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NOTABLE! Income Store Shut down by SEC, How to Whistleblow Scams

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JasonR

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Well low and behold - I just called this out as a likely scam in another thread.


Re: Securities and Exchange Commission v. Today’s Growth Consultant, Inc (dba “The Income Store”) and Kenneth D. Courtright, III, United States District Court for the Northern District of Illinois, Civil Action No. 1:19-CV-08454
Date: January 6, 2020
Attached is a Temporary Restraining Order Freezing Assets and Imposing Other Emergency Relief and Order Appointing Receiver that have been entered in the above referenced matter.
The Court has determined that the appointment of a receiver is necessary and appropriate for the purposes of marshaling and preserving the books and records and all assets of Today’s Growth Consultant, Inc.
Within the next few days a website will be established that will provide court documents and other information regarding the case that will answer many of your questions. For additional information, you may contact the office of the Receiver at (305) 542-4410 or incomestore@dvllp.com.
You can download the Restraining Order and Order Appointing Receiver on the above link if you care to do so.

Guys - watch out, out there and use your common sense.
 

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RazorCut

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Well low and behold - I just called this out as a likely scam in another thread.




You can download the Restraining Order and Order Appointing Receiver on the above link if you care to do so.

Guys - watch out, out there and use your common sense.
Yes I read the other thread with interest. Good call Jason.
 

maverick

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There goes the guaranteed returns..
 

MJ DeMarco

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Add @JasonR to the list, another person with experience in eCommerce and business who called it as BS.
 

CareCPA

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Arent "Guaranteed" returns always a scam?
It just depends on how outrageous the guarantee is. I can guarantee you 0.5% return on your investment - would you consider that a scam?
The threshold is going to be different for everyone. 10% may raise red flags for some people and not others. Apparently, there were a bunch of people for whom 15% did not raise red flags, as evidenced by the number of people who invested in IS.
 

Jon L

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It just depends on how outrageous the guarantee is. I can guarantee you 0.5% return on your investment - would you consider that a scam?
The threshold is going to be different for everyone. 10% may raise red flags for some people and not others. Apparently, there were a bunch of people for whom 15% did not raise red flags, as evidenced by the number of people who invested in IS.
I was thinking the same thing. I can guarantee 1.5% if you give me your money for 10 years.
 

MJ DeMarco

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The official SEC release...


As expected, a F*cking Ponzi.

But yea, at leas Ken's kids got to go to private school.

Of note, I wonder if someone HERE will get paid a Whistleblower fee since the SEC was first informed of this when this thread gained traction here.

29897


And turns out the SEC pays really well for whistleblowers.


I think I should become one and get myself a new job. I spot these scams regularly.
 

PapaGang

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The official SEC release...


As expected, a F*cking Ponzi.

But yea, at leas Ken's kids got to go to private school.

Of note, I wonder if someone HERE will get paid a Whistleblower fee since the SEC was first informed of this when this thread gained traction here.

View attachment 29897


And turns out the SEC pays really well for whistleblowers.


I think I should become one and get myself a new job. I spot these scams regularly.
This is so stupid. If you have the talent available to set up Shopify sites that convert, why the hell don't you just launch them, grow them, and then sell them off to these investors as a cash flow producing asset? And at the same time run a service-based agency that does this sort of thing for paying clients? Shopify skills are in demand right now.

Takes too much time I guess. He wanted the quick money! His "guarantee" was the trap door that did him in.
 

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PapaGang

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It just depends on how outrageous the guarantee is. I can guarantee you 0.5% return on your investment - would you consider that a scam?
The threshold is going to be different for everyone. 10% may raise red flags for some people and not others. Apparently, there were a bunch of people for whom 15% did not raise red flags, as evidenced by the number of people who invested in IS.
True. This is something that Northwestern Mutual does all the time right? Banks too.
 

PapaGang

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Arent "Guaranteed" returns always a scam?
I have a high yield checking account, which guarantees me 2.5%. They do carefully word the offer though that they can change those terms anytime depending on their return.

Also, banks are different than a business that offers alternative investments.

I'm in over my head. I don't have a background in finance and it shows.
 

socaldude

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Can you actually get a whistleblower windfall by just reporting or submitting a tip to the SEC?

Or does it have to be an insider type of deal with giving credible testimony with insider details?

:oops:
 

biophase

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This is so stupid. If you have the talent available to set up Shopify sites that convert, why the hell don't you just launch them, grow them, and then sell them off to these investors as a cash flow producing asset?
They didn't have the talent, that was the problem.
 

PapaGang

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They didn't have the talent, that was the problem.
:rofl:

I thought I had read somewhere that they actually had some legit developers and staff, and that some of the sites were actually making cash. Obviously not enough.
 

MJ DeMarco

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Can you actually get a whistleblower windfall by just reporting or submitting a tip to the SEC?
I think so.

I'm actually pissed I didn't report Income Store to the SEC when I first discovered it.

The windfalls can be pretty substantial. $5.5M average payout ...

29913
 

socaldude

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Finally got around to reading the formal complaint. It was unsealed earlier this month. Best thing to read to get all the facts.

These people would actually guarantee returns in perpetuity and you would get a higher return the more you invested. The highest tier being $500k with a guaranteed rate of return of 20%.

They only made 9 million by selling "third party items" and from advertising. But paying out arounf 30 million around that time.

His bank even closed his original bank account when he applied for an increase in line of credit to pay for investor returns.

The complaint breaks down the scam mathematically with all the revenues, loans, investor payouts and new investor funds.

Study and copy the math and securities laws in complaint to be a whistleblower and to get an idea of how to submit a tip. My guess is the more you use their language and math the more they will take your tip seriously. :rofl:
https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.sec.gov/litigation/complaints/2020/comp-pr2020-10.pdf&ved=2ahUKEwijra3ioaDnAhXiNX0KHVu-BuUQFjAAegQIBRAB&usg=AOvVaw3yC2B5k8b_NEa81t3f4VQE
 
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MJ DeMarco

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Marked Notable and thread title changed, perhaps next time I won't sit on my a$$ when I come across another scammy sounding "passive income" scheme.
 

Kid

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to continue for 60 years
IS offered 60 years payout at 17%.
Internet is itself 31 y.o.

Its like telling "This model of a car will be profitable for next 260 years, so invest in it!"
 

UnrealCreative

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I think so.

I'm actually pissed I didn't report Income Store to the SEC when I first discovered it.

The windfalls can be pretty substantial. $5.5M average payout ...
That's insane.

You know, I thought about that when I posted this in the original thread...

29962

This was posted as a joke nearly a year ago.

Had we known what was to happen...

Just wow. I'm not so upset that submitting a tip would've netted a good chunk of change. I'm just more upset so many people had lost their money.
 

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socaldude

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Just wow. I'm not so upset that submitting a tip would've netted a good chunk of change. I'm just more upset so many people had lost their money.
I guess other more interesting questions arise from this dilemna. I guess its one of those grey areas in the law where it really hasnt been fought or clarified in precedent. Ill have to read the dodd-frank act and see what it says about whistleblowers.

Like for example who gets first dibs? Is the award based on speed or substance of the complaint? Can you sue if they refuse to award a whistleblower bounty? My guess is they need detail info as to how they operate so the government can move in and file motions to freeze the accounts of the company.

I dont remember the interview but in bernie madoffs case a mathematics professor told the sec it was scam and even laid it out mathematically and i think even he didnt geta whistleblower reward i could be wrong.

My gut says its not enought to send a link over and say "hey i think this is a scam".

My guess is that the whistleblower in this cases would eithet be an investor or an insider. Who knows.

But as of right now they just filed a civil complaint. Ken will probably have a criminal complaint filed against him for money laundering and securities fraud as the discovery progresses and more evidence comes to light.
 
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amp0193

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Along the same lines as the whistleblower tip, you can report people for import fraud (importing under clearly fraudulent import codes to avoid tariffs).

I'm not sure what you have to provide as far as proof goes... but the rewards can be 15-25% of the duties they have avoided: Rewards for reporting import duty Fraud (Customs Fraud) - The Hesch Firm LLC

#1: Be aware that competitors can do this to you if they see your public import data on Panjiva, and you chose to go along with the factory rep who suggested "use this code to avoid duties". (all the more reason to make sure your imports are made anonymous by Customs)

And #2, Watch your competitors' imports, and have it as your ace-in-the-hole if they start charging unreasonably low prices that you can't compete with, because you're paying a 25% tariff on everything, and they aren't.

----------------------

Add-on to #1. To make your sea shipment imports anonymous, send an email to vesselmanifestconfidentiality@cbp.dhs.gov that says the following:


Hi,

I’d like to request confidentiality of imports for:

My Company LLC
1234 jersey lane
Boise, ID 99001

EIN: 22-4354356

Let me know if you need anything else,

Thanks



Then wait 2-3 months, and they'll respond back saying it's done. It's a good idea to submit multiple requests, with various misspellings or other ways or writing your company name. Because it only applies to exactly how the company name appears on the import documents, and the Chinese aren't known for their English spelling abilities. I believe it only stays anonymous for 2 years, so make sure you do this periodically.

edit: I just did this for the new company name we're changing to, and they got back to me in 10 minutes saying it was done, not 2-3 months.
 
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GraceLoveJoy

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For all aspiring whistleblower 'entrepreneurs' out there, I can tell you the whistleblower report in Income Store's case was substantiated with very solid proof. 4 people had filed claims including a banker having insight into the business' financials, as well as 3 other insiders.

So to all who said "I knew this was a scam and called it out a year ago" - that's great, and kudos to you for having a hunch or a guess that turned out correct - but that will hardly be enough in my experience to land yourself as sizeable chunk of taxpayer money for having spared future victims of a scam.

The reality is - vision in hindsight is 20/20 and if you had absolute certainty of shadiness, with solid proof, you would have had a good reason to do it, and more importantly, you would have actually done it.

Anything beyond that is speculation at best for the SEC (and frankly for yourself) , and while they may record it as a tip, it's unlikely to be taken seriously and acted upon without the insider or actual 'proof'.

It's no accident common whistleblowers are banks, as it's their duty and obligation and a potential huge liability if they fail to do so.
 

spreng

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Too bad they only pay whistleblower fees for investment type scams and not all the fake gurus on youtube. We could make a killing.

The official SEC release...


As expected, a F*cking Ponzi.

But yea, at leas Ken's kids got to go to private school.

Of note, I wonder if someone HERE will get paid a Whistleblower fee since the SEC was first informed of this when this thread gained traction here.

View attachment 29897


And turns out the SEC pays really well for whistleblowers.


I think I should become one and get myself a new job. I spot these scams regularly.
 

Lunamoonbay

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I actually stumbled across this fastlane forum when trying to do my due diligence on IS. Thankfully I did because there were a lot of smart people in here who validated my skepticism despite really wanting to believe what IS was offering. At least it turned me on to Millionaire Fastlane and Unscripted which I have now read and thoroughly enjoyed.
Same here ! ✋
 

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