoz-td.blogspot.com/ has been promoting Andy’s newest scams (http://www.thefxoffer.com and www.xlotwo.com) as well as CSATM. She was a moderator on the XLO/TFT forums last year and is as much of a “snake in the grass” as Jake Amedee from ASA (Autosurf Authority) who is also currently promoting Andy’s newest scams. Both are not to be trusted as they will promote anything that they are in at the top of the pyramid and push it until it collapses with them well into profit from the ponzi victims. If you want to know what programs, processors and sites to *AVOID*, check ASA or TDinoz blog and run as far and fast as you can from anything they are promoting.
Sorry TDinoz, I used to like you, but the fact you are knowingly promoting a repeat scammer while you were dishing out the lumps to Bob Krimm makes you no better than your fellow Aussie dirtbag Okosh (aka Jacomatt8 and FTW on MMG forums) who was slamming Bob Krimm while promoting the scammers Jason and Stacy from EZSurfnEarn. I find little or no integrity in somebody who slams one scammer while pimping another.
Anyway, you have been warned.
EstDomains Inc., a US-based domain registrar, announces reduced commissions for payments through e-gold.
EstDomains Inc., a US-based domain registrar, announces reduced commissions for payments through e-gold. Now resellers and end customers can fund their accounts with this popular payment system with commission as low as 3% instead of 10%.
Wilmington, DE -- EstDomains Inc., a US-based domain registrar, announces reduced commissions for payments through e-gold. Now resellers and end customers can fund their accounts with this popular payment system with commission as low as 3% instead of 10%.
Flexible payments options and ability to accept money through as many popular online payment systems as possible is a critical factor of success for any web-based business. When you target customers worldwide, which is typical for e-commerce, it is important to let the buyers use the system they find most convenient and least expensive. Improving its payment system, EstDomains Inc. decided to decrease the commission on payments through e-gold, a popular e-currency. Now customers and resellers of EstDomains Inc. can pay for EstDomains Inc. services through e-gold with a low commission of 3%. Previously the commission on e-gold payments was 10%.
E-gold, a popular online payment system, was started in 1996. The e-currency in this international system is backed up by real gold assets owned by Gold & Silver Reserve, Inc. Low commissions on transfers, fast and convenient payments and availability to customers in all countries of the world made e-gold one of the most popular means of online money transfers. Decreasing the e-gold commission, EstDomains Inc. aims at offering the best payment conditions to clients and resellers all over the world. Today EstDomains Inc. accepts payments in a range of other e-currencies, e.g. ePassporte, Fethard, MoneyBookers, PayPal, Webmoney.
Find out more about the products and special offers from EstDomains Inc. on the company's official site: http://estdomains.com If you need more information, you can also use the EstDomains Inc. trouble ticket system to submit your own question: http://support.estdomains.com
Social engineering: The good guys strike back
That's the approach some researchers at Carnegie Mellon University are suggesting for making it harder for individuals to trade in malware and stolen financial and identity data in the Internet black market.
A lot of the illegal activity that is happening on the Internet these days is readily accessible to absolute newbies as well as to experienced professionals, said Jason Franklin, a doctoral student at CMU's computer science department.
"What used to be a true underground market has emerged more publicly," Franklin said. "It's very easy for anyone to identify forums, chat rooms and other locations where people are trading illicit goods and services of all sorts."
One way to disrupt this booming economy is to make it more unreliable and costly to participate in such transactions, he said, especially for newcomers. The idea is to use slander attacks and other techniques aimed at undermining the verification and reputation system used by cybercrooks, he said.
The suggestion is based on a seven-month study of one underground site by Franklin and three other researchers -- one from CMU, one from the University of California, San Diego, and another from the International Computer Science Institute. The purpose of the study was to measure and quantify the scope of the illegal activity that was happening on such sites.
During that period, the researchers counted more than 80,000 stolen credit cards and illicit goods worth an estimated $37 million offered up for sale on the site.
Honor among thieves, sort of
Buyers interested in purchasing such items typically contacted the seller using e-mail or private instant messages, and transactions were paid for using non-bank payment services such as e-Gold. "These markets have a system for assessing how reliable a buyer or a seller is," Franklin said, explaining that trusted third parties that provide a "verified" identity status to buyers or sellers who have established a track record for keeping their end of the bargain in an underground transaction.
In a transaction between a verified seller and an unverified buyer, the buyer pays upfront for the item being transacted before actually receiving it.
"It's just a convention," says Franklin. Conversely, he said, "the unverified seller will give you the credit card numbers before you provide payment because there's risk involved."
Typically, buyers and sellers are conferred 'verified' status by the operators of the IRC channel in which they are doing business and are identified by little voice administrator flags against their names. To earn the status, a brand new seller may sometimes distribute stolen card numbers for free to others on the IRC channel to demonstrate his access to such information, Franklin said.
One way to disrupt this setup is to create a deceptive sales environment using a so-called Sybil attack, Franklin said.
A Sybil attack is a way of subverting a reputation system by overwhelming it with numerous forged identities or Sybils. "Since these markets have emerged from the underground, they are allowing anyone" to participate in them, he said. "It is basically trivial to connect multiple times and create multiple IDs," said Franklin, whose team also developed a technique to establish fake verified-status identities that are difficult to distinguish from other verified-status sellers.
The goal is to make it hard for buyers to identify the real verified-status sellers from the fake ones. Using the technique, it is conceivable for someone -- from law enforcement, for instance -- to engage in a transaction as a verified buyer or seller and then not fulfill his side of the deal. Doing this often enough could undermine the credibility of all verified-status identities, especially for newcomers, Franklin said. "This won't disrupt already established relationships, but it will make it harder for newcomers" to establish trust relationships, he said, adding that there may be legal implications that need to be explored before such an attack can be implemented.
Another approach suggested by Franklin and his team are slander attacks against those with genuine verified-status identities. This tactic takes advantage of the primitive processes most illegitimate IRC channels use for handling complaints of false transactions, allowing slanderers to wrongly defame someone. Such defamation could easily be accomplished using Sybils with verified-status identities.