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The StormPay.com And 12DailyPro.com Report (Part One)

StormPay was created by Mr. John R. McConnel, Jr who previously incorporated TymGlobal Inc. Tymglobal.inc run a matrix website under the name of tymglobal.com Tymglobal.com was making business using PayPal, but, apparently, PayPal froze their account due to PayPal policy breaks by TymGlobal inc. TymGlobal then created and incorporated StormPay, "pushing" theit 6000+ members to use the new online payment system, rather than PayPal. TymGlobal Inc, StormPay Inc and Mr. McConnel were given a cease-and-desist order by the Commissioner of Commerce and Insurance of the State of Tennessee at Nashville on Aug the 7th 2003, for
  • Operating a pyramid and/or ponzi-scheme promoting large returns on investments for participating in the scheme.
  • Having not, either Mr. McConnell or StormPay Inc. or Tymglobal Inc., currently nor have ever been registered as a broker-dealer, agent of a broker-dealer or investment adviser
You can have a look at the Cease-and-Desist act.

It is pretty clear that Mr. McConnel perfectly knows what a pyramid and/or a Ponzi scheme are, and it results very curious that he wasn't able to understand or at least to recognize the business model behind 12dailypro and all the other hundreds of ponzi-schemes that StormPay and NetIBA have supported and are supporting at today, until today (especially having run Mr. McConnel a ponzi-scheme himself, until August 2003).

You might find very interesting the following link pointing to a series of forum posts about StormPay and Tymglobal dated August 2003.

Look at how TymGlobal.com looked at various stages, back in 2002 and 2003:

StormPay/NETiba and Autosurf Programs Certification and Support

In April 2004, StormPay starts using an identity verification organization called NetIBA, run by NetIba inc. running a website at www.netiba.com.
Becoming a NetIBA member, StormPay reduces account-holders fees incurred when receiving funds from 6.9% plus 69 cents to 2.9% plus 39 cents.
NetIBA is claimed to be a third-party identity verification service. It is also located in Clarksville, Tennessee.

The NetIBA certification process purportedly includes the sending of a PIN by telephone and a PIN by mail, however, users have also reported that the phone step is occasionally skipped.
After being certified, webmasters may place an image on their website to display this fact to potential customers.
NetIBA only accepts StormPay as a payment method.

However, while both StormPay and NetIBA are registered corporations with the Tennessee Secretary of State, they are registered under the same name, John R. McConnell, Jr. This indicates that NetIBA is not a third-party service and that StormPay is clearly lying. About this lie, it is recommended that you read again the cease-and-desist act, point number 5 of the ordering section.

Moreover, StormPay itself is certified NetIBA; now, since both NetIBA and StormPay are run by the same person, it comes out clearly the conflict of interests: StormPay gains potential users confidence and trust claiming to use a third-party organization to validate their identity, when in truth, it is StormPay certifying itself.

On February the 5th 2006, StormPay posted an announcement on their website stating that they had closed the accounts of what appear to be some major ponzi schemes (12dailypro), because of results of investigations into those businesses by outside investigational organizations as well as our own internal investigations..
From an FTA investigation, at January the 20th 2006, 90% of active autosurf programs on the Net are NetIBA certified.
Now this makes the bona-fide statement by StormPay about having misunderstood the real nature of the 12dailypro business a true joke.
NetIBA comes with a code of ethics which certified merchants are bound to stick to; there is one point on that code of ethics, that is particularly significative:

NetIBA validated accounts will refrain from setting or giving customers unrealistic expectations.
Given that "unrealistic expectations" can be a pretty vague concept, to claim that you can "invest" your money in an autosurf program and that visiting 12 sites a day you can earn 12% of interests PER DAY sounds like a pretty "unrealistic expectations" kind-of statement.

Another point from the code of ethics:

NetIBA validated accounts shall make accurate claims to their customers.
It is well known that autosurf programs do not make accurate claims: shall be enough to read their Terms of service to understand that all they claim is everything but accurate. A typical example involving a program certified by NetIBA is the following:
www.x7daysprofit.net claims that "investing" 5000USD with their program, an investor can gain a stunning 657% profit in 28 days time. They also claim not to invest in autosurf programs or ponzi-schemes; they claim to invest in Fast Moving Consumer Goods; according to an online financial report, the BSE FMCG index has gained 53% return from December 2004 until December 2005: x7daysprofit.net ROI claim is everything but accurate and it is absolutely unrealistic.
NetIBA has certified x7daysprofit.net on February the 13th 2006, well after StormPay has claimed not to support get-rich-quick programs and Ponzi-schemes, and clearly breaking one of their code-of-ethics fundamentals.

Particularly irritating is the follwoing passge from NetIBA code of ethics:

NetIBA validated accounts will strive to be open about all aspects of the products or services they offer
This is the essence of the autosurf programs being ponzi or not dilemma: they claim not to pay members with other members money (Ponzi scheme), but they refuse to tell where the money comes from.
These three aspects alone shall be enough for a certification program such NetIBA not to even consider the possibility of embracing the autosurf "industry".

And here comes StormPay, who owns NetIBA and who is telling members that their accounts and money have been frozen because autosurf programs might be not perfectly legal.
Curious enough that NetIBA (StormPay) certified as trustable and ethical, basically, all the autosurf programs using StormPay (NetIBA) as their primary payment processor.
It is even more curious that an organization such as StormPay (NetIBA) creates a certification company like NetIBA (StormPay) and certifies itself (StormPay is a validated NetIBA merchant).
Beside a clear conflict of interests and an even more clear ethical issue, here, what is really disturbing is that NetIBA does not mention ANYWHERE in their website that they are StormPay, leaving to the user the duty to make their homework and eventually discover that NetIba and StormPay are the same company and that one (NetIBA) "guarantees" for the integrity of the other (StormPay) and for the integrity of their customers as well.
In the meantime, at the StormPay website, NetIBA is presented as a third-party company

StormPay/NETiba and The Autosurf Numbers

A search for autosurf netiba on google gives back 40,000 results
A search for "netiba certified" on Google gives back 21,100 results: It is interesting to see that they seem to be all related to the autosurf "industry" and get-rich-quick schemes scenario.
We have not found a, say, DVDs reseller or a web design website or something not related to the above industry. This despite of the bona-fide claim by StormPay.

NetIBA certification is offered in such a way that the certified member can have less fees to pay to stormpay and can have more clicks with stormclix. Fact is that NetIBA is specialized in autosurf and get-rich-quick schemes and that NetIBA is owned by StormPay: this makes StormPay directly responsible in supporting such schemes and even in promoting them, indirectly.

A very simple example of the StormPay/NetIBA/Autosurf scenario is gcisurf.com, an autosurf program using StormPay and being NetIBA certified who run out of business (actually the owner jusr run..) with 300k USD and a few thousands of poorer scammed members. GciSurf.com was elected scam of the year 2005 at MoneyMakerGroup.com.
The "administrators" of Gcisurf.com even made fun of scammed people sending them a letter explaining how the scam worked: particularly, the scammers say:

we paid one kid to rent a postal box again with stollen documents to get our anonymous debit cards and the stormpay - netiba letters.
It is hard not to notice that NetIBA and StormPay have validated accounts based on a post box rather than on a real address: for an organization claiming to verify and validate business identities, this is quite bizarre. For a complete view of the scammers letter, click here.
This was happening at the beginning of November 2005, 3 months before StormPay "realised" that autosurf programs might be Ponzi-schemes: this translates in a few millions dollars that Stormpay made out of what they now call an illegal program.

In part two we will demonstrate how StormPay/NetIBA could not be unaware of 12DailyPro business model, presenting a list of autosurf programs and exposed autosurf scams supported by StormPay and NetIBA in the last 24 months:

Click here for the Stormpay and 12DailyPro Report - Part Two

 

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