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Discuss what's fucking going on, and which programs are best and worst. One-time "program" announcements from "established" webmasters are allowed. |
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#1 |
xxx
Industry Role:
Join Date: Jun 2003
Location: UK
Posts: 31,547
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FBI Hikes Gambino Site Take at $750 Million
FBI Hikes Gambino Site Take at $750 Million
OVERLAND PARK, Kansas ? Federal authorities now believe that the Gambino crime family?s online adult business generated $750 million in revenue, XBiz has learned. XBiz reported last month on new federal indictments alleging that Lexitrans and other shell companies in Overland Park, Kansas, were used to help run adult Internet sites and 900 numbers that advertised free trials but charged customers anyway. Thousands of adult surfers who thought they were taking a free peek at the sexually explicit material actually were charged $59.99 a month, FBI spokesman James Margolin told XBiz. ?Based on our belief, this is the largest consumer fraud in U.S. history," Margolin said. ?The FBI is working with the Federal Trade Commission on the case, and we?re confident the figure will exceed $750 million ? the numbers are growing, not shrinking.? The scheme originally was thought to have bilked customers out of $230 million when the FBI made the indictments Feb. 10. Lexitrans Inc. was allegedly founded by members of the Gambino family, including Richard Martino, who partnered with Norman Chanes, producer of several low-budget Hollywood movies and an alleged associate of the Gambino organization, to create an informal joint venture with Crescent Publishing Group Inc. Lexitrans moved from New York in 1996, after up-and-coming members of the Gambino crime began looking for a new home. The company?s Overland Park offices contained 7,000 square feet of data center space, with redundant power and huge fiber-optic pipes. One source as saying that Lexitrans paid $50,000 a month for Internet access alone. The adult websites Lexitrans ran were flourishing. ?Ridiculous amounts of traffic, ridiculous amounts of refunds,? a former employee said in court papers. Before federal indictments started landing, Lexitrans attracted little attention. Crescent owned adult magazines such as Playgirl and Live Young Girls, and the ideas was to create Internet sites for the magazines, according to court papers. A source said that at one point the company was spending $100,000 a day for placement on search engines such as AltaVista. He also said that Lexitrans paid $50,000 a month for Internet access alone. Lexitrans programmers, the source said, hatched the idea of inundating users with pop-up ads for related pornographic sites. With a fraction of people going to those sites and signing up for free tours, the idea worked. Each of the shell companies was controlled by the Mafia and used to defraud consumers through Internet and telephone schemes, according to the indictment. The Federal Trade Commission and the New York State Attorney General settled a lawsuit against Crescent in 2000. Crescent, according to the indictment, has been returning one of every three dollars of revenue the sites generated in 1999 as part of the settlement. So far more than 450,000 claim forms have been mailed to potential claimants to those who were billed for the following sites: Playgirl.com, Playgirlde.com, Playgirldeutschland.com, Playgirldeutsch.com, Playgirlmag.com. Allwetsex.com, Bi-curioustv.com, Candygirlsmag.com, Chateudesade.com, Cheri.com, Cherimag.com, Cheritv.com, Climaxmag.com, Cock-tv.com, Cun-tv.com, Hotyounghunks.com, Fastlanesex.com, Fleshfest.com, Freeskinparty.com, Fukvision.com, Hawkmag.com, Highsociety.com, Highsocietymag.com, Highsocietydeutsch.com, Highsocietydeutschland.com, Highsocietytv.com, Lusthighway.com, Planetflesh.com, Schoolgirls4u.com, Sexundersurveillance.com, Sexcityintl.com, Sexonthestrip.com, Teenplaythings.com, Xxxposure.com and Ygal.com. http://www.xbiz.com/news_piece.php?id=2820
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The Affiliate Program |
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#2 |
Confirmed User
Industry Role:
Join Date: Nov 2001
Location: Southfield, MI
Posts: 9,812
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Holy shit that's a rediculous amount of money. So I wonder if they had their own merchant accounts for all this? I would presume as much.
Brad
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President at MojoHost | brad at mojohost dot com | Skype MojoHostBrad 71 industry awards for hosting and professional excellence since 1999 ![]() |
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#3 |
Confirmed User
Join Date: Feb 2002
Location: Location: Location: Location: Location: Location: Location: Location: Location: Location: Location: Location: Location: Location: Location: Location: Location: Location: Location: Location: Location: Location: isN'T everything
Posts: 5,394
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that sux
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SIG TOO SMALL! Maximum 1200x600 button and no more than 30 text lines of ALL SIZES and COLORS. Unless your sig is for a GFY top banner sponsor, then you may use a 6240x4800 instead of a 1024x800. |
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#4 |
Confirmed User
Join Date: Apr 2004
Location: Aarhus, Denmark
Posts: 1,199
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Well thats just great - not the kinda thing that improves the rep. of this biz...
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#5 |
Registered User
Join Date: Dec 2003
Posts: 2,120
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There are some good tips in that article.
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#6 |
Confirmed User
Join Date: Jul 2001
Location: The Netherlands
Posts: 2,239
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I don't believe much of that.
$100K a day on se traffic? I know of people spending tons of money on se traffic but not even close to 100K a day. $750M sounds too high as well. At $50 a sale they'll need 15M sales/rebills. |
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#7 |
Confirmed User
Join Date: Feb 2004
Location: New Jersey
Posts: 1,094
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never thought crime families would take the time to even start something of that sort. Considering the risk and the amounts of money they were dealing with.
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#8 | |
Confirmed User
Industry Role:
Join Date: Nov 2001
Location: Southfield, MI
Posts: 9,812
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Quote:
Perhaps they were also using the business to "launder" money so not all of the revenue wasn't genuinely from surfers? Brad
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President at MojoHost | brad at mojohost dot com | Skype MojoHostBrad 71 industry awards for hosting and professional excellence since 1999 ![]() |
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#9 |
Die With Your Boots On
Join Date: Oct 2003
Location: Hawaii
Posts: 22,872
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WOW
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#10 | |
Confirmed User
Join Date: Nov 2001
Location: Miami, Florida
Posts: 1,491
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Quote:
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#11 | |
Confirmed User
Join Date: Nov 2001
Location: Miami, Florida
Posts: 1,491
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Quote:
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#12 | |
Confirmed User
Industry Role:
Join Date: Sep 2003
Location: (Still) One Touch Cockie
Posts: 3,821
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Quote:
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#13 |
Confirmed User
Join Date: May 2002
Posts: 1,909
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And people wonder why Visa and Mastercard have so many rules and policies.
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#14 |
Confirmed User
Join Date: Feb 2004
Location: Florida
Posts: 969
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If only they had been running a 60/40 affiliate program
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#15 | |
Confirmed User
Join Date: May 2001
Posts: 2,944
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Quote:
I guess it's possible this operation was totally isolated, but whenever a scam (whether of customers or webmasters) is exposed, there always seems to be a crop of people popping up and claiming to have known about it. I get more p*ssed at people who turn a blind eye to the cr*p that goes on, than at those who dish it out. Because if legitimate webmasters can't be bothered to protect the industry and each other, we might as well hang out a sign saying "shysters welcome". |
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#16 |
aka K-Man
Industry Role:
Join Date: Oct 2001
Location: The Gutter
Posts: 29,292
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that's peanuts
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Crypto HODLr Crypto mining Angel investor |
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#17 | |
want to get in shape
Join Date: Jan 2003
Location: on the lake
Posts: 12,329
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Quote:
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#18 |
Confirmed User
Join Date: Dec 2002
Location: Sweden
Posts: 7,219
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Something to do with Paris Hilton Scam?
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I went from 100 to 313,000 satoshis in 2 days! Lots of daily freerolls... |
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#19 | |
Confirmed User
Join Date: May 2002
Posts: 1,909
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Quote:
Oh well the power of money. |
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#20 |
Confirmed User
Join Date: May 2002
Location: Somewhere in the Mountains, far far away
Posts: 2,422
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Who would have thought the MOB fell that low and do PORN online
ROTFL Ge Ge, who would have thought.. What's the world coming too.. PF PF
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Partying since '96 and not going anywhere Anna's Dorm |
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#21 |
[----------------------]
Join Date: Aug 2001
Posts: 14,486
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there go thousands of customers who will barely ever buy a porn membership again
(in case its really true) those numbers look a little bit big to me....but... who knows) |
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#22 |
Will everyone please review my newest site?
Join Date: May 2002
Posts: 841
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#23 |
No Refunds Issued.
Industry Role:
Join Date: Feb 2001
Location: GFY
Posts: 28,300
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#24 | |
Confirmed User
Industry Role:
Join Date: Mar 2004
Posts: 1,521
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Quote:
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#25 | |
No Refunds Issued.
Industry Role:
Join Date: Feb 2001
Location: GFY
Posts: 28,300
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Quote:
don't worry, every day thousands more suckers discover the wonders of internet ![]() |
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#26 |
God is Brazilian
Join Date: Feb 2001
Location: Brazil
Posts: 10,601
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A few domains sounds familiar. Did they buy clicks from that Serge Clicks program?
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#27 |
Registered User
Join Date: Dec 2003
Location: W. Hollywood
Posts: 89
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I actually received a letter regarding the class action lawsuit against Trans Digital saying they wrongly charged my credit card 59.99. I had to sign a paper saying I agreed with that amount and send it back...still waiting for my 59.99
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Account Representative, ChiChiClicks Toll Free 1-800-997-9071 x 245 | ICQ #267863713 ![]() |
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#28 |
BACON BACON BACON
Industry Role:
Join Date: Nov 2002
Location: Poems everybody, the laddie fancies himself a poet
Posts: 35,462
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never heard of them before
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#29 | ||
Too old to care
Industry Role:
Join Date: Jun 2001
Location: On the sofa, watching TV or doing my jigsaws.
Posts: 52,943
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Quote:
Quote:
But the worse side of this is Visa. At what point did they say to themselves "There is something wrong with this account" Was it when the FBI were standing in there offices? How come they did not just cancel the account, or were they just looking at the bottom line? |
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#30 | |
No Refunds Issued.
Industry Role:
Join Date: Feb 2001
Location: GFY
Posts: 28,300
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Quote:
Nigga please. You know damn well that 90% of affiliate programs fuck surfers over in some way (be it a shitty members area or free trials/cross-sales bullshit) |
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#31 | |
Confirmed User
Industry Role:
Join Date: Nov 2001
Location: Southfield, MI
Posts: 9,812
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Quote:
I wonder how many merchant accounts and shell companies they went through. Brad
__________________
President at MojoHost | brad at mojohost dot com | Skype MojoHostBrad 71 industry awards for hosting and professional excellence since 1999 ![]() |
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#32 | |
Confirmed User
Join Date: May 2001
Posts: 2,944
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Quote:
Maybe I'm missing something and for sure some surfers will get bitten a few times before they learn the lesson. But doesn't that mean that instead of enjoying an ever increasing market, the best we can hope for is to be fighting over the same number of innocents each year? Perhaps the picture isn't quite as black as that. But is there some major downside to the programs that don't undermine the market, which makes it worthwhile supporting the programs which do? |
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#33 | |
Black Vagina Finder
Join Date: Jan 2002
Location: The Midwest
Posts: 13,975
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Quote:
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![]() Black Pussy Click On Mr Cosby..CCbill, 60/40, 136 FHG's....The Cos Loves Black Ghetto Pussy!! |
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#34 | |
Confirmed User
Join Date: Jan 2002
Location: In the walls of your house.
Posts: 3,985
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Quote:
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"Every normal man must be tempted, at times, to spit on his hands, hoist the black flag, and begin slitting throats." --H.L. Mencken |
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#35 | |
Pounding Googlebot
Industry Role:
Join Date: Aug 2002
Location: Canada
Posts: 34,482
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Quote:
WG
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I play with Google. |
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#36 | |
Confirmed User
Join Date: Nov 2002
Posts: 7,761
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Quote:
Could you imagine what you might be able to get these days over at google for such a commitment? 3 mil a month... ![]() |
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#37 |
GFY HALL OF FAME DAMMIT!!!
Join Date: Jan 2002
Location: that 504
Posts: 60,840
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if any of you believe that figure you are dumb.
this is exxagerated as it ALWAYS is to make the public turn an eye and pay attention. this is another smear campaign being launched against this industry. to see it any other way is denial.
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![]() Want an Android App for your tube, membership, or free site? Need banners or promo material? Hit us up (ICQ Fletch: 148841377) or email me fletchxxx at gmail.com - ![]() |
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#38 | |
Confirmed User
Join Date: Jul 2001
Location: The Netherlands
Posts: 2,239
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Quote:
![]() Not saying they didn't make that amount of money but not just with online porn. |
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#39 | |
Pounding Googlebot
Industry Role:
Join Date: Aug 2002
Location: Canada
Posts: 34,482
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Quote:
WG
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I play with Google. |
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#40 |
Confirmed User
Join Date: Feb 2004
Posts: 3,004
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Mafia is everywhere
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#41 | |
Confirmed User
Industry Role:
Join Date: May 2001
Posts: 9,240
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Quote:
Some of the people involved with this are still very active in this business. Some of them run webmaster boards, for example. Damned if I'm naming anyhahahaha though ![]() |
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#42 | |
Confirmed User
Join Date: Dec 2002
Location: Vancouver
Posts: 2,794
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Quote:
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Adult Comics Club - Updated Bi-Daily. 60% Recurring Payouts. Exclusive Comic Content. |
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#43 |
hi
Industry Role:
Join Date: Jun 2002
Posts: 16,731
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M3Server - NATS Hosting |
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#44 | |
Confirmed User
Industry Role:
Join Date: May 2001
Posts: 9,240
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Quote:
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#45 |
GFY HALL OF FAME DAMMIT!!!
Join Date: Jan 2002
Location: that 504
Posts: 60,840
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you people act like there isnt mafia in porn.
trust me. socal is ran by crooked porn mafia. ![]()
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#46 |
Confirmed User
Join Date: May 2002
Location: FLORIDA
Posts: 4,977
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I wonder if snow was involved http://www.mafiabucks.com ? LOL
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i buy massive xxx dating traffic. |
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#47 | |
Programming King Pin
Industry Role:
Join Date: Oct 2003
Location: Montreal
Posts: 27,360
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Quote:
And I will not name some of them... ![]()
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UUGallery Builder - automated photo/video gallery plugin for Wordpress! ![]() ![]() ![]() ![]() |
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#48 | |
Confirmed User
Industry Role:
Join Date: Aug 2001
Location: Beach
Posts: 5,281
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Quote:
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#49 | |
Confirmed User
Join Date: Nov 2001
Location: Miami, Florida
Posts: 1,491
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Quote:
The main reason I distrust numbers from law enforcement is their historical preference of inflating dollar amounts to give their busts more credibility. My favorite is when they take a drug bust (for example 100 kilos of coke) and they then give a dollar amount to the bust based on what that coke would sell for cut up 4 times and sold per gram on the street. When I use to work doing criminal defense we once had a case where a defendant had 4 pot plants in his trunk and the police originally charged him based on the weight of the plants including the dirt in the pail. It was ridiculous and the state attorney on the case plead the case down dramatically with very little prodding. Meanwhile the newspaper report had the police confiscating "55 lbs of marijuana" from our clients car . High-larious it was (except for the poor sap charged). |
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#50 |
Confirmed User
Join Date: Mar 2004
Location: Your Mother's Snatch!
Posts: 1,874
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i agree these numbers are probably being inflated for the reason of scaring off customers and bringing more attention to porn
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