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Another example of the reach of the internet

October 20th, 2007 by Kenric

This is a great example of how you never know who may be reading what you write on the internet.

TripleCD Investments ordered a review on JohnChow.com.  They offered a guaranteed 15.5% return payable in 365 days with a minimum investment of $200.  The Johnchow review revealed that TripleCD Investments makes their money from sportsbetting.  The review had a negative tone and TCD was obviously disappointed by the review.

The readers began to bash the site calling it illegal and a scam and TCD would respond.  Here is their last comment which resorts to insulting the readers.

“As for #3, our return is much, much greater than what you would get in the stock market, and far exceeds 15.5%. I’m not going to publicly post the ROI here, but would be happy to speak in depth privately for serious investors. Rest assured, WE DON’T LOSE MONEY.

Any more questions folks? I’m not afraid to take you doubters head on. I know what I’m doing here is competitive with what the market is offering. I’ve realized now more than ever, many of the readers of this blog dream of making money, but so many are caught up in their current way of thinking it’s going to close some doors before they are opened.

Thanks.”

Then comes a comment from a big dog, Attorney General Edmund G. Brown Jr., the chief law officer of California makes a comment on the site:

“Let me give you some feedback. I spent 13+ years in the financial services industry. Here’s what I get from your offering:
* A website that does not show the Principals involved. When you are an internet company asking people for investment money you need to show who is involved with the company. This is CREDIBILITY!

* For your website to say that peoples money is safe because you are backed by PayPal is completely FALSE and MISLEADING. I’m quite sure PayPal’s T&C prohibit this action. Also, I will guarantee you that they will pull the plug once they see these claims.
* In order to offer such investment you and your company need to be registered with each state. These are called Blue Sky Laws. What you are proposing here is security type investment which will require a prospectus to be filed with ALL the states you intend to sell this product in.
* I would caution you to really consult an attorney. The fact that you are so blatant in disclosing gambling as the vehicle you are using is way over the line. There are state and federal regulations that you need to research.
* Taking it even a step further are you set up to give ALL your investors 1099′s at the end of the year?
* Another red flag your website does not even have a freakin phone number
* Another red flag your Whois look up is hidden. Why?

Here’s my free review. You and your Partner(s) are young. Without question you guys are passionate about what you do. You’ve had good luck and believe that it will continue (I hope it does). Accepting money in the way you propose is bad enough. But, when you cross state lines that is considered racketeering and the FBI gets involved. Also, don’t get on the radar of the IRS. Otherwise, it could prompt a deep cavity search of your income sources going back x years.

Good Luck!!!

http://ag.ca.gov/ag/brown.php“

Can you get any better free advice?  I guess these guys listened because their website was taken down.

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