Chris Mancuso, or Christopher J. Mancuso, is a longtime crony of Slatkin investor and Scientologist Ron Rakow, as profiled elsewhere on the slatkinfraud.com site. He was involved in Ron Rakow’s yogurt culture scam in the mid-1980s, according to this list of defendants.

Apparently seeing his former partner go to prison for bilking thousands of unwary investors didn’t dampen Mr. Mancuso’s belief in Ron’s business savvy, as he turns up on the final Slatkin creditor list (coming soon).

Coincidentally, Chris J. Mancuso was also in business with another Slatkin investor, Donald Rackemann. In the 1980s, Rackemann and Mancuso partnered up in the 1980s to form National Telephone Communications Inc., which is now a subsidiary of Incomnet, the embattled network marketing venture. Reed had apparently invested heavily in Incomnet, according to the findings of the trustee and reported by the Wall Street Journal on July 31, 2001.

These days, Rackemann runs Pricenet USA, yet another Internet venture. A bio from a recent SEC filing for Pricenet describes him as follows:

"
Donald Rackemann has been the Chairman of the Board and the Chief Executive Officer since 1998. Prior to heading up Price Net USA.com, Mr. Rackemann was semi-retired but very involved in the manufacturing of golf equipment. From 1988 to 1994, he served as Chairman and CEO of National Telephone & Communications, Inc. a long-distance telephone service provider, which he co-founded and was responsible for its early growth and success. Incomnet, Inc. acquired the company during 1994.
"

Here is a sales pitch for PriceNET USA

Don ran into trouble in his application to add a 1,000+ square foot expansion, with pool and spa, to his home. The proposal was eventually withdrawn in the face of opposition from his neighbours.

Chris J. Mancuso was also involved with World Technology Marketing, a Nevada corporation that faced allegations of credit card fraud from students at the University of Southern California. Chris Mancuso acted as World Technology’s secretary, and the president was Jerry Ballah, who coincidentally was also involved with Rakow’s lactic culture scam, and was also an executive with PriceNET.

During his days at World Technology Marketing, Jerry made headlines when the company was accused of credit fraud:

"
Eight to 10 USC students claim to have been defrauded by the Irvine-based World Technology Marketing Inc., which is also known as Worldtech, World Marketing Alliance and World Marketing, officials from the Career Planning and Placement Center said.

One student, the first to make a complaint, claimed to have been charged $495 without her consent, though she did sign a blank credit card statement … The engineering student who found a charge on her credit card after the interview tried to call the company and said she has received no reply. "Ballah has also identified himself first as an independent representative, later as the vice president of Worldtech and finally as president of the company when contacted by DPS," Devega said.
"

Despite a seemingly heaven-made match, PriceNET and Jerry Ballah have since parted ways, with the company filing suit against Ballah for a laundry list of alleged offences, as detailed in this filing, including Breach of Fiduciary Duty, Fraud, Breach of Contract, International Interference with Contractual Relationships, Misappropriation of Trade Secrets, and Unfair Competition.

http://www.slatkinfraud.com/articles/wsj_july31_followup.htm

————————————————————————————————-

PriceNetUSA 2424 E. Bristol Newport Beach  CA  92660 949 225 6000

View Complete PriceNetUSA Profile at Npros.com

PricenetUSA.com offers turnkey Internet mall and related e-services to its members. Jerry W. Ballah - Formerly President, no longer with the company. Previously served as Executive Vice President of NTC Ray Mario, Marketing. No longer with the company. (see Closed Companies, 121.tv) Company Products: Internet Mall: Megamall, EZ2Market package Founders, Principals and Executives: Donald J. Rackemann - Co-Chairman & CEO Jerry W. Ballah Hank Comacho, Rick Shea. Company folded. (written by PriceNetUSA.com) PriceNetUSA.com was organized as a Nevada corporation on October 7, 1997. The Company was founded in order to market and operate an internet-based infrastructure that supports a home-based business. The PriceNet model enables consumers around the world to purchase consumer products at retail prices or at a 10%-70% savings. PriceNetUSA.com’s E-Commerce Entrepreneurs are provided a turnkey solution with which to operate their home or office-based business. PricenetUSA development/management team possesses a varied and complimentary set of experiences including marketing, merchandising, technical systems development, Internet design and management, product procurement and online shopping. The company is dedicated to providing cutting-edge solutions for small business owners who wish to present their products and services via the Internet (www.ez2Market.com), and to becoming the world’s leader in value-based commerce through the PriceNetUSA.com SuperStore an online direct-from-the-source shopping site with millions of name brand products and PricenetUSA’s unique buying cooperative, The MegaMall.

http://www.nprosmarket.com/company_info_public.asp?profile=355

Special Edition Follows:

** Bart Baggett’s Weekly Strokes Handwriting Analysis Newsletter **

Happy Holidays from Handwriting University.com

December 19, 2000 Edition

I hope you have enjoyed the "weekly strokes" newsletter. I know I often put "newsletters" and other interesting mail into the "later pile". I just wanted to grab your attention for a moment so you don’t miss out on a unique program that ends before the New Year.

It’s called the iPower Coaching Program. I am taking 25 people into business and into the 6 figure income range. This might or might not be what you have been looking for to spark your income and prosperity consciousness in 2001. But, the applications must be in by December 24, 2000.

So, please take a moment and check it out or pass it on to someone you think it would really benefit. If you know a great sales person that is underachieving financially - sending him or her this link will count as your Christmas present!

http://www.ipowerbizamerica.com/coaching.html

Thanks for your time and I deeply appreciate you subscribing to this newsletter.

Happy Holidays.

BART BAGGET

=======================================

1. ESPN.com is running handwriting analysis this Thursday.
2. In case you missed it: 25 readers will become Rich in 2001, will you be one of them?
3. Sample of the Week - Jerry Ballah - President of Internet company Ipowerbiz

=======================================
Thinking about Starting off the new year write? Give the gift of self-awareness to yourself.. Order from the myhandwriting.com on-line catalog.

http://myhandwriting.com/order/catalog.html

=======================================

** Handwriting Samples of the Week brought to you by ESPN.com

Who does ESPN.com call when they want handwriting analysis of today’s top athletes? None other than moi, Bart Baggett! Compare notes for yourself on the 2nd Page of ESPN’s website, which gets over 1 million visitors each day. The article is scheduled to run this Thursday December 21st. However, media often bumps features back a day. Check it out Thursday!

http://espn.go.com/
http://espn.go.com/page2/index.html

==== iPower Coaching Program nears final selections… are you in?

If you are interested in this program there will be the FINAL candidate conference call this WEDNESDAY Dec 20th, 2000 in order for you to get free information and find out if this business/coaching program is for you. Don’t procrastinate - it could cost you $100,000 next year if you miss out. Dec 21st. 9-10 PM eastern. Register on-line for the conference call # or call our home office. 1-800-398-2278

Register here: http://www.ipowerbizamerica.com/coaching.html

Here is the scoop:

25 readers will become Rich in 2001, will you be one of them

Because there are over11,000 readers of this newsletter, it is unlikely all of you own one of my books, tapes, or home study courses. I also have to assume that most you think I am all about handwriting analysis. I do love the skill and use it every day. Lately, I have been tediously working on my upcoming book called "The Success Secrets of the Rich and Happy." Only three of the 21 chapters contain handwriting analysis information. The balance of this breakthrough book is a variety of concepts and strategies that will make you money and assist you in achieving emotional fulfillment in all areas of your life. (Belief systems, rapport, values, life balance, emotional state management, time management, spiritual prosperity, investment strategies, health, influence, and even the six human needs for ultimate fulfillment.

As I was writing this future bestseller, I decided to embark on a grand coaching plan with 25 of my favorite students, readers, and future friends. I am going to personally walk 25 people through the process re-wiring your thoughts, beliefs, attitudes, and actions so that you get on the track to financial and emotional wealth. I am dedicating 2001 to taking 25 people into earning $100,000 or more by the end of the year! Based on my plan, many will go onto become millionaires within a few years. I’ve combined a great company, stock options, a great product, and weekly coaching calls to pull it all together.

In order to track my results and possibly write a book about this experiment some day, I decided to find a project that was fun, profitable, and anyone could achieve if they put their mind to it. So, if you have an interest in turning your financial future around, or just adding onto the one you’ve already created, I encourage you to read more about this program.

http://www.ipowerbizamerica.com/coaching.html

Deadline for applications are December 24th, 2000!

===============================

Handwriting Sample of the Month - Replay

Learn the wisdom of a self-made millionaire by analyzing his handwriting and listening to a live interview between Bart Baggett and Jerry Ballah. Jerry is working with Bart in helping his 25 coaching clients earn their $100,000 next year.

http://www.handwritinguniversity.com/newslettersamples/jerry.html

Give yourself about 30 minutes listen to this "live analysis and interview"… it’s worth it. ******************************************************************

The president of HandwritingUniversity.com, Kay Keeton, is available to answer any questions about handwriting products or Bart’s new Power Coaching Program.

If you have been thinking about learning more or buying yourself a handwriting course for the Holidays - call Kay today 1-800-398-2278 (in North America). Since the textbooks are now all available on-line, you can get started the moment you hang up the phone after enrolling!

kay@myhandwriting.com.

http://myhandwriting.com/learn/
=======================================

Keep those t-bars high!

– BART BAGGETT

Author / Speaker / Handwriting Expert

http://www.myhandwriting.com/newsletters/001219.html

————————————————————————————————-

Mancuso, Chris . Irvine, CA 92612
Chris Mancuso, or Christopher J. Mancuso, was involved in Ron Rakow’s yogurt culture scam in the mid-1980s, according to this court filing from the bankruptcy of Culture Farms:

Chris J. Mancuso was also in business with another Slatkin investor, Donald Rackemann, who appears on the original investor list as the president of PriceNET USA, an Irvine, California ISP.

Mancuso and Rackemann were partners in this company:

NATIONAL TELEPHONE COMMUNICATIONS, INC
Type: Corporation File Number: C8863-1988 State: NEVADA Incorporated On: November 07, 1988
Status: Merge / dissolved Corp Type: Regular
Resident Agent: LAUGHLIN ASSOCIATES, INC. (Accepted)
Address: 2533 N. CARSON STREET
CARSON CITY NV 89706
President: DONALD J RACKEMANN
Address: 1 LIME ORCHARD
LAGUNA NIGUEL CA 92677
Secretary: CHRISTOPHER J MANCUSO
Address: 5727 CANOGA PARK
SUITE 244
WOODLAND HILLS CA 91367
Treasurer: CHRISTOPHER J MANCUSO
Address: 5727 CANOGA PARK
SUITE 244
WOODLAND HILLS CA 91367

Here is a brief bio of Don Rackemann, from an SEC filing:

Donald Rackemann has been the Chairman of the Board and the Chief Executive Officer since 1998. Prior to heading up Price Net USA.com, Mr. Rackemann was semi-retired but very involved in the manufacturing of golf equipment. From 1988 to 1994, he served as Chairman and CEO of National Telephone & Communications, Inc. a long-distance telephone service provider, which he co-founded and was responsible for its early growth and success. Incomnet, Inc. acquired the company during 1994.

Don ran into trouble in his application to add a 1,000+ square foot expansion, with pool and spa, to his home:

The proposal was eventually withdrawn in the face of opposition from his neighbours.

Here is a sales pitch for PriceNET USA.

He also likes fast cars.

Chris Mancuso was also involved in this company:

WORLD TECHNOLOGY MARKETING, INC.
Type: Corporation File Number: C2801-1998 State: NEVADA Incorporated On: February 10, 1998
Status: Revoked Corp Type: Regular
Resident Agent: DOMINIC P. GENTILE, LTD. (Accepted)
Address: 302 EAST CARSON FOURTH STREET
JAMES MANCUSO
LAS VEGAS NV 89101
President: JERRY W BALLAH
Address: 3 PARK PLZ #1200
IRVINE CA 92614
Secretary: CHRIS MANCUSO
Address: 3 PARK PLZ #1200
IRVINE CA 92614

Jerry Ballah was also involved with the lactic culture scam, and seems to have been mentioned by the Van Harlingens (!) as part of a real estate deal in Florida that somehow went awry. He also seems to have been involved with Donald Rackemann and PriceNET USA, but is no longer with the company.

During his days at World Technology Marketing, Jerry made headlines when the company was accused of credit fraud:

“Eight to 10 USC students claim to have been defrauded by the Irvine-based World Technology Marketing Inc., which is also known as Worldtech, World Marketing Alliance and World Marketing, officials from the Career Planning and Placement Center said.
One student, the first to make a complaint, claimed to have been charged $495 without her consent, though she did sign a blank credit card statement …
The engineering student who found a charge on her credit card after the interview tried to call the company and said she has received no reply.
"Ballah has also identified himself first as an independent representative, later as the vice president of Worldtech and finally as president of the company when contacted by DPS," Devega said.”

Here is the official warning against World Technology Marketing Inc. from USC:

Despite a seemingly heaven-made match, PriceNET and Jerry Ballah have since parted ways, with the company filing suit against Ballah for a laundry list of alleged offences, as detailed in this filing:

Price Net USA, Inc. has filed a lawsuit in the superior court of Orange County, California against the former Director/President Jerry Ballah, Bruce Ballah, The Big Store.com, The Big Hub.com, The Big Biz.com, OhGolly.com, IPowerBiz, PriceNet Marketing, and MGI WorldNet.com (the Ballah group). The lawsuit was filed during August 2000 in the amount of not less than $25,000,000 for Breach of Fiduciary Duty, Fraud, Breach of Contract, International Interference with Contractual Relationships, Misappropriation of Trade Secrets, Unfair Competition, Accounting, and Injunctive Release. The discovery process is ongoing and the Company is vigorously pursuing the matter toward a favorable outcome. The case is set for a settlement hearing in August 2001.

These days, Jerry is running his own e-commerce “network marketing” venture, iPowerbiz.

Mancuso, Michael . Newport Beach, CA 92663
Michael and James Mancuso were both involved with Clear World Communications Corp., according to this page:

This makes it likely that he is related to Chris Mancuso.

The only listing for this address is:
Douglas S Ginter
177 Riverside Ave Ste F
Newport Beach, CA 92663 Phone: 949-650-5107

There is a Markus Ginter who is the Executive Establishment Organizing Officer at Flag Land Base, but it’s not clear if this is just a coincidental name.

Credit Card Fraud

Submitted: 9/19/2001 Modified: 9/19/2001

Credit Card Fraud by iPowerBiz.com

Company Address: 2030 E. Main Street, Suite 150 Irvine California 92614 U.S.A. Phone Number: 949-566-6226 Fax: iPowerBiz

iPowerBiz is a multi-level website sales company that lures people with easy high income potentials. My credit card was charged the Premier Plus price of $595. After about six months of not getting a return on my investment and no support I became frustrated so in February of 2001 I called the iPowerBiz office and asked to cancel my $49.95 monthly hosting fee and they advised me I would have to fax a letter to them. I did and my credit card was charged for three months until on May 30, 2001 I had to cancel my credit card to stop the fraud that iPowerBiz was committing. I mailed a version of this complaint letter certified to the President of iPowerBiz “Jerry Ballah” on August 1st, 2001 and never receive a reply. Please investigate this company and help protect others. Sincerely, Todd Alexander

http://www.ripoffreport.com/reports/ripoff6672.htm

iPowerBiz
Bankruptcy - Chapter 11 (Nevada Corp #C2280204)

Jerry Ballah, CEO

Steve Templeman, Senior Vice President

iPowerBiz filed bankruptcy amid a flurry of complaints ranging from unpaid commission checks to unauthorized credit card charges.

Related Links:

Complaints at WorldWideScam.com

Company Accused of Credit Fraud

TheRipOffReport.com

Equinox International

Closed by FTC

Bill Gouldd, Founder

Settlement and Receiver Information:
http://www.equinoxinternational.com/

About 10 students say Irvine-based business made charges without their consent

By ANNE WONSONO
Staff Writer

Eight to 10 USC students claim to have been defrauded by the Irvine-based World Technology Marketing Inc., which is also known as Worldtech, World Marketing Alliance and World Marketing, officials from the Career Planning and Placement Center said.
One student, the first to make a complaint, claimed to have been charged $495 without her consent, though she did sign a blank credit card statement.
The student, a graduate in biomedical engineering, contacted Carmen Serrano, director of career services in the engineering department, who later informed the Department of Public Safety and the Career Planning and Placement Center.
The student, who wished to remain anonymous, and one other have filed complaints with DPS. However, the crime did not take place at USC, so DPS will be taking little responsibility in the matter, said DPS Deputy Chief Bob Taylor.
"The crime took place at Irvine and thus is outside the LAPD jurisdiction," Taylor said.
Other agencies are aware of the situation, and the department will help them to the best of its ability, said DPS Det. Bob Devega, who is in charge of the case.
"A complaint has been filed with the Irvine Police Department, the California Department of Consumer Affairs and the Orange County District Attorney Office," Devega said.
Doug Woodsmall, the supervising attorney of the Orange County District Attorney’s consumer protection unit, said that he could not comment on the complaints because they are confidential. However, he did say that the office does not plan to file a case in the near future.
"It’s certainly not imminent," he said. "Assuming we have complaints, we do a lot of things as far as trying to resolve something before we actually file a case in court."
Numerous complaints about the company have been made to the IPD, the first one as early as September, said Irvine Police Sgt. Rick Handfield, adding that there is not yet a criminal investigation taking place. Currently, the IPD is just investigating if Worldtech gave the students false information.
"When it is more consumer fraud rather than criminal fraud, it is difficult to prove the company is acting criminally," Handfield said. "The basic business premise is fairly legal."
The amount alleged taken from each USC student was less than $500, the amount needed for the company to be charged with a felony, Devega said, adding that charging a credit card after obtaining the owner’s signature is not considered a crime.
"(The company) seems to know how far they can go, which direction they can take," Devega said. "It’s a hustle."
Complaints also have come from other area schools as well, including Fullerton College, Occidental College, UC Riverside, Chapman University and UCLA, Handfield said.
Handfield attributed the success of fraudulent companies to their targeting of young, inexperienced college students.
"College students (are) more ready victims, as they’re just starting their life," he said. "There is the lure of big money to get their career started. They may not have the experience of someone who is older."
Handfield added that people who make hasty decisions often find themselves in risky situations.
"People sign contracts without reading them, giving out ATM cards and credit card bills," Handfield said. "(They are) sucked in by big rewards and later claim foul. People should slow down. If it sounds too good to be true, it probably is."
Jerry Ballah, who identified himself as the president of Worldtech, claimed to have no knowledge of the situation.
"I only found out something was wrong on Saturday afternoon," he told the DT, "when a few people from USC were passing out crime alert bulletins in my lobby."
Taylor said that the people passing out bulletins were from UCLA, but they used USC DPS crime alert bulletins.
Devega confirmed that no USC representatives went to Worldtech that Saturday afternoon and in fact, Worldtech had been contacted since the first day of the complaint.
"If the students write a letter asking for a refund, they will be considered case-by-case," Ballah said. "A full refund is also possible as long as I find that the students have not made use of any of the company services."
The engineering student who found a charge on her credit card after the interview tried to call the company and said she has received no reply.
"Ballah has also identified himself first as an independent representative, later as the vice president of Worldtech and finally as president of the company when contacted by DPS," Devega said.
Representatives from the company, which both DPS officers and university officials believe to be a fraudulent business, posed as recruiters during the Career Fair on Feb. 4 and received information from USC students, including credit card account numbers, according to reports that students made to the CPPC.
The engineering student said that a representative asked to see her résumé during the Career Fair and took it with him. He told her that there would be an interview if the company was interested and walked away without explaining in what type of work the company engaged.
She described the representative as a man about 20 years old who had no name tag or business card and carried a clipboard.
Two days later, a Worldtech representative contacted her to set up an interview, she said, and upon arriving at the company’s office in Irvine, she saw several students coming in for the same interview.
"Other than two men from Arizona and Texas, seven of us were from USC," the student said.
There were three stages involved in the interview: a prescreening, an information session about the company itself and a time when the students signed papers, including a contract.
On Section 5 of the contract, the student signed what she understood to be a fully refundable $29 application fee. She also signed a blank American Express bill after she was told that it was necessary to continue the interview process, she said.
"(The representative) said that we had to put our signature for paper processing in case we get accepted," the student said. "(The representative) gave an impression that the interview would not proceed without any paperwork signed by (the students)."
Taylor said DPS and the Department of Student Affairs are currently drafting a letter to be sent to Worldtech prohibiting company representatives from coming to USC.
Since the first complaint, both the engineering career center and the CPPC has warned students of Worldtech through e-mail. Also, DPS has distributed a crime alert bulletin throughout campus. Around 30 to 40 students from the School of Engineering have responded.
Handfield encourages those who feel Worldtech defrauded them to report it to the IPD. The department’s number is (949) 724-7000.

---

City Editor Claire Luna contributed to this story.

Copyright 1999 by the Daily Trojan. All rights reserved.
This article was published in Vol. 136, No. 28 (Friday, February 26, 1999), beginning on page 1 and ending on page 3.
http://www.usc.edu/student-affairs/dt/V136/N28/01-company.28c.html

————————————————————————————————-

SEC INFORMATION ON

http://www.secinfo.com/d11t8j.414.htm

Price Net USA Inc

Company accused of credit fraud

Ray, Darah and Daran Grimm in front of the new facilities.

New Reception Area and staircase leading to second floor Offices.

New Conference Room…

One of the Executive Rooms…

BIOPRO Technology’s explosive growth has propelled us into a much larger Corporate Office! We invite you to tour the new facility on Tuesday, August 9th at 7 pm pst. Our weekly Tuesday Night Presentation will begin at 7:30 pm pst.*

Please note the following information:

New Address-
BIOPRO Technology
1905 Aston Street, Ste. 101
Carlsbad, California 92008

Main Phone Number-
# 760 - 448 - 2498

Direct Customer Service Number-
# 760 - 603 - 6555

Directions-
Exit Palomar Airport Road off of the 5 Freeway
Go East
Turn Left on College Blvd.
Turn Right on Aston Street.
We are located on the right hand side at 1905 Aston St., Ste. 101

LAMBORGHINI OF THE MLM INDUSTRY

Biopro Ladies giving the go signal for BIOPRO - the "Lamborghini (not Rolls Royce) of the MLM Industry"

Chairman Ray Grimm with one of Biopro Top Directors. Ray is a proud owner of at least 4 Lamborghinis, a Rolls Royce and several other luxury cars….

Rachel Freno, COO and Daran Grimm, VP for Customer Relations.

Alfred Hanser - President and Ray Grimm - Chairman, presenting Certificate to one of top Directors during Leadership Training & Awards Night.

Dr. Saltzman speaking highly of the Biopro Technology.

Beautiful couple: Danica & Edoardo "Mr. Italy" Ciulli, former is VP while latter is Distribution Manager.

Biopro Leadership Training at the Marriot Hotel.

Daran Grimm, VP for Customer Relations with Customer relations beauties.

Daran Grimm, Co-Founder & Danica Grimm-Ciulli, VP with Corporate Group.

BIOPRO NEW PRODUCT

Bioproduce: BIOPRO Technology’s Whole Food Nutrition Formula

BIOProduce is a cutting-edge, highly concentrated whole food supplement bursting with the amazing health benefits of Mother Nature’s most life-enhancing fruits and vegetables. Power-packed with natural food actives, BIOProduce’s unique formulations work synergistically in the body’s cells to ensure you and your family receive the essential nutrients for total well being. Scientific research has shown food actives are the key to unlocking superior health, energy, anti-aging and even disease prevention.

The Proof is in BIOProduce

* Promotes healthy blood sugar levels
* Promotes cardiovascular wellness
* Supports a healthy immune system
* Improves energy and circulation
* Helps the body fight off the signs of aging
(protects cells from Free Radical damage)
* Supplies recommended* 5 - 9 servings of fruits & vegetables daily

Got questions? Read the BioProduce Q&A’s

Take A Look
Harvested at peak perfection in soil rich in micronutrients and free of pesticides, BIOPRODUCE’s ingredients are rich in beneficial food actives from more than 20 incredible fruits, berries and vegetables. Our advanced multistage pulpification and concentration process literally captures the life force and pure nutrition of each ingredient in our BIOPRODUCE formulas increasing its superior bio-availability and overall effectiveness.

BIOProduce’s Vegetable capsules contain the whole food goodness of Parsley, Kale, Spinach, Brussel Sprouts, Broccoli, Cauliflower, Asparagus, Beets, Carrots, Cabbage and Garlic.

BIOProduce’s Fruit & Berry capsules contain the benefits of Cranberry, Plum, Blueberry, Strawberry Grape, Cherry, Raspberry, Apricot, Papaya, Orange and Pineapple.

*The U.S. Department of Agriculture, The American Cancer Society, The American Heart Association

BIOPRO TECHNOLOGY welcomes Juan & Araceli Rodulfa from the Philippines.

LR with Biopro Co-Founder & President - Alfred Hanser.

JR with Biopro Chairman - Ray Grimm, Jr.

LR with Biopro Co-Founder Daran Grimm.

Lynda Cormier, a very enthusiastic National Sales Director.

Darah Grimm, VP for Customer Relations….

LR with Danica Grimm-Ciulli, VP, the creative genius behind many of the marketing materials offered by Biopro. At right is Ray Grimm, Chairman, a motoring afficionado with at least four Lamborghinis.

Rachel Freno, Biopro Chief Operating Officer.

Eric Alexander, Director for Field Operations with wife - Louise.

At the Grimm Estate for a Soiree with some members of the BIOPRO Family…

Quantum at BIOPRO: Focus on OPPORTUNITY!

May 31, 2002

The ALMA Awards was created in 1995 as part of NCLR’s strategy to promote fair, accurate, and balanced portrayals of Latinos in television, film, and music. Born out of a direct response to negative stereotyping of Latinos in entertainment, these awards honor Latino performers for their outstanding artistic achievement, impact, and enhancement of the image of Latinos.

This show, airing on ABC on June 1st, is the only two-hour Latino-themed prime-time awards special produced on any of the four major English-language networks. The show was named “ALMA” (Spanish for “spirit” or “soul”) which represents the determined spirit of the Latino people in an effort to reflect the spirit as well as the scope of the awards program.

Two limousines and a Bentley arrived at the storied Biltmore Hotel that evening to whisk a special group off to an equally special evening in absolute style. Arriving at the event, they emerged from luxury rides, dressed to the nines, they strolled the red carpet and entered the venue right along with the glittering Hollywood stars. After the stellar awards show, they found themselves again in the lap of luxury, gliding opulently down the major streets of LA and heading to an exclusive locale.

Once again walking the red carpet and being bedazzled amidst the photographers and fans, our reps gained entrance to Madre’s, a restaurant owned by a celebrity you may have heard of…Jennifer Lopez. Once inside, they were led to the exclusive 2by2.net VIP section where they spent the evening with celebrities and notables.

Yes, the Leading 2by2.net reps attended both the spectacular ALMA Awards ceremony and a rousing post-ALMA awards party in true Hollywood tradition. The American Latino Media Arts Awards Ceremony is the most prestigious event honoring the Latin American community. The show and award was named "ALMA" (Spanish for "spirit" or "soul") because it represents the determined spirit of the Latino people as well as the scope of the awards program. After the event there are "A-List" parties. Our honored group of 2by2.net reps held court at one of the best gatherings and restaurants.

Our A-List included Top Reps such as Dr. Luis Arriaza and Evelia Arriaza, Suzy Wan and Michael Synn, Leticia Pasillas and Luis Baeza, Michael Mo, Joshua Lau, Son Nguyen, Frank and Luis Salazar, Hector and Maria Flores joined Dennis Wong, Telicia Lander, Sophia Wong, Dave Enders, Jeffrey Morgan and Stacey Smith.

Excitement? Well, you can only imagine…

So what if they’ve already announced the winners. That doesn’t mean you still can’t enjoy the show.

On Saturday night, ABC airs the 7th annual ALMA Awards, hosted this year by actor-comedian Paul Rodriguez. (Check listings for local air time.) Taped last month in Los Angeles’ Shrine Auditorium, the show honors Latinos in the entertainment industry.

This year’s Entertainer of the Year award went to John Leguizamo, who is currently touring the nation with his new one-man show, Sexaholix. Tune in and you’ll also get to see salsa king Marc Anthony sweep the music categories. Anthony picked up trophies for Outstanding Male Performer, Outstanding Performance and Outstanding Spanish-language Album of The Year. Pop music diva Shakira won for Outstanding Female Performer.

Showtime’s Resurrection Blvd. collected four awards, including Outstanding Television Series. "I am so proud…," actor Tony Plana told HispanicOnline. "No Latino TV show has ever made it past its first season, and we are celebrating our third year."

Pop music superstar Ricky Martin won NCLR’s Vanguard Award for his contribution to fostering understanding of Latino culture. "We are one race of people, and through our work we are influencing the world," Martin said.

The winners of the ALMA Awards are selected by the National Council of La Raza’s nomination committee, which consist of people in the entertainment industry and past winners and nominees. NCLR is the nation’s most influential Hispanic advocacy group.

The non-profit organization buys air time from ABC, then sells ads to help pay for costs of the show. Ads reportedly sell for $100,000-120,000. NCLR also receives corporate contributions for the show from the likes of Coca-Cola and Wal-Mart. The show attracted 4.5 million viewers last year, according to ABC officials.

Posted: 5/30/02

World > Asia Pacific
from the December 06, 2004 edition

LOOK WEST: Taeko Mizuguchi doubts Mr. Right is Japanese.
BENNETT RICHARDSON

TOKYO – The Japanese government wants women like Taeko Mizuguchi to get married and start doing something about the nation’s plunging birthrate. But she’s not interested.

At least, not if her prospective husband is Japanese.

 

A growing number of Japanese women are giving up on their male counterparts, and taking a gamble that looking abroad for love will bring them the qualities in a partner that seem rare at home. Mr. Right, as the hope goes, is often an American or European, a man appreciative of a wife’s career and more of a partner in daily tasks.

"They treat you like equals, and they don’t hesitate to express mutual feelings of respect - I think Western men are more adept [at such things] than Japanese men," says the 36-year-old Ms. Mizuguchi, who works at a top trading firm. "They don’t act like women are maids - I think they view women as individuals."

Underscoring that Japanese women are losing hope with the local boys, dating agencies to help snag a Western husband have sprung up in Tokyo, some with branches in the US and Europe. Such companies rigorously vet their clients, screening for education, family background, occupation, and life goals.

The kind of women who sign up for such services include doctors, lawyers, and other professionals - women who have delayed marriage to concentrate on careers and who aren’t keen to give up hard won gains to become a housewife, as many Japanese men expect.

Japanese women have come to consider traditional marriage roles as "disadvantageous in terms of time resources - they have to carry the burden of domestic chores as well as lose their free time," says Chizuko Ueno, a professor of sociology at Tokyo University.

Normally, married Japanese women have not only to look after their own parents during old age, but also to care for their parents-in-law. When it comes to raising kids, "they can’t expect much cooperation from their partner" because of the long work hours required at many Japanese corporations and because of established gender roles that assume that the woman does the child-rearing, Ms. Ueno adds.

A generation of women who are now entering their 30s don’t want to give up single life unless prospective partners are willing to break from traditional gender roles.

Government polls conducted to find out why women have put off marriage until well after 25 years of age - known as a woman’s " ‘best before’ date" - show that economic independence is key to the change. As most Japanese women have their own income, marriage is no longer a financial necessity and women want to find companionship in a husband.

That is where Japanese men have come up short. There is "a wide gap in men’s and women’s attitudes and expectations toward marriage" vis-à-vis traditional gender roles, says Sumiko Iwao, professor of social psychology at Musashi Institute of Technology in Yokohama. For instance, coming home later than your Japanese husband is a no-no.

Having ruled out an old-fashioned Japanese husband, many women here think the solution is a Western man. Indeed, some seem so enthralled with the idea that they are willing to spend thousands of dollars to inspect the wares personally. Of the more than 2,000 women on the books at one large matchmaking agency, about 200 travel to the US or Europe each month to meet prospects.

Sentimental projections have recently been extended to Korean men also, due to romantic Korean soap operas.

In 2003, Japanese women marrying American or British men outnumbered Japanese men marrying American or British women by 8 to 1. The total proportion of Japanese marrying foreigners each year has crept up from around 3.5 percent in 1995 to just over 5 percent. Japanese men are actually more than three times as likely as the women to take a foreign spouse, but this is mostly rural men marrying less well-off Chinese and Filipino women. "Such cases are elderly farmers not popular among young Japanese women," says Yuriko Hashimoto, a local government employee in the remote northern prefecture of Iwate.

To be fair, not all the blame for female angst here can be laid on Japanese men. The government has been slow to enforce equal opportunity laws, and both pay and the glass ceiling in most Japanese corporations remain low for women. Recession has hampered longer maternity leave and other family-friendly policies.

As Japan’s fertility rate drops to new lows - at last count it was 1.29, well below levels required for population replacement - the ruling Liberal Democratic Party is anxiously drawing up plans to make it easier for young couples to raise children, through such measures as the provision of cheap public housing.

• Sanae Benisty contributed to this report.

Mixed marriages in Japan

Japanese men marry:
Chinese 10,242
Filipinos 7,794
Koreans 5,318
Americans 156
British 65

Japanese women marry:
Koreans 2,235
Americans 1,529
Chinese 890
British 334
Filipinos 117

Source: 2003 Ministry of Health, Labor, and Welfare

[Editor's note: In the chart, some data was reversed in the original version of the story. Last year, 5,318 Japanese men married Koreans while 2,235 Japanese women married Koreans.]

http://search.csmonitor.com/2004/1206/p01s04-woap.html

Building a Pyramid, 2by2?

Tao Yue

“Do you want to get involved with 2by2?”

Here in the Boston area, that question will produce puzzlement. But in the New York City area, that question will provoke strong reactions, especially among the high-school and college-aged.

Mostly, there will be feelings of excitement. Eagerness. And hope. Hope that 2by2 will make millionaires out of the company’s worker bees. Back in my high school in Edison, New Jersey, one student who hitched onto the 2by2 bandwagon early on is driving a new Lexus and reputed to be earning tens of thousands of dollars a month. Of the two thousand students in the high school, dozens, perhaps hundreds are involved.

Naturally, I couldn’t help but be curious about how this sudden fortune came about. And my chance came over the summer, when half a dozen people tried to recruit me. I was told to get in early, that it was already too late in Southern California, where the scheme originated. But it was still new and fresh in the New York City metropolitan area. Would I be interested in striking it rich with an initial investment of only a few hundred dollars?

But something else was interesting. Several of the recruiters were only casual acquaintances, people who hadn’t been in contact with me since high school. Why the sudden interest in me?

I did some research, both on-line and by asking those involved with 2by2, and got a pretty good idea of the business model. See what you think.

2by2 is, according to their web site, “the Internet Community That Pays You Back” and “ranked by Dun & Bradstreet and Entrepreneur Magazine as the 16th fastest growing new business in America.” To get in on the action, you pay them a fee, somewhere around $400, which entitles you to a web page used to sell products. Just like Amazon.com’s affiliate program, 2by2 would pay commissions to you for sales made through the web page.

So far, so good. The fee is a bit steep, but hey, 2by2 does all the work for you! All those other on-line stores force you to build your own web page. And what’s a $400 investment when you’ll be driving a Lexus within months?

There was a second aspect to the program, one which inspired its name: 2by2. Participants each had two prongs beneath them, and were told to find two friends to fill those places. They in turn would pay the fee and also get a web page and two spots to fill. Each person who signs up underneath you, to a certain extent, earns you a bonus of somewhere around $50.

Let me shift gears here and relate a bit of business advice from the Federal Trade Commission: “If a plan offers to pay commissions for recruiting new distributors, watch out! Most states outlaw this practice, which is known as ‘pyramiding.’ State laws against pyramiding say that a multilevel marketing plan should only pay commissions for retail sales of goods or services, not for recruiting new distributors.”

Or the United States Postal Inspection Service: “There are many multi-level distributorship schemes that are nothing more than sophisticated chain letters.” By law, it is forbidden to send chain letters through the U.S. Mail.

Yet, there are millions who join multi-level marketing schemes, some legitimate, others thinly disguised pyramid schemes. These are the same people who flood our inboxes with e-mails which begin, “A little boy in the Mayo Clinic is dying of a previously unheard-of disease, and Bill Gates will donate two cents to the American Cancer Society if you forward this e-mail to fifty friends.” Yes, the very same e-mails which take money away from the fight against cancer by forcing the ACS to maintain e-mail server capacity beyond what it ordinarily would need.

But the pyramiding situation in the United States, land of capitalist opportunity, pales when compared to the one which Albania suffered through. In 1996, $250 million of Albanians’ hard-earned money was invested in pyramid schemes. For a nation as small as Albania, this number is staggering. In fact, the domestic savings of Albanians in 1995 totaled only $350 million.

For Albanians, the pyramids were seen as a better bet than banks, offering spectacular interest rates of up to 40 percent. The pyramids collapsed, as pyramid schemes tend to do when new memberships die down and become insufficient to pay existing participants. When that happened, there was an uprising against the government, which tolerated the pyramids, and people rioted in the streets.

Of course, that’s quite extreme. Nobody imagines that such a thing could happen in the United States. We’re experienced in capitalism, right? We know that you can’t make money from nothing, right? Well, maybe we do. On the other hand, in the 1980s, Ronald Reagan spoke to cheering crowds at rallies held by the Amway corporation, a multi-level marketing corporation which is still operating today. So did George H. W. Bush, and Colonel Oliver North. Albania certainly learned our lesson well. Too well.

While multi-level marketing schemes and pyramid schemes are not necessarily the same thing, there is a clear connection. Many MLMs are pyramid schemes. Perhaps even most. I formed a clear impression in my mind about 2by2 from the moment I heard about it. But when I warned people against it, participants told me to stop, cautioned that I was slandering the company, and argued that I could not possibly understand the earnestness of the company if I hadn’t attended one of its glitzy presentations where superlatives and carpe diem exhortation were thrown around freely.

OK, fair enough. I will reserve judgment on 2by2’s pyramid status until it either collapses or exceeds Microsoft in market capitalization. But there is no question that 2by2 is at least a multi-level marketing scheme. And one that has attracted many bright, excitable college students. While researching 2by2 on the Internet, I found complaints from students at universities as prestigious as Princeton and USC.

In the hopes that I would be next to join, people who hadn’t spoken to me in over a year suddenly treated me like their best buddy. I still am not sure whether they really believed in 2by2, or simply realized that they could not afford to leave one of their two legs empty. In any case, they asked me: would I fill that spot?

Across the river from MIT, the most famous pyramid scheme of them all, the postal coupon scheme created by Charles Ponzi, reached the heights of success. At one point, he was taking in (and paying out) over a million dollars a week. Within two years, his scheme had started to collapse, and he was in prison.

Will I take my spot in the pyramid? No, I think I’ll pass.

---

This story was published on Friday, November 16, 2001.
Volume 121, Number 60
Copyright and distribution information

http://www-tech.mit.edu/V121/N60/col60tao.60c.html

The founders of VizionOne.com (Cliff and Dave Braun, Duke Tubtim, Tim Herr) all started their MLM careers with a scam called NTC that was shut down. Cliff, Dave and Duke then got involved with 2by2.net, which has been labeled a scam by a lot of people. Whatever the story, this bunch split from 2by2 about March of 2002. They lured in other top money earners of 2by2 and formed a new company with them called Infenet. The original founders of Infenet were Clif Braun, Dave Braun, Duke Tubtim, Jose "Chepe"Gutierrez, Lazaro Gutierrez, and Nicholas Okita.

Within 3 months of forming their new company, Infenet, Clif, Dave and Duke then proceeded to screw all of their partners, and form yet another company. The new company, Vizion One, was launched on July 6th, 2002 at the LA Convention Center. That was supposed to be Infenet’s launch, but when everyone showed up for the Infenet event Cliff and Dave lied to the entire crowd and said that the name of the company had changed to Vizion One. This way all of the reps from Infenet got tricked into joining the new company, thinking that they were still in Infenet.

Armed with the reps from Infenet this new group quickly organized and began actively recruiting people - mostly young people. Vizion One had no real product, no organization and no capital. The way they planned to get all this was through straight recruitment. At least by doing that they got the money to maintain their lifestyles and lured others to sign up. Several months later, there is still no product, organization, headquarters or anything other than the founders continuing to live high.

All of the founders of Vizion One are in their 20’s. None of them have any knowledge or expertise in technology or internet. Their entire sales pitch and business model is a spin-off version of 2by2.net (and 2by2.net already swept through the nation and left a bad taste in everyone’s mouth!). So high-pressure salespeople are selling a non-existent internet and technology product to an unsuspecting public.

VizionOne.com was a classic pyramid scam - all of the revenue comes directly and exclusively from recruiting. Sure, they say that the fees are for a website, but the sites are poorly pre-designed templates that are the same for everyone. The next comeback the Vizion One reps use is that they do have a "real" product. And what is this real product? Surprise! It’s the same old dial up ISP service that 2by2.net offers for 6 months and then goes belly up. This is what they claim will "destroy" AOL? How can they destroy AOL when they don’t even own any of the ISP customers they sign up? Any customers that sign up for their ISP is actually signing up for a company called PowerNetGlobal (see http://www.powernetglobal.com).

VizionOne leaders like to lie and say that nobody owns their customers, that even AOL uses someone else’s ISP service. That is a total lie. The truth that they are trying to twist is to have you believe that all big companies do it like this. Totally false. Have them show you their PowerNetGlobal contract, you will quickly find out that VizionOne is just a sales agent for PowerNetGlobal. Ask them if they wanted to move all of their customers to another company, could they? Do they bill the customers or does PowerNetGlobal bill the customers? Do they have their own customer support or is it PowerNetGlobal’s? Ask the owners these questions, then right a letter to the legal department at PowerNetGlobal and ask them the same questions. Ask THEM who the customers belong to – VizionOne or PowerNetGlobal?

Companies like AOL, MSN, Earthlink, and even PowerNetGlobal actually buy network usage from the large telecom companies such as Level 3, WorldCom, Qwest, etc. They have contracts with multiple carriers, and can move those customers from network to network. They bill their own customers and support their own customers. For VizionOne to say that they own the customers is like saying a salesman for AT & T owns all AT & T’s customers – RIDICULOUS!

So whose future are you really building when you don’t even own the customers? Definitely not yours. Oh well, I guess it doesn’t really matter since they are just trying to make their pyramid scheme seem legit by pretending they have a real product that nobody is required to sell. They are just interested in collecting the recruitment fees from your friends and family.

A Plan that only a Scam could love.

This company, with no real product, does have a plan. And the plan is to get you to sign up, give them lot’s of your money, then sign up everyone you know to give more money to them so you can make some of your money back. Here’s how it works: You sign up as a "Trainer" for $295. Then the pressure starts to buy MORE than ONE Trainer spot. They will tell you how you can double or triple your money by simply purchasing more spots in the pyramid. If you are fool enough to fork out the dough. Do the math: Not $295. Instead you’re shelling out $885 or MORE (which is unethical and illegal)! Then, you get to sign up 2 people "one on the left and one on the right" and you earn what they call a CDB– a pyramid guaranteed to set you up for failure. Look at all those spots of other people you suddenly have to fill at $295 each. Now, they will say you are getting two internet customers, but remember, they have no real product so in reality, you really don’t need to sign up any ISP customers. They just say this to try and avoid getting in trouble with the government. In reality, it is just straight recruiting. What they want you to get is not customers, they want you to get more suckers to pay $295 or more to build the pyramid. You don’t ever need to get customers. Just build the scam so the top people make money before getting shut down and leaving everyone broke.

Additional Related Party Loans

A company owned by Mr. Grimm has loaned FemOne $29,000. The loan is unsecured
and non-interest bearing and will be repaid at such time as we have positive
cash flows from operations to support such repayment.

FemOne/BioPro Canada

In May 2002, we assigned the Canadian distribution rights to all of FemOne’s
products which may be sold in Canada, in exchange for 38.75% of the total
ownership interests in FemOne Canada, Inc., ("FemOne/BioPro Canada). In July
2003, this agreement was amended to decrease the portion of our ownership to
30%. The agreement provides that we supply Canada with inventory and marketing
aids at a price equal to cost. For the years ended 2002 and 2003, we recorded
sales to Canada for their inventory purchases of $56,402 and $18,284,
respectively. The agreement also calls for compensation in the form of stock for
certain consulting services related to sales and marketing efforts by the
President of FemOne Canada. The Company has reserved for issuance 463,513 shares
of our common stock pursuant to this agreement.

Bluewave Innovations

Certain of FemOne’s officers were also founders and officers of Bluewave
Innovations, a direct selling company targeting sales to young adults through a
team of college-aged independent sales associates. Between November 2003 and
March 2004, Bluewave marketed certain of the same products under the 2SIS and
Channoine(R) product lines as FemOne did during the same period. The Company
does not believe that sales resulting from Bluewave distracted from potential
FemOne sales, as the demographic of the sales force is young college-aged
independent sales representatives, and differs from the demographic of the
independent sales representatives’ selling these products on behalf of FemOne.
In March, 2004, Bluewave Innovations’ operations were abandoned. In 2003, we
sold $29,364 of inventory to Bluewave.

BLUEWAVE INNOVATIONS HAS SHUT DOWN! ON 03/10/04!!!
RAY GRIMM THE C.E.O PULLED OUT ON ALL HIS PROMISES, AND CLIF AND DAVE ARE LOOKING FOR A NEW BUSINESS VENTURE. THEY ARE 50/50 ON TWO BUSINESS VENTURES. ONE OF THEM IS "WWW.24PAYCHECKS.COM THE OTHER IS USANA HEALTH SCIENCES.

III-5

http://sec.edgar-online.com/2004/04/14/0001161461-04-000005/section25.asp

CHANNEL 1 News

by UNDERCOVER  March 12, 2004

SETH: AND NEXT — HOW TO PROTECT YOURSELF FROM INVESTMENT SCHEMES THAT COULD COST YOU BIG BUCKS.

[INTRO RISKY]
[AIRDATE=1/14/04]
[PRO=ANGELA]
[TALENT=SETH]

SETH: EVERY YEAR, INNOCENT INVESTORS FALL FOR INVESTMENT SCAMS AND LOSE BILLIONS OF DOLLARS.
AND YESTERDAY, WE TOLD YOU ABOUT ONE COMPANY TARGETING TEENAGERS, CALLED VIZION ONE. IT’S CURRENTLY UNDER INVESTIGATION FOR OPERATING AS AN ILLEGAL PYRAMID SCHEME. THE COMPANY WAS SHUT DOWN, BUT NOT BEFORE MANY TEENS LOST HUNDREDS OF DOLLARS.
WE LEARNED THAT THE FOUNDERS OF VIZION ONE ARE NOW INVOLVED IN A NEW COMPANY CALLED BLUEWAVE INNOVATIONS. AND THEY’RE SIGNING UP TEENS FOR THIS COMPANY, TOO. SO THIS SUMMER, MY PRODUCERS AND I WENT UNDERCOVER TO ONE OF THEIR RECRUITMENT MEETINGS.

[RISKY-2]
[RISKY BUSINESS PT. 2]
[PRODUCERS: HUNTER/TRUONG/DOANE]
[REPORTER: DOANE]

SETH: WITH OUR UNDERCOVER CAMERAS ROLLING, WE ARRIVED …
SO, HERE WE ARE.
AT A HOTEL IN DOWNTOWN LOS ANGELES …
WHERE A CROWD OF YOUNG PEOPLE HAD GATHERED FOR A PRESENTATION FROM BLUEWAVE INNOVATIONS.
HOW OLD DO YOU THINK MOST OF THESE PEOPLE ARE? I MEAN, IT LOOKS LIKE PEOPLE LOOK PRETTY YOUNG — 16, 17, 18, LOTS OF TEENAGERS.
THESE TEENS JUST JOINED THE COMPANY…
DO YOU FIND YOU’VE MADE A LOT OF MONEY?

GUY: I HAVEN’T GOTTEN A CHECK YET.

SETH: AND INSIDE THE CONFERENCE ROOM, THE MUSIC WAS PUMPING.
SO IT’S CERTAINLY AN EXCITING ENVIRONMENT FOR PROBABLY THE HUNDRED OR SO PEOPLE THAT ARE HERE … A LOT OF YOUNG PEOPLE.
AND THEN THE EXCITEMENT REALLY PICKED UP.

WOMAN: HE’S YOUNG, HE’S 24 AND HE’S RETIRED. MY GOOD FRIEND, MR. CLIFTON BRAUN.’

SETH: CLIF BRAUN WAS A FORMER PROMOTER OF VIZION ONE, A COMPANY SHUTDOWN BY THE STATE OF NEVADA FOR BEING AN ILLEGAL PYRAMID SCHEME.

CLIFTON BRAUN: HOW MANY OF YOU GUYS WANNA TALK ABOUT MAKING MONEY HERE TONIGHT? THAT’S WHY WE’RE HERE.

SETH: HE TOLD US HIS LIFE STORY … HOW HE BECAME SUCCESSFUL.

CLIFTON BRAUN: I WAS ABLE TO, TO GET THAT HOUSE UP IN THE HILLS, YOU KNOW, WITH ALL THE MOVIE STARS.

SETH: ANOTHER REPRESENTATIVE TOLD ME I COULD MAKE A FORTUNE, TOO.

TIM HERR: SETH, DO YOU KNOW CUSTOMERS THAT I DON’T KNOW?

SETH: PROBABLY, YEAH.

TIM HERR: YOU’VE GOT FAMILY?

SETH DOANE: YES.

TIM HERR: SO YOU KNOW PEOPLE THAT I DON’T KNOW, TRUE?

SETH: TRUE.

TIM HERR: SO YOU CAN GET THEM AS CUSTOMERS AND I TEACH YOU HOW TO DO IT, YOU GUYS KNOW WHAT I’M SAYING?

GROUP: YEAH.

SETH: HE EXPLAINED HOW IT WORKS: IT COSTS ANYWHERE FROM 49 DOLLARS TO ALMOST 400 DOLLARS TO GET IN THE COMPANY. THE MORE YOU PAY, THE MORE COMMISSION YOU’LL MAKE.
YOU GET PEOPLE TO SWITCH THEIR LOCAL AND LONG DISTANCE PHONE SERVICE, AND YOU GET PAID A SMALL PERCENTAGE OF EACH PERSON’S PHONE BILL.
BUT, TO MAKE THE BIG MONEY, YOU’VE GOT TO GET YOUR FRIENDS INVOLVED, TOO.

TIM HERR: IMAGINE HAVING A HUGE TEAM OF PEOPLE. IF YOU KNEW TWO FRIENDS AND THEY KNEW TWO, THAT WOULD BE FOUR AND THEN TWO, IT WOULD BE EIGHT.

SETH: AFTER THE TWO-HOUR MEETING … I TOOK OUR UNDERCOVER TAPE TO THE NEVADA DEPUTY ATTORNEY GENERAL WHO HAS SEEN THESE GUYS BEFORE.

TRACEY BRIERLY - NV DEPUTY ATTORNEY GENERAL: WE’VE ISSUED AN ARREST WARRANT FOR-FOR CLIFFTON BRAUN, AND, UM, THAT’S BECAUSE HE WAS FOUNDER OF VIZION ONE.
I DID REVIEW THE TAPE, AND WHAT I FOUND WAS THAT, UH, IT WAS STRIKINGLY SIMILAR TO THE PRESENTATIONS THAT WERE GIVEN IN VIZION ONE.

SETH: DOES IT STRIKE YOU AS STRANGE THAT THERE’S SUCH ROUSING LAUGHTER AND APPLAUSE DURING, FOR THE ENTIRE SEVERAL HOUR MEETING?

TRACEY BRIERLY: NO, UM, BECAUSE IT’S VERY TYPICAL FOR THESE TYPES OF MEETINGS. IT’S LIKE A SHOW.

TIM HERR: HANG AROUND PEOPLE WITH A LOT OF MONEY YOU’LL MAKE A LOT OF …

GROUP: MONEY.

TIM HERR: HANG AROUND WITH PEOPLE THAT HAVE FUN YOU’LL HAVE A LOT OF …

GROUP: FUN.

SETH: WHAT YOU’RE SAYING IS IT’S ALL AN ACT … PEOPLE PLANTED IN THE AUDIENCE, TOLD WHEN TO CHEER, TOLD WHEN TO APPLAUD.

TRACEY BRIERLY: WELL, IT’S ALL PART OF THE MASTER SALES PITCH. I MEAN, AND IT’S A-IT’S A GOOD ONE.

SETH: PRETTY BELIEVABLE.

TRACEY BRIERLY: VERY BELIEVABLE.

SETH: LAUREN SMITH BELIEVED IT WHEN SHE JOINED VIZION ONE.
ALL OF THIS HYPE, THE EXCITEMENT, THE APPLAUDING … IT WORKED? YOU BELIEVED IT.

LAUREN SMITH, 17: YES, I PARTICIPATED IN IT AND I WOULD ALWAYS HAVE THIS FEELING OF EUPHORIA EVERY SINGLE TIME I WENT TO A MEETING.

SETH: AND SHE WAS TRAINED HOW TO MAKE OTHERS BELIEVE IT, TOO.

LAUREN SMITH: THESE ARE THE ANSWERS TO OBJECTIONS. AND HERE, RIGHT HERE, IS HOW YOU CAN INVITE YOUR FRIENDS.

SETH: SO IT’S ALL PROGRAMMED.

LAUREN SMITH: EXACTLY.

SETH: SO IT’S ALL PART OF A LIST OF QUESTIONS AND ANSWERS AND THEY TELL YOU TO SAY THESE THINGS.

LAUREN SMITH: YES. WE WERE CAUTIONED NOT TO MENTION HOW MUCH WE’VE MADE.
PEOPLE WOULD ASK ME HOW MUCH I’D MADE IN THE BUSINESS, AND I COULDN’T TELL THEM, ‘I HAVEN’T MADE A SINGLE THING, BUT, HEY, I’M EXCITED.’

SETH: NOW … BLUEWAVE SAYS IT’S NOT OPERATING AN ILLEGAL PYRAMID SCHEME, BUT SOMETHING CALLED NETWORK MARKETING, ALSO KNOWN AS MULTILEVEL MARKETING, WHICH IS PERFECTLY LEGAL.
THE BIG DIFFERENCE: IN LEGITIMATE MULTILEVEL MARKETING, YOU CAN STILL RECRUIT PEOPLE TO WORK UNDER YOU. BUT THE MAJORITY OF MONEY COMES FROM SELLING THE PRODUCT TO PEOPLE OUTSIDE THE SCHEME.
BUT THE DIFFERENCE ISN’T ALWAYS CLEAR, ACCORDING TO THE FEDERAL TRADE COMMISSION.

JIM KOHM - FEDERAL TRADE COMMISSION: PART OF THE PROBLEM IS THAT PYRAMID SCHEMES, IN ORDER TO SEEM LEGITIMATE, TRY TO MASQUERADE AS A LEGITIMATE MULTILEVEL MARKETING.

SETH: BUT THERE ARE SOME RED FLAGS TO WATCH OUT FOR:
RAGS TO RICHES STORIES AND GET RICH QUICK CLAIMS LIKE ‘YOU’LL MAKE MILLIONS OVERNIGHT’; ASKING FOR AN UPFRONT INVESTMENT — HAVING TO PAY HUNDREDS TO GET IN; AN EMPHASIS ON RECRUITMENT, NOT SELLING A PRODUCT; CONFUSING PAYMENT STRUCTURES; AND ANY HIGH PRESSURE SALES TACTICS.
SO IS BLUEWAVE INNOVATIONS A LEGAL MULTILEVEL MARKETING BUSINESS OR AN ILLEGAL PYRAMID SCHEME?
IT’S HARD TO TELL.
BUT JIM KOHM SAYS BEWARE.

JIM KOHM: ALTHOUGH IT SEEMS TRITE, IF IT SOUNDS TO GOOD TO BE TRUE, IT ALMOST CERTAINLY IS.

[TAG RISKY-2]
[AIRDATE=1/14/04]
[PRO=ANGELA]
[TALENT=SETH]

SETH: I TRIED TO GET IN TOUCH WITH THE BRAUNS. I CALLED, SENT LETTERS, EVEN VISITED THE LEGAL ADDRESS ON THE ARREST WARRANT. AND IT TURNS OUT, IT WASN’T A MANSION IN THE HILLS, BUT AN APARTMENT IN LOS ANGELES.
I NEVER HEARD FROM THEM. BUT, I DID SPEAK WITH SOMEONE WHO SAYS HE’S THE NEW C.E.O. OF BLUEWAVE. HE SAID HE PURCHASED THE COMPANY A FEW MONTHS AGO AND THAT THEY’VE MADE A LOT OF CHANGES, LIKE OFFERING ADDITIONAL PRODUCTS.
THAT’S THE TOUGH THING WITH THESE COMPANIES. IT CAN BE VERY HARD TO TELL IF THEY’RE A LEGITIMATE BUSINESS OR OPERATING AS A SCAM.

ALEXANDRA: UNBELIEVABLE. WELL, THE FACT THAT YOU WENT UNDERCOVER MAY HELP SOME PEOPLE OUT THERE STAY AWAY FROM SHADY BUSINESSES.

SETH: WELL, I HOPE SO.

ALEXANDRA: THAT WAS A GREAT SERIES, SETH.

CHECK THIS OUT, excerpt from this link: http://channeloneteacher.com/script/script_arch/script_20040114.html

My Memoir of 2by2.net                                    Mar 20, 2002, 8:51 PM

Personally, I think MLM is one of the few things in this world that is legal, moral, and ethical, which can generate unlimited income potential. That, and starting your own business. You’re right, there are good and bad sides to anything you venture into. Keep in mind that there is a difference between MLM and pyramid schemes. Amway (now Quixtar), Excel, ACN, USANA, WMA and 2by2.net are companys which use network marketing, not a pyramid scheme. Before I get into the top leaders of 2by2 who quit… ask yourself these 4 things before joining any MLM opportunity:

1) Is the product viable? Is it legal?
2) What is your customer to representative ratio?
3) If the last person comes into the company, can they still make money?
4) If all recruiting stopped, can the company still make money?

Our main product is the ISP which is mainstream with other companies like AOL, Earthlink, MSN, United Online. We also sell a CIP (personal website, business website, administrative website, email, technical support) to people who want to have the business opportunity. Our current customer to rep ratio is 4:1. The last person can still make money by selling ISP and also commisional override from online mall sales, long distance, etc. The company can still make money off of the ISP and other products. Technically, the company doesn’t get money from recruiting, it’s from selling the CIP product. Recruiting would be money exchanged without a product or service.

I suppose a 2by2.net rep like myself are the only kind of people who can really give some info about the 7 people so i’ll try to be unbiased as i can.  Clif and Dave Braun knew Dennis Wong from waaaay back when they were both working in NTC. NTC eventually got shut down.  From NTC they went to TSA, then to USA, then it changed to Simple2Net. From that, sprung 2by2. Jeff Morgan and Dennis Wong used to be partners with Paul Yao (thier upline from NTC), and they started Simple2Net which had the basic structure as 2by2.net. Paul and Dennis had a falling out, so from what I understand, Dennis started 2by2.net with Jeff Morgan & Sofia Wong.

Clif and Dave Braun started working with Dennis about 5 years ago in long distance. When they first got started, the friend who brought them actually bribed them $10. I have talked to Clif over email a number of times and in person too. He’s very helpful and sincere about what he does.

Duke Tubtim met Dennis back in the day of long distance. He met Clif Braun by accident one day while looking for work and eventually started with 2by2 from the very beginning. Linda Lien was brought in about a month after the company launched. Nikolas Okita was brought in a little later. Duke isn’t very loquacious and is very observant. He is helpful and always gave me a time of day whenever i asked for help. Linda Lien is pretty polite and smiles a lot. I never talked to Nikolas Okita before but people tell me he’s a cool guy. Most of these leaders got to the top by helping other. I heard Nikolas Okita was once manipulative and deceptive but changed as time went on.

Chepe & Lazaro was brought into 2by2 from a friend named Sam Quintanilla. He tricked them both into going to a church for a mexican barbeque where Clif Braun did a presentation. They used to be my uplines and both Chepe and Lazaro would take some time to service their teams whenever necessary. They are really organized.

Carlos Huayanca was not terminated because he didn’t choose to quit and still sided with Dennis Wong. The 7 were terminated after they gave Dennis their resignation and left. Dennis isn’t scared of them having more influence, in fact, they didn’t have more influence than Dennis. The week after they left, business went up and people were more excited. The people one top may have left, but the organization is still there to bring in revenue. There stil are leaders like Suzy Wan, Dr. Luis Arrianza, Dr. Olman Mata, Charles Gallegos, Frank and Luis Salazar (Chepe & Lazaro’s upline), Leticia Pasillas, Matt Barnard, Michael Hwang, Carlos Huayanca, Alma Dazo, Michael Mo…. i could go on for a long time. All of these leaders are very excited about the future of the company.

2by2 doesn’t provide DSL yet because DSL is not a highly profitable product. A lot of DSL companies are going bankrupt left and right but Dial-up is still steadily growing. But 2by2 is working out a deal from what i heard.

OREJEN IS BACK!

Remember back in the day when the 7 Leaders* that left 2by2.net (March 2002) created a company called Infenet?  After a big "dispute" of who’s the leader in Infenet, one of the co-founders Jose "Chepe" Gutierrez left along with joel lee also former accountant of infenet.com, to start up his own company with another ex-2by2.net leader from Team Think Big to start up Orejen….another 2by2.net spin-off company.  8 months later and OREJEN and the company disapeared.

It’s back now.  A source has informed me that they are actively recruiting and holding presentations in the Los Angeles and San Diego areas.

Here is the URL:

http://www.serenitysoundusa.com/orejen1/

* 7 Leaders aka 7 Solutions Inc, aka The Brotherhood, aka the crazy 7 are: Clif Braun, Dave Braun, Nicolas okita, Duke Tubtim, Linda Lien, Lazaro Gutierrez, & Chepe Gutierrez. 

Also included : Seth Anapolsky, Steve Fantazia, Ken Chen, Gabriel Velez, Alicia Lemourt, John Nicely, Shirjil H. Qureshi, Mathew Wang, Diana Shieh, Paul Choi, John Nguyen aka Hitler, Genie Gustalum, Oscar Gutierrez & Erycka Prado.