SEC hangs up Foneclub
From the MilfordDailyNews:
Federal authorities expect next month to reach a final settlement with the company that scammed local Brazilians out of millions of dollars in a 90-day pyramid scheme.
The settlement may include penalties against the company's president, Sann Rodrigues, and Victor William, both of whom, authorities found, lured 1,500 investors who poured in more than $3 million in less than two months as part of an elaborate pyramid scheme involving phone cards.
suckers marks investors, $3 million dollars, 60 days. That's approximately $33.33 per sucker mark investor per day. You can make a lot of phone calls on that kind of $$$$MONEY$$$$$!
Not that Sr. Rodrigues has given up: according to the report,
...Rodrigues -- who, two weeks ago declined to comment on whether he had any involvement with the company, Phoneclub Brasil Ltda., that has resurfaced in Brazil with a striking resemblance to the late Foneclub -- said in an e-mail response that he is only a "collaborator" in the new venture.
...further investigation showed Rodrigues registered in Brazil the domain www.phoneclub.com.br in June by using his full name Sanderley Rodrigues de Vasconcelos and the new company Phoneclub Brasil Ltda.
"If at first you don't succeed..."
I wonder if the judge at the U.S. District Court in Boston will take this into consideration as a mitigating factor under the sentencing guidelines. It will also be interesting to see what the Securities and Exchange Commission's response is.
...Rodrigues said he never intended to harm anybody, and that the mistakes he committed at the helm of Foneclub were due to lack of legal advice on how to properly run a multi-level marketing company.
Of course... when you get caught with your hand in the cookie jar, blame the lawyer! I'll bet that went over real big in the negotiating room.
And, as far as running a multi-level marketing company goes, the best way to run is in the opposite direction.
Rodrigues also asked the press to stop treating him as a criminal and a dishonest person who tries to deceive people. "Your stories have destroyed my life and the life of my family," he said in his electronic response. "Everybody makes mistakes, I'm not a dishonest person. I'm just a working man."
Let's see... your company is about to settle with the Feds, and it will involve a Federal judge and the SEC. Sr. Rodrigues, unless the terms of that settlement say something like "completely exonerated", I am guessing that "criminal" and "dishonest person" are probably just the beginning, and that soon you will be able to add the term "convicted felon" to the list.
As for his criminal charges in Brazil...
What?!? You mean there's more?
...Rodrigues said those were the result of a misunderstanding. He said everything will be cleared up in the next hearing to be held Feb. 12 in the district court in Palmas, Tocantins state in Brazil.
We're eagerly awaiting the announcment of the 'impending final settlement' here as well.
According to the records of the justice court in Palmas, Rodrigues is wanted on charges of fraud.
Why does this not surprise me? I'll bet it has something to do with phones.
...in 2001 Rodrigues obtained a stolen cell phone for the equivalent of $15 (30 Reais) and sold it for nearly $50 (100 Reais) using a fraudulent invoice.
And, let it be said I am not surprised.
There is a lesson here, grasshopper: being involved in phoney business is no joke.
Cross posted at the MMF Hall of Humiliation.
Trackback address for this post
No feedback yet
|« MySpace - a place to meet your friends... or a stalker||It's HELL to be Poor in Texas! »|