Tag Archive: District Court

FTC Take Action: Is This The End of The Fake News Site?

FTC Permanently Stops Six Operators from Using Fake News Sites that Allegedly Deceived Consumers about Acai Berry Weight-Loss Products

Above is the FTC’s own headline from a news release yesterday.  The story is that they’ve hammered six operators of fake news sites into making settlements that surrender their assets.  They’ve also halted the six operations plus those of four others, making ten by my calculation!

What Is a Fake News Site?

Do you really need to ask?   !!    (These are for news7digest, see more below on this!).

Anyone who even casually browses the web will have seen these news exposes, quite often advertised down the right side on Facebook and in banner adverts on even the most sensible of websites – like this one, say!

How the adverts work is that they are paid for by the operators.  They deliberately pay to get premium visibility slots, using Google often, but not exclusively.

The fake news site itself will be plastered with well known icons of top companies (like CNN, BBC, CBC, ABC, Google even!) and purport to be a serious investigation by a journalist into whatever the scam may be.  A short list of such scams that we’ve revealed here are:

  • Acai weight loss
  • Tea weight loss.
  • Acai bowel cleanse.
  • Other bowel cleanse.
  • Get rippling muscles.
  • Make money on Google.
  • Get a cheap payday loan.
  • Get a cheap government grant.
  • Get rejuvenation skin cream.
  • Look younger in other ways.
  • Gamble on penny auctions.

channel4online.co.uk

Just yesterday, Peter Farrahy asked why these fake news sites are still going on this post about Jesse Willms.

So taking his example of the very plausible looking channel4online.co.uk and doing a search on it like so:

http://www.google.co.uk/search?q=channel4online.co.uk

…produces several links to the actual Channel 4 in the UK, and the scam site….

This shows the deliberate, deceptive and despicable way in which the site name has been chosen to closely imitate a legitimate and bona-fide news organisation.  Fraud, in other words – as the definition says – “an intentional deception made for personal gain or to damage another individual”

Amazingly, if you click the link several times, each effort takes you to one of three different landing pages for a new site, the actual fake news site of,

news7digest.com

This shows up in the header image in two, but confusingly is called Consumer Reporter in the other!  They are all visually quite different.

The three screenshots near the top of this article are indeed the three fake news sites which you’ll land on by clicking on channel4online.co.uk.

Here they are again, to save you scrolling:

Conclusion

Is this the end of the fake news sites?  Well, obviously not.

They are still very very current and still very very visible.  The highly photoshopped images adorn well known websites to the point of irritation.  However, the settlement was only yesterday.  The note on the FTC statement goes on the say;

A settlement order is for settlement purposes only and does not constitute an admission by the defendant that the law has been violated. Settlement orders have the force of law when approved and signed by the District Court judge.

Despite this, it appears the six defendants are caving in as no appeals have been launched.  They are and the details of the settlements are as follows:

  • Ricardo Jose Labra Labra’s $2.5 million judgment will be suspended when he pays $280,000 and records a $39,500 lien on his home.
  • Zachary S. Graham, Ambervine Marketing, LLC and Encastle, Inc. Graham’s $953,000 judgment will be suspended when he pays $110,000 plus most of the proceeds from the sale of a truck.
  • Tanner Garrett Vaughn Vaughn’s $203,000 judgment will be suspended when he pays close to $80,000 over a three-year period.
  • Thou Lee Lee’s $204,000 judgment will be suspended when he pays $13,000 plus the proceeds from the sale of a BMW.
  • Charles Dunlevy Dunlevy’s $143,000 judgment will be suspended when he pays an estimated $2,000 from frozen assets and the sale of a boat.
  • DLXM, LLC and Michael Volozin The $594,000 judgment will be suspended because of the defendants’ inability to pay.

 

I see it as a warning shot.  The actual wording of the terms against the six goes as follows.  It’s quite onerous and specific, I think, which means that these News7Digest screenshots at the top of this posting put the operators in deep doggy do if they don’t get their act together pronto.  The highlights are mine.

As part of its ongoing crackdown on bogus health claims, the proposed settlements will require that the six operations make clear when their commercial messages are advertisements rather than objective journalism, and will bar the defendants from further deceptive claims about health-related products such as the acai berry weight-loss supplements and colon cleansers that they marketed.

The defendants also are required to disclose any material connections they have with merchants, and will be barred from making deceptive claims about other products, such as the work-at-home schemes or penny auctions that most of them promoted.  The settlements also require that these defendants collectively pay roughly $500,000 to the Commission because their advertisements violated federal law.  This money amounts to most of their assets.

A Sample of My Previous Posts Mentioning Fake News Websites

This all proves that what I and others are saying is wrong – and the FTC is proving it!  Virtually everything that the scammers do the FTC has now taken issue with and imposed heavy penalties.  It’s now, as they say, case law, as well as being the law of the land.  Let’s hope that Willms who chucked his power derived from ill-gotten wealth at me making me pull a page or two for a time, gets his just deserts – sometime this year would be nice.

 

Related Posts:

Comments are closed

Jesse Willms Banned by Judge from Negative Option Selling – Assets Frozen!

Latest News from Tuesday, Seattle

Jesse Willms Banned by Judge from Negative Option Selling – Assets Frozen!

Frozen Assets

Frozen Assets

CBC (with whom Willms has already had a tussle) in Canada are already broadcasting that local high-school athlete drop-out turned internet businessman of dubious repute, the self-styled and self-publicising entrepreneur & charitable Jesse Willms, has had some shackles applied to his business by the order, by a Seattle court, to freeze his assets (in case they’re needed to payout to his alleged victims and fines) and also to not use the negative option gambit in any of his websites.

See the CBC report (and wonderful video) here:

U.S. judge freezes assets of Alberta internet salesman

CBC report on the FTC lawyer Robert Schroeder saying,

The judge also froze the assets of Willms and his companies

I'm not a Flim-flam guy!

I'm not a Flim-flam guy!

This could be the main reason why CBC say that all his websites (that they know of, at least) are down and that his phone is dead.   I’ve checked and the dismal self-publicity blogs are still running, which they would be I suppose, as they’re not selling anything except the idea that Willms is a “good guy”.  The judge is Marsha J. Pechman, Federal Judge out of the Western District Court of Seattle according to the post I’ve linked to.  It finishes with the words:

While Jesse Willms has not responded much to these accusations, he has hired many firms to engage in a positive PR and SEO campaign and consistently sends out news releases claiming that he has been assisting charities with financial donations. Additionally, there are at least a dozen “blogs” setup by Mr. Willms to counteract the negative press with positive SERPS.

This is exactly what this website and many others have been saying for over a year now!  “Performance Marketing Insider” also states that:

Currently, according to news reports, there is a both a consumer and criminal investigation against Mr. Willms in Canada.

Well this is good! And only fair – fair to the thousands and thousands of people that feel duped by Willms’ activities.  Roll on next year – Willms is scheduled for trial in the U.S. in July 2012.  Should be sooner.

According to the CBC report, we see another aspect of Willms’ doings whereby he very rarely admits to any mistakes or wrong-doings.  It’s always someone else’s fault, in his world.  CBC say;

Willms has blamed unscrupulous business associates who he claims defrauded him by stealing credit card numbers in order to generate commissions with bogus sales.

I say,

What?  All of them?  All $457 million dollars worth?

Pull the other one!

Willms’ local paper, the Edmonton Journal, also reports on the asset-freezing story here.  They don’t say anything new – but it’s nice to keep the locals informed, don’t you think?

All those local charities that Willms has been plugging his exploits with over the past year must surely be examining their credibility in the eyes of their donating public.  This connection (and to fair, the charges are not proven yet) to Willms is starting to look very bad for them, people have long memories and mud does stick.  Ask any politician!

Surely?

Jesse Willms and Nolan Paquet

Jesse Willms (r), in the source of the famous grinning shot.

Related Posts:

Pacific Webworks, Lawyers and Social Networking

Introduction

The last thing we need is more scummy scammers and following on from Google’s legal action against Pacific Webworks (PWW) one would naively have thought that the “business” folk would be more circumspect.  (See previous article and comments, http://strangelyperfect.tv/5146/more-on-google-profits-and-pacific-webworks/ )

At the beginning of June, it appeared that the Google case against PWW had fallen flat and that PWW had gotten away with it.  This certainly appears so from yesterday’s press announcement by the odious PWW management, such as here.  It says,

SALT LAKE CITY, Jun 28, 2010 (BUSINESS WIRE) — Pacific WebWorks, Inc.  today announced that a Stipulated Final Judgment and Order for Permanent Injunction was entered in the U.S. District Court for the District of Utah in the Google, Inc. vs. Pacific WebWorks, Inc. matter.

CEO Ken Bell commented, “We are very pleased to have this behind us. We have devoted a great deal of time and energy to resolving this situation and are anxious to return to the business of growing our company responsibly and profitably through our new marketing program. We appreciate our shareholders’ patience and understanding as we deal with the many details involved in the development and marketing of our products to small business users.”

Quite Bad

This looks quite bad until you realise that the PWW share price and dealing volumes have both fallen!

So what does the market know about the “settlement” that we don’t, eh?

Bloosky.com and The lawyer

PWW and Bloosky, were both named by Google, and Bloosky were (and still are) represented by Blair Jackson, who is a lawyer and on the company payroll of Bloosky in various positions.  (See at the bottom of here).

On checking out Mr Jackson, he’s part of:

CHRISTIANSEN & JACKSON, P.C.
10421 S. Jordan Gateway, Suite 600
South Jordan, Utah 84095
Telephone 801.576.2662
Facsimile 801.415.9340
Attorneys for Defendant Bloosky Interactive, LLC

You can see this on some delaying action in the Google case by Jackson for Bloosky, documents here and here.  But it gets better…   In this document, you’ll see that Bloosky are suing someone called Daniel L. Balsam for not adhering to an earlier agreement not to disclose what was said… or something. (I’ve yet to check this through!  But it looks a bit like pot-kettle-black to me…)

Whatever.

socialtoolkit.com

Yes. Whatever.  A bit more fishing on Jackson took me to the website(s) of one Vernon Howard.

He was scammed by socialtoolkit.com, in  exactly the same way as thousands of others were by Google Treasure Chest – promoted, run, designed and financed by Pacific Webworks.  It’s a scammers paradise with copious bad-web references and complaints.   The “business” says on it’s website,

Each day, more and more individuals, small business owners and Fortune 500 companies across the globe are realizing the value of SocialToolKit.com and choosing to increase their Social Networking efficiency, productivity and profits.   (Note to self:  “I must increase my Social Networking efficiency” – SP)

Here’s Vernon’s extremely well written story:

It’s an incredibly detailed tale, complete with copious screenshots, of his dealings with the various parties involved.  And he’s no shrinking violet.  He’s taking the buggers on!

There’s only one trouble.

He’s using Blair Jackson of Christiansen & Jackson, PC – Attorneys at Law, to take on socialtoolkit.com !!

How is this Weird?

Weird?  It’s positively scary!

Because if you read Vernon Howard’s account, you’ll see that he was billed by  YourProfitGateway.com

YourProfitGateway.com, when you check it’s (now freely accessible) WHOIS, unsurprisingly redirects to http://www.visualwebtools.com/site/

visualwebtools.com

If you’ve been following this, you’ll know from a while back that Visual WebTools is owned and run by…….. (trumpet fanfare)

Pacific WebWorks!

Latest News from The Visual WebTools Camp

Pacific WebWorks Updates Marketing Efforts

Thursday June 24, 2010 11:52:01 EDT SALT LAKE CITY, Jun 24, 2010

Last Thursday, this is what the odious CEO Ken Bell of PWW said about his company, their marketing and their product, Visual WebTools.

Pacific WebWorks, Inc., www.pacificwebworks.com, (OTCBB:PWEB) announced today that the company continues to perfect their new marketing program which offers prospective customers the opportunity to receive a tutorial on the product and interact with the company during the buying process.

CEO Ken Bell stated,

“Visual WebTools continues to be one of the premier online software products for small businesses in the marketplace. We expect our new, more interactive marketing approach to result in a more informed buyer who will be better equipped to employ our technologies into their online business. As a result, we expect future revenues to be more stable. We anticipate revenues to accelerate during the second half of the year with continued profitability.”

Bell continued,

“During the first six months of 2010 (i.e. since Google sued them – SP the company has focused on stabilizing profitability, servicing current customers and developing our new multi-tiered marketing program. We expect new customer acquisition in the future to be derived largely from our new direct contact marketing program. With our strong balance sheet, a current ratio in excess of 10x, tangible book value of nearly double our current market capitalization and strong historical earnings, we are positioned to continue to take advantage of opportunities in the marketplace.”

What are Google Doing?

The emphasis above, is mine.  From it, you can clearly see that Bell claims that his company is responsible for all the things that lead up to the nefarious practices that then lead to people being scammed.

So is the Google thing over with yet?  Why haven’t the Salt Lake Tribune said anything about it yet?

I still think there’s more to come out with this.  Remember the falling share price of PWW?  The markets know, you know.

Related Posts:

© 2007-2017 Strangely Perfect All Rights Reserved -- Copyright notice by me