A Chino Hills man who operated several tax preparation businesses and admitted operating a wide-ranging scheme in which he defrauded clients and the

Internal Revenue Service, was sentenced today to 11 years in federal prison.

Abdul Wahid, 57, the owner of Global Accounting and Tax Service in Los Angeles, was sentenced this morning by United States District Judge George Wu.

In addition to the prison term, Wahid will be ordered to pay restitution, an amount that will be determined by Judge Wu following a hearing scheduled for February 9.

The government has asked Judge Wu to order Wahid to pay more than $2 million to his victims.

Wahid pleaded guilty last year to three counts of mail fraud, one count of theft of government property, one count of aggravated identity theft and five counts of attempted tax evasion. Wahid used the money obtained through the scheme to finance his lavish lifestyle, according to court papers filed by the government.

As part of his scheme to defraud clients of his tax return preparation business, Wahid formed companies with names like Internal Recovery Systems, Inc. (IRS), along with other DBAs – FTB, EDD and BOE – that were all acronyms for government taxing agencies. After Wahid prepared personal and business tax returns that usually showed thousands of dollars of taxes due, Wahid instructed clients to write checks for the amounts due made out to the appropriate taxing authority or to Wahid personally. But instead of submitting the checks to the appropriate taxing agency, Wahid deposited the checks into bank accounts he controlled, for example, his “IRS” account.

Wahid also failed to file his personal federal income tax returns for the years 2002 through 2006. By not filing his tax returns, Wahid attempted to evade the payment of nearly $1 million in federal income taxes.

Another aspect of Wahid’s criminal conduct involved the theft of a tax refund check that was based on a false tax return he filed with the Internal Revenue Service. That tax return was filed under the name of a person whose identity

Wahid had stolen.

Wahid has been in custody since November 26, when he was taken into custody for violating the terms of his bond by continuing to operate his scheme – even though he had pleaded guilty 10 months before.

The investigation of Wahid was conducted by the Treasury Inspector General for Tax Administration (TIGTA), IRS-Criminal Investigation, the Federal Bureau of Investigation and the Social Security Administration.

CONTACT: Assistant United States Attorney Janet C. Hudson

(213) 894-6356

Release No. 09-002

Federal Trade Commission v. Infusion Media, Inc., a corporation, also d/b/a Google Money Tree, Google Pro, Internet Income Pro, and Google Treasure Chest, West Coast Internet Media, Inc., a corporation, also d/b/a Google Money Tree, Google Pro, Internet Income Pro, and Google Treasure Chest, Two Warnings, LLC a limited liability company, Two Part Investments, LLC a limited liability company, Two Part Investments, LLC, a limited liability company; Platinum Teleservices, Inc., a corporation; Jonathan Eborn, individually and as an officer of Infusion Media, Inc., Two Warnings, LLC, Two Part Investments, LLC, and West Coast Internet Media, Inc.; Stephanie Burnside, individually and as an officer of Two Warnings, LLC, Two Part Investments, LLC, and West Coast Internet Media, Inc.; Michael McLain Miller, individually and as an officer of Infusion Media, Inc., Two Warnings, LLC, and Two Part Investments, LLC; and Tony Norton, individually and as an officer of Platinum Teleservices, Inc.
(United States District Court for the District of Nevada)

Update 4/29/2009 – On April 24, 2009 the Texas Attorney General filed charges against the owners of Google Money Tree for operating a fraudulent Work-At-Home Scheme:

"AUSTIN – Attorney General Greg Abbott today charged two Utah-based defendants with operating a fraudulent work-at-home scheme. The state’s enforcement action names Infusion Media Inc. and Jonathan D. Eborn, whose “GoogleMoneyTree.com” promised six-figure earnings for conducting specialized Google and Yahoo Internet searches

According to investigators, the defendants promised big payouts in order to convince Web users to spend $3.88 on shipping and handling for a “free kit” that supposedly would show them how to make money from home. Those who purchased the kit were later surprised to discover they were being charged $72 a month by the defendants."

"According to the state’s enforcement action, GoogleMoneyTree failed to clearly inform purchasers that they had been enrolled in monthly memberships and had only seven days to cancel their trial membership. Purchasers who failed to cancel within seven days were automatically charged $72 on their credit card statements each month. In addition to the unexpected credit card charges, customer complaints obtained by state investigators indicate that GoogleMoneyTree failed to actually send the “free kit” and refused to honor customer refunds.

The state is seeking an injunction, civil penalties of up to $20,000 per violation of the Texas Deceptive Trade Practices Act, as well as restitution for purchasers. Texans who believe they have been misled by similar business practices may file complaints with the Office of the Attorney General toll-free at (800) 252-8011 or file complaints online at www.texasattorneygeneral.gov."

Update 4/11/2009 – Another version of the site – Google GoldMine seems to be using the new, better disclosure referenced in the 3/25/2009 – at least the version I saw was.

Update 3/25/2009: I just noticed that Google Money Tree has changed how they disclose the terms of their offer since I last looked at it. The new disclosure of the monthly charges is SIGNIFICANTLY better than it has been previously. The terms of the 7-day trial are in the big "100% Satisfaction Guarantee" box directly to the left of the form where you enter your credit card information.

There are a couple things I personally still don't like in the new version is that the monthly charges are written out instead of done numerically. I.e. the text is "After the trial, you will be charged seventy two dollars and twenty one cents a month" instead of "After the trial, you will be charged $72.21 each month." Also, it would be nice if the heading of the box would be something like "Important Details About This Offer".

But I don't want to take away from the fact that they've vastly improved the disclosure of the terms of the trial offer.

Update 2/26/2009: Despite various improvements, Google Money Tree still has complaints rolling in about various issues.

Update 2/6/2009: Since this was originally posted Google Money Tree  has made significant improvements (in my opinion) to their sales process.

If you are going to post a comment – and are able to do so – please post the original date that you ordered Google Money Tree as it would be interesting – and could be helpful – to match those dates up with the version of the Google Money Tree sales page that was current at the time.

Note: This is NOT an endorsement of Google Money Tree, but an acknowledgement of improvements (again, in my opinion) that were made.

End 2/6/2009 update.

I just noticed some complaints about Google Money Tree – about some surprise charges.

1/19/2009, 2:40 Update: Important – WorkAtHomeTruth has NEVER recommended Google Money Tree and still does NOT recommend Google Money Tree.

Here is the original post about GoogleMoneyTree:

Ding dong. I was pretty sure this was an example of "hidden negative option" marketing. That's when a company ignores FTC disclosure proximity suggestions and tries to hide the fact that you'll be billed unless you cancel (for some strange reason they don't want to just tell you that up front…hmmm…).

So I decided to walk through the Google Money Tree order form (using b.s. info of course) to see how they have their sales process set up.

Page 1 was the usual stuff – personal contact info but no credit card.

Page 2 – this is where the fun begins:

Right where you enter your credit card number GoogleMoneyTree puts:

• Google Money Tree Kit: Free
• Shipping & Handling: $3.88

This is where it gets good (or bad depending on how you look at it):

Right to the left of the form where you enter your credit card GoogleMoneyTree has this bold proclamation:

"No Hassle Money Back "Guarantee!
If you are not 100% satisfied with the kit,
simply call our dedicated customer service #
(located in the USA!), and we will immediately
refund your shipping payment… no questions, no hassle!"

It almost makes it sound like the only reason why you would ever really need to contact GoogleMoneyTree's customer service about billing would be to get your shipping payment refunded…wait, it actually DOES make it look that way.

But lo-and-behold. If you click on the Terms and Conditions Link – the one that states:

"I Agree With the Terms and Conditions" (which has the checkbox conventiently pre-checked for you…awwww…aren't they nice?)..

And look under the "Shipping & Other Fees" section you'll stumble onto the following:

"After seven days, if you choose not to cancel you will be billed your first monthly membership fee of seventy two dollars and twenty one cents for the membership fee for the googlemoneytree.com membership."

That's cool…wait…No it's not!! Why couldn't GoogleMoneyTree just tell me that on the main page? Oh they could have.

For some "odd" reason GoogleMoneyTree didn't want to do that. I wonder why not? I really wonder…well, not really.

Can someone explain to me how this scenario is materially different than the one discussed in this recent FTC Settlement:

“Free Software CD” Internet Operation Settles FTC Charges

Here's a tip from Katy about getting the company to refund even the shipping charge – although I would still confirm that the company follows through and actually DOES it (to see why, I STRONGLY URGE you to read about Sonya's experience in the discussion):

"I am very greatful to you. I had submitted my information already and had been granted access to their members page for registration. But after reading your blog I called 866-870-4257 spoke to their rep and he cancelled my order immediately but told me that the shipping fee would not be refundable. I then read to him their "No Hassle Money Back Guarantee" statement and he then told me "I will refund the fee only because you mentioned the statement". In other words had I not mentioned to him their guarantee he wouldn't have automatically refunded my money. Although the ad doesn't state that the "guarantee statement" has to be mentioned to be warranted a full refund."

Update: Since so many people have posted complaints here I've decided to go ahead and post a link directly to the FTC Complaint Assistant site.

Click here for a list of the Attorneys General. If you plan to file a complaint with the Attorneys General you should file in your own state AND the Attorney General of the state the company is in – which looks to be Nevada.

You can also file a complaint with the Better Business Bureau using the BBB Online Complaint System here.

Update: More information from Sandy who commented and has already filed a complaint: "The phone no is 1-877-382-4357 ftc.gov, The FBI ic3.gov Phone no. 1-800-243-0600. File your complaints with mine and they might go to jail or at least have to refund our money. Also the FTC said we could go to our local state government website and file a fraud complaint with them also."

For additional information on filing complaints, please visit the complaints section of our friends at EagleResearchAssociates.org.

Update 2/1/2009: Google Money Tree has made more improvements to its order process. Of special note is the fact that the checkbox on page two next to the Terms and Conditions agreement is no longer pre-checked.

Update 1/19/2009, 2:40 PM – The complaints about Google Money Tree continue to roll in (note, this update was made after the 1/19/2009 update directly below about the improvements to the order process)…

Update 1/19/2009 – Google Money Tree has made sigifnicant improvements to their order process. There are still a couple details I'm not crazy about, but it's good to see the changes they made. The second page HAS been changed to state the terms of the offer on the left side now which is a HUGE improvement, HOWEVER the checkbox for the Terms and Agreement is STILL prechecked and the pricing is WRITTEN OUT instead of being displayed in numerals – I'll be interested to see how that plays out. I'm going to ask about that at the National Consumers League blog about that as I'm not sure what to think of that.

The ABOVE is merely information on changes GoogleMoneyTree has made – it is NOT an Endorsement or recommendation of the GoogleMoneyTree program.

Update December 25, 2008…Happy Holidays & Merry Christmas? Take a look at the link to their Terms and Conditions on the Actual GoogleMoneyTree site which you can find here.

Here are a couple of AMAZING items from within that section:

• "We handle all charge backs and reversals as potential cases of fraudulent use of our services and/or theft of services"
• "In cases where we have provided a service and we have verified that a client has received a kit and/or received a password to our site(s), whether or not they have used the site in any way, possible actions taken by the company may include disabling access to your account, filing a complaint with the Internet Crimes Bureau or local authorities"

As of December 25th I am recommending people read the comments in this post AND on the blog, but consult with a legal professional as far as what their appropriate course of action should be in this matter.

NOTE: The above is NOT an endorsement of GoogleMoneyTree – it is merely information about the changes they've made since this discussion first started.

I highly recommend you contact The National Consumer's League.

You can file a complaint with them using the form here:

National Consumer League's Fraud Center Online Complaint Form

Their contact informaion is below:

Contact NCL

Write to us at:

NCL
1701 K Street, NW, Suite 1200,
Washington DC 20006

phone 202-835-3323
fax 202-835-0747
email info@nclnet.org

Click here for a direct link to the National Consumer's League Contact Page

I would still suggest you follow the complaint procedures outlined above.

Also, please note that may of the websites listed in our discussion of BradsMoney here have promoted GoogleMoneyTree OR are still promoting it.

Additional tips: If you want to get a FULL version of any web page that involves entering your credit card details, you can use the free service BrowserShots.org

Obviously, Google Money Tree wasn't people's path to work at home.

According to court documents in support of the guilty plea, before FMI sold its mortgages to financial institutions as long term investors, FMI utilized another group of financial institutions (referred to as “warehouse lenders”) to temporarily fund the mortgages before they were sold. Beginning in 2001, FMI began defrauding a series of warehouse lenders and eventually two other financial institutions serving as long term investors, causing an accumulated loss of at least $33 million to four financial institutions by the time FMI filed for bankruptcy in June 2008. The financial institutions were First Tennessee Bank, Franklin Bank, Wells Fargo Bank, and EMC Mortgage Corporation, a wholly owned subsidiary of JP Morgan Chase & Co. Taneja accomplished the scheme by (i) creating fictitious loans with bogus loan closings, (ii) selling the same legitimate loan to multiple investors, and (iii) pocketing the proceeds generated from refinancing loans, when the bulk of those proceeds were intended to payoff prior mortgages on the same properties. Court documents state that for at least part of the scheme Taneja conspired with the owner of TitlePro, a Fairfax title company. The company went out of business in May of 2008.

The investigation involving Financial Mortgage, Inc., was conducted by Special Agents of the FBI and the Internal Revenue Service. The prosecution of the case is being handled by Assistant United States Attorney Stephen Learned.

MULTI-MILLION DOLLAR PONZI SCHEME OPERATOR CHARGED WITH WIRE FRAUD IN CONNECTION WITH FRAUDULENT SALE OF CONSUMER ELECTRONICS

R. Alexander Acosta, United States Attorney for the Southern District of Florida, and Jonathan I. Solomon, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced today’s filing of an Information charging defendant Andres Leonel Pimstein, 48, of Miami-Dade County, with wire fraud in connection with the operation of a multi-million dollar “Ponzi” scheme, in violation of Title 18, United States Code, Section 1343.  The case will be heard before United States District Judge Adalberto Jordan.  Pimstein is scheduled to make his initial appearance before a United States Magistrate Judge on November 12, 2008.  If convicted, Pimstein faces a maximum term of imprisonment of 20 years and a $250,000 fine.

According to the Information filed in court, from approximately March 2005 through early 2008, Pimstein solicited individuals to invest in a business venture involving the purported sale of consumer electronics, – namely, the Apple iPod®– to Ripley Corp. S.A., a department store chain based in Chile.  Pimstein told investors that he planned to wholesale-purchase the iPod® and other electronics and sell them to Ripley at above-market rates.  Pimstein promised investors annual returns ranging from 18% to 36% to be paid in monthly installments.

Pimstein solicited investors into numerous corporations created for operating the scheme, including The Bottom Line of South Florida, Inc., and Summit Trading LLC.  During the scheme, Pimstein is alleged to have offered some of the investors the opportunity to earn additional proceeds by recruiting new investors.  In exchange for a commission fee, these investors formed independent corporate entities from which to solicit and receive new investor funds.

To execute the scheme, Pimstein allegedly created false invoices to document the purported purchase and sale of various consumer electronics.  In fact, however, he did not purchase anything for subsequent sale for profit to Ripley or anyone else.  Instead,  Pimstein used the investment capital he received from some investors, intended for product purchases, to pay monthly returns, “interest payments,” and distributions to other investors who sought to withdraw their money.  This is called a “Ponzi” scheme.  Pimstein also used the investment capital her received for how own personal expenses, including residential mortgage payments, automobile note payments, and child support.

As a result of the scheme, Pimstein raised at least $30 million.  At least 85 of the scheme’s investors lost more than a total of $20 million in investment capital

In addition to the criminal charges, the Miami Regional Office of the Securities and Exchange Commission today filed a civil complaint in the United States District Court against Pimstein, The Bottom Line of South Florida, Inc., and Summit Trading LLC in connection with the  “Ponzi” scheme described above.  The SEC complaint seeks permanent injunctions, an accounting, disgorgement, and civil penalties.

Mr. Acosta commended the investigative efforts of the Federal Bureau of Investigation, as well as the cooperative efforts of the Securities and Exchange Commission’s Miami Regional Office.  This case is being prosecuted by Assistant United States Attorney Jeffrey E. Tsai.

According to the FTC's complaint, the defendants deceptively sell Internet business directory listings and Web page hosting services by phone to Spanish-speaking businesses. The defendants allegedly tell consumers they are calling from the yellow pages or the local telephone company to verify or update business names, addresses, and telephone numbers. The call is frequently referred to as a renewal, and they typically do not mention cost. If asked, they say the cost will be "the same as last year," although the consumers have never purchased their services.

As stated in the complaint, the defendants' bills typically arrive in envelopes bearing a symbol often associated with the local telephone company's yellow pages directory – the familiar two fingers walking across a directory. The bills come from a company called Enterprise Who's Who and typically charge $359.40 on the initial bill. Many businesses pay the bills believing they are from their local telephone company, or after being told that someone at the business agreed to the service and that the defendants have a tape of the authorization. Consumers who question the charges are threatened with collection and bad credit. Consumers who listen to the defendants' tape hear no authorization but are still threatened with collection.

When consumers continue to refuse to pay, the defendants allegedly send letters from a purported collection agency, PCM Collections, and threaten adverse credit reports and lawsuits. In many cases, consumers pay the bills to protect their credit.

Consumers who pay often receive additional invoices for other unordered services, variously described as the balance owed for the original service, a renewal fee, or an additional Web hosting service. The defendants continue to tell consumers they have taped authorizations. When consumers ask to cancel additional unauthorized services the company sometimes chargesthem undisclosed cancellation fees ranging from $299 to $500. If these bills are not paid promptly, the defendants pursue collection through re-billing, threatening letters, and dunning telephone calls. If consumers complain to the Better Business Bureau, the defendants agree to stop charging those consumers, but they continue to bill and dun them.

The defendants are 9163-7710 Quebec, Inc., doing business as Enterprise Who's Who and PCM Collections, and its chief executive officer, Rodolfo Garcia Rodriguez, Jr. They are charged with violating the FTC Act by falsely representing that they have a preexisting business relationship with consumers, that consumers have agreed to purchase their services, and that consumers owe them money.

The FTC appreciates the assistance of the Royal Canadian Mounted Police and Project COLT, a multi-agency, U.S.-Canada initiative formed in the 1990s to combat telemarketing fraud.

The Commission vote to authorize staff to file complaint was 4-0. The complaint was filed in the U.S. District Court for the District of Puerto Rico. Judge Gustavo A. Gelpi issued a temporary restraining order on October 9, 2008, and a preliminary injunction on October 17, 2008.

NOTE: The Commission files a complaint when it has "reason to believe" that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendants have actually violated the law. The case will be decided by the court.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC's online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,500 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC's Web site provides free information on a variety of consumer topics.

MEDIA CONTACT:

Frank Dorman,
Office of Public Affairs
202-326-2674

STAFF CONTACT:

James A. Prunty,
Bureau of Consumer Protection
202-326-2438

(FTC File No. 0823167)
(Enterprise)