Monday, October 02, 2006

SEC Shutting Down PAS Scam

Greetings, my friends,

The SEC (Securities and Exchange Commission) is finally shutting down
yet another popular scam pyramid company, Prosperity Automated System
or PAS. With over 25,000 websites are being shut down, the SEC
complaint targets the network creator and owner William M. Osterhout
of Citrus Heights, CA, in this downline building scam.

According to the SEC statement given on Wednesday, the system, billed
as a marketing network, is "destined to collapse and leave the vast
majority of investors with substantial losses." When visitors to one
of the landing pages fill out the form, they are then contacted by high
pressure telemarketers who work to sell them a downline-building
membership for up to $3,895, promising to build them a huge downline
that will give them a share of the fees from new members who sign up
through their websites. (Can anyone spell PONZI?)

To be in profit with PAS, you need to make not one, not two, but three
HUGE sales. Can you realistically sell three practically $4,000

Actually, this particular system is a newer twist on the original Ponzi
scheme, commonly called an Aussie 2-up Pay Plan, (also known as in this
case, a 1Up Plan) and it is quite illegal. (I have not yet come up
with a reasonable explanation for the term other than that it seems to
have originated in Australia.)

The way it works is this: while the system usually offers several
different "products," their main focus is to get you to just sell the
system to others. Initially, you have to pay a fairly large sum ($3895
in this case) for joining the system. The income from your first sale
goes to the system sponsor. Furthermore, everyone who pays becomes a
representative for the company, so there are basically no sales outside
the pyramid. The system makes grand promises of huge returns with no
(or very little) work. They promise that they will advertise for you,
have a product for you, and even have people to close the sale for you.

An Aussie 2UP takes the first two salse from a person’s warm
market and pushes the sales up to his or her sponsor. Since statistics
show that most people can only recruit 3 or fewer people in their
lifetime, a 2up leaves no market at all for the newbee.

Strong closers are required who can sell valueless, but
expensive products and/or services. Most have some kind of service tied
to them. Virtually no newcomer can sell a package that for $2000 -
$4000. Instead, they usually get close friends and family to back them
making more money for the professional closers who get the sales.

Rather than an expensive seminar or training of some kind, PAS
offers an incredible "system" that does all the work.

Most of the products or services offered can be acquired for far
less or even free, elsewhere.

Eventually, when the majority of the people realize they aren't
making any money, they want their money back, which eventually causes
the whole system to collapse, leaving virtually all the members
suffering a complete loss.

Finally, when enough complaints reach the ears of law
enforcement agencies, the system is shut down.

In most cases, law enforcement agencies don't move fast enough
to catch the owners of these systems, who make a big, fat killing and
then get out of the country with all the money before they're caught.
All that they require to succeed is no conscience and great hype
skills. Most (not all) of these owners know full well that their
system will fail and that it is, in fact, illegal.)

Be warned! Many of our friends have fallen victim to scams
of one kind or another, (remember 12DailPro?) and others. A new one is
circling the internet right at this moment called the $7 Miracle.
Whether those who are promoting it realize it or not, it is, in my
studied opinion, another twist on the Ponzi scheme and it is illegal.
If you are in it:

1.) YOU are breaking the law - and -

2.) YOU are going to lose.

I don't care if it only costs $7 - cost does not matter - you will NOT
fill your matrix, and you will NOT get the value of your time back, NOR
will you get your money back. I can guarantee, however, that the owner
will make a ton of money if he can take it out of reach of law
enforcement officials soon enough.

If you think I'm blowing smoke, you have definitely not done your
research, and you ARE going to get fried. People just like you are
getting into these things every day and losing tons and tons of money.

A scam is a scam is a scam. Period. I don't care how nice the scammer
appears to be.

For further very informative reading (it may save your bank account)
go to and

BE SAFE. Do your due diligence, your OWN research. Don't let yourself
get robbed.

God bless,

Dave Cottrell

No comments:

Post a Comment

Thanks for the comment. Please share with your friends!