Scamraiders

Swipebids are SCAM artists.

Swipebids is an auction company that you are supposed to be able to buy things at a reduced price for very little money. You are supposed to be able to buy bids for 10 cents each and when the bidding ends,( after a preset time) if you were the last bidder you win the product.
 I thought I would purchase maybe a hundred bids and see if I could win something that I wanted.When I hit the "Purchase Bids" button, I found out they had preset what they call a "Large Bid Pack" of 300 bids for $150.00, which they almost immediately charged my Debit card. When I called them about it, they said the second order for bids would be 10 cents a bid, not the first. I asked them where that was stated on their website and he admitted it was not on there. These bids cost 50 cents instead of the 10 cents that was advertised on their website.
 I asked for a refund and they refused.I checked their auction and it starts out at a preset time, but when it get down to where the bidding time is almost over, (usually about 12 seconds) about 10 seconds is added after each bid so the time will not run out.I also noticed some bidders will have the high bid but will bid again anyway to keep the time from expiring.The only reason I can see they would want to do this is because they are company employees whose job is to run the price up and not allow the time to expire until they get the money they want for the item. I noticed that some of the winners are these same people. Also if the bidding is slow, they will add as much as 2 minutes to the time for it to end.
 I also noticed they are selling the same items over and over again. I don't know if they have a large inventory of these items or if they are the same ones.When you bid, the price increases by 1 cent. If the last bid is $35.00 which is what most of the higher priced items stop at, it means they have had 3500 bids on that item at 50 cents a bid or $1750.00 for a $600 item. You also have to pay the bid price plus shipping to get the item you won.This is the biggest rip-off scam I have encountered so far on the internet. I have filed a complaint with the FCC and BBB of Utah, but have heard nothing from them as yet. If you receive an Email from them asking you to join the auction, DELETE it immediately. You will lose your money and have nothing to show for it.

Tags: Auctions

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Replies to This Discussion

Permalink Reply by Justin Asking on January 19, 2012 at 3:58am

Good luck in your search for information Lynn. I think you will find that your only defense to being scammed in the future is to be a cautious and informed shopper, and don't believe anything you read from merchants online or elsewhere that claim that you can save up to 95% off your products. It just isn't so and you will pay far more for any bargain promised than you ever imagined.

Justin

Permalink Reply by Justin Asking on January 18, 2012 at 4:43pm

Strangely Perfect, since you were kind enough to post an active link to bizids.com, I thought I would try my hand at “whack-a-mole” with this newer penny auction just to see what is “trending” in the way of transparency and deceptive presentations. Though I never registered, I found far too many red flags to even consider the possibility. I was first presented with a registration form that required me to divulge way to much personal information on a form that requires all fields to be filled in and pre checked box to subscribe to email spam from a website that I have no knowledge of. When I attempted to find out more about this penny auction, I was not pleased with my results. Terms page full of grammar mistakes, no address or phone number to contact, conflicting information as to location of business between Las Vegas, Nevada and of all places Atlanta, Connecticut. It seems that the new trending resembles the old.

I found no business reviews for bizids under the various mentioned company names with the BBB of both Nevada and Connecticut, not that I give it much credibility when I do find one.

 

Nicholas, have you had a chance to review this penny auction, and what do you know about it, if anything?

I guess they are right about people are talking about them, I am going to here.

 

http://bizids.com/register.php

Register!

Note: All Fields Are Required, Except 'Apartment / Suite #'

http://bizids.com/about_us.php

About Us

Bizids is a new online penny auction website where everything sells for pennies on the dollar.

Established in 2010, Bizids is a new auction experience dedicated to providing our customers state of the art products at unbelievable prices.

We know that we as a company are only as good as our customers and we have dedicated ourselves and will continue to dedicate ourselves to the task of making you a loyal valued customer. We value your feedback and are always interested in new ideas that can make us better as a company. What products you would like to see, user friendly options you think would be helpful, let us know so we can improve your experience.

Bizids sells all the best products and all auctions start at zero dollars and increase in price by 1 penny per bid. As the timer counts down to Zero the most recent bidder WINS. If another bid is placed before the auction timer reaches zero then the timer resets to a maximum of 30 Seconds. Bids are sold in 25, 50, 100, 200 300, 500 and 1000 and cost as little as $0.40 per bid. Register now and start winning.

http://bizids.com/how_it_works.php

How It Works

How does Bizids work?

Register for free

If you want to bid online, first you will need to register. Registration is free and easy. You are registered with Bizids

Paying for an item

If you win an auction, this is what you will pay: The final auction price plus shipping and handling. These charges can be found by clicking on the item. It is important to look at shipping costs when forming your auction strategy. Texas state residents must pay 8.00% sales tax on physical items due to state law, because we are a Texas based business. (Sorry, it�s the Law!) This program was not designed to deduct the 8.05% taxes so in the mean time a separate email will be sent to cover the retail sales taxes. Sorry for any inconvenience.Keep in mind that nothing will ever be charged to you until you manually run it through our checkout. Once checkout has been successfully completed and payment has been confirmed, your item will bw shipped.

http://bizids.com/terms_and_conditions.php

Terms & Conditions

Bizids (the "Website") is owned and operated Bizids LLC of Las Vegas Nevada. By using any services offered on the Website (the "Services"), purchasing products on the Website (the "Products") or accessing the Website, you agree to be bound by these Terms of Use, whether or not you open an account (an "Account") to subscribe to particular Services or purchase Products.

http://bizids.com/yourfeedback.php

User Feedback

Need Help Or Have A Question?
EMAIL help@bizids.com

Attachments:
Permalink Reply by Justin Asking on January 19, 2012 at 4:27am

I was wrong about the same old garbage trends or the registration process for online merchants.

This trend of a free and easy process to gain entry to a website where you are required to check two areas that indicate you have read the terms and privacy policy and agree to sign away all of your rights that are detailed on 4,000 to 6,000 word forms in intentionally hard to read font size and color.

Register for free

If you want to bid online, first you will need to register. Registration is free and easy. You are registered with Bizids


Then they go to great lengths to misinform readers of these hard to read and supposedly legally binding documents of the true identity and ownership of the website. The icing on the cake for me is where they tell you, too bad sucker, you have been had, Ha Ha Ha


Bizids (the "Website") is owned and operated Bizids LLC of Las Vegas Nevada. By using any services offered on the Website (the "Services"), purchasing products on the Website (the "Products") or accessing the Website, you agree to be bound by these Terms of Use, whether or not you open an account (an "Account") to subscribe to particular Services or purchase Products.



Permalink Reply by Justin Asking on February 24, 2012 at 1:24pm

Good news from the FTC as stated in this new release


For Release: 02/23/2012

FTC Halts Deceptive Practices of Marketer Who Collected $359 Million Using Bogus 'Free' Trial Offers

Settlements Ban Defendants From Using 'Negative-Option' Marketing

The Federal Trade Commission has stopped an Internet scheme that allegedly used bogus "free" product offers that deceived consumers in the United States and other countries and charged them for products and services they did not want or agree to purchase. A settlement order, reached as part of the FTC's ongoing efforts to stamp out online marketing fraud, permanently bans Jesse Willms and his companies from using "negative-option" marketing, a practice in which the seller interprets consumers' silence or inaction as permission to charge them. The Willms settlement order imposes a judgment of $359 million that will be suspended upon Willms's surrender of bank account funds and proceeds from the sale of his house, personal property, and corporate assets, including a Cadillac Escalade, fur coat, and artwork.

"The fact that almost four million consumers fell prey to the lure of these 'free trial' offers is a stark reminder that 'free' offers can come at a huge price," said David Vladeck, Director of the FTC's Bureau of Consumer Protection. "The FTC has stopped about $1 billion in online marketing fraud during the past two years by shutting down operations like this. But consumers still need to beware, because scam artists are constantly coming up with new ways to deceive people online."

The FTC worked closely with Canadian law enforcement, including the Alberta Partnership Against Cross-Border Fraud and the Canada Competition Bureau, in investigating this international scheme. Most of the defendants are located in Alberta.

"International collaboration is increasingly important for enforcement agencies combating deceptive practices online," said Lisa Campbell, Deputy Commissioner of Competition for the Competition Bureau. "The Bureau worked with the FTC as part of our ongoing investigation into alleged misleading representations by Mr. Willms and his companies."

According to the FTC's complaint, filed in May 2011, Willms and his companies lured consumers with "free" trial offers for weight-loss pills, teeth whiteners, health supplements, a work-at-home scheme, access to government grants, free credit reports, and penny auctions. Consumers were often charged for the "free" trial, a monthly recurring fee, typically $79.95, and additional monthly recurring fees for so-called "bonus" offers. The defendants allegedly contracted with affiliate marketers whose banner ads, pop-ups, sponsored search terms, and unsolicited e-mail led consumers to the defendants' websites, and paid the affiliates for each consumer whose credit or debit card was charged. The agency filed an amended complaint, in September 2011, to add two defendants.

The Willms settlement order also permanently prohibits Willms and his 11 companies from:

  • debiting consumers' bank accounts without first obtaining their express verifiable authorization;
  • misrepresenting any product or service or the terms and conditions associated with any offer, specifically including claims of "free," "risk-free," or "trial offer;"
  • failing to clearly disclose the terms and conditions of any offer, including refund terms, before requesting consumers' payment information;
  • making misleading or unsubstantiated disease-prevention, weight-loss, and other health-related claims;
  • using false or deceptive endorsements and testimonials;
  • failing to monitor the activities of marketing affiliates and affiliate networks involved in the marketing of any Willms product or service; and
  • making misrepresentations in order to obtain services from payment processors, banks, and other third parties.

In addition to Willms and his companies, five individuals who allegedly provided services to Willms have entered into separate settlements with the FTC. Peter Graver, Adam Sechrist, Brett Callister, Carey L. Milne, and Elizabeth Graver are permanently prohibited from making misrepresentations in order to obtain services from payment processors, banks, and other third parties. The amended complaint alleged that these defendants, along with Willms, had provided merchant banks with false or misleading information to obtain and maintain merchant accounts through which Willms placed charges on consumers' credit and debit card accounts.

The settlement orders against these individuals also impose monetary judgments of varying amounts. The judgment against Peter Graver will be suspended upon his payment of $20,000. The order against Elizabeth Graver imposes a $38,000 judgment that is not suspended. The judgments against Sechrist, Callister, and Milne are suspended due to their inability to pay. If any of the defendants is found to have misrepresented his or her financial condition or fails to meet the monetary terms of his or her order, the full judgment in the order will become due immediately.

The FTC would like to thank the Canada Competition Bureau, Service Alberta, the Royal Canadian Mounted Police, the Alberta Partnership Against Cross Border Fraud, the Edmonton Better Business Bureau, and the BBB of Southern Nevada for their invaluable assistance in this investigation.

The Commission vote approving the proposed consent orders was 4-0. The FTC filed the orders in the U.S. District Court for the Western District of Washington at Seattle on February 22, 2012. The orders will become final when approved and signed by the District Court judge.

To help consumers avoid the hidden costs in some "free trial" programs, an FTC video, Free Trial Offers, tells how to check out a free trial before you sign up and what to do if you find yourself enrolled in a free trial offer without your permission. The video is also available at youtube.com/ftcvideos. For more information, click "Free Trials" Aren't Always Free",
Taking Charge: What To Do If Your Identity Is Stolen, and Online Penny Auctions: Nothing for Something?.

NOTE: These consent orders are for settlement purposes only and do not constitute an admission by the defendants that the law has been violated. Consent orders have the force of law when approved and signed by the District Court judge.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC's online Complaint Assistant or call
1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC's website provides free information on a variety of consumer topics. Like the FTC on Facebook and follow us on Twitter.

MEDIA CONTACT:
Frank Dorman
Office of Public Affairs
202-326-2674
STAFF CONTACT:
Robert J. Schroeder,
FTC's Northwest Region
206-220-4486

Kathryn C. Decker
FTC's Northwest Region
206-220-4486

(FTC File No. X110031)
(Willms settlements)

Permalink Reply by Nicholas Boccio on February 24, 2012 at 1:36pm

I am not sure how good this is.

Yes the money is being taken away, but the FTC just slapped his wrist and told him he can't do what he already wasn't allowed to do. Meh...

Permalink Reply by Sarah J Appleby on February 24, 2012 at 4:32pm

@Nicholas - exactly! He conned people out of $359 million dollars! 

Scamming on that scale should involve some serious jail time - not just a slap on the wrist where he has to forfeit the money (or what they can find of it).  

Meanwhile he has been living the life of Riley for a couple of years, with his private jet flights and mansions and Las Vegas birthday parties, Whistler ski trips and whatever else he has lavished his wealth on. 

If I mugged an old lady in the street and stole a hundred dollars from her I would probably go to jail for that - but this douche bag can con people out of an enormous sum of money through his websites and not one day will he spend behind bars.  

Madoff got a 150 year prison sentence for his fraud - Willms: nothing! Meh indeed.


Permalink Reply by Justin Asking on February 25, 2012 at 6:03am

Hi Sarah, I am glad you are still following this thread. This isn't the last chapter in the Jesse Willms story as you know from his ability to deflect responsibly and bounce back after previous lawsuits. If Oprah and Bill Gates can't take him down, I don't know who can.

As long as he keeps developing "products" that generate easy-fast-cash for the greedy affiliate marketing networks, he will always have access to wealth and fame.

The difference I see between Madoff and Jesse Willms is in their choice of victim. Madoff took money from many of the 1 percenters, whereas Jesse Willms schemes only ripped-off the poorer segment of society, the 99 percenters. If you ripp-off a portion of the population that hold all the power, you will do jail time.

Justin

Permalink Reply by Justin Asking on February 24, 2012 at 9:49pm

Hey, come on now, don't shoot the messenger for this bit of news. This is a standard form of agreement that the FTC always "negotiates" as a civil complaint against allegedly criminal conspirators as you all well know. Never is there an admission of guilt on the part of the defendants that agree to settle before the scheduled court date for trial on the charges of alleged wrong doings.

The possible upside to this settlement is that it is not the last of Jesse Willms forthcoming troubles with the law, even though he tries to minimize the true nature of what these troubles may be on his personal propaganda blog. This is his first comment on his self indulgent blog since September of 2011.

“Jesse Willms: Our Settlement With The FTC

Today, in cooperation with the U.S. Federal Trade Commission, we are announcing the FTC’s approval of an agreement to help us put past issues behind us. We are working to resolve issues relating to past marketing practices for products that our company no longer sells. Through this process, we have taken steps to assure that our business practices are in full compliance with the law. We are excited by the opportunity to continue giving customers access to a variety of products and services at significant savings. Our success has and will continue to be based on the loyalty and longevity of our relationships with customers, employees and business partners.

We take compliance very seriously and our role in promoting compliance standards for the internet marketing industry. We have worked closely in that regard with our lawyers, Jonathan N. Rosen, a Washington, D.C. compliance expert, and James Kaminski, a Washington, D.C. lawyer who previously served as an attorney for the U.S. Federal Trade Commission and Lynn Engel, the company’s Seattle- based counsel.”

yeah, right, blah blah blah

Terra Marketing has run afoul of the Government of Alberta, Canada, has appealed the decision, but face a hearing later this year.

1524948 ALBERTA LTD. OPERATING AS TERRA MARKETING ...

www.servicealberta.ca/pdf/directors.../Terra_Marketing-Jul-29-11.pd...

1524948 ALBERTA LTD.

OPERATING AS

TERRA MARKETING GROUP

AND

JESSE WILLMS, DIRECTOR

AND ANY EMPLOYEE, REPRESENTATIVE, OR AGENT OF

1524948 ALBERTA LTD., OPERATING AS TERRA MARKETING GROUP

AND JESSE WILLMS

This Director's Order was issued under s. 157(1) of the Fair Trading Act in response to, in the opinion of the Director, contraventions of the Act. As mandated by s. 157.1 of the Fair Trading Act, the Director must maintain a public record of Director's Orders.1524948 ALBERTA LTD., operating as TERRA MARKETING GROUP has appealed this Director’s Order. The appeal hearing has been scheduled for April 2012.

The Competition Bureau of Canada are apparently still investigating Jesse Willms and his many companies in respect to a criminal complaint, I have heard from a reliable source. there is no indication that this investigation has been halted due to this civil settlement with the US FTC. There has been reports that the Canadian investigation is being used as a bargaining tool such as here:

Jesse Willms Loses Everything to FTC

performinsider.com/.../jesse-willms-loses-every... - United States

 

by Pace Lattin

1 day ago – Acai Scammer Jesse Willms looses all his assets to the feds

Jesse Willms Loses Everything to FTC

February 23, 2012 # 12:32 pm # Industry News, Specials

The FTC has basically destroyed Jesse Willms, the famous Canadian Acai peddler. In a settlement order, that is part of the FTC’s campaign on affiliate and online marketing scams, basically bans Willms from ever operating in a similar manner in the US. His offer, including a penny auction scam,  ran on dozens of affiliate CPA networks.

The settlement also fines him $359 Million in cash, which will be suspended as long as Willms turns over pretty much everything that he owns. The order requires him to sell his house, close and sell all his companies, cars, furs, and expensive artwork.

http://www.warriorforum.com/main-internet-marketing-discussion-foru...

pacelattin

is Pace Lattin

War Room Member

Re: Jesse Willms Loses Everything to FTC

I spoke to a friend in the know, and they said that this includes his "hidden" bank accounts, etc. He needs to give all the money back, and if he doesn't.... I'm told as part of the deal, the Canadian Authorities are holding off a criminal prosecution.

 

Do I think this FTC golden hanshake with a wink is the last of Mr. Willms problems?

Well, NO

Justin

Permalink Reply by Justin Asking on March 14, 2012 at 7:31am

Final Judgment and Order for Permanent Injunction and Monetary Relief as to Jesse Willms

 

March 6, 2012

http://www.ftc.gov/os/caselist/1023012/index.shtm

Federal Trade Commission, Plaintiff v. Jesse Willms; Peter Graver; Adam Sechrist; Brett Callister; Carey L. Milne; 1021018 Alberta Ltd., also d/b/a Just Think Media, Credit Report America, eDirect Software, WuLongsource, and Wuyi Source; 1016363 Alberta Ltd., also d/b/a eDirect Software; 1524948 Alberta Ltd., also d/b/a Terra Marketing Group, SwipeBids.com, and SwipeAuctions.com; Circle Media Bids Limited, also d/b/a SwipeBids.com, SwipeAuctions.com, and Selloffauctions.com; Coastwest Holdings Limited; Farend Services Ltd.; JDW Media, LLC; Net Soft Media, LLC, also d/b/a SwipeBids.com; Sphere Media, LLC, also d/b/a SwipeBids.com and SwipeAuctions.com; and True Net, LLC, also d/b/a Selloffauctions.com, Defendants.
(United States District Court for the Western District of Washington)

Case No. 2:11-cv-00828
FTC File No. 102 3012

March 6, 2012

   Final Judgment and Order for Permanent Injunction and Monetary Relief as to Jesse Willms; 1021018 Alberta Ltd; 1016363 Alberta Ltd; 1524948 Alberta Ltd; Circle Media Bids Limited; CoastWest Holdings Limited; Farend Services Ltd; JDW Media, LLC; Net Soft Media, LLC; Sphere Media, LLC; True Net, LLC; and Mobile Web Media, LLC

   Final Judgment and Order for Permanent Injunction and Monetary Relief as to Brett Callister

   Final Judgment and Order for Permanent Injunction and Monetary Relief as to Elizabeth Graver

   Final Judgment and Order for Permanent Injunction and Monetary Relief as to Peter Graver

   Final Judgment and Order for Permanent Injunction and Monetary Relief as to Carey L. Milne

   Final Judgment and Order for Permanent Injunction and Monetary Relief as to Adam Sechrist

 

PROHIBITED PRACTICES

Final Judgment and Order for Permanent Injunction and Monetary Relief as to Jesse Willms; 1021018 Alberta Ltd; 1016363 Alberta Ltd; 1524948 Alberta Ltd; Circle Media Bids Limited; CoastWest Holdings Limited; Farend Services Ltd; JDW Media, LLC; Net Soft Media, LLC; Sphere Media, LLC; True Net, LLC; and Mobile Web Media, LLC

 

(I) PROHIBITION ON NEGATIVE OPTIONS - permanently restrained. and enjoined from engaging in, or assisting others engaged in, the advertising, marketing, promoting, offering for sale, or sale of any product or service with a negative option feature.

 

(II) PROHIBITED BUSINESS PRACTICES - in connection with the advertising, marketing, promoting, offering for sale, or sale of any product or service, the defendants and their officers, agents, servants, employees, attorneys, and all other persons in active concert or participation.

 

A / Misrepresenting, or assisting others in misrepresenting, directly or indirectly, expressly or by implication, any material fact including, but not limited to:

 

1. That a product or service is offered on a "free," "trial," or "bonus" basis, or words of similar import, denoting or implying the absence of any obligation on the part of the recipient of the offer to pay anything other than a nominal fee;

 

2. That a purchase is "risk free," or offered with a satisfaction guarantee, or with a money-back guarantee;

 

3. The total cost to purchase, receive, or use any product or service;

 

4. The timing or manner of any charge or bill;

 

5. Any material restrictions, limitations, or conditions to purchase, receive, or use any product or service;

 

6. Any material aspect of the nature or terms of a refund, cancellation, exchange, or repurchase policy for any product or service; or

 

7. Any material aspect of the performance, efficacy, nature, or central characteristics of any product or service;

 

 

B / Failing to clearly and conspicuously disclose, or assisting others in failing to clearly and conspicuously disclose, before consumers are asked to pay money or other consideration, or reveal billing or bank account information, the following material terms and conditions of any offer:

 

1. The total cost to purchase, receive, or use any product or service that is the subject of the sales offer;

 

2 . The total cost to purchase, receive, or use any product or service, in equal or greater size and prominence, and in close proximity to, any request that consumers provide their name, address, telephone number, email address, or any sensitive personal information;

 

3. The total cost to purchase, receive, or use any product or service subject to the sales offer, in equal or greater size and prominence, and in close proximity to, any claim that the product is "free," has a minimal cost, or is being offered on a trial basis or at an introductory or limited-time reduced cost;

 

4. The amount, timing, and manner of payment of all fees, charges, or other amounts that a consumer will be charged or billed; and

 

5. The terns and conditions of any refund, cancellation, exchange, or repurchase policy or policies, including the specific steps and means by which such requests must be submitted, and the telephone number, email address, web address, or street address to which such requests must be directed; and, if there is a policy of not making refunds, cancellations, exchanges, or repurchases, a statement regarding this policy; and

 

C / Charging or debiting a consumer's bank, credit, or other financial account, or otherwise assessing charges to a consumer, without first obtaining the consumer's express verifiable authorization.

 

(III) PROHIBITED REPRESENTATIONS: DISEASE CLAIMS (generally, to stop making these representations)

 

A / Reduces the risk of colon cancer; or

 

B / Prevents colon cancer;

 

(IV) PROHIBITED REPRESENTATIONS: WEIGHT LOSS CLAIMS (generally, to stop making these representations)

 

A / Causes weight loss; or

 

B / Causes any specified amount of weight loss including, but not limited to, weight loss that is rapid and with little effort;

 

(V) PROHIBITED REPRESENTATIONS: HEALTH-RELATED CLAIMS (generally, to stop making these representations)

 

A / The health benefits, performance, or efficacy of the product; or

 

B / The existence, contents, validity, results, conclusions, or interpretations of any test, study, or research;

 

(VI) ENDORSEMENTS OR TESTIMONIALS

 

A / Misrepresenting, or assisting others in misrepresenting, directly or indirectly, expressly or by implication, any material fact regarding endorsements or testimonials including, but not limited to:

 

1. That any product or service is used, endorsed, or approved by a specifically identified person;

 

2. The status of any user or endorser of a product or service including, but not limited to, that the user or endorser is an independent user or ordinary consumer of the product or service; and

 

3. That consumer testimonials reflect typical consumer experiences with a product or service; and

 

        B / Failing to clearly and conspicuously disclose, if true:

 

1. That consumers in testimonials received funds, directly or indirectly, from any defendant including, but not limited to, receiving funds from a nonprofit charitable fund that is directly or indirectly associated with any defendant; and

 

2. Any material connection between any user or endorser and the defendants or any other person or entity manufacturing, advertising, labeling, promoting, offering for sale, selling, or distributing a product or service.

 

(VII) MONITORING MARKETING AFFILIATES AND AFFILIATE NETWORKS

 

A / Prior to doing business with a marketing affiliate or affiliate network:

 

1. Provide each marketing affiliate and affiliate network a copy of this Order;

 

2. Obtain from each such marketing affiliate and affiliate network a signed and dated statement acknowledging receipt of this Order and expressly agreeing to comply with this Order;

 

3. Clearly and conspicuously disclose in writing to each marketing affiliate that engaging in acts or practices prohibited by this Order will result in immediate termination of any marketing affiliate and forfeiture of all monies owed to such marketing affiliate; and

 

4. Require each affiliate network to clearly and conspicuously disclose in writing to each third-party marketer that engaging in acts or practices prohibited by this Order will result in immediate termination of any third-party marketer and forfeiture of all monies owed to such third-party marketer;

 

B / Routinely monitor and review, on at least a monthly basis at times not disclosed in advance to the marketing affiliate and affiliate network and in a manner reasonably calculated not to disclose the monitoring activity at the time it is conducted, any marketing materials including, but not limited to, websites, emails, banners, sponsored search terms, and pop-up advertisements used by each marketing affiliate or affiliate network to advertise, promote, market, offer for sale, or sell any of the defendants' products or services;

 

C / Promptly and completely investigate any consumer complaint received by any business to which this Section applies concerning any marketing affiliate or affiliate network to determine if the marketing affiliate or affiliate network is engaging in acts or practices prohibited by this Order;

 

D / Immediately halt the processing of any payments or charges generated by any marketing affiliate or affiliate network that any defendant knows or should know has engaged in, or is engaging in, acts or practices prohibited by this Order;

 

E / Fully refund, within five (5) business days, each consumer charged by any defendant whose sale originated from any marketing affiliate or affiliate network that any defendant knows or should know has engaged in, or is engaging in , acts or practices prohibited by this Order; and

 

F / Terminate immediately any marketing affiliate or affiliate network that any defendant knows or should know has engaged in, or is engaging in, acts or practices prohibited by this Order and cease payments to any such person or entity;

 

Provided, however, that this Section does not authorize or require the

defendants to take any action that violates any federal, state, or local law.

 

(VIII) MISREPRESENTATIONS TO THIRD PARTIES

 

A / Making, or assisting others in making, directly or indirectly, expressly or by implication, any false or misleading material representation including, but not limited to, misrepresentations about:

 

1. The control or affiliation between any person or entity seeking to procure services and any other person or entity;

 

2. The nature, terms, conditions, and disclosures associated with the advertising, marketing, promoting, offering for sale, or sale of any product or service offered by defendants; and

 

3. Third party approvals or endorsements, or the substantiation for or the legality of advertising claims for r any product or service offered for sale by defendants;

 

B / Failing to disclose to any payment processor or financial institution the following information:

 

1.  The identity of the owner, manager, director, or officer of the applicant for or holder of a merchant account, and

 

  1. Any material connection between the owner, manager, director, or officer of the applicant for or holder of a merchant account and any third party who has been or is placed in a merchant account monitoring program, has had a merchant account terminated by a payment processor or a financial institution, or has been fined or otherwise disciplined in connection with a merchant account by a payment processor or a financial institution; and

 

C / Engaging in any practice that would have the effect of circumventing any charge back monitoring program or other risk management program implemented by a credit card payment association.

 

(IX) PROHIBITION ON COLLECTING PAST ACCOUNTS

 

A / Permanently restrained and enjoined from attempting to collect, collecting, selling, assigning, or otherwise transferring the right to collect payment for any product or service sold prior to the entry of this Order.

 

(X) PROHIBITION AGAINST USING CUSTOMER INFORMATION

 

A / Disclosing, using, or benefiting from customer information, including the name, address, telephone number, email address, social security number, other identifying information, or any data that enables access to a customer's account (including a credit card, bank account, or other financial account), of any person which any defendant obtained in connection with the sale of any product or service prior to entry of this Order; and

 

B / Failing to dispose of such customer information in all forms in their possession, custody, or control within thirty (30) days after entry of this Order. Disposal shall be by means that protect against unauthorized access to the customer information, such as by burning, pulverizing, or shredding any papers, and by erasing or destroying any electronic media, to ensure that the customer information cannot practicably be read or reconstructed.

 

Provided, however, that customer information need not be disposed of, and may be disclosed, to

the extent requested by a government agency or required by a law, regulation, or court order.

 

Permalink Reply by Justin Asking on March 14, 2012 at 7:37am

Final Judgment and Order for Permanent Injunction and Monetary Relief as to Jesse Willms

 

March 6, 2012

http://www.ftc.gov/os/caselist/1023012/index.shtm

 

 

MONETARY RELIEF SECTION

 

(XI) MONETARY RELIEF

 

A / Judgment is entered in favor of the Commission and against defendants, jointly and severally, for equitable monetary relief in the amount of $359,291,898, provided, however, that the judgment relief shall be suspended upon satisfaction of the obligations imposed by this Section;

 

B / Within seven (7) days after entry of this Order, the funds held in the Harris Bank account that the parties designated to receive funds transfers pending final resolution of this matter shall be transferred to the trust account of the law firm of Shook, Hardy & Bacon, LLP, 1 155 F Street, NW, Suite 200, Washington, DC 20004. The funds in the trust account at Shook, Hardy & Bacon, LLP, may only be used to satisfy the defendants' United States tax obligations for 2009 and 2010, reasonable and customary costs incurred in preparing those tax returns, and to satisfy the FTC's judgment. To ensure compliance with this provision, defendants shall enter into an agreement with Shook, Hardy & Bacon, LLP, designating the Commission as a beneficiary of the funds held on their behalf in the Shook, Hardy & Bacon, LLP, trust account and requiring the Commission's consent to transfer funds from said trust account. Within seven (7) days of satisfaction of all 2009 and 20I0 United States tax obligations, the defendants shall transfer the balance of funds held on their behalf in the Shook, Hardy & Bacon, LLP, trust account to the Commission by electronic funds transfer in accordance with instructions provided by a representative o f the Commission;

 

C / Defendant Willms shall fully cooperate with a company ("Real Estate Company") designated by a representative of the Commission to take such steps as may be required to sell the real property located at 475 Balmoral Crescent, Sherwood Park, Alberta, Canada T8B OA2, and, within seven (7) days of entry of this Order, shall enter into an agreement with the Real Estate Company to dispose of said property. Until said real property is sold, defendant Willms shall maintain and take no action to diminish the value of said real property. As soon as is reasonably possible after entering into an agreement to sell said real property, the Real Estate Company, in accordance with the agreement between it and defendant Willms, shall liquidate the property. After said real property has been liquidated, the Real Estate Company shall account for the proceeds derived therefrom and transfer all net proceeds (all such proceeds after deducting reasonable and customary costs, fees, and commissions) to the trust account of the law firm Bishop & McKenzie, LLP, 2500-10104 103 Avenue N.W., Edmonton, Alberta, Canada T5J I V3, unless at the time of sale of the real property, the Canadian tax obligations of the defendants have already been satisfied, in which case the net proceeds from the sale of the real property shall be transferred to the Commission by electronic funds transfer in accordance with instructions provided by a representative of the Commission;

D / Defendants shall fully cooperate with a company ("Personal Property Company") designated by a representative of the Commission to take such steps as may be required to take full possession of the personal and corporate property described in Attachment A to this Order and, within seven (7) days of entry of this Order, shall enter into an agreement with the Personal Property Company to dispose of said property. Until defendants surrender possession of the property described in Attachment A to the Personal Property Company, they shall maintain and take no action to diminish the value of said property. As soon as is reasonably possible after taking possession of said property, the Personal Property Company, in accordance with the agreement between it and defendants, shall liquidate the property. After all of said property has been liquidated, the Personal Property Company shall account for the proceeds derived therefrom and transfer all net proceeds (all such proceeds after deducting reasonable and customary fees, costs, and commissions) to the trust account of the law firm Bishop & McKenzie, LLP, unless at the time of sale of the property, the Canadian tax obligations of the defendants have already been satisfied, in which case the net proceeds from the sale of the property shall be transferred to the Commission by electronic funds transfer in accordance with instructions provided by a representative of the Commission;

 

E / The funds in the trust account at Bishop & McKenzie, LLP, may only be used to satisfy the defendants' Canadian tax obligations for 2009, 2010, and 2011, reasonable and customary costs incurred in preparing those tax returns, and to satisfy the FTC's judgment. To ensure compliance with this provision, defendants shall enter into an agreement with Bishop & McKenzie, LLP, designating the Commission as a beneficiary of the funds held on their behalf in the Bishop & McKenzie, LLP, trust account and requiring the Commission's consent to transfer funds from said trust account. Within seven (7) days of satisfaction of all 2009, 2010, and 2011 Canadian tax obligations, the defendants shall transfer the balance of funds held on their behalf in the Bishop & McKenzie, LLP, trust account to the Commission by electronic funds transfer in accordance with instructions provided by a representative of the Commission;

 

F / Defendants agree that they will not, whether acting directly or through any corporation, partnership, limited liability company, division, subsidiary, trade name, or other entity or device, submit to either the Canadian or United States tax authorities any tax return, amended tax return, or other official document that takes a deduction for, or seeks a tax refund or any other tax benefit for, the payments that are to be made in satisfaction of the judgment imposed by this Order;

 

G / Defendants shall pay any taxes owed to the Canadian or United States tax authorities for tax years 2009 and 2010 by: (a) June 30, 2012, or (b) one week after entry of this Order, whichever is later;

 

H / Within seven (7) days of payment in favor of any defendant of any refund from any taxing authority for the tax years 2008, 2009, 20I0, or 20II, the defendant in favor of whom the tax refund is paid shall transfer the tax refund to the Commission by electronic funds transfer in accordance with instructions provided by a representative of the Commission;

 

I / To ensure compliance with this Order, defendants each shall sign and file with the Canada Revenue Agency ("CRA") the Business Consent Form RC59E, Attachment B to this Order, for each corporate defendant with tax obligations in Canada, and the Authorization for Representative Form TI 0 I 3, Attachment C to this Order, authorizing the CRA to disclose through the end of the 201 3 tax year, defendants' tax information to a representative of the Commission;

 

J / To ensure compliance with this Order, defendants, within thirty (30) days after their respective final date for filing a federal tax return or amended tax return for 2009 or 20 1 0, each shall sign and submit to the Internal Revenue Service ("IRS") IRS Form 4506, Attachment D to this Order, along with a payment to the IRS of the Form 4506 fee, directing the IRS to send to the Commission, copies of their respective original tax return and all amended tax returns that they filed with the IRS from 2009 through the end of the 2013 tax year;

 

K / Within seven (7) days of payment in favor of any defendant of any judgment resulting from any litigation pending at the time of entry of this Order, or any litigation subsequently filed in connection with any activity connected to conduct that is the subject of the Amended Complaint, the defendant in favor of whom the judgment is paid shall transfer the proceeds from the judgment to the Commission by electronic funds transfer in accordance with instructions provided by a representative of the Commission;

 

L /In the event of any default on defendants' obligation to make payment under this Order, interest, compounded pursuant to 28 U.S.C. § 1 96 1 , as amended, shall accrue from the date of default to the date of payment, and shall immediately become due and payable;

 

M /  Unless they have already done so, defendants are required, in accordance with 3 I U.S.c. § 7701, to furnish to the Commission their respective Taxpayer Identification Numbers (Social Insurance Numbers or Employer Identification Numbers), which shall be used for purposes of collecting and reporting on any delinquent amount arising out of defendants' relationship with the government;

 

N / All money paid to the Commission under this Order shall be deposited into a fund administered by the Commission or its representatives to be used for equitable relief including consumer restitution and any attendant expenses for the administration of any redress fund. I f direct redress to consumers is wholly or partially impracticable or money remains after redress is completed, the Commission may apply any remaining money for any other equitable relief (including consumer information remedies) as it determines to be reasonably related to defendants' practices alleged in the Amended Complaint. Any monies not used for such equitable relief shall be deposited to the US. Treasury as disgorgement. Defendants shall have no right to challenge any actions the Commission or its representatives may take pursuant to this Subsection;

 

O / Defendants relinquish all dominion, control, and title to the assets transferred to the Commission to the fullest extent permitted by law. Defendants shall make no claim to or demand for return of these funds, directly or indirectly, through counsel or otherwise;

 

P / Defendants agree that the facts as alleged in the Amended Complaint filed in this action shall be taken as true without further proof in any bankruptcy case or subsequent civil litigation pursued by the Commission to enforce its rights to any payment or money judgment pursuant to this Order including, but not limited to, a nondischargeability complaint in any bankruptcy case. Defendants further stipulate and agree that the facts alleged in the Amended Complaint establish all elements necessary to sustain an action by the Commission pursuant to Section 523(a)(2)(A) of the Bankruptcy Code, I I U.S.C. § 523(a)(2)(A), and that this Order shall have collateral estoppel effect for such purposes;

 

Q / The Commission's agreement to the suspension of the judgment is expressly premised upon the truthfulness, accuracy, and completeness of defendants' financial condition as represented in the financial statements dated August 31, 20 II, and November 21, 20II, and attached documentation, which contain material information upon which the Commission relied in negotiating and agreeing to the terms of this Order. If, upon motion by the Commission, this Court finds that any defendant has failed to disclose any material asset or materially misrepresented the value of any asset, or made any other material misrepresentation in, or omission from, the financial statements, then, as to that defendant, the full judgment against that defendant, less amounts already paid, shall become immediately due, and interest computed pursuant to 28 U.S.C. §1 96 1, as amended, shall immediately begin to accrue on the unpaid balance. Provided, however, that in all other respects, this Order shall remain in full force and effect unless otherwise ordered by this Court; and

 

R / Proceedings instituted under this Section are in addition to, and not in lieu of, any other civil or criminal remedies as may be provided by law, including any other proceedings the Commission may initiate to enforce this Order.

(XII) LIFTING OF ASSET FREEZE

 

IT IS FURTHER ORDERED that the freeze against the assets of the defendants pursuant to Section Vll of the Preliminary Injunction entered by this Court on September 13,201 1, shall be lifted for the sole purpose of transferring funds to the Commission pursuant to 1 0 Section Xl of this Order, and the asset freeze shall be dissolved upon transfer of all such funds.

Permalink Reply by Justin Asking on March 14, 2012 at 7:40am

Final Judgment and Order for Permanent Injunction and Monetary Relief as to Jesse Willms

 

March 6, 2012

 

http://www.ftc.gov/os/caselist/1023012/index.shtm

 

COMPLIANCE REPORTING SECTION

(XIII) COMPLIANCE REPORTING

 

A / One hundred and eighty (180) days after entry of this Order, each defendant must submit a compliance report, sworn under penalty of perjury:

 

1. Each defendant must: (a) designate at least one telephone number and an email, physical, and postal address as points of contact, which representatives of the Commission may use to communicate with defendant; (b) identify all of that defendant's businesses by all of their names, telephone numbers, and physical, postal, email, and Internet addresses; (c) describe the activities of each business, including the products and services offered, the means of advertising, marketing, and sales, and the involvement of any other defendant (which individual defendants must describe if they know or should know due to their own involvement); (d) describe in detail whether and how that defendant is in compliance with each Section of this Order; and (e) provide a copy of each Order Acknowledgment obtained pursuant to this Order, unless previously submitted to the Commission;

 

2. Additionally, defendant Jesse Willms must: (a) identify all telephone numbers and all email, Internet, physical, and postal addresses, including all residences; (b)identify all titles and roles in all business activities, including any businesses for which he performs services whether as an employee or otherwise and any entity in which he has any ownership interest; and (c)describe in detail his involvement in each such business, including title, role, responsibilities, participation, authority, control, and any ownership;

B / For twenty (20) years following entry of this Order, each defendant must submit a compliance notice, sworn under penalty of perjury, within fourteen (14) days of change in the following:

 

1. Each defendant must report any change in: (a) any designated point of contact; (b) the structure of any corporate defendant or any entity that any defendant has any ownership interest in or directly or indirectly controls that may affect compliance obligations arising under this Order, including: creation, merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order;

 

2. Additionally, defendant Jesse Willms must report any change in: (a) name, including aliases or fictitious names, or residence address; or (b) title or role in any business activity, including any business for which he performs services whether as an employee or otherwise and any entity in which he has an ownership interest, and identify its name, physical address, and Internet address, if any;

 

C / Each defendant must submit to the Commission notice of the filing of any bankruptcy petition, insolvency proceeding, or any similar proceeding by or against such defendant within fourteen ( 1 4) days of its filing;

D / Any submission to the Commission required by this Order to be sworn to under penalty of perjury must be true and accurate and comply with 28 U.S.Co § 1746, such as by concluding: "I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed on:_" and supplying the date, signatory's full name, title (if applicable), and signature; and

 

E / Unless otherwise directed by a Commission representative in writing, all submissions to the Commission pursuant to this Order must be emailed to Debrief@/1c.uov or sent by overnight courier (not U.S. Postal Service) to: Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue, N.W., Washington, DC 20580. The subject line must begin: FTC v. Jesse Willms, el al. [X I I 0031 ]

(XIII) COMPLIANCE MONITORING

 

A / Within fourteen ( 1 4) days of receipt of a written request from a representative of the Commission, each defendant must: submit additional compliance reports or other requested information, which must be sworn under penalty of perjury; appear for depositions; and produce documents for inspection and copying. The Commission is also authorized to obtain discovery, without further leave of court, using any of the procedures prescribed by Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69;

 

B / For matters concerning this Order, the Commission is authorized to communicate directly with each defendant. Defendants must permit representatives of the Commission to interview any employee or other person affiliated with the defendant who has agreed to such an interview. The person interviewed may have counsel present; and

 

C / The Commission may use all other lawful means, including posing through its representatives, as consumers, suppliers, or other individuals or entities, to defendant or any individual or entity affiliated with defendants, without the necessity of identification or prior notice. Nothing in this Order limits the Commission's lawful use of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1

Permalink Reply by Justin Asking on March 14, 2012 at 7:41am

Final Judgment and Order for Permanent Injunction and Monetary Relief as to Jesse Willms

 

March 6, 2012

 

http://www.ftc.gov/os/caselist/1023012/index.shtm

 

RECORD KEEPING SECTION

 

(XV) RECORD KEEPING  IT IS FURTHER ORDERED that defendants must create certain records for twenty (20) years after entry of this Order, and retain each such record fo r five (5) years. Specifically, each defendant, for any business in which that defendant, individually or collectively with any other defendant, is a majority owner or directly or indirectly controls, must maintain the following records:

 

A / Accounting records showing the revenues from all products or services sold, all costs incurred in generating those revenues, and the resulting net profit or loss;

 

B / Personnel records showing fo r each person providing services, whether as an employee or otherwise, that person 's: name, address, and telephone numbers; that person's job title or position; the dates of service; and if applicable, reason for the person's termination;

 

C / Complaints and refund requests whether received directly or indirectly, as through a third party, and any responses;

 

D / A copy of each advertisement or other marketing material; and

 

E / All records necessary to demonstrate full compliance with each provision of this Order, including submissions to the Commission.

(XVI) MAINTAINING TAX RECORDS IT IS FURTHER ORDERED that defendants must maintain and retain for five (5) years from the date of entry of this Order, and produce to a representative of the Commission upon written request, copies of all signed and completed U.S. and Canadian tax returns, and all amended returns (if any), including all related forms, schedules, statements, and attachments that defendants file through the close of the 2013 tax year.

(XVII) ORDER ACKNOWLEDGMENTS IT IS FURTHER ORDERED that defendants obtain acknowledgments of receipt of this Order:

A / Each defendant, within seven (7) days of entry of this Order, must submit to the Commission an acknowledgment of receipt of this Order sworn under penalty of perjury;

 

B / For five (5) years after entry of this Order, defendant Jesse Willms, for any business that he individually or collectively with any other defendant, is the

majority owner or directly or indirectly controls, and each corporate defendant, must deliver a copy of this Order to: (I) all principals, officers, directors, and managers; (2) all employees, agents, and representatives who participate in conduct related to the subject matter of the Order; and (3) any business entity resulting from any change in structure as set forth in the Section titled "Compliance Reporting." Delivery must occur with seven (7) days of entry of this Order for current personnel. To all others, delivery must occur before they assume their responsibilities; and

 

C / From each individual or entity to which defendants delivered a copy of this Order, defendants must obtain, within thirty (30) days, a signed and dated acknowledgment of receipt of this Order.

 

XVIII. RETENTION OF JURlSDICTION  IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.

SO ORDERED, this 6th day of March, 2012.

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