These two young men certainly didn’t have the knowledge or experience to put together this program. They had to have help and I’m betting the above were involved in a big way. Google the names above and see what sort of fraud turns up.

BEWARE OF FRED DAMRON
http://www.bewareoffreddamron.blogspot.com

Online Site’s Take Pegged at $16 Million – Pittsburgh Business Journal
http://pittsburgh.bizjournals.com/pittsburgh/othercities/triangle/stories/2007/08/20/story3.html?b=1187582400^1507246

Colon End Parenthesis Faith Fraud by Trevor E. Reed
http://colonendparenthesis.blogspot.com/2007/05/affinity-fraud-by-trevor-e-reed.html

What to do until you reach that level??? ”

You cannot Operate, legally, until you get the license, period. There is no minimums, no levels of operation until you need a license. Before you transmit Dollar one, you must be licensed.

In order to be legal you must have a license in order to transmit money. TSMC and CEPTrust are running Illegally.

I did bring it up a year ago. However, since we’re faced with new ones, it bears bringing up again.

Some of the laws are new. I suspect there will be even more US laws that are better defined and clearer when it comes to any kind of electronic currency or transmitting any currency. I don’t know how they will impact the brick and mortar currency world. Nor do I have a crystal ball to predict how they will impact the e-currency world. However, in light of the Patriot Act and the spirit of existing laws, its pretty safe to assume that licenses will be be required and the whole industry will become more regulated. Read the egold articles that are in the post I submitted yesterday.

I agree with you that when the dust settles, we should all benefit and become stronger. It will be harder for low-life, like Steven C Girsky & John R McConnell of StormPay, to set up shop and exploit people. It may also mean that e-currencies that we’ve counted on to play the ponzi games, like e-gold, won’t allow HYIPs and Autosurfs anymore.

I do sincerely hope that CEPTrust gets their licenses. It would be nice to have another choice for HYIP games. However, they should not transmit any currency until they are licensed. I hold out less hope for TSMC.

2007 should be an interesting year!

JMO,
Sharon

You obtain the size/level through other means, like getting a business loan using real collatoral, just like any brick and mortar company start-up would do.

JMO,
Sharon

It’s a “Catch 22″ situation:

You cannot operate without a license apparently.

But you only need the license when you reach a certain size/level.

What to do until you reach that level???

It could also be interpreted that the applicant must have at least 12 months prior experience as a money transmitter, such as working at an already licensed money transmitter. Then the applicant would submit their experience in Material Facts Two and Six.

I think it’s pretty clear that you have to have $500,000 net worth to get a license.

What i also think is clear is what Greg Jennings of the OFIS of Kentucky told PonziScams.com. In case you didn’t read it…

“Curt: Sorry about that, a Friend of mine is thinking about starting a Payment Processors. I believe he is under the misconception of something, and I would like you to clear it up. He’s under the conception since he is not eligible to file for the license he can run it until he is eligible.

Mr. Jennings: Huh!? No!

Curt: Exactly

Mr. Jennings: That’s never the case, I don’t care if you are talking, Electrician, Plumbing, insurance, there’s never a case where you can actual run the business without having the license first.

Curt: That’s exactly what I was thinking.

Mr. Jennings: And it’s silly to even think otherwise, you can tell em I said that.”

JMO,
Sharon

You can read what the former EMO employee told me at What’s Happening With EMO

JMO,
Sharon

From Material Facts Two:
“Disclose a one-line dollar figure that represents the total volume of money transmissions that were transferred in Kentucky over the past twelve (12) months.”

Sooo… this seems to pretty clearly indicate that you could have been transmitting money prior to the license agreement, right?

Under Material Fact Six:

“(4) Submit a history, including a list and description of all location(s) from which the applicant has conducted money transmission business prior to the filing of the application.”

More evidence that you could in fact have been transmitting money before the license.

Now, in the act itself there is this:
“Each licensee under this subtitle shall at all times have a net worth of not less than five hundred thousand dollars ($500,000), calculated in accordance with generally accepted accounting principles.”

So if CEP is saying that their net worth is less than $500k I suppose that might be one argument against needing it.

That’s all the legalese I can take for the evening . My head hurts.

In order to be a money transmitter anywhere in the world and perform the function of electronically transmitting money in and out of the US, you must be licensed in ALL of the 41 states that require a license.

In order to run a money transmitting business from a US location, you must be licensed BEFORE you open up for business. You’ll need about 20 million dollars to open up for business.

What CEPTrust and TriStar Money Changers are doing is operating money transmitting businesses from the US without a license. It is illegal and considered a felony. But, don’t take my word for it. Contact the authorities where CEPTrust and TSMC are located and ask them directly.

Then again, ponzis (which are not necessarily a bad thing, if you play them right) operate in the US all the time. They are illegal, too. IMO, I’d trust making money from a ponzi, before I’d trust using an illegal money transmitter. Money transmitters are much more likely to be seized by the US government. There are no disclaimers “if you put your money here, it may be seized by the US government” like the disclaimers on the ponzi sites (and most non-ponzi sites.)

- Sharon

Trust me, I would absolutely love it if someone, anyone would buck the latest trend and actually produce a license. If you guys produce one, then you would become probably the most credible surf out there.

http://www.kfi.ky.gov/NR/rdonlyres/618472BD-0FB4-4E8B-AA05-2456B1CED39B/0/MoneyTransmitterApplicationKentucky602.pdf

http://72.14.209.104/search?q=cache:lDvdsHrN61AJ:www.kfi.ky.gov/legislativechanges/moneytransmitters/ kentucky money transmitter license&hl=en&ct=clnk&cd=2&gl=us&client=firefox-a

I also have the entire bill if you would like me to send it to you detailing what requirements a money transmitter needs if you would like me to email you it

There is no business in the US (other than the home business and there are some states that require a license even for the work at home types) that doesn’t have to get some type of license in order to be a legal entity. If you are a restuarant, for instance, you need a series of licenses before you can even open. If you own a plumbing business, you need licenses. If you are a car dealership, you need a license. If you are a check writing business, you need a license. If you are a liquor store, you need a license. (do I really need to go on?) Heck, if you want to drive, you need a license. You cannot run one of these businesses if you are “in the process” of getting a license. It just doesn’t work that way.

There are businesses that will occasionally operate without a license. As a business, you are playing russian roulette and counting on not being discovered. When you are discovered, you run the risk of being shutdown and ordered to pay a bevy of fines. When you are doing business with an unlicensed company, you run the risk of becoming a victim should the government get involved. This is just the way it is.

“They also have another program underway, which will be for larger investors. This program will show you exactly what they’re putting the money into. Although it’s still in the works.

They also are about to launch an MLM, which, Trevor is keeping his mouth shut on what exactly is involved. I’m quite interested to see all of it.”

Sounds like a Bob Krimm wannabe. As soon as Admins start opening up more sites that’s a red flag to me. They need more money.

Bob just opened up the Millionaire’s club (for larger investors) and also his Viaviente MLM program. Looks like Trevor is following in his footsteps.

There’s no reason in the world for an Admin to have more than 1 or 2 “programs” working at one time, except if they need more “new” money coming in.

JMO.

I’m really glad to hear that you’ve made so much from CEP and C88. I hope that you’ve removed your seed money and a good portion of the profits. I have no doubt that both have been very well run.

Where I disagree concerns their future now that CEPTrust is open and they are forcing people to use it exclusively. It is a conflict of interest. Past history has shown us time and time again what happens when a HYIP/AS opens up a PP or vice versa. (PIPs-PicPay, StudioTraffic-StudioPay, Eprofits-Auto Share Money, just to name a few.) I wasn’t in PIPs, but from what I understand it was a very long running HYIP and people were paid thousands more than what they started with. It failed after PicPay was put in place.

I fully understand that those in CEP (or one of their sister sites) believe that CEP will be different. They may be. I hope for all of those in that they are different and will succeed. However, history shows that the liklihood of them succeeding with CEPTrust in place is slim to none. I vote for none.

In any case, this is just my opinion. I’ve seen several other bloggers voicing the same concerns.

JMO.
Sharon

All of this is coming up at the best of times, and quite honestly, the funniest of them too. CEPTrust is in the process of setting things up to aquire a money transmitter license. What’s this mean? It means that most of this will be irrelevant in the next couple of months.

They also have another program underway, which will be for larger investors. This program will show you exactly what they’re putting the money into. Although it’s still in the works.

They also are about to launch an MLM, which, Trevor is keeping his mouth shut on what exactly is involved. I’m quite interested to see all of it.

To be honest – I’ve been on the same line since I first saw CEP. I was completely against them. Trevor can attest to that. My first emails to him were nothing more then calling CEP a scam, and a ponzi. And as we finally got to sitting down on “nice” terms and discussing what exactly was going on, and seeing their plans. You’d be quite amazed, I was.

I’ll admit, I don’t have a dime in any of the CEP sites. I don’t use any hyips or surfs though. My only interest has been in investigating CEPTrust, because we intend to use them as our sole processor.

*I* would NOT under any circumstances put my users through that, if I wasn’t 100% sure where the money was going. Which is part of why you’ll see our deposits section is not open yet. I’ve asked Trevor just like everyone else, to lay out the legal parts of it for me, and everyone involved.

I will not use them unless I’m 100%. And I’d be glad to see everyone else settled on that point to.

In the mean time, I think all of this speculation is silly. Especially since we’ve been promised legal answers publically before the end of this coming week.

There have always been the exception that break through the mold. IF cep breaks through and actually becomes licensed, I will eat my words. However, my words are based on the history of what has happened to companies that tried to run both and what has happened to payment processors based in the US running without a license.

If cep’s programs aren’t ponzis, what outside income source do they use? If your answer is that they sell advertising, we all know that inside advertising (“advertising” purchased by members for the main purpose of making money) is a ponzi. Adverting purchased from outside sources is not enough to maintain revenue (12DP). If your answer is that it is a secret, more likely than not it doesn’t exist.

JMO,
Sharon

Trevor brought up a couple very good points while we were on the phone.

1. Curt knows the right questions to ask, to get the answers he wanted. He did not ask the proper questions in these terms, as more then likely this Greg Jennings fellow would have to look it up himself.

Money Transmitter licenses were *not* created for online payment processors. They just end up falling into those terms at some point in their creation. These licenses were created for things like MoneyGram and Western Union – to police them. Needless to say many other things end up falling under these licenses later as well.

2. He’s sick with mono right now, but him and Clayton are preparing the correct information to show everyone once and for all, they are legal. They’re putting this to rest once and for all. I’ve asked him to do so, for my own sake as we intend to use only CEPTrust as a payment processor. With all the issues going on with E-gold, and E-gold going to court in the coming months in the USA (which is likely to hault, if not stop them accepting USA customers)

All in all, you’ll also notice Paypal is not licensed in all the states – Several have tried to rebuttle this and say that they’re in the process. I actually called their legal department on Friday – A direct quote from their lawyer says “No, they are not in the process or filing in all of the remaining 9 states that require money transmitter licenses” Why? “You are not required to have a license in any state, unless you meet certain criteria”

Hum. That sounds familiar.

1) Allready having and in the process of getting ACH isnt the same thing.

3) Are you aware that original CEP is online for 17 months.So it is better then your 6-12 months rare well run sites.Meaning what?Super super rare?

So..Obviously Admin knows what they are doing…Maybe the same thing applies to their money processor CEP Trust?

5) They are NOT running ponzis so WHEN they reach eligible status they
will get a license.

Good that you are sure there are more problems.Where would people that made thousands in these 17 months be without you.Good that you are thinking from the top of your head too…

Oh JMHO too…

Betty