<![CDATA[Consumerist: Mlm]]> http://cache.gawker.com/assets/base/img/thumbs140x140/consumerist.com.png <![CDATA[Consumerist: Mlm]]> http://consumerist.com/tag/mlm http://consumerist.com/tag/mlm <![CDATA[ Consumerist Attends Robert Allen's Get Rich Quick In Real Estate Seminar ]]> I wanted to find out what Robert Allen's "get-rich-quick in real estate with no money down" promise was all about, so when I saw a full page ad in the Daily Post advertising one of his free seminars recently, I went and checked it out. I'll give you a full run-down later, but here's the quick and dirty, and what I can tell about how the darn thing seems to function.

The way they're able to set up people who have no job or money down or credit score or clue what they're doing is to avoid the banking system entirely. Instead, they have a book of private lenders who will invest in your deal. These lenders are themselves "graduates" of the Robert Allen institute. According to the presenter, these graduates just have made so much money in real estate that they don't need to deals anymore, they just need places to invest their money.

The whole thing hinges around you finding properties in preforeclosure and then negotiating with the desperate owner and the lender to get a short sale. Then you're supposed to clean up the curb appeal and turn around and sell it for a little bit more. Basically the good ol' fix n' flip scenario. But wait, you ask, how do I find houses in preforeclosure?

Luckily the Robert Allen institute has a database they give you access to that shows you all the houses across the country in preforeclosure status. They charge $240 a year for this database, but you can get it for a year free if you sign up for a 3-day workshop class. The 3-day workshop costs $3995. Except today you can get a one-time discount of $1000. And if you get a friend or companion to sign up with you, they get 50% off. The presenter encouraged us to put it on Mastercard and only pay $40 a month. Within 4 months, he promised we would close a deal with a net profit of tens of thousands of dollars, and we could just pay off the Mastercard then. He had this overworked manner of emphasizing the syllables in polysyllabic words. Mastercard became Master-Card. He said things like "that strat-e-gy was very at-trac-tive."

The presenter talked about how important it was to put together the perfect short-sale package with all the right forms in the right order. He clasped that blue plastic binder and believed in it like it was the newly discovered epistles of Jesus. But I felt pretty confident that whatever was in that binder, or in his special CDs packed with legal documents, I could find for free online.

So what was in the seminar? Very basic information that teased to the prospect of learning more basic information at an inflated price tag, along with a pitch to join the Robert Allen multi-level-marketing real-estate pyramid, just like I figured. I'll give a more thorough analysis in a future post.

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Consumerist-5067398 Wed, 22 Oct 2008 20:00:45 EDT Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=5067398&view=rss&microfeed=true
<![CDATA[ Despite Subprime Implosion, Robert Allen's Troops Still Pitch "Get Rich Quick In Real Estate With No Money Down" ]]> Robert Allen promises to make you millions teaching you how to buy real estate with no money down. Unsurprisingly, Ripoffreport is littered with complaints about his company and those that use his name. Here's the story they tell:

There's an ad for a free seminar. The crowd gets hyped with tales of fabulous wealth. High-pressure sales staff are on hand to sign you up for more courses for thousands of dollars. Each successive "course" has little information, just fluff and hype and a push to get to the next level where the real secrets will be revealed. There's a few thousand for the 3-day course. Some more thousands for the mentor hot-line and one-on-one coaching. More thousands for the at-home study course. Many more thousands for the weekend retreat where Robert Allen himself might appear. Then, if you really want the big juicy secret that will make you millions instantly, it'll just be $29,999 for the mastery class. Don't worry, you'll make that all back, they say

What actual info is in the materials? Little, it seems, but lots of promises about all the wealth you can generate. One person complained the books he paid over $5,000 for were:

"Thin on substance, but very thick on all the other classes and courses that I could enroll in to help further my dream of becoming a Certified Real Estate Specialist"

Another:

"massive books of crap with empty costly paid promises"

There's supposed to be a 100% money-back guarantee, but people complain about getting the runaround when they try to get refunds. Only chargebacks and complaints to the state's attorneys general work.

According to the complaints, once your email and phone number is in the database, the constant stream of calls to enroll in more classes and services begins. Probably the list gets sold around to the various sub-companies and they all take their crack at shaking your wallet.

I worked with a trainer for approximately 15 weeks, then was given a number for a coaching hotline after the 15 weeks. During that time, I made over 30 offers in 3 states, all with my coach's instruction. None of the offers ever came to fruition, mostly because you can't (legally) get something for nothing. In other words, many of the techniques for acquiring real estate were ethically questionable, particularly when trying to finance real estate deals with little or no money down.

When consumers get mad, the common tactic they write about is for the people they're talking to to say, oh yes, the parent organization is sleazy, we're trying to break away, we don't like them, now, THIS is the class that you need to sign up for.

From how it all smells cruising online, Robert Allen has little to do with the system anymore. Somewhere along the way, the rights to his name and aura were purchased and they slapped his likeness on top of a seminar/education scam and a multi-level-marketing scam. There seem to be an endless parade of "companies" which have bought the rights to use the Robert Allen name and resell his information. Places with names like: Enlightened Millionaire Institute, Business Skills Corporation, Emerald Capital Group, Inc, Go2Trade Corporation, International Acceptance Corporation, Life Skills Corporation, MyMediaWorks.com Corporation, Saris TEchnologies, Inc, Securities Trading Corporation, Timeshare and Vacation Properties Online, Inc., Life Skills Corp., Market Place Pro, The Institute of Commercial Real Estate and so forth.

They talked us into spending our severance pay to pay for mastery classes. They promised 'are you dumb enough to be rich?' and how easy it would be. We spent over $19,000 for classes and had to fly to other states to get some of the training. Two classes were cancelled and we had to choose different classes. Our field training was constantly postponed. They never teach you enough to be successful. We have not met anyone at these classes who has made money the 'Robert Allen' way. Everyone says they just are pressured into buying more classes. When you try to talk to customer service, they tell you to listen to more calls and make more offers. The calls are very vague and they try to sell you something else. No one is just going to 'give' you their house.

How does it work? MSNMoney wrote when they looked into Robert Allen, "They operate according to a tried-and-true principle of behavioral psychology called the variable ratio reinforcement schedule. Basically, people (and rats) will persist in doing something, even with little or no return, if they are given the tiniest bit of hope of a coming reward," In that same article, they also spoke with Mark Wilson, who said he had made lots of money using the Robert Allen system. He paid just $5,000 for a one-year course, and already had lots of experience in real estate.

I'm not sure what the final secret is. Robert Allen crows in his book "Multiple Streams of Income" about how he flew to LA, hooked up with a LA Times Reporter, handed over his wallet, and in 57 hours bought 7 seven properties worth $722,215 without putting any money of his own down at all. The title of the article supposedly was "Buying Home without Cash: Boastful Investor Accepts Time Challenge-and Wins." I Googled and looked on Lexis/Nexis but the only references I could find to it were reams of get-rich-quick webpages reselling the Robert Allen system, some of which, in oh irony of ironies, you'll likely find being advertised in the Google Ad Words block on the left side of the very page you're reading right now.

If I had to guess, it sounds like the big reveal is get a 0% down loan and then flip the house. Hmm, where have we heard this before? Oh yes, it was the lifeblood of the sub-prime meltdown. Right. Got it. There's also all this talk of "using other people's money," which I guess involves convincing other people to give you money to buy the house and then everyone gets their money back plus a bit of profit when turn around and sell it.

Even though banks are only loaning to people with stellar credit who can put solid money down, I still saw a full-page ad in the Daily Post last weekend for more of Robert Allen's seminars. Though, from what I hear, he doesn't actually do them anymore. No, they're now run by various coaches who are part of the Robert Allen institute and figured out the real money is in selling the schlock to the next sucker who believes you can get something for nothing. Hm, maybe we should go to one of these, just to find out how they operate and what the people who show up look like...

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Consumerist-5066820 Tue, 21 Oct 2008 19:09:38 EDT Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=5066820&view=rss&microfeed=true
<![CDATA[ Just What The Heck Is MonaVie, And Should I Sell It? ]]> An anonymous reader asks,
I've been approached by a friend to join up with MonaVie acai juice—it's a "superfood" juice that's sold through "network marketing." I actually do like the product, and this is a friend I trust, but my alarm bells are still going off. I don't want to get sucked into a scam, obviously. There's nothing about this company on your site, so I thought I'd drop you a line and see if you had any advice.

Here's our advice: don't do it! When you look at the business details and filter out the friend-of-a-friend stories, it's not worth the hassle.

MonaVie—a concoction of acai and other fruit juices, and sold in wine bottles for $40 a pop—is the latest in a long line of mysterious and exotic cure-alls, and no, no you should not "sell" it. We use quotation marks because the majority of distributors are their own primary customers, according to Newsweek's Tony Dokoupil. The juice is loaded with good things and is certainly not unhealthy for you. But before you decide to shell out $40 on a bottle, or help your friend reach his or her sales quota by becoming another member in the company's multi-level-marketing (MLM) business model—funny, when you chart that model, it looks like a pyramid!—you should find out more about how the sales look from the top, and what's actually been verified about its health benefits.

Dokoupil points out that those people reportedly making millions of dollars in sales commissions are members near the very top of the pyramid.

Most of the million-strong sales team is really just drinking the juice, according to MonaVie's 2007 income disclosure statement, a federally required printout of their distributor earnings. More than 90 percent were considered "wholesale customers," whose earnings are mostly discounts on sales to themselves. Fewer than 1 percent qualified for commissions and of those, only 10 percent made more than $100 a week. And the dropout rate, while not disclosed by MonaVie, is around 70 percent, according to a top recruiter.

So that's the reality from a profit perspective. As far as health benefits go, most of the claims about its ability to cure cancer, eczema, general pain, anxiety, autism, and a case of the stupids, is gossip and hearsay. (In fact, it may cause a case of the stupids, we're guessing.) Newsweek points out that because unsalaried MonaVie salespeople are out making the ridiculous health claims and not the company, MonaVie stays within FDA guidelines, and doesn't have to worry about backing up such claims.

Wikipedia cites a few nutritional studies that place acai berries somewhere in the mid-to-high range on antioxidant protection. It's definitely a great fruit, and if you can find an affordable source of acai berries, go for it.

But even if acai berries were filled with God's own tears, it turns out that a $40 bottle of MonaVie isn't 100% acai juice, and the company won't disclose the ratio of acai to its other ingredients. In fact, their product page presents an amazingly content-free but fancy description that avoids any real details:

While the açai berry serves as the foundation for each of MonaVie’s vital formulas, with literally thousands of phytonutrients and antioxidants found in nature’s fresh fruits, MonaVie didn’t want to focus on just one at the expense of others. This led to MonaVie’s scientists and product development team selecting additional fruits whose synergistic union would reach far beyond what any single fruit could accomplish. These specially selected fruits have been exclusively combined to create MonaVie’s premier balanced blends.

In other words, "Just trust us!"

We think instead of lining the pockets of MonaVie's savvy head promoters, you should just shop around for 100% pure acai products, which will be much cheaper. Or just keep eating a variety of cheaper fruits, buy a decent $12 bottle of red wine, and lay off the health food fads altogether.

"MonaVie Acai Juice: Cure-All or Marketing Scheme?" [Newsweek]

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Consumerist-5059755 Mon, 06 Oct 2008 19:14:28 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5059755&view=rss&microfeed=true
<![CDATA[ How The Modern Pyramid Scheme Stays Barely Legal ]]> The modern pyramid scheme has undergone slight tweaks in order to stay just with the bounds of the law, and still keep the fun scam times going. When you strip away all the pretty foil and chocolate, though, a naked Ponzi sits in the center, laughing his ass off.

It all stems from the basic idea of pay me $5 and I'll tell you how you can sign up five people to pay you $5 each. Instant riches! But see, U.S. law likes to see some sort of tangible product involved. So then we get a multi-level-marketing company supposedly built around diet pills, travel arrangements, energy resale, or lollipops, you know, "suckers." It doesn't really matter. Your recruiter fills your head with talk about salesmanship, relationship building, building up your team, and of course, all the fabulous amounts of easy money you can generate

But somewhere along the line you're going to have to pay some fee. Often there's an upfront "investment cost." Or maybe there's some fee that disproportionately large in comparison to the service or good it's supposed to be covering, like could be $39.95 for them to put up and maintain a webpage for you, or $49.95 per month for some nebulous "support" the company provides. And right there, you've found what the company is really about.

That's the juice that flows upwards through the ranks, the residual income that feeds your recruiter, and his recruiter, and your recruiter's recruiter recruiter, and so forth. This fee can come in all different colors and names and variations, but at the end of the day, it's all just the same old scam.

Or, you could just say no thanks to anything introduced as a "(insert positive adjective) business opportunity" and save yourself the hassle.

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Consumerist-307818 Fri, 05 Oct 2007 19:24:32 EDT Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=307818&view=rss&microfeed=true
<![CDATA[ 4 Typical DS-MAX MLM Scam Job Ads Found On Monster, HotJobs, CareerBuilder And Jobster ]]> heartdsmax.jpgUsing the names of companies accused of being DS-Max (now known as Innovage) subsidiaries/affiliates on Ripoffreport and a list on DS-Max The Aftermath, I did a search of Monster, Hot Jobs, and other job sites to pick out real ads that are out there and should be avoided.

In order to make sure I was on the right track, I compared their contents examples from ex-employees, also on Aftermath and Ripoffreport, and to the Midtown Promotions ad that started this whole investigation...


1. Creative Mind Insights (Jobster)
Creative Mind Insights, Inc specializes in promotional advertising and event marketing for clients in the non-profit industries(D.A.R.E AMERICA AND TOYS FOR TOTS). We are seeking motivated and career minded individuals to develop into an Executive Manager; through all areas of advertising, marketing, sales, and executive client management. A large part of our success is due to our hands-on program, which focuses on developing management and customer service skills in a professional environment. We are looking to cross-train all qualified candidates from the ground up.
Excerpt [Jobster] Archived in full [DSMAX The Aftermath]

2. Stafford Business Solutions (HotJobs, Career Builder)


Growing Firm Looking for Hard Working CAREER MINDED Individuals: Stafford Business Solutions
View more jobs like this
Job ID 1
Company Name Stafford Business Solutions
Job Category Sales; Marketing
Location Philadelphia, PA Allentown, PA
Position Type Full-Time, Employee
Salary Unspecified
Experience 1-2 Years Experience
Date Posted March 1, 2007 (Reposted Jun 18)

Stafford Business Solutions
View Stafford Business Solutions profile and job listings
Apply Now: A Better Job Search Experience. Learn Why

entry level marketing, sales/marketing, entry level, full time, sales

Stafford Business Solutions, Inc. is currently offering positions at the entry level for sales and marketing.

We are expanding this year to four new locations. As we provide paid training and promote only from within, all individuals must begin by getting the sales experience needed to grow in the marketing industry. This position involves face to face sales to new customers. Therefore, all individuals must possess excellent communication skills, professionalism and integrity to be trusted with our client's business accounts. Once proving they have the basic communication and sales skills needed to move forward in the marketing industry, individuals will be trained in various other areas of management from meetings to human resources, finances, leadership and more.

All applicants must possess the following:
- Experience in a team or people related field.

- Great communication and analytical skills.
- Ability to excel in unsupervised solo assignments as well as team projects.
- The personality to thrive in a merit-based environment.

We are in search of candidates looking for a challenging career, not just a temporary job making a temporary paycheck. We will not hire someone if we do not see them growing within our company.

Entry-level account executives are responsible for the following:

- Meeting business clients to discuss current and new Business Accounts
- Assisting in the daily operation of a start-up company.
- Developing and implementing original training techniques to achieve

internal goals.
- Developing strong leadership skills to build a high performance, cross-

functional team environment.
- Managing external customers needs.
- Developing excellent verbal, written, and presentation skills.

If you possess these skills, please do not hesitate, we are looking to fill our openings as soon as possible.

Please email your responses to : hr@sbssolutionsinc.com (please cut and paste your resume) NO ATTACHMENTS!!

To expedite the process, you may also contact our human resource manager, Jessica, to schedule a preliminary interview with one of our hiring managers @ (610)-825-0210.

Proud Member of the Better Business Bureau

www.sbssolutionsinc.com

*Stafford Business Solutions, Inc. is an equal opportunity employer. We do not discriminate on the basis of race, creed, sex, or age. Compensation on pay for performance basis.

Keywords: Entry level sales, sales and marketing, entry level sales and marketing, team player, new grad, sales, entry level, sales rep, sales and marketing, sales, entry level sales, entry level, sales and marketing, entry level sales rep, entry level sales and marketing, sales and marketing, team player, sports-oriented, help wanted, new grad, Full-time, New grad, sales, sales, entry level sales, entry level, sales and marketing, entry level sales rep, entry level sales and marketing, sales and marketing, team player, sports-oriented, help wanted, new grad, Full-time, New grad, sales.

"This is due to the overwhelming response to the available positions and the urgent need of our services by our clients." So overwhelming they repost this same ad more than once a week.

[Hotjobs]
[Career Builder]

3. Child Safety Enterprises Inc. (Career Builder)

Contact Information
Contact: vicky
Phone: 631-860-0232
Email: Send Email Now >>
Fax: Not Available
Ref ID: Not Available

* Posted: 5/27/2007
* Location: US-NY-Long Island
* Base Pay: $40,000.00 - $50,000.00 /Year
* Other Pay: bonuses and incentives
* Employee Type: Full-Time Employee
* Industry: Advertising Retail Public Relations
* Manages Others: Yes
* Job Type: Marketing Entry Level Training
* Req'd Education: High School
* Req'd Experience: At least 1 year(s)
* Req'd Travel: Up to 25%
* Relocation Covered: No
* Division: training

ENTRY LEVEL PAID SUMMER INTERNSHIPS AVAILABLE!

***STUDENT HOT LINE 631-860-0232 CALL NOW***

COLLEGE STUDENT?
COLLEGE GRADUATE?
SUMMER INTERNSHIPS AVAILABLE—-—INTERVIEW NOW, WHILE THEY LAST!

EARN WHILE YOU LEARN: SUMMER INTERNSHIPS AVAILABLE: MARKETING, PROMOTIONS, ADVERTISING, PUBLIC RELATIONS, TRAINING

CHILD SAFETY ENTERPRISES, INC.is New York's fastest growing promotional event marketing firm. With offices that recently expanded to Boston, Florida, and Texas, we are working with more national clients than ever. Due to our expanding client base, we are looking for ambitious and driven individuals with high-energy attitudes to join our team.

Our advertising and marketing firm is the leader in direct advertising and event marketing industry. We represent clients at sporting events, fairs, festivals, malls and major retail locations and department stores. Our portfolio includes national charities and non-profit organizations as well as the sporting and racing industries.

We currently have entry-level openings in:

# Promotions

# Event Marketing

# Sales and Public Relations

# Management

www.childsafetyent.com

To apply: Cut and paste your resume and email it to [Click here for email] NO ATTACHMENTS WILL BE OPENED!

For immediate consideration please call Colleen @ 631-860-0232

People from all backgrounds seeking full time opportunities or internships in the following areas are encouraged to inquire about our program: sales, customer service, part time, managers, accounting, marketing, clerical, management, public relations, human resources, driver, security, administrative assistant, purchasing, medical, administrative, receptionist, retail, maintenance, warehouse, sports teams, entry level, education, finance, director, telecommunications, real estate, training, engineering, insurance, data entry, project manager, information technology, part time, printing, technician, legal, automotive, teacher, winter, banking, analyst, nursing, restaurant, controller, network, public relations, environmental, nurse, design, quality, safety, secretary, office, assistant, hotel, accountant, account executive, vice president, medical assistant, transportation, supervisor, general, public relations, advertising, writer, fraternity, social services, finance, java, all, graphic, public relations, mba, holiday, office manager, sales manager, field representative, mortgage, social work, training, cms, attorney, research, payroll, oracle, executive assistant, paralegal, courier post, drivers, pharmaceutical, operations, president, web, help wanted, rn, advertising, law enforcement, auto cad, health care, executive, food, production, chef, sports oriented, cad, project management, tax, auto, editor, hospitality, hvac, training, team player, pharmaceutical sales, tourism, it, collections, spanish, unix, art, buyer, facilities, professional, mechanical, bartender, help desk, hospitality, travel, logistics, call center, truck driver, inventory, financial ,computers, communications, pharmacist, police, teaching, counselor, chemist, plant manager, ncaa, photography, promotional advertising, book keeper, medical sales, electrical engineer, health, trader, bilingual, business analyst, recruiter, junior executive, cfo, accounts payable, account manager, sports, sorority, cashier, financial, music, social worker, publishing, project, support, business development, lpn, welder, clerk, technical, quality assurance, promotional sales, government, distribution, secretarial, sales management, mental health, nanny, child care, registered nurse, cna, Japanese, technical support, administration, property manager, cook, shipping, pharmacy, coordinator, entertainment, management training, new grads.

***STUDENT HOT LINE 631-860-0232 CALL NOW***

Even when the ads aren't student-focused, the number is the same.

[Career Builder]

4. Matrix Distribution, Inc. (Career Builder, Monster)

Must be an offshoot of Matrix Marketing on Michigan; while looking up Matrix Marketing, I came across this ad, which is almost, word for word, a copy of DS-Max ads by other companies.

Contact Information
Contact: Human Resources
Phone: 614-844-5976
Email: Send Email Now >>
Fax: 614-540-7445
instantly fax your resume >>
Ref ID: spt,mkt-178

* Posted: 6/15/2007
* Location: US-OH-Columbus
* Base Pay: N/A
* Employee Type: Full-Time Employee
* Industry: Advertising Public Relations Sales - Marketing
* Manages Others: Yes
* Job Type: Management Marketing
* Req'd Education: Not Specified
* Req'd Experience: None
* Req'd Travel: Up to 25%
* Relocation Covered: No

Marketing. Advertising. Public Relations. WORK WITH SPORTS MERCH
Company: Matrix Distribution, Inc.

Description: Marketing. Advertising. Public Relations.

Based in the Worthington area, Matrix Distribution is a promotional advertising/ marketing company that specializes in marketing for the consumer products industry. Setting up and expediting promotions for our clients is our main focus. This year, our success with our blue chip client base has lead us to increase our marketing and management team. We value innovation, leadership, growth potential and a positive attitude; we offer career opportunities and fun work environment.

MATRIX DISTRIBUTION is a marketing firm that strongly believes when people are excited about what they do, they are more productive. For that reason, we strive to create a fun atmosphere that is still conductive to learning. We represent top-notch clients and focus on bringing in new quality accounts for them. Over the last 2 years we have accumulated over 500 national clients. We are now evaluating candidates for an account management position to help oversee our client's expansion. Growth and compensation based on personal performance.

www.matrixdistinc.com

Account Managers are responsible for demographic research, client meetings, campaign meetings and ensuring the overall satisfaction of the client in regards to their campaign. No experience is necessary. The successful candidate is extremely articulated, competitive by nature, motivated to succeed and excels in a fast-paced, high-energy environment. All openings start out at the entry-level and are ideal for the recent college graduates, experienced marketing professionals and persons seeking a career change.

If you feel you fit the criteria email your r sum to ([Click here for email])
No Attachments - Copy and Paste resume

Qualified candidates will be contacted regarding an interview. For immediate consideration contact Human Resources at 614-844-5976.

Requirements
People from all backgrounds seeking part time or full time opportunities in the following areas are encouraged to inquire about our program: sales, customer service, part time, manager, accounting, marketing, clerical, management, sports marketing, advertising, computer, human resources, sports advertising, marketing manager, driver, security, product advertising, administrative assistant, marketing assistant, marketing sports promotions, manager, purchasing, sports merchandise, sports merchandising, marketing assistant, administrative, receptionist, retail, maintenance, warehouse, entry level, sports and recreation, education, product marketing, promotions, finance, director, public relations, telecommunications, real estate, advertising specialist, public relations specialist, sports, insurance, sports marketing, project manager, advertising assistant, information technology, promotional marketing, printing, technician, automotive, teacher, public relations, sports merchandise, sports merchandising, banking, analysis, nursing, controller, advertising manager, network, public relations, environmental, nurse, design, safety, Secretary, office, assistant, hotel, accountant, medical assistant, transportation, supervisor, General, advertising, social services, office manager, communications, sales, manager, mortgage, social work, training, executive assistant, hospitality, pharmaceutical sales, collections,

"MATRIX DISTRIBUTION is a marketing firm that strongly believes when people are excited about what they do, they are more productive." Sounds so much creepier when you know anything about DS-Max.

[CareerBuilder]
[Monster]

If you spot a multi-level-marketing scam ad online, report it to the job posting site and request a takedown. Check out this post on identifying these types of ads.It's really pathetic that these sites don't do more to police their postings. As if finding a job wasn't hard enough. It's a great disservice to job-seekers to have to wade through scam crap. And of course, DS-MAX affiliates are but the tip of the iceberg. There's many other scams floating through these sides readily apparent to anyone with basic reading comprehension abilities. — BRIAN FAIRBANKS

PREVIOUSLY: How To Spot A DS-MAX Style MLM Scam Job Ad
Our DS-MAX Thread
Our Undercover Investigation Into A DS-MAX Affiliated Company

Note: No definitive ties have been established between Midtown Promotions and DS-MAX/Innovage.

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Consumerist-270144 Tue, 19 Jun 2007 11:49:23 EDT Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=270144&view=rss&microfeed=true
<![CDATA[ How To Spot A DS-MAX Style MLM Scam Job Ad ]]> Here are some of the qualities of a "business" operating under DS-MAX (now known as Innovage, though the same company owns both trademarks...) principles, an organization responsible for many complaints alleging scams, fraud, and general employee deprivation in a "sales-cult" atmosphere.


Using a cross-referenced example of the online ads reputed to be for Aftermax companies as a guide, here's some things to look out for.

Name of company:
The easiest thing to do is to do a Google site search (query looks like "site: sitename.com businessname) on DSMAX The Aftermath, RipoffReport, or just plain Google to see if there's any complaints about the business.
Contact: Vicky
Ads often include a made-up female name so the company can track which ads are bringing in responses.
Phone: xxx-xxx-xxxx
Ref ID: Not Available
Yeah, cuz Vicki is all the ref they need.

* Posted: 6/3/2007
* Location: US-NY-Long Island
* Salary/Wage: 400.00 - 600.00 USD /week
Wide pay range is a strong early indicator of commission-only pay
* Other Pay: bonuses
Big red flags in an expensive career builder ad: n/a translates to no. Bonus pay translates to working Saturdays.
* Employee Type: Full-Time Employee
Don't let this throw you off the scent; just because you are full-time doesn't mean it's not DS-Max; remember DS-Max has a hard time understanding the difference between full-time and insane overworking.
* Industry: Advertising
May say marketing in some cases, warehouse in others.
* Manages Others: Yes
You bet your biscuits. It's all about graduating from sucker and building a team of suckers to work under you. Oh, goody! An extra $10 a day!
* Job Type: Entry Level
Can you fog a mirror? You're hired!
* Req'd Education: High School
See above.
* Req'd Experience: 1 to 7 years
The range is set here as broad as possible so as to attract the most potential queries.
* Req'd Travel: Up to 25%
Obviously an outright lie; one Ripoffreport reporter said that she was told "up to 75%" in the field, when she ended up in the field seven or more hours a day.
* Relocation Covered: No
They pay nothing except commissions. We have even heard many complaints, including from Wolfram.org, that DS-Max affiliates refuse to pay any travel costs, including gas and hotels for sales trips required by the company. These job-related expenses can severely cut into an already diminished pay.

Executing unique, professional, and effective marketing events throughout the Deer Park Area.
How blandly attractive. Note that they don't mention marketing above, although that's clearly what the job has something to do with.

Are you looking for a career in human resources, management, or marketing, but have little experience?
Wait, weren't you supposed to have somewhere up to 7 years?
Are you having a hard time getting your foot in the door with a successful, proven firm?
i.e. one with standards.
Do you want a chance to test your work ethic, drive and determination?
We'll give them that, working for DS-MAX affiliates tests the limits of one's human endurance. Just without much prospect of any tangible rewards
We may be just what you are looking for.

We currently have openings in:

HUMAN RESOURCES
EVENT MARKETING
SALES/PROMOTIONS
PUBLIC RELATIONS
CUSTOMER SERVICE
ENTRY-LEVEL MANAGEMENT TRAINING
All of this is bullshit; it's sales, plain and simple. The chockablock is just query-bait.

What we offer:

* UNPARALLELED WORK ENVIRONMENT
Hell is a close parallel.
* 100% PROMOTION FROM WITHIN
The definition of MLM
* DETAILED TRAINING AND COACHING
Brainwashing.
* OPPORTUNITY FOR TRAVEL
Make that, you will be traveling around town all day long.
* UNLIMITED GROWTH POTENTIAL WITH RAPID ADVANCEMENT
How far up the pyramid will you go? You have a 1 in 20 chance of making a living wage. Go for it!

STOP LOOKING AND START INTERVIEWING!!!

Child Safety Enterprises, Inc. has a work environment in which decisions are shared, not handed down. We have an intensive, hands-on training program in all areas. We have an opportunity for people to enjoy real responsibility from the start with no glass ceilings, where compensation and advancement are based on performance, not seniority!
Yeah, because it's all commission, you twits!

If you are looking for a challenge with fast-paced growth, an exciting atmosphere, and a team-oriented environment then respond IMMEDIATELY.
We are hiring this week!
We are only hiring five people. However, be one of the first 50,000 applicants and you'll be guaranteed a slot.
The openings are both limited and immediate.
We're hiring as soon as the morning meeting is over, so you can't be scared off by the chanting.

...For immediate consideration please call Vicky @ XXX-XXX-XXXX
Sure, but don't ask for her once you're hired. "Who? Vicky? Never heard of 'er."

Visit our website childsafetyent.com
Just don't visit http://childsafetyinc.blogspot.com/2007/04/scam-of-lifetime.html

Requirements
People from all backgrounds seeking part time or full-time opportunities in the following areas are encouraged to inquire about our program: sales, customer service, part time, manager, accounting, marketing, clerical, management, human resources, administrative assistant, purchasing, medical, administrative...
And on so on. In several of these examples, the ads actually list more than 100 types, just to draw in everyone who searches for those kinds of jobs. And I'm sorry: medical? Financial analyst?! Do they honestly think people with those backgrounds are going to apply for this vague job... and then after applying, actually get sucked in to the wonderful world of making $300+ a week for a Long Island cult club? Please.

No experience is necessary.
Whoever wrote my contracts wrote that sentence.

Some ads are harder to see through. If you didn't know Arbonne has been accused of being a Multi-Level Marketing scheme, you might not see the harm in a Craigslist posting that reads, "I sell airbonne pure swiss skin care for women and men. I am looking for business builders to join our team."

Any ads with references to "business builders" should be looked at carefully.

If the interview takes place in a warehouse

If any of these ads have tempted you, just remember the immortal words of former DS-Max employee Jay, of Cape Cod, MA: "Cydcor/DS Max and all of their corrupt managers/owners do not care about who they hurt or how many lives they ruin. Its all in a day's work for them."

If you've never heard of the company, Google it. Check it out on RipOffReport. Look at their website (if they have one). Is it professional, or does it look like some high-schooler crapped it out?

If you see an ad containing the qualities we describe, notify the job posting site that it may be a multi-level-marketing scam.

Let's face it. Times may be tough, it may be hard to get your foot in the door, but most jobs are still gotten through a friend of a friend, not through an online job site. Try working your personal connections, talking to friends and family members, and contacting your school's alumni network. It's much more organic and you're likely to achieve higher quality results. Plus, there's no shame in joining a temp agency if you're really hard up for work. — BRIAN FAIRBANKS

BACKSTORY: See our thread of DS-MAX related posts.

Note: No definitive ties have been established between Midtown Promotions and DS-MAX/Innovage.

]]>
Consumerist-269871 Mon, 18 Jun 2007 18:13:22 EDT Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=269871&view=rss&microfeed=true
<![CDATA[ Amway's Baaaaaaccck! ]]> amwayzombies.jpgLike a sequel to a horror movie, the Amway brand name is bursting out of a shallow grave, reports ABCmoney:
The move also was widely viewed as a way of helping the company shed some of the negative connotations the Amway name had acquired. The Quixtar name, however, never resonated with the public.

'Research has shown us that the Quixtar name is weaker and less known in the U.S. and Canada than we ever expected,' the memo said. 'Meanwhile, even eight years after leaving North America, the Amway name is stronger and better known than we realized.'

Multi-Level-Marketing brandwashing is like Lady Macbeth and her damn spot. — BEN POPKEN

Amway brand on the way back [ABCmoney] (Thanks to Rampant Octopus!)

]]>
Consumerist-268516 Wed, 13 Jun 2007 13:41:57 EDT Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=268516&view=rss&microfeed=true
<![CDATA[ Nu-Life Owns The Trademarks For Innovage AND DS-MAX ]]> Nu-Life, the company so mad at us about "adversely" affecting its DS-MAX trademark, saying that old DS-MAX became Innovage and Nu-Life has nothing to do with the actions of old DS-MAX or new Innovage...

....actually owns the trademarks for both DS-MAX AND Innovage.

Check the US Trademark Electronic Search System entries:

Innovage
DS-MAX
J.U.I.C.E.

An odd coincidence, considering the perverse series of emails Richard Shapero (pictured, left), Director of Nu-Life, sent in an attempt to squash our reporting and assert such distance between the present DS-MAX and Innovage/Old DS-MAX.

Nu-Life's ownership of J.U.I.C.E. is inconclusive, but readers may recall how in Brian's experience and research, Aftermax companies used "Juice," meaning, "Join Us In Creating Excitement," as a term of congratulations. — BEN POPKEN

(Photo: Profiles Of Success In Business [PDF])

PREVIOUSLY: DS-MAX Tries To Shut Down Our IDT-Energy Investigation

UPDATE: Gaby sends a final email to Richard...


Gaby Darbyshire
to richard@activegroup.com
cc Ranjan Das , Jack Smugler
date Jun 13, 2007 8:26 AM
subject Re: DS-Max

Richard, I am simply not going to engage any further on this matter. Please have your lawyers contact me direct if you insist on continuing this, this conversation is getting us nowhere.

However, you should be aware that your perseverance in this matter has naturally led us to investigate your company further in order to find out exactly what all the facts are in this web of intrigue. And so it is a surprise to discover that Nu-Life is the owner of record of the the Innovage trademark:

http://tarr.uspto.gov/servlet/tarr?regser=serial&entry=78937474

We of course now feel that it is important to provide this new piece of information for our readers in order to help clarify this complicated picture. It certainly muddies the waters concerning your attempts to distance yourself and DS-Max from the actions and practices of Innovage.

Perhaps we can stop this nonsense now and all get on with better things to do in our lives. We'll move on to other stuff soon enough; but this story will run and run as long as you give us continued incentive to investigate your claims.

Regards, Gaby

[ed Note: No definitive ties have been established between Midtown Promotions and DS-MAX/Innovage.]

]]>
Consumerist-268316 Wed, 13 Jun 2007 00:56:21 EDT Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=268316&view=rss&microfeed=true
<![CDATA[ Man Escapes Working For DS-MAX-esque Charity Scam, Lives To Blogs His Tale ]]> daretokeepkidsoffdrugs.jpgA reader who used to work for Quantum Marketing, one of the "Aftermax" companies, (the term for companies that old DS-MAX (now known as Innovage) spawned), wrote several posts describing how his company scammed people who thought they were donating money to D.A.R.E.

Scam of a lifetime
"We're helping the kids with the DARE program..."
Piece of Atmosphere
"This type of business has been tagged with the nickname "corporate cult..." I didn't realize until I was knee-deep into it."
Quantum Marketing, Charity & 'Events'
"What they don't tell you is that they only give the charity 20% on certain products, like the T-shirts and duffel bags, and supposedly the kids ids. This translates into roughly 5% or less of the overall proceeds..."

Scammy operations like Glen discusses lure in suckers to toil for 100% commission slave-work using big-name job-posting sites. If you're looking for a job this summer, look out. — BEN POPKEN

(Photo: scragz)

]]>
Consumerist-267492 Tue, 12 Jun 2007 16:07:10 EDT Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=267492&view=rss&microfeed=true
<![CDATA[ DS-MAX Tries To Shut Down Our IDT-Energy Investigation ]]> UPDATE: Nu-Life Owns The Trademarks For Innovage AND DS-MAX

While reporting the results of our undercover investigation into IDT-Energy through one of their marketing outfits, a battle waged in the background between us and the current owners of the DS-MAX trademark.

This is our favorite part:

WE ALL SOMETIMES STRETCH MORALS FOR ACCOMPLISHING THE GOAL. IT IS NOT RIGHT IN THE EYES OF GOD, BUT MAN'S LAWS DO STRETCH SOMETIMES TO ACCOMPLISH A GOAL. THE GOAL MAYBE GREED BUT WE ALL SOMETIMES DO IT. IT IS REALITY.
This is our second favorite part:
Maybe they should write about Hungary, although we think the editors wouldn't survive how they handle criticism. At least N.A. you can say what you want and not get shot...
This is our third favorite:
It is the individual corporation like Midtown that does the action....Something like Hitler and Nazi Germany, as we probably can both relate.
Rereading the correspondence inside makes us want to puke, all over again, for the very first time...
EXECUTIVE SUMMARY: Information on Ripoffreport lead us to believe Midtown Promotions operated using the same procedures and techniques DS-MAX and their myriad of affiliate spawn were notorious for. In October 2006, Nu-Life bought DS-MAX. Old DS-MAX became Innovage. New DS-MAX goes after online sites like DS-MAX The Aftermath, Wolfram, RipoffReport, and now, us, trying to get them to change their references so as to "protect its trademark." They don't conduct any actual business as they're "still trying to figure out which direction to go."

In our opinion, the old DS-MAX name was getting too hot so its owners decided to do a little brandwashing. — BEN POPKEN


"Richard(office)" richard@activegroup.com
to ben@consumerist.com
date May 31, 2007 8:30 AM
subject re: http://consumerist.com/consumer/investigations/consumerist-undercover-at-idt-energy-day-one-264628.php

Gentlemen: Re the attached link http://consumerist.com/consumer/investigations/consumerist-undercover-at-idt-energy-day-one-264628.php

We wonder if you may be so kind as to correct any references to DS-MAX.

This corporate name, trade mark, trade name and logo is no longer the same organization.

Through legal agreement, we have obtained the full rights and do not have an organization that you refer to.

They have changed their name to Innovage, and therefore your reporter's reference is erroneous and damaging.

As of October 2006, this agreement was finalized.

We would appreciate a correction, in order that dilution and adverse reference is not attached to this corporate name.

Respectfully yours

Nu-Life Inc.

Richard Shapero

Director

—-

Ben Popken ben@consumerist.com
to richard@activegroup.com
date May 31, 2007 8:55 AM
subject Re: http://consumerist.com/consumer/investigations/consumerist-undercover-at-idt-energy-day-one-264628.php

There's no false statements of fact. The post stands. I'll add a note about the name changes and sale, though.


BEN POPKEN
EDITOR
CONSUMERIST.COM
ben@consumerist.com
AIM: benpopken
718-306-9088

—-

Richard(office)" richard@activegroup.com
reply-to richard@activegroup.com
to Ben Popken ben@consumerist.com
date May 31, 2007 10:18 AM

Thank you. We are not questioning false statements, merely the company you refer to at the time of your posting does not refer to ours.

As of October 2006 DS-MAX was no longer permitted to represent themselves as DS-MAX and as of April 07, 2007, the name was officially transferred to us for our exclusive use. Therefore, we are tied into what ever actions they have done, yet innocent.

October 2006

11. DS-Max International and DS-Max Canada may continue to use their respective corporate names, namely "DS-Max International Inc." and "DS-Max Canada Inc." for one year following the Date of this Settlement Agreement, but only as corporate identifiers, and not to market any services or goods in association with those names; and after one year following the Date of this Settlement Agreement, the Innovage Parties shall transfer all rights in and to the corporate names DS-Max International and DS-Max Canada to Nu-Life or such other entity as designated in writing by Shapero, but the Innovage Parties shall use their reasonable best efforts to complete such transfer within six months of the Date of this Settlement Agreement.

January 2007

11. DS-Max International and DS-Max Canada may continue to use their respective corporate names, namely, DS-Max International Inc. and DS-Max Canada Inc. until April 7, 2007. On or before April 7, 2007, each of such corporations shall either terminate its existence or change its name to a name which does not include the words "DS-Max" or "DSMax" or to a term confusingly similar to the terms "DS-Max" or "DSMax".

As you can see DS-MAX no longer trades as DS-MAX as of October 2006, and terminates as of April 2007. We have registered trade names, trade marks and logo.

Although we understand your right to report, we only ask for accuracy in that we are not tainted by their reputation of the past.

Respectfully yours and thanks,

Nu-Life Inc.

Richard Shapero

—-

Ben Popken ben@consumerist.com
to richard@activegroup.com
date May 31, 2007 10:09 AM

Right, understood, but the reporter is merely saying that when he read about Midtown, people talked about it being connected to DS-Max. And when he looked up DS-Max, various things were described. So that's all that's being said, and those are accurate statements. The clauses you cite don't impinge on our ability to describe the nature of what was once called DS-MAX. Surely you were aware of DS-MAX's reputation before buying them.

—-

Ben Popken ben@consumerist.com
to Brian Fairbanks
date May 31, 2007 10:14 AM

Yeah, his site looks 100% sketch. A curious turn. Welcome to the rabbit hole!

Here's the WHOIS info for activegroup.com . Hmm, looks like they're based in Toronto, where DS-MAX was started.


Registrant: Make this info private
Active Customs Brokers Ltd.
645 King St W. #600
Toronto, ON
CA

Domain Name: ACTIVEGROUP.COM

Administrative Contact :
Shapero, Richard
admin@ACTIVEGROUP.COM
645 King St W. #600
Toronto, ON M5V 1M5,
CA
Phone: (416) 504-6227

Technical Contact :
Foster, Carl
cfoster@GERONIMOGROUP.COM
2350 Dundas St. West
Suite 701 Toronto, ON M6P 4B1,
CA
Phone: (416)538-3129
Fax: (416)533-0586

Record expires on 12-Feb-2010
Record created on 11-Feb-1996
Database last updated on 15-Jun-2006

—-

Richard(office)" richard@activegroup.com
to Ben Popken ben@consumerist.com
date May 31, 2007 8:10 PM

We were aware of DS-MAX. Midtown were instructed by Innovage not to refer their organization as DS-MAX as it was conditions of our agreement.

When was this interview? Who were the persons representing Midtown. If after October 2006, then DS-MAX has breached their agreement by not issuing firm statements about the cessation of the corporate name.

eing aware of some of DS-MAX reputation, we were aware of. They are however a multi billion dollar corporation, we understand and there is goodwill with the name.

Not all of DS-MAX (the old one is negative), as they are successful. This MLM appears to have some bad apples in them, but it is a MLM with Independent contractors.

We saw the opportunity to obtain the name, trade mark and then take it either with a "good" DS-MAX or use it for another branding (Dollar Store Maximum???). We saw benefit and yes knew there is some negativity with it. Even tried appealing to DSMAXtheaftermath to start a NEW organization, using their experience to make something that would be in line with correcting the bad. They simply want to complain not create.

Understand your position but think you understand ours. DS-MAX is no longer a name connected with the people you refer and it is a written agreement. If Midtown says this, then it is not correct and certainly not with Innovage's blessing. All contracts, agreements were to be changed. Yes Innovage could be breaching and you could be correct or accurate in reporting what Midtown said, but this also leads to us going back to Innovage and going after them for breach.

We win either way... J

Regards

Richard Shapero

—-

Ben Popken ben@consumerist.com
to richard@activegroup.com
date May 31, 2007 11:36 PM

You may have misread. Midtown never referred to themselves as DS-MAX. Other reports talking about Midtown said it behaved like what they conceived of as a DS-MAX affiliate. That's the information we're relaying, that there are reports and they said such and such.

What's the correct URL for Nu-Life? There seem to be some variations out there and I can't tell which is correct.

—-

"Richard(office)" richard@activegroup.com
to Ben Popken ben@consumerist.com
date Jun 1, 2007 9:06 AM

Nu-Life is one of our holding companies, we do not have a website. We will be developing dsmax.com etc., for our decided application using the mark. We have the world trade mark for consumer items and have not decided which way to go. We also have the mark for dsmax, so in essence there will be no confusion.

Still interested, when Midtown people talked about it being connected to DS-MAX. As of October 2006, they should have talked about being connected to Innovage, so DS-MAX's name starts to vanish in the association with this MLM

We were aware of DS-MAX. The reputation, questionably may be the individual corporations, not the actual corporation DS-MAX. When you review the corporation, they appear quite clean, as they do not sell or represent the product or service. It is the individual corporation like Midtown that does the action. Some attempt to present DS-MAX as training them to do so, rather like twisting their arm. If it was so clear then they would be charged.

Something like Hitler and Nazi Germany, as we probably can both relate. Did Hitler do everything or in fact did the Germans want to do what they did and said Hitler told them to. Take out the threat of death element, was it all Hitler or a desire of the people? Not quite a great example but it does give a thought.

All MLM's have a certain blueprint, so they must all have the same mannerisms.

Regards

Richard

—-

Ben Popken ben@consumerist.com
to richard@activegroup.com
date Jun 1, 2007 5:10 PM

* Let me make this very clear: no one at Midtown said DS-MAX. We read that in complaints found online. That's called "following up on leads," something you, being a salesman can relate to. Part of our story is about that process.

* I'm curious as to who were the exact people at Innovage who signed the other part of the trademark change of ownership contract.

* I guess people got that impression about the DS-Max network because the original DS-MAX (now called Innovage) people trained managers, who then opened offices using the methods of running a business they learned. Then they trained new managers in the same methods who then went on to open their own offices, and so on and so forth, like a virus. Presumably, these tactics were also reinforced at the DS-MAX rallies and conventions. Sure, the whole individual offices system is very clever and creates plausible deniability, but that's mainly useful for avoiding legal entanglement. A discerning reader, however, can see the connections.

* Interesting point about Hitler and the Nazis. The same can be said about Stalin and the Russians. I think when you create a system of rewards and punishment, and then apply it to a vulnerable set of people, and deploy propaganda and brainwashing techniques against them, curious things can happen. In Adolph and Josef's case, millions upon millions of people were murdered.

—-

"Richard(office)" richard@activegroup.com
to Ben Popken ben@consumerist.com
date Jun 2, 2007 1:14 AM

* Let me make this very clear: no one at Midtown said DS-MAX. We read that in complaints found online. That's called "following up on leads," something you, being a salesman can relate to. Part of our story is about that process.

CURIOUS WHAT DATES WERE QUOTED.

* I'm curious as to who were the exact people at Innovage who signed the other part of the trademark change of ownership contract.

WITHOUT PREJUDICE, THE PRINCIPLES....TOP GUNS OF DS-MAX...ALL IS VERY LEGAL AND BINDING.

* I guess people got that impression about the DS-Max network because the original DS-MAX (now called Innovage) people trained managers, who then opened offices using the methods of running a business they learned. Then they trained new managers in the same methods who then went on to open their own offices, and so on and so forth, like a virus. Presumably, these tactics were also reinforced at the DS-MAX rallies and conventions. Sure, the whole individual offices system is very clever and creates plausible deniability, but that's mainly useful for avoiding legal entanglement. A discerning reader, however, can see the connections.

IN OUR INVESTIGATION, TRAINING MOTIVATION WAS MADE, BUT INDIVIDUALS USED THIS PLUS THEIR OWN METHODS TO OBTAIN. THE CANDIDATES ARE YOUNG. SEX, DRUGS, FREE THINKING OF YOUTH WITH IMMORTAL IDEOLOGY OF YOUTH TO SCREW THE "OLD SYSTEM" (THEY KNOW NOTHING) (PS I WAS A PRODUCT OF THE 60'S). VERY INTERESTING SYSTEM OF CONSIGNMENT WITH YOUTH. IT GETS OUT OF HAND, AND YES METHODS ARE DISMISSED IF HEAD OFFICE GETS NUMBERS IN SALES.

* Interesting point about Hitler and the Nazis. The same can be said about Stalin and the Russians. I think when you create a system of rewards and punishment, and then apply it to a vulnerable set of people, and deploy propaganda and brainwashing techniques against them, curious things can happen. In Adolph and Josef's case, millions upon millions of people were murdered.

WE TOTALLY AGREE, BUT THE PEOPLE THEMSELVES FOR WHATEVER REASON ARE WANTING TO BE VULNERABLE. EITHER POOR STANDARD OF LIVING, IMMIGRATION, THE HOME BOYS NOT WANTING TO WORK, BUT HATE FOREIGN PEOPLES WANTING TO WORK. EACH EXAMPLE HAS A REASON WHY IT HAPPENED, AND YES THERE WAS A LEADER, BUT THE MASSES WANTED TO CHANGE AND HUBRIS IS THE DEFEAT OF ANY SUCCESS. SOMETIMES YOU CAN MAKE MONEY, BUT NOT THE PERFECT SOCIETY OR ORGANIZATION AS IMPERFECTION IS INHERENT IN MAN'S PERSONA ALTHOUGH EGO AND GREED MASK IT. MARXISM WAS TO BE ENGLAND, NOT RUSSIA, NAZISM WAS TO BE AUSTRIA, NOT GERMANY. STRONG ECONOMIC POWERS WERE TO ADOPT THESE SOCIALISTIC, IDEOLOGY OF EQUALITY, YET ALL HAD TO APPEAL TO THE MASSES, ROB THE RICH, POWERFUL MINORITY. UGANDA, TANZANIA, RHODESIA, EASTERN BLOCK CHANGE FROM COMMUNISM TO CAPITALISM, AND EVENTUALLY CHINA WILL SHOW THE SAME. MAN IS GREEDY, RELIGION USES FEAR OF SOMETHING BEYOND MAN'S CONTROL, GOVERNMENTS CONTROL THE NATURAL INSTINCT OF MAN TO SELF SATISFY, AND EVEN MLM TURN CORRUPT. PEOPLE AT THE TOP WANT ALL, AND ALL THROUGH THE SYSTEM AT EVERY LEVEL, EVERYONE IS OUT FOR THEMSELVES. A BLIND EYE IS USED WHEN THE BOTTOM LINE IS SUCCESSFUL. IN YOUR BUSINESS, IF INFORMATION IS OBTAINED BY SORTING THROUGH GARBAGE AND IT ISN'T ILLEGAL, IT'S ACCEPTABLE AND CONSIDERED ACCEPTABLE, BUT MORALLY IT IS NOT RIGHT. WE ALL SOMETIMES STRETCH MORALS FOR ACCOMPLISHING THE GOAL. IT IS NOT RIGHT IN THE EYES OF GOD, BUT MAN'S LAWS DO STRETCH SOMETIMES TO ACCOMPLISH A GOAL. THE GOAL MAYBE GREED BUT WE ALL SOMETIMES DO IT. IT IS REALITY. WE WISH THE WORLD WAS PERFECT AND ALL BLAMELESS, BUT SOMETIMES WE LOVE THE OLD ADDAGE ....WHEN YOU POINT A FINGER, REMEMBER ONE IS FORWARD AND FOUR POINT BACKWARDS. BUSINESS SOMETIMES IS LOOKING AT A SITUATION THROUGH DIFFERENT ENDS OF THE TELESCOPE.

* WE BELIEVE THAT THE IDEAL OF DS-MAX IS CORRECT, BUT HOW PEOPLE OBTAIN SUCCESS AND USE OTHERS IS NOT. ALL BUSINESSES THAT HAVE OWNERS VERSUS WORKERS, DO USE PEOPLE TO OBTAIN SUCCESS. WE DON'T CARE WHAT BUSINESS...THAT IS PART OF A CAPITALISTIC SOCIETY AND YES IT HAS BOUNDARIES. SOMETIMES PEOPLE STRETCH THEM. SOMETIMES BOTH ON THE TOP AND ON THE BOTTOM. REALLY HOW MUCH DOES DS-MAX DO ILLEGAL, OR DO THEY EXPLOIT PEOPLE BY INSTILLING FALSE SUCCESS AND DREAMS, AND THEN IT CARRIES ON ALL THE WAY DOWN THE LINE. A SNOWBALL EFFECT OF GREED.

* HOW DO YOU PROTECT YOURSELF WHEN YOU ARE AT THE TOP OF THE LINE. EVEN THE CHURCH HAS IT'S OWN CORRUPTION. IN THE NAME OF GOD, SOME PRIESTS ARE PLAYING WITH CHILDREN, STEALING FUNDS, HAVING SEX. IS THE POPE RESPONSIBLE?...HOW MUCH DOES HE KNOW OR THINKS HE KNOWS? HOW MANY HAVE BEEN HURT IN THE NAME OF GOD.

* WE OBTAINED DS-MAX EVEN THOUGH WE KNEW THERE WAS NEGATIVE, BUT IT DOES HAVE A WORLDWIDE NAME. THE QUESTION IS, CAN THE KNOWLEDGE OF THE NAME, THE PAST USE OF IT, BE TURNED INTO SUCCESS IN ONE WAY OR ANOTHER. DS-MAX CAN STAND FOR MANY THINGS. WE THOUGHT OF DSMAX (DATA STORAGE MAXIMUM/DIGITAL SYSTEM MAXIMUM,/DOLLAR STORE MAXIMUM) BY OBTAINING THE NAME, RIGHTS, HISTORICAL USE AND TRADEMARKS WE ELIMINATE OTHERS FROM INFRINGEMENT AND PASSING OFF, TO EVENTUALLY LAUNCH SOMETHING, SOMEWHERE, WITH THE DUCKS IN ORDER, SO INFRINGEMENT CAN BE LEGALLY DEFENDED. DS-MAX CAN BE PROTECTED LIKE SONY OR IBM OR DELL'S NAME.

* WE TRIED APPEALING TO THE AFTERMATH PEOPLE AND THEY JUST WANTED TO BASH. UNHAPPY PEOPLE, BURNED IN THE ORGANIZATION, WITH NOTHING BUT NEGATIVE. WE ASKED IF THEY WANTED TO HELP CREATE THE SYSTEM IN THE RIGHT WAY BUT NO TAKERS. ONLY BASHERS. LIFE'S SUCCESS IS BASED ON POSITIVE ACTION NOT NEGATIVE. YET IF YOU ASKED ALL THESE PEOPLE WHAT THEY DID, WE ARE SURE THEY WERE PART OF THE DRUG, SEX, SCANDAL, SCREW THE DUMMIES, LIFE AND ENJOYED IT, UNTIL THEY GREW UP AND REALIZED THEY WERE GOING NO WHERE. YOUTH DOES THAT IN ALL OF US, UNLESS WE WERE NERDS DURING THAT TIME. REBELLION IS PART OF YOUTH, ALL KNOWING, BIG EGO AND GOING TO FIX THE SCREWED UP WORLD. YOUTH IS BLACK AND WHITE WITH NO GRAY. GROWING UP, REALIZES MOST OF LIFE IS GRAY AND BLACK AND WHITE IS LESS AND LESS. DS-MAX PLAYS ON YOUTH TO SELL PRODUCT BASED ON DREAMS YOUTH CAN CONQUER ALL FOR THE ULTIMATE GOAL OF MONETARY SUCCESS. ALL MLM'S PROFESS THAT. MOTIVATORS PROFESS THAT TO FIRE UP PEOPLE. DS-MAX DOES IT TO SELL A CALCULATOR. DON'T YOU THINK THE INDIVIDUALS KNOW THEY SHOULD HAVE CERTAIN LICENCES, PERMITS, ETC., YET THEY ABUSE THAT. DON'T YOU THINK THEY KNOW THEY HAVE TO PAY TAXES. THEY ALL PLAY A GAME FOR THEIR OWN BENEFIT AND THEN POINT A FINGER AT OTHERS FOR BEING WRONG.

* PLEASE KEEP THIS BETWEEN US, AS WE THOUGHT WE WOULD CONVEY OUR THOUGHTS OF WHAT THE COMPLAINT IS. COPS ARE ON THE TAKE, THE CHURCH IS CORRUPT, YOU SOMETIMES GET INFORMATION VIA A ROUTE THAT IS NOT ALWAYS ABOVE MORALS BUT WE ALL DO IT AND YES IT IS NOT RIGHT, BUT WE ALL WANT TO FEED OUR FAMILIES AND OUR DREAMS.

* REGARDS
* RICHARD SHAPERO

—-

Richard(office)" richard@activegroup.com
to Ben Popken ben@consumerist.com
date Jun 2, 2007 8:14 PM

Funny how we have advised you of our position, and just recently your article after our disclosure, has now posted the exact logo we own, and we don't know of anywhere on the internet you could find the logo.

http://www.consumerist.com/consumer/ds_max/

Could you explain, where you are finding the logo that is not permitted and why it looks so similar?

http://tess2.uspto.gov/bin/showfield?f=doc&state=7il50g.2.2

We are quite puzzled, how the name DS-MAX seems to be more used and we had hoped it would be contained.

Are we inciting you, or have offended you to develop the name DS-MAX more in an adverse manner?

Regards

Richard Shapero

Ben Popken ben@consumerist.com
to richard@activegroup.com
cc legal@gawker.com,
date Jun 3, 2007 10:50 AM

Richard,

Just because the USSR split into the Commonwealth of Independent States doesn't mean you can't use the hammer and sickle to illustrate the Soviet Union.

I never gave you off the record status, nor see a compelling reason to do so, so I cannot promise we will fulfill your request at the end of your previous email to "keep this between us."

I'm happy to continue to talk with you about MLM, DS-MAX, and even WWII history. However, I do not recognize your claims of alleged adverse development, and if you wish to develop further discussion along those lines, you can contact our lawyers at legal@gawker.com.

—-

Richard(office)" richard@activegroup.com
to Ben Popken ben@consumerist.com
date Jun 3, 2007 9:28 PM

If you made an agreement under legal counsel with the USSR to use the hammer and sickle and they no longer could use, plus the Name USSR, then the Soviet Union could only call themselves the Soviet Union and not use the hammer and sickle.

Of the record is quite mute, with your interpretation of political and possibly poetic license.

Who is gawker.com and are you affiliated with them?

Do you have the specific lawyer's names, so our counsel can contact them. We would appreciate specifics on your company Name and Address, together with theirs.

Consumerist and Gawker both appear to be Hungarian. Is this why you used the USSR analogy?

It appears there is no address other than e-mail with contact. Is this the address of Gawker Media, who controls your content.

Gawker Media
76 Crosby
New York, NY 10012
(212) 655-9524

The domain names seem to be held by non Americans, although Gawker Media appears to be US. Maybe they should write about Hungary, although we think the editors wouldn't survive how they handle criticism. At least N.A. you can say what you want and not get shot... J I think Gawker somewhere says everything is anomynous unless you want your name posted. Does that apply throughout all their divisions????

Regards

Richard

Gawker.com appears to be:

Administrative Contact:
Attila Talos (NIC-14521774) BLOGWIRE HUNGARY SZELLEMI ALKOTAST HASZNOSITO KFT.
Frankel Leo u. 106-108. Budapest - 1023 HU
domains@gawker.com +36.12126559524 Fax- -
Technical Contact, Zone Contact:
Attila Talos (NIC-14521774) BLOGWIRE HUNGARY SZELLEMI ALKOTAST HASZNOSITO KFT.
Frankel Leo u. 106-108. Budapest - 1023 HU
domains@gawker.com +36.12126559524 Fax-

Consumerist.com appears to be:

Administrative Contact:
Attila Talos
(NIC-14521774)
BLOGWIRE HUNGARY SZELLEMI ALKOTAST HASZNOSITO KFT.
Frankel Leo u. 106-108. Budapest
-
1023 HU
domains@gawker.com +36.12126559524 Fax- -
Technical Contact, Zone Contact:
Attila Talos
(NIC-14521774)
BLOGWIRE HUNGARY SZELLEMI ALKOTAST HASZNOSITO KFT.
Frankel Leo u. 106-108. Budapest
-
1023 HU
domains@gawker.com +36.12126559524 Fax- -

—-

Ben Popken ben@consumerist.com
to richard@activegroup.com
date Jun 4, 2007 4:37 PM

Richard,

Email legal@gawker.com and you will receive a response.

—-

Richard(office)" richard@activegroup.com
to Ben Popken ben@consumerist.com,
lega@gawker.com,
rdas@berkowcohen.com,
Jack Smugler
date Jun 4, 2007 9:44 PM

Ben:

Thank you, but my counsel does not write to e-mails without an address. It is not normal, professional protocol.

If you would be so kind as to confirm the address we gave you it would be complete.

We have c.c.'d our litigation team to prepare our reply, in order that we don't have a p*ssing match over this.

We believe you are entitled to freedom of information, but have been advised that your references to DS-MAX after the date of October 2006, are not valid

And the information you have is not accurate. Some of your information, appears to have been developed since 2004, so we are not aware if Midtown even exists today, or the information you have obtained is current or dated.

We wish to address the appropriate party and not deal with a moving target. We presume you are a legitimate information bureau and part of Gawker Media of New York.

We wish that your information is not diluting the value of our asset, while attempting to address a MLM called Innovage Inc.

Regards

Richard Shapero
Nu-Life Inc.
DS-MAX Inc.
DS-MAX International Inc.

DS-MAX Canada Inc.

—-

Gaby Darbyshire
to richard@activegroup.com
cc Ben Popken ben@consumerist.com
date Jun 5, 2007 11:52 AM
subject DS-Max

Dear Mr Shapero,

Ben has forwarded me all of your correspondence. I handle legal matters for Consumerist, and I have reviewed the matter in hand.

I am not sure what it is that you think we have done that is in breach of the law. It is fair use for us to use a trademark to describe its user, even a former user: it's common practice to illustrate stories about companies with their logos. There is simply no basis for a claim against someone who refers truthfully to a former use of a trademark, even if the current holder of the mark wishes to distance himself from that use. Particularly where the use is in the context of news reporting, rather than competition; I can thus see no valid objection to Ben's posts.

If you bought a trademark with baggage, I'm sorry, but that is not a legitimate reason for us not to report on a valid story using the principles of free speech enshrined in this fair country's constitution. I'm afraid that in the circumstances, we are not prepared to remove any of the material in question.
You must of course proceed as you see fit, but as a matter of common sense, I am sure you must know that news stories tend to become old pretty quickly if they are not given legs.

Best regards,

Gaby Darbyshire

—-

from: "Richard\(office\)" richard@activegroup.com
Date: June 6, 2007 12:57:00 AM EDT
To: "'Gaby Darbyshire'" "'Ranjan Das'" rdas@berkowcohen.com

Dear Ms. Darbyshire:

Thank you for your e-mail of the 5th instant, contents of which are duly noted.

While we agreed with much of what you say, to report a matter that occurred in 2006, and your undercover reporter, "apparently" in 2007, uncovers a breach of agreement between ourselves and Innovage. With all due respect, it is very important to be accurate. Without accuracy it is of no importance to the public, yet damaging to our company.

We have requested from Ben Popken, if the company still exists and the advised him of the existence of an agreement to the rights of the name and mark, together with excerps of agreement and trademark holder as of October 2006 and 2007.

If you are accurate, then DS-MAX (Now Innovage) is in violation of the agreement. If you are inaccurate, then you are in violation of presenting inaccurate and false information.

To bring up this issue, years after, and quote some representative as knowing the actions are DS-MAX is inaccurate and damaging. You, or should we say, Gawker Media, Consumerist, have a fiduciary duty to report accurately. Failing to do so, is in our opinion a breach of the law. Reporting accurately, is a witness to a breach of agreement between Innovage and ourselves. Which is it?

While we have enjoyed the banter with your colleague, our purpose was in attempt for Ben to report accurately. We do appreciate one mention of DS-MAX referred to as Innovage Inc..

Presuming you have not studied the corporate relationship and contracts, of Midtown, with DS-MAX and IDT, we find it hard to accept the report as accurate but would appreciate you clarifying, in order that we may proceed against Innovage for breach, with you as witness.

We would appreciate your advising us of exactly when your people were advised of DS-MAX as the culprit, or alternatively correct and cease referring to DS-MAX.

As we used a Germany/Nazi reference to Ben, we simply would like you to refer to the correct company. Today you refer to Germans as Germans. To refer them to Nazi's was what German were, not now and inaccurate reference does them no justice. Hungarians are Hungarians now, not Communists as they were before. It would be only fair and accurate to refer to what you are talking about at the time you are talking. Innovage is today, Germans are today and Hungarians are today, not DS-MAX, Nazi's and Communists. The past is the past and present situations should reflect accuracy.

As a question, are you actually legal counsel under the Bar of New York State, or only a representative? If not, we would appreciate being directed to your legal counsel, in order that our counsel can continue with them directly.

Although, you state this article will eventually disappear, unfortunately, the internet will retain this information, unless you remove this from your archives and lose the link. It will continue to effect the name DS-MAX, unjustly due to inaccuracy.

Regards

Richard Shapero

—-

From: Gaby Darbyshire
Date: June 7, 2007 11:13:14 AM EDT
To: richard@activegroup.com
Subject: Re: DS-Max

Richard,

Once again, it is simply not our problem that you chose to purchase the brand name and mark of a company about which there is a lot of factual, undisputed, adverse material in the public domain. So, DS-Max became Innovage. The renaming of a company doesn't affect the right of journalists to comment and report on the actions of the company as it was, and as it now is: it's the same company, doing the same things it always did. We have clearly stated in the article that DS-Max became Innovage. It *is* the same company. We can't not refer to DS-Max, which is a well-known entity, or our coverage would make no sense, because Innovage did not exist at the time of the actions referred to. Whether or not Innovage and the new DS-Max (your company) are in fact still associated is a matter we have not yet addressed, but we would have every right to do so. That is called investigative journalism, and that's what we do. But that is not currently the focus of our coverage.

Nonetheless, as a matter of courtesy, we have edited the piece to make it clear throughout that we are referring to the old DS-Max (now Innovage).

Other than this, we are simply not going to change our coverage. You should consult your lawyers. I am certain that they will tell you that we are not breaking any laws in reporting as we are.

Best regards,

Gaby

—-

From: "Richard\(office\)" richard@activegroup.com
Date: June 8, 2007 12:01:51 AM EDT
To: "'Gaby Darbyshire'", "'Ranjan Das'" rdas@berkowcohen.com
Subject: RE: DS-Max

Thank you for your information, and thank you, as a matter of courtesy, edited the piece to make it clear.

Please be assured, that our company and Innovage ARE NOT associated in any manner and legal documentation is quite clear about this.

We can understand your comments about DS-MAX becoming Innovage, the right of journalists to comment and report and you can not refer to Innovage, as your coverage would make no sense.

However, if the independent company, Midtown, which is not a subsidiary of DS-MAX, tells you they are affiliated with DS-MAX, and our agreement controls reference to the name of DS-MAX, on and after October 6, 2006, there is some breach of use of the name. If the information you receive is erroneous, and you ignore our advices of such error, you continuing developing a story, is in essence improper reporting, with knowledge that the information is incorrect.

If, finally, in the end, you discover that your report using Midtown information is quite factually wrong about impropriety of a company, whether you call it DS-MAX or Innovage, and Midtown's actions are not attributable to DS-MAX or Innovage, you do have a sticky wicket, in that, firstly the content of your report is erroneous and damaging to Innovage and secondly, totally damaging to us DS-MAX, with full knowledge that not only has your source given you poor information, but also one of the parties has advised you of effective dates, and separation of the company name DS-MAX.

You are of course, permitting to publish whatever you wish, but do have a possible liability from both Innovage and ourselves, for two different reasons.

Magazines are sued for misinformation on a daily basis, and some do have to pay for there erroneous, damaging information. We believe we have provided you with sufficient information as to the dates of application of the name, usage and rights of the independent parties DS-MAX (us) and INNOVAGE. At the same time, we have advised you, that Innovage, formerly DS-MAX is not related legally to Midtown, and contracts exists as we believe separating these companies. Under contract law, sub contractors and contractors do have limited liability and responsibility.

From our limited knowledge, these independent companies and Innovage, have been attempted to be married for decades without legal satisfaction or precidenct.

Certain reference areas, such as DSMAXtheaftermath, Ripoff Report, etc., are in themselves quite questionable, and a moving target, that no one can serve legal service. You, however are more like a bona fide Inquiry or Star type reporting source, that is not a moving target and appear to have assets.

This is our opinion, and believe concurred by our legal counsel, as unlimited rights are not yours, and have a responsibility to report accurately.

Again, we ask if you are legal counsel for the company and qualified to represent them. We do not wish to have any misunderstanding and direct our legal counsel's instructions to the proper areas, being able to quote statements as representation of the company.

For your information, Rippoff report has the following questionable standard that we believe places a cloud of doubt to their ligitimacy.

http://www.klaasdevriesjr.nl/k-files/talentrock/Bureau%20of%20Ethical%20Internet%20Commerce%20(BEIC)%20050310.htm
http://www.ezripofflawsuit.com/
http://www.bad-business-rip-off.com/
http://www.bad-business-rip-off.com/wsvnvideo.html
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/07-25-2003/0001989115&EDATE=
http://www.goodbusinessbureau.com/absconded.html
http://www.goodbusinessbureau.com/rap1.html
http://www.goodbusinessbureau.com/rap2.html
http://www.goodbusinessbureau.com/rap4.html

In reference to the people of DSMAXtheaftermath, we believe that a great many of them, knowingly worked illegally with many of the subcontractors, none worked for DS-MAX (Innovage) directly and many never paid US income tax or properly filed returns. Federal offenses, we believe.

Wofram appears to have a disclaimer. What is a DS-MAX sales associate?

http://wolfram.org/eric/ This is your author and disclaimer.

The content of this Ds-Max information was written by an ex Ds-Max sales associate who asked me to publish the information on my web site. We hope that others will find the information that they need to make informed decisions. The author asked that his or her name be withheld. If you have any questions, additions or suggestions, please feel free to ask Eric.


[ed. Official status of DS-MAX trademark from the US Patent and Trademark Office: Serial Number: 77176000 Serial Number: 77185343

Note the points were some of Richard's paragraphs are signed "J..." Those could possibly be places where Richard cut and pasted from Jack Smugler's emails. In the original email, these parts are indented and use a different font, potential evidence of a cut-and-paste.

There's definitely fun to be had by looking up each of the party's addresses via WHOIS, as well as then address in the trademark office listing, and then Googling to see what turns up.]

UPDATE: Even more gobblydeegook!

—-

From: "Richard\(office\)"
Date: June 12, 2007 11:15:51 PM EDT
To: "'Gaby Darbyshire'", "'Ranjan Das'" , "'Jack Smugler'"
Subject: RE: DS-Max

Thank you for your information. We will pass this on to our litigators (barristers) as you being the contact. Will you accept service for the company, and would appreciate the full name and address for such service?

As we worked many decades ago in the UK, and Canadian law is similar to British, we are aware of the limits of a barrister, versus solicitor, the most famous of which we directly dealt with was Sir

We will reserve the right to comment on your opinion of liability and what your company can and can not represent in your article. As we have obtained all rights to the trade name and trade mark, including interest and power to defend, we wonder if the source of information, if inaccurate, falls within US law of damages due to misinformation given to your people, that is not accurate but merely some figment of someone's imagination. Your articles and exhibits, do not show any reference to DS-MAX and the interview may not be from a knowledgeable person. Although, we are not in the position to defend or confirm the information given to your company, you do have a fiduciary duty to report accurately. Even the "Inquiry" and other rag magazines, have through court decisions required not to defame an actor's reputation with misinformation. This may also apply to reporting on companies and the sources of your information. Again, that will be a decision on our counsel's part.

Our rights are as follows FYI : Subject to the provisions of paragraph 11 and 12 below, as of the date of this Settlement Agreement, the Innovage Parties shall and do transfer to Nu-Life all of their rights, title and interests anywhere in the world in any trade mark, trade name, corporate name or domain name which includes the term DS-MAX or the term DSMAX and any term confusingly similar to the term DS-MAX or DSMAX:

We appreciate Ben's comment "ed. In 2003, DS-MAX split into three groups, Innovage, Cydcor, and Granton Marketing. In 2006, a company called Nu-Life bought all the rights to DS-Max's name. Why? We have no idea.]" but would have appreciated a correction to every reference to DS-MAX, especially after October 2006 referenced dates.

Regards

Richard Shapero

Nu-Life Inc.

P.S. In respect to your continued membership of the UK bar, it does appear to be evident. The only Darbyshire is the below member of an active member Darbyshire.

home / directories / the bar directory / individual barristers / by name: d / mr william robert darbyshire

self employed barrister profile

Mr William Robert Darbyshire

9 St John Street

Manchester

M3 4DN

[ed. Note: No definitive ties have been established between Midtown Promotions and DS-MAX/Innovage.]

]]>
Consumerist-266274 Tue, 12 Jun 2007 15:13:28 EDT Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=266274&view=rss&microfeed=true
<![CDATA[ Consumerist Undercover At IDT Energy: Table Of Contents ]]> thegreendoor.jpgIn case you missed any of 7-part undercover report on IDT-Energy, Midtown Promotions, and the fabulous worlds of energy resale and multi-level-marketing, here's a recap:

1. Day One
2. The Job Interview
3. The Day Of O
4. Let's Get Juiced
5. The Meeting
6. The Meltdown
7. The Confession

Thanks for all your feedback, it will definitely inform how we conduct our next investigation. — BEN POPKEN

Note: No definitive ties have been established between Midtown Promotions and DS-MAX/Innovage.

]]>
Consumerist-268091 Tue, 12 Jun 2007 10:48:22 EDT Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=268091&view=rss&microfeed=true
<![CDATA[ Consumerist Undercover At IDT Energy: The Confession ]]> interrogationroom.jpgAfter only three days with Midtown Promotions, I could already tell that I'd wait weeks, maybe months or a full year before coming upon hard evidence of fraud, if I found any evidence at all. After leaving James and Doreen in the Bronx, I took the afternoon off and went to work on these diaries.

This is part 7 of our undercover investigation into IDT Energy, an energy reseller in the New York area...


While I transcribed all the recordings, ads I'd put out looking for information on Midtown and their business practices were beginning to circulate and attract attention. My first and only solid lead was borne out of the response by a guy I'll call "Vega." Vega claimed to have firsthand knowledge of the shady practices of Midtown Promotions, but he refused to go into any detail without meeting in person. His schedule sounded strange— he appeared to be either unemployed or rich, since he said he didn't need to be out working if he didn't feel like it.

We met at a pizza parlor in Ft. Greene, Brooklyn. I'll refrain from details about his appearance and say only that he was wearing a T-shirt that said "Bronx" on it. He carried nothing with him, his ex-girlfriend having smashed up his PDA the night before. He seemed vulnerable because of this, but not afraid.

He told me that he had worked for Midtown in the past, and gave me some dates (which matched with his earlier statements.) He seemed pretty open to whatever I wanted to know, and had lots to say about Midtown's relationship with IDT.

"I did that. I did IDT for a while. [Midtown] will bring in marketing people, they teach you what to say, how to do it, when to do it. You go out to the territory; you go where you gotta go to get the money." He went on, covering mainly what I'd already learned. "They make you an independent contractor, they make you sign the forms. They tell you do what you gotta do."

"Did they say that? 'Do what you gotta do to make the sale?'"

He said that they are reminded repeatedly to follow the manager's instructions, but many are so desperate to make a sale, they don't care.

"So, did you see people wearing the uniforms?"

He answered in the affirmative, and mentioned having seen people in Con Ed hats and other outerwear.

"When you saw people in Con Ed stuff, where were they? Were they in the office of Midtown Promotions? Did they arrive there dressed like that?"

"No, nobody."

"So how do you know they were doing it?"

"Well, basically, once you get in the field, it's different." Vega stopped for a moment then backtracked. He started to explain how few of his co-workers were educated and wise in the ways of ethics and marketing. "They think everything they should do is for the dollar, that it doesn't matter what their company tells 'em, that it's what the individual does that counts. So, when the individual goes out in a Con Ed hat, the company just says, 'Well, we didn't train them that way.'"

I told him that I'd been with IDT for a week and that I didn't notice anything immorally deceptive, other than questionable pitches. "When you were out there," I asked, "You were just dressed professionally, with your tie, whatever. Where did other people put on their stuff? Was it on the subway...?"

"When you work with somebody else, sometimes they'd just throw on a shirt." He speculated that the workers had found or had made their own Con Ed patches and put them on some cheap blue work shirts that made them look like they were utility employees. "Or they'd go buy something that said Con Edison on it." But he said he wasn't positive how the fraudsters came about the gear, only that he certainly saw multiple employees in the field in the finished getup.

"Did anybody ever talk about it, in the office?" I mentioned several employees' names to see if it would jar any memories of wrongdoing by higher-ups.

"No, they always talked about it every day, about how we weren't supposed to do that. They could tell you in the office... but once you leave, you're an independent contractor..."

I tried a different angle. Did he know anyone specifically who knew about the fake (or real) Con Ed uniforms or wore them personally?

Unfortunately, he claimed he couldn't remember any specific names of employees who had committed fraud. Perhaps he was afraid of something at this point. He seemed to clam up for the first time in that half hour. I wondered if he was feeling protective of Midtown all of a sudden.

Look, he said, "I know there's gotta be a certain reason you're going after [Midtown], but they're a legitimate company. The only thing is... the representatives, some of them, are no good. They need to hire people who can really do the jobs and pay them a little more. But IDT is not going to pay them [enough]."

Finally, I asked, "Definitively... have you seen people you know are employees of Midtown Promotions, wearing Con Ed uniforms?"

"Sometimes. Yes."

I went to the office to confront my manager.

E: So, what's up, buddy?
B: So, Eric, I wanted to talk to you in private...
E: Yeah. You disappeared...
B: Well, there's a couple reasons why. I was sick on Friday, that is true. But... the one thing I'd like to ask you about... there are people working here that are doing things that are obviously... fraudulent.
E: Meaning...?
B: They are wearing Con Ed attire.
E: Con Ed attire?
B: Yes.
E: What're you talking about?
B: Well, actually, I'm a journalist—

His eyes bulged, but he immediately recovered and took this in slowly.

E: Uh huh.
B: And I've been investigating this for a long time now... and we've received tips that it was this company... and I met with someone who used to work here and he was willing to speak on the record, and I have a recording that...
E: ...wearing Con Ed attire?
B: They were wearing actual shirts with the words Con Edison on them.
E: Do you have... someone in here now?
B: He doesn't know, he doesn't work here anymore, so he isn't sure if those people are still working here... He said that they would leave here and that they would acquire a grey or whatever color Con Ed shirts are... and then they would have a patch made based on the logo.
E: And why would that not be brought to my attention from [before]...? Because I know that they've got their grey shirts that say IDT, the IDT laminate, the IDT card. Never heard about Con Ed, never got any complaints, never heard anything of that nature.
B: So, all this stuff about 'don't misrepresent yourself as Con Ed,' that's just from your own fears that someone will do something like this?
E: Well, when you deal with different reps, unfortunately, with different locations, you have 60, 70 reps out there... I'd love to be able to see that people do things by the book, but... when you do have complaints that come through the human resource department, you get rid of that person. You understand? People going out, using the Con Ed, Keyspan name to get a sale, that's totally wrong.
B: Would you be in trouble if IDT received complaints about employees here?
E: If I found out that that person had a Con Ed shirt on, I'd get rid of them in a heartbeat.
B: No, I mean, would Midtown be in trouble with them—
E: I don't understand what you're saying...
B: What I mean is: If someone were to get in trouble and IDT were to receive complaints, do they come down on you guys?
E: They'd call us to look into the matter... one hundred percent... because they contract us to do their marketing for them... to a hundred percent. If we have a fraudulent rep out there, we're not going to just [let them] keep going out there and signing applications. That's misleading, that's totally contradictory to everything IDT stands for. When you have two or three locations out there, and you have locations that aren't affiliated with us that are here in the city that represent for IDT, too, that we have no control over...
B: Okay. So, just to be clear, you've never heard of this... with the shirt?
E: No.
[I tell him there are articles in the Consumerist alluding to the fact that this company at this location has sent those scammers out in the field. I also mentioned that the scammers, except for the part where they replace their affiliation with the name "Con Ed," is almost the word-for-word pitch of Midtown reps. He said that if anybody used the Con Ed or Keyspan name to identify themselves, they would be immediately terminated. "If say to say," he added, "On my side, I haven't had too many issues" with employees bending or breaking the rules.]

E: ...I have nothing to do with what the [Midtown] offices outside of [this one] do... I have no control over that. They're independent offices... but as far as our side is concerned, we rarely hear about someone coming across as misrepresenting themselves. But when we find out about it, because they're independent and, a lot of times, they could be out there saying the wrong, doing the wrong things... I'm not gonna deny that... but it only comes back to us if someone complains to IDT...

DS-Max

Eric denied that Midtown is owned by DS-Max. He knew of DS-Max, having worked there for 16 or 17 years, but he claims that they are independent entities.

E: That's a big company... Nothing wrong with it... they do an unbelievable job [with] the concepts that they do. But we're independent, so we got nothing to do with them. I know they're in the city as well, I know they're in Long Island...
B: Do you think it's possible that they, because, the pitches are very similar, that it's possible that it's not Midtown, that it's a DS-Max affiliate that has an IDT contract?
E: No, I think they're also independent, too. I don't think DS-Max is involved with IDT at all.

He deflected some more criticism by saying Topline, out of Queens, also dos the same work for IDT.

E: Did you find any beef...?
B: The guy who used to work here— he was out with people who put on the shirt. He saw this while he was here...
E: How long ago was this?
B: ...about three months ago when I saw it... and I don't want to give too much detail that might reveal who he is, but it was sometime in the last two to six months that he left [Midtown.]
E: ...Well, we like to say that everything goes well out in the field until you bring something like this to my attention... we want to make sure there's no other guys doing that. Maybe it was a guy in the past, and there was a complaint [about something unrelated] and we had to let him go, and we never found out about the t-shirt. ...Maybe it's from another location.
B: The people that he saw were from this location.
E: Unfortunately, I can't have anything to say about that... I can't vouch for that, I've never heard of it.... I mean, I let guys go on two warnings on using [the name] Con Ed. What do you think I'd do about the t-shirt? And I pray to God that none of these guys here are affiliated with that t-shirt.
B: It's possible those people are gone...
E: [Bad] things that happen, you gotta let 'em go. Because if you don't, it makes your business look bad. I think if it was really that bad, the commission would've shut us down a long time ago. They send guys like you in, checking it out... you know, I've got nothing to hide... honestly, I know about the Consumerist, I know about the [intern] that came in, I had a feeling you were with them, I'm not playing games anymore. I'm just putting it out in the open. The more we hide games, the more you guys wanna run with things. [Could be a slipup or just a poor choice of words... but interesting nonetheless.] And you got in here firsthand, and you saw they aren't... switching the badges or whatever... I wish I had a camera on all these guys, making sure they're doing all the right things...

And later...

E: I've seen the pictures, I've seen [the intern's] write-up... and all honesty, as a business grows... expands... it's like anything... you're gonna have some people that are gonna do some wrong things in the field... you can't make everybody happy. As long as at the end of the day, we have people out there doing the right thing, I can go to sleep good... It's usually the newer guys," he said, echoing the same point Vega made, "that aren't as educated... as up-and-running with the program."

Eric went on to admit that he'd worked for "shady direct sales companies" in the past, but wouldn't name them. It is worth noting the following three things: he mentioned that he worked for DS-Max for either 16 or 17 years, claims to have a total of 16 or 17 years in sales, and that Vega does not remember him working there from just a few short months ago.

After the recorder was off, Eric described attacks on his business practices as being similar to attacks on journalists, trying to put it into perspective. "It's like if someone sued a reporter for defamation. That would suck." I wasn't clear what he meant, but I could tell what he was getting at, whether he was conscious of his deeper meaning or not.

Before I left Midtown, I went on Eric's computer to show him some of the other articles about IDT on the Consumerist's site. Sure enough, as I began typing c-o-n in the browser, consumerist.com immediately came up. It was also in the top ten most recently visited sites in his browser. He claimed not to have checked the site "in three, four months."

The truth is: guilty or not, Midtown Promotions is a shady bunch of shysters. Guilty or not, they're guilty of creating an atmosphere.

Eric would say I have no evidence linking Midtown to those guys in the Con Ed uniforms. Carl would say that must be some other company, and wash his hands of the whole thing. James would say I was harping on the negative.

But what I see is not just a systematic problem. I see a company called DS-Max that manipulates its employees, practices unsavory business methods, and makes sure everyone is obedient, for if they were to leave, they would be in debt and possibly homeless. I see devoted employees leaving such a company, and not seeing anything worth changing. I see them start Midtown Promotions, DS-Max in everything but name. Sure, we could've skipped the in-the-field work and just approached them with Vega's statements, but the real evidence backing up Vega is what I saw: the brainwashing, the unsupervised workers, the overlong days and weeks, the desperation to make just one more sale, and so forth.

Then I see IDT Energy, a rejoicing bunch of corporate opportunists based out of the magical Newark, New Jersey, hearing the news that Con Ed has been deregulated, and deciding to hire an unknown company called Midtown Promotions (or Figueroa Marketing, depending on whether or not you read the plaque on Eric's wall or the directory outside the office door.) I see IDT Energy, hearing of complaints from outlets such as the Consumerist and its readers. I see them, completely oblivious to complaints about the fraudulent activities of its affiliated sales people, not even (it seems) deeming it worthy of mention to Eric or anyone else at Midtown.

Midtown Promotions, incredulous that someone would take things too far when they are already pushed to the breaking point, that the sell is so desperately driven home that the seller, too, becomes desperate. Midtown Promotions, unfazed by their own role in the event that their charges, when left to their own devices, cross the line.

Midtown Promotions, sure that it wasn't their location on West 30th that sent those disgraceful, misguided, and potentially forgivable bastards out into the field without enough pep talk about fraud to stop their wicked ways.

Midtown Promotions, DS Max, Eric, owner Chris Polke, or the whole system, may be ignorant of the goings-on, but they are guilty just the same.

I watched as James got more aggressive with each door-knock, with each hour that went by without huge sales, wondering if he would end up out in the field with a guy who brought along an extra phony Con Ed uniform, if he'd be the guy in the blue shirt who one day knocks on your door with great news... —BRIAN FAIRBANKS

TABLE OF CONTENTS

1. Day One
2. The Job Interview
3. The Day Of O
4. Let's Get Juiced
5. The Meeting
6. The Meltdown
7. The Confession

(Photo: Getty)

Note: No definitive ties have been established between Midtown Promotions and DS-MAX/Innovage.

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Consumerist-267328 Fri, 08 Jun 2007 15:35:00 EDT consumerintern http://consumerist.com/index.php?op=postcommentfeed&postId=267328&view=rss&microfeed=true
<![CDATA[ Consumerist Undercover At IDT Energy: The Meltdown ]]> From the moment I met up with James, and Doreen, who was going our way, things began to fall apart. Eric told me to follow James, not Carl, who was going solo. I was to listen to James' instructions, follow his example, and go to wherever he decided we should spend the day. Today was Mt. Vernon, NY, almost 90 minutes from the offices of Midtown Promotions.

Photo: James pitches his offerings to hair salon employees in the Bronx.

This is part 6 of our undercover investigation into IDT Energy, an energy reseller in the New York area...


Following the morning meeting, James told Doreen and I he was heading to Mt. Vernon, which is just north of the Bronx. Mt. Vernon is a small town made up, in part, by commuters to Manhattan and the rest of New York City. James thought we'd be able to find lots of apartment buildings, although I doubted this considering that I knew it to be suburbia. We took the 2 train and got off to catch the crosstown bus. I headed towards the bus stop, as a subway attendant directed, when I noticed James going in another direction. By the time I caught up with him at the bottom of the stairs on the sidewalk, he was already negotiating a ride with a driver standing outside his minivan cab.

Driver: Seven dollars.
James: Six!
Me: What are you doing? I thought we were taking a bus...
Driver: Seven!
James: Okay. Everybody get in.
Me: I am not paying for this. It's all you.

Doreen and I climbed into the back and James took shotgun. The driver was charming a chubby middle-aged Hispanic woman on the sidewalk with his charming and thick Jamaican accent. After a moment, the driver reached in through the passenger window, over James, to grab his business card. James jerked back in his seat. "What are you doing?!" he yelped.

The driver, still leaning over James' lap, looked at him and said slowly and distinctly, "I am only getting this woman a business card."

It was an odd moment but the rest of the ride went well, with the driver cracking jokes about marriage and riffing on the strange fellow Jamaican in his passenger seat. I got into the act and was very self-deprecating and all started out pretty well. From the rear-view mirror, I saw the rain clouds outside reflected on the driver's thick sunglasses. Then,

Driver: Where do you want to go?
James: Some apartment buildings. Take me to some apartment buildings.
Driver: Like those?

He pointed to the projects. Uh, no, not those, please.

It was 11:30 when the meeting ended, 12:30 when we got off the subway, and 1:00 pm when James and the driver settled on a drop point in a quiet residential neighborhood, consisting mainly of small cottage houses. It was about three minutes from where we got into the van.

I could tell James was amped and determined to make the top sellers list for the day. From deciding on the definite gamble of a work-a-day town like Mt. Vernon, which seeing as how it was far from Midtown, ensured us only a few hours of actual on-the-ground, to haggling with the cab driver about price, to haggling with the cab driver about where the greatest density of large apartment buildings were in Mt. Vernon (James said he scoped the area before), it was clear James had left the morning meeting as pumped as the trainers wanted him.

Doreen was aggressive too, in her own fashion. Her deal was to never stop smiling shyly. "My baby's in the hospital," she said in her Bronx accent at one point.

"Your boyfriend's in the hospital?!" I exclaimed

"No," Doreen corrected, "My baby's in the hospital."

She was twenty, Dominican, and the mother of eight-month-old girl. She'd been working for Midtown since the girl's birth. Over a cigarette and a stroll through our first neighborhood, Doreen told me about her experiences in the field. There were some days full of sales, and some just full of trudging through puddles.

Doreen and James agreed that the rain would help our sales. "People will feel sorry for us," said Doreen. The two of them swapped war stories, of the marathons in snowstorms, nailing signature after signature; of nearly 100% success rates in torrential rain.

We reached the first row of "promising" houses. James' version of "promising" houses meant one-door cottages with yards between them. For the ground we would cover, we would only do half the doors I had hit each day in East Elmhurst/Jackson Heights.

At my first door, a short black woman in her forties answered. "Yes, can I help you?" she asked politely.
"Yeah, I'm with IDT Energy, we're the suppliers for Con Edison, " I said.
"You gonna do something about how high my bill is?" she snipped.
"Well, that's what I'm here to d—"
"You gonna do something about my lights being turned off?" I saw past her into the kitchen, clearly illuminated by an overhead light.
"That's not me, mam," I started to say, "That's Con Ed. We don't have anything to do with them. We're just their suppliers..."
She continued to vent, then closed the door in my face.

Back down on the sidewalk, James called after a young Hispanic woman who had walked by him. At first, I thought he was hitting on her, but through his Jamaican accent and what I could gather as the wind whipped his voice back to me, he was asking her to direct us to any large apartment buildings in the area. James followed after the woman.

He passed alongside a basketball/handball court, clearly a schoolyard. The Hispanic woman was about thirty feet ahead when James really began to give chase. He started asking, "Is that an apartment building? Is that an apartment building? Do you live around here?"

She responded, No, that's a school, I don't know, and No. Thirty-seconds later the now power-walking woman entered a building James had guessed housed apartments. He shook his head after her.

I was unnerved by what I saw. James, a total stranger in a group of three total strangers on a deserted and rundown block, had just chased a woman by herself down the street. James wasn't swayed by my protests, saying that Bronx girls "know how to handle themselves. These are smart girls, very smart."

I argued that had zero to do with what had just happened. Even if I assumed he was right, that she was of superior intelligence, there was no way she could have known we weren't con artists, thieves, or violent criminals intent on hurting her. I've been chased down New York streets before and in every case, despite the pursuer's protestations, I can say with some certainty that these people were liars and possibly dangerous.

Still, I didn't want to make a big deal out