$11M Internet Scam

[VIPimp]

in just 17months!!!


PORTLAND, Ore. - The FBI is investigating an alleged Internet scam that has raised $11 million from 1,600 investors nationwide during the past 17 months.

The scam involve nonexistent products and a bogus Internet business named in documents filed in U.S. District Court in Portland as part of an attempt by federal prosecutors to seize property bought with proceeds from the scam.

The waterfront property in Gig Harbor, Wash., was purchased by Scott Louis Guenther and property in Shalimar, Fla., is linked to Frank Richard Hendricks, according to an affidavit written by FBI Special Agent Joseph Boyer.

The pair are accused in the document trying to defraud investors through their company, Pacific Achievements International, or PAI.

No charges have been filed against either Guenther or Hendricks.

But the FBI and the Internal Revenue Service (news - web sites) are investigating the pair and their company.

Guenther's lawyer, Alan Baum of Los Angeles, said it would be "premature and inappropriate" for him to comment on the case. Neither Hendricks nor his lawyer could be reached for comment Friday.

Investigators claim the men targeted investors through the Internet and quickly raised millions. The business was incorporated in Nevada in August 2002, but some of the money was funneled through banks in Corvallis, where Guenther lived at one point, court records say.

Oregon Department of Justice (news - web sites) officials said they received 13 complaints from investors about PAI. State officials investigated the scheme, but department spokeswoman Jan Margosian said the case ultimately was forwarded to federal authorities.

According to Boyer's affidavit, the men pitched "e-book marketing" and offered expertise and consulting to "emerging business opportunities." But details about their products are slim, and in fact, federal investigators concluded that PAI "never engaged in income-producing business."

In exchange for an initial contribution of $5,859, investors were told they could earn profits ranging from $2,017 to $1 million a month.

The FBI first learned about PAI in September 2003 after receiving reports from several banks, including one in Corvallis, about suspicious activity in PAI accounts.

One account with Bank of America was opened in August 2002 with a deposit of $50 and by October 2003 had deposits of more than $6 million. All of the money was coming from wire transfers from people around the country.

Instead of selling business-related products, investigators said that Guenther and Hendricks used the money to return money to some investors, buy costly real estate and invest in high-yield scams.

http://story.news.yahoo.com/news?tmp...nternet_scam_1

[Ash@phpFX]

some people are pretty stupid

[Manowar]

notice how those scammers were also being scammed

[$5 submissions]

Usually most Internet scams involve dot com stocks But this sucks ass as well. Since most people who fall for such bullshit are elder citizens who could least afford it.

[Magg]

heh....

[jscott]

Originally posted by VIPimp
The waterfront property in Gig Harbor, Wash., was purchased by Scott Louis Guenther and property in Shalimar, Fla., is linked to Frank Richard Hendricks, according to an affidavit written by FBI Special Agent Joseph Boyer.

shalimar is about 15 miles away from me!

[Paul Markham]

Is it my imagination or are Americans more gullible than Europeans.

The number of scams I see coming from Americe and scamming Americans seems crazy.

[johnbosh]

Originally posted by Manowar
notice how those scammers were also being scammed

thats priceless

[Firehorse]

People are way to gullible!