It is done

[Accountant]

I’ve read the Consent Decree and a few things about it are kind of interesting. First, the dates; Trevor singed it on 7-7-7, which is the day of his wedding. I am assuming he did in fact at least plan to be married on that date, conspiracy theories aside it was a date known too far in advance to be a trick it would seem. Now, maybe he didn’t go ahead with it, I dunno, seems like it would be just a little creepy to sign a consent decree and get married on the same day.
But, it’s not possible he was surprised by it either. First, he got it from his attorney, not directly from the SEC, the Government doesn’t work Saturdays, so he didn’t go to the Atlanta Office and sign it, it was brought to him by a third party. It would seem that he signed it at his attorney’s office, which would be normal, although it is plausible that it was either faxed or mailed to him in Bowling Green (was the wedding to be in BG? Or was it in Wake Forrest???) Doesn’t matter, it came from his attorney and as such, he knew about it in principle at least a few days ahead of time. So how are we to explain him appearing (via phone) on the Moboking Update on 29th June? By then he was almost sure to have known he was on the brink of some settlement with the SEC that would be the end of CEP and yet here he is assuring the victims that everything is going to be alright. There is no way that his attorney would have allowed him to do that, it could have scuttled the Consent Decree for starters, it will look very bad when the criminal case comes for trial. Aside from the problems it will cause Trevor in the future, it was just evil to do that people when he had to know the truth.
I also have to wonder whether his attorney even knew about the Autosurf sites. What kind of madness was it to continue operating other illegal ponzi schemes while the SEC is investigating your main line business? Guys, when you get out of prison you might want to remember one little truism “Never lie to your own lawyer, not even in omission!”
How is it going to look when a jury of your peers sees that you were only sorry you got caught, but not sorry enough to stop the things the SEC didn’t bother investigating at the time.
Before anyone even brings up the argument that C88 and CEPCoast may be legit since they were not mentioned in the complaint, that’s not right. The documents refer to CEP, CEP Trust and CEP Holdings and gives the proper legal distinction between them, but what is not apparent is that the government looked at the surfs as being part of CEP and try as I might I cannot find how they were legally separate from at least one of the other companies. You’ll also notice in the Decree that it refers to Autosurfs in a manner that makes clear that as far as the SEC is concerned; Autosurfs as operated like this are not “advertising companies with profit sharing” but are in fact ponzi schemes themselves. This is a position the SEC has in fact taken every time they have addressed the issue, though some scammers still get away with that explanation.
This is an absolute slam dunk for anti-scammers. Unlike the 12DP case where the language of the C&D left some wiggle room for pimps to say it was just a poorly run business, or that Charis Johnson just made technical mistakes, this case makes clear that CEP was nothing but lies and corruption from the day it was started.
Trevor and Clayton are going to jail. The pimps are promoters may even go to jail on this one. The “winners” are going to have to pay back all they took out and with interest, too. Aside from the 5,000 people who fell for this scam about a third of which are likely as culpable as the chief defendants, all the good guys involved get a win on this one. But still, homes will be lost, marriages divorced, lives ruined for years. I now have to ask all the “it’s our money” and “we know the risks” pimps out there if this is still just a game and “why do you even care?” if they can still question the good intentions of the naysayer posters in these forums. Preventing disasters like the thousands this one little program has caused today is all I’m trying to do. Is that such an evil thing to aspire to?

[mitrod3]

I’ve read the Consent Decree and a few things about it are kind of interesting. First, the dates; Trevor singed it on 7-7-7, which is the day of his wedding. I am assuming he did in fact at least plan to be married on that date, conspiracy theories aside it was a date known too far in advance to be a trick it would seem. Now, maybe he didn’t go ahead with it, I dunno, seems like it would be just a little creepy to sign a consent decree and get married on the same day. But, it’s not possible he was surprised by it either. First, he got it from his attorney, not directly from the SEC, the Government doesn’t work Saturdays, so he didn’t go to the Atlanta Office and sign it, it was brought to him by a third party. It would seem that he signed it at his attorney’s office, which would be normal, although it is plausible that it was either faxed or mailed to him in Bowling Green (was the wedding to be in BG? Or was it in Wake Forrest???) Doesn’t matter, it came from his attorney and as such, he knew about it in principle at least a few days ahead of time. So how are we to explain him appearing (via phone) on the Moboking Update on 29th June? By then he was almost sure to have known he was on the brink of some settlement with the SEC that would be the end of CEP and yet here he is assuring the victims that everything is going to be alright. There is no way that his attorney would have allowed him to do that, it could have scuttled the Consent Decree for starters, it will look very bad when the criminal case comes for trial. Aside from the problems it will cause Trevor in the future, it was just evil to do that people when he had to know the truth. I also have to wonder whether his attorney even knew about the Autosurf sites. What kind of madness was it to continue operating other illegal ponzi schemes while the SEC is investigating your main line business? Guys, when you get out of prison you might want to remember one little truism “Never lie to your own lawyer, not even in omission!” How is it going to look when a jury of your peers sees that you were only sorry you got caught, but not sorry enough to stop the things the SEC didn’t bother investigating at the time. Before anyone even brings up the argument that C88 and CEPCoast may be legit since they were not mentioned in the complaint, that’s not right. The documents refer to CEP, CEP Trust and CEP Holdings and gives the proper legal distinction between them, but what is not apparent is that the government looked at the surfs as being part of CEP and try as I might I cannot find how they were legally separate from at least one of the other companies. You’ll also notice in the Decree that it refers to Autosurfs in a manner that makes clear that as far as the SEC is concerned; Autosurfs as operated like this are not “advertising companies with profit sharing” but are in fact ponzi schemes themselves. This is a position the SEC has in fact taken every time they have addressed the issue, though some scammers still get away with that explanation. This is an absolute slam dunk for anti-scammers. Unlike the 12DP case where the language of the C&D left some wiggle room for pimps to say it was just a poorly run business, or that Charis Johnson just made technical mistakes, this case makes clear that CEP was nothing but lies and corruption from the day it was started. Trevor and Clayton are going to jail. The pimps are promoters may even go to jail on this one. The “winners” are going to have to pay back all they took out and with interest, too. Aside from the 5,000 people who fell for this scam about a third of which are likely as culpable as the chief defendants, all the good guys involved get a win on this one. But still, homes will be lost, marriages divorced, lives ruined for years. I now have to ask all the “it’s our money” and “we know the risks” pimps out there if this is still just a game and “why do you even care?” if they can still question the good intentions of the naysayer posters in these forums. Preventing disasters like the thousands this one little program has caused today is all I’m trying to do. Is that such an evil thing to aspire to?

Thanks for sharing this....it also helps in dealing with those here now dealing with all this.

[Accountant]

Clayton signed his in Indiana (notary public was Indiana registered) but there is no notary seal in Trevor's signature. I wonder, did he in fact get married on Saturday?

[Accountant]

And another thing, he was telling people last week he would be away for a month or so, this was undoubtably after he knew he was in fact not ever going to be coming back, to the program anyhow.

[MtnGrl]

I've been offline all day and I just don't have anymore to say. My heart goes out to those whose lives have been torn apart by this. I am so sad for you all. Please do not ever participate in one of these kinds of programs again. Pleaaaaase!

One thing I do know is that people are now open to other income ideas. What do people here do to make money online or even what do you invest your money in? These peeps will be looking for a legitimate way of making money from now on I hope.

Right now I am not working. I busted my rear end for a few years as a manager and I am taking a bit of time off. Online? Nuttin I ain't doing nuttin. Is there really anything online to even do?

[Accountant]

I invest in

Ford Motor Company,
I work there, I have a small holding, and I think it's undervalued.....

Proctor and Gamble
No matter how bad the economy is, people still buy soap

ANHEUSER BUSCH
Ditto, people still buy Beer

Phillip Morris
86% Gross profit on the product, product creates lifelong addiction BUT has huge uncertain liabilities in future...good bet

Kraft Foods
was recently spun off of Phillip Morris, I like it so I kept it

TECUMSEH Products USA
I watched it tank down to $8 a share and knew better, bought it at $9 and today it's at $23, all in less than 2 months, a great "impulse purchase"

Fidelity Overseas Fund (FOSFX)
has been a very steady performer, owned it for 7 years and made a lot of money here

In addition I own 40% of a company I started myself and is closely held, we make performance parts for cars and own a business jet that is leased to a Part 135 Charter operator.


And to date none of them has had server glitches, DDOS attacks, script errors or hackers that disrupted my investments for a single day.

[libby]

Hi MtnG.,

Have you ever tried to do online marketing. Does it work? I ordered a program by Ewen Chia a few months back, but never used it because I was "blessed" to find CEP. I think I may dig it out and try it now. Also some people try forex, but I don't know if I could catch on to that. Other than that, I can't think of anything else online to do to make some honest money.

libby

I've been offline all day and I just don't have anymore to say. My heart goes out to those whose lives have been torn apart by this. I am so sad for you all. Please do not ever participate in one of these kinds of programs again. Pleaaaaase!

One thing I do know is that people are now open to other income ideas. What do people here do to make money online or even what do you invest your money in? These peeps will be looking for a legitimate way of making money from now on I hope.

Right now I am not working. I busted my rear end for a few years as a manager and I am taking a bit of time off. Online? Nuttin I ain't doing nuttin. Is there really anything online to even do?

[MtnGrl]

Ooooo yes, forex! I have been interested in it for a long time and have been studying it. I am just practicing right now though... lol


Good for you about all the other things! That's great!

[Accountant]

Keep this in mind about FOREX

Less than 10% of PROFESSIONAL Forex Traders make profits in a given month that are better than the performance of the S&P 500

FOREX is a zero sum game, every dollar you make is a dollar someone else lost, and by volume, you're playing against professionals who have been entrusted with billions of dollars of other people's money to play against you

There is no predictable pattern in FOREX, while over a given time period certain things tend to happen, in any given day that is no way to predict what will happen today. And again, the pros who you are betting against can afford to let their positions set until the market turns but you most likely cannot.

[MtnGrl]

Thanks Accountant :) I sincerely appreciate that :)

Well shoot! I was trying to get caught up at the forums over there and poof! They are DOWN!

[Accountant]

That last one is something most casual forex traders don't appreciate....

You've been setting at your computer for 12 hours, slaving away over a pip here and there and you're tired, your reflexes are slow, etc... and you have the rent money down 5% for the day. You need to wrap it up for the day, and while you hate to close out when you're down, it's not a great deal of money. BUT YOU MUST CLOSE YOUR POSITIONS every day, the markets are open 24 hours and you absolutely cannot afford to leave open positions while you take a nap for 8 hours, an earthquake in Tokyo or a terrorist in New York or London can wipe you ouot in the middle of the best dream you ever had, so really, you have to retreat to cash before you walk away from the computer.

Now the guy you're playing against who works at JP Morgan Chase is just as tired as you, has $40 billion on the line and he's a little slap happy himself. He is also down 5% for the day and in his league you just don't drop $2 billion because you're tired, so what's he to do? AH, he hands the position off to a trader in the San Francisco office to watch over it and if it doesn't turn by the end of HIS day, he passes it along to Sydney, Tokyao or Hong Kong and if it stays static all night he gets it back in the morning in Manhatten. The difference is, he had all night to come back even, he never has to eat a loss because he has to go....

[MtnGrl]

Fascinating Accountant! I'm loving your info!

[HonestIncome]

Hi MtnG.,

Have you ever tried to do online marketing. Does it work? I ordered a program by Ewen Chia a few months back, but never used it because I was "blessed" to find CEP. I think I may dig it out and try it now. Also some people try forex, but I don't know if I could catch on to that. Other than that, I can't think of anything else online to do to make some honest money.

libbyPlease take accountants good advice and do
not dabble with forex. You will be eaten alive and lose big bucks.
I wouldn't even consider it.

Ewen Chia is pretty good but you may not be cut out to make money
online. You could be like Ewen and sell digital programs to people
that will never use them just like yourself.

A lot of people get into PayPerClick selling but it is also a noob
money pit. Affiliate marketing is the easiest way to make it online.

Sorry I can't teach it here but when you click on links you are
often making someone money. Look at the bottom of websites
where it says webmasters or affiliates and you will be surprised
how many there are.

You will need to learn how to make websites, drive traffic and get
search engine listing results and as I said before it may not be for you.

[MtnGrl]

That is something else I have thought HI but I don't understand how to make websites and drive traffic to them. It's fascinating though and I've heard people make good money doing it.

[Webwatch]

There is one option you may consider.
Find a product/Products your interested in, find a distributor, open up a retail e-commerce site and sell to joe public.

Sounds easy, well of course it isn't and the retail world is very cut throat but opening a shop is a shure fire way to become your own boss.

Many fail at this and be prepared to sell at a loss at times when competition is at its fiercest.
Choose something you have a passion/skill for and away you go.

[Accountant]

Retailers don't buy inventory, they rent it. The longer they hold it, the more it costs.

Think of it this way. You want to buy a new car. The dealer ordered one from the factory and it was delivered on Jan first, and he gets a bill for it from the manufacturer. The manufacturer also has what is called "floor plan" where his inventory is financed up to a certain level, he never pays for a car until after he sells it, until he sells it it remains part of his "floor" which is financed as an aggregate. While he doesn't have to pay for the car, he has a limit on how high his floor can be (a credit limit) and he does have to pay interest on the floor every month, due on the last day of the month at close of business. So the car you want is sitting there, from a fincance perspective, in the floor. If you offer to buy it on the day it arrives, you may get a better deal, that is the maximum profit amouont for the dealer for that car. If it's been there a while, you may also get a deal, all the profit is going out of the car and he wants to get rid of it, he's paid $1400 interest on it and the sale will only net him $1500....another month and he loses money selling it at sticker price....

Basically, all retail operates the same way, whether the people who operate realize it or not, unless you pay cahs up front for your inventory, you're just renting it and your profit is what you sell it for minus the rent you paid on it plus the aquisition costs.

Sometimes I make some sense, don't I?

[Webwatch]

Sometimes I make some sense, don't I?

You certainley do.
Stock holding is a major issue to retailers, with the march on of the internet there are some distributors who may direct ship to the customer, however be warned you are unlikely to find these by a Google search and any you do find may not be the best to try, just getting a trade acount somewhere can be a nightmare unless you can show that you are a genuine business with a good track record, bit of a catch 22 situation this which is one of the many reasons why new start ups fail in the first year.

Depending on what product you sell there are some advantages to help the small retailer be it cash sale discounts or price protection which usually allows for a credit if a particular item drops in value.
Theres never any real substitute for buying power but loyalty to one distributor can go a long way, clearence, refurbished items are also a bonus if your in a position to be offered them. Also from time to time you may find yourself lucky enough to be given freebies or other incentives to stock certain items.

After a while you may be offered credit which is nice but easy to get carried away with, luckily for many suppliers they can get this credit protected just in case the retailer goes bust.
A good line of credit is also a nice way for your supplier to keep you tied to them.

I touched on this earlier but sometimes it is neccesary to sell at a loss in order to recoup some capital from a dead/slow selling product or even give something away for free to entice a customer to use you above your competition.

There is also the minefield of legal requirements when dealing in the retail environment, i.e Sales of Goods Act, Distance selling regulations, consumer credit act, to name but a few UK ones.

Whatever you do, the old addage, Quality is remembered long after price is forgotten, still holds true in my opinion. In a world where customer service can be poor he/she who treats the customer best will be King.

I could go on and on and no doubt be disagreed with in many areas but one thing to always consider when setting up a business is to protect your investment which is easier said than done.

[Accountant]

As soneone who owns a business that does not sell retail (we only sell to our distributers and dealers) I'd mention that we play a double game there. When I ship something on credit, I expect to be paid in 7 days, if you don't pay me in a week, I sell the account at par -6% to a factor and add a 10% surcharge, so I make money either way and don't take any risk on getting paid, the factor buys that risk from me. Now I can't legally get away with a 10% surcharge, so what I (an any manufacturer) do is raise the list price by that amount and offer a 10% discount if you pay within 7 days. If you pay fast I make what I expected, if you pay slow, I make a little more for the hassle of dealing with the factor, but either way, I get paid in 7 days. My ompany had imputed sales (what the parts eventually would sell for at retail, not what we charged wholesale) of $17 million last year, so it adds up.

[Webwatch]

Sounds like a very shrewd move indeed, Invoice factoring is not an option for us really as pre-payment is 99% of the time.
However some line of credit is offered to schools, local authority councils, govt depts (these are amongst the worst payers) and regulars.

Keeping a healthy cash flow is always priority but easier said than done at times.

[Accountant]

If you ever study a big retail company you'll find the guys running it are almost to a man idiot savants in Math. The kind of guys who can tell you the daily change in inventory at every store in a chain or the aggregate company invenetory change for the last 2 years etc....they're fascinating people. Federated Department Stores (macy's etc...) is HQ'd in Cincinnati and I know a few higher level managers there. I expected them to be real whizzes at marketing etc.... but it's funny, they kind of look at those people as beneath them, the ones who couldn't cut it so to speak....but they are just wicked good at blackjack. I went to Argosy with one once and he was just amazing, I half expected to get kicked out of the casino.