Wealth Pools International News

Wealth Pools Fined 440K

Npros.com | 8/10/2008

The Securities Commission ruled that Robert E. Lane, the president of the Orlando, Florida based Wealth Pools, must pay $160,000 in administrative penalties plus $2000 in associated costs.

According to the Executive Director of the Securities Commission, "The penalty reflects the seriousness of the offence and the magnitude of harm done to New Brunswick investors".

Wealth Pools in New Brunswick Business Journal

New Brunswick Business Journal | 4/27/2008

James Oagles, Jeannie Tracy, Ronald Fulton and their company, Wealth Pools International LLC were named in the settlement.

James Oagles agreed to pay an administrative penalty of $10,000 and $2,500 toward the costs of the commission's investigation. Tracey agreed to pay an administrative penalty of $2,000 and $500 for costs. Fulton agreed he would have been subject to a penalty of $2,000 had he not been bankrupt. The three individuals acknowledged their actions caused financial losses to the people they recruited into the scheme and they agreed to be permanently banned from trading in securities in New Brunswick.

The commission concluded the three did not intend to defraud their victims but they were involved in illegal activity and ignorance of the law was not an excuse. More than 109 New Brunswick residents had invested more than $440,000 in Wealth Pools.

The securities commission urges New Brunswickers who believe they are being solicited with questionable investment schemes to visit their website at www.nbsc-cvmnb.ca.

MBSC Schedules Hearing Against Wealth Pools

Npros.com | 1/27/2008

Wealth Pools International hearing scheduled for Mar. 26

The New Brunswick Securities Commission has issued a notice of hearing against a company and four individuals that it alleges operated a pyramid scheme.

Staff of the commission allege that beginning in early 2006, a purported multi-level marketing company named Wealth Pools International Inc. solicited New Brunswick residents to participate in an investment scheme. They allege that the plan relied on recruiting new members and is a classic pyramid, or “Ponzi”, scheme.

The investigation by commission staff has revealed that at least 109 New Brunswick residents invested in excess of $440,000 in Wealth Pools.

None of the allegations have been proven. A hearing in the matter is scheduled for March 26.

In a related matter, the US Securities and Exchange Commission has obtained an emergency restraining order and asset freeze order from a Florida court against Wealth Pools and several individuals, although the NBSC says that New Brunswick residents were not named in this order.

“Investors should be concerned about an investment scheme whose returns are based on recruitment rather than on commercial activity. These are known as Ponzi or pyramid schemes and, unfortunately, they’re all too common,” says Rick Hancox, the NBSC’s executive director. “They are especially dangerous because they’re usually introduced by those close to you, your friends or family, even members of your church. Investors need to take a critical look at this sort of arrangement, even if they know people who are actually making money, because it’s often made off the backs of friends who have lost money.”

Wealth Pools International Florida Preliminary Injunction

Npros.com | 1/10/2008

Also named were Mundo Trade Incorporated and First Fiduciary Trust.

The injunction included an order to freeze the assets of Robert E. Lane, Wealth Pools International Inc, Recruit for Wealth Inc, T-N-T Education Company, Richard H. Lane, Mundo Trade Inc, Renee Becker, Julia Lane or First Fiduciary Business Trust.

Information on the matter may be found on the Court Receiver Website.

Orlando BBB Wealth Pools and Robert Lane Complaints

Orlando BBB | 1/10/2008

Government Actions

On December 18, 2007, the Florida Office of the Attorney General filed a complaint against Cashback America, Inc.; United States Administrative Services, Inc., a/k/a Untited States Administrative Services Company, a/k/a United States Administrative Trust Company; and Richard Stupple, an individual; and Ronald Gooding, an individual. The Attorney General is s seeking a permanent injunction against the companies which would prevent them from operating in the State of Florida. The Attorney General has also asked the court to order the companies to pay substantial civil fines and restitution to all customers who were denied the full value of their promised rebates. The matter is pending.

On January 10, 2006, the Commonwealth of Pennsylvania' Attorney General filed a case #M.D. 2006, against Cashback America, Inc. and United States Administrative Services, Inc. a/k/a United States Administrative Service Company. The Commonwealth brought the action to redress violations of the Unfair Trade Practices and Consumer Protection Law, Act of December 17, 1968, P.L. No. 1224, as admended, 73 P.S. 201-1 et seq. (Consumer Protection Law). The case seeks the court to permanently enjoin the Defendants, their agents, representatives, servants, and employees from engaging in any conduct complained herein or any other conduct in violation of the Consumer Protection Law., The case also request restitution to all Pennsylvania consumers who purchased a product from a mercchant in conjunction with the Cashback Promotion in the amount of the face value of the Cashback Voucher issued to the consumer, among other things. This case is still pending at this time.

SEC Injunction Against Wealth Pools and Robert Lane

Npros.com | 1/10/2008

Securities and Exchange Commission v. Robert E. Lane, Wealth Pools International, Inc., and Recruit for Wealth, Inc., Defendants, and T-N-T Education Company, Inc., Richard H. Lane, Mundo Trade, Inc., Renee Becker, Julia Lane, and First Fiduciary Business Trust, Relief Defendants, Civil Action No. 6:07-cv-1920-Orl-22KRS (M.D. Fla., filed Dec. 5, 2007)

The Securities and Exchange Commission (SEC) announced that on December 6, 2007, it won an asset freeze and other emergency relief to halt a massive pyramid scheme with as many as 70,000 victims in 64 countries. The scheme involving the purported sale of English and Spanish language tutorials particularly preyed on Hispanic communities in Orlando, Fla., and Puerto Rico.

The SEC charged Robert Lane, Wealth Pools International, Inc., and Recruit For Wealth, Inc. with the fraudulent offer and sale of unregistered securities in the form of "Associate" memberships in an enterprise called Wealth Pools. The fraudulent offering began in 2005 and the defendants claim to have raised over $132 million in 2007 alone, according to the SEC's complaint.

Wealth Pools purports to be a multi-level marketing company primarily selling an English and Spanish language tutorial DVD called Talk-N-Tutor through a network of sales Associates around the world, the SEC alleges in its complaint. The DVD is, in reality, a front for Wealth Pools's true product - an investment in one or more "pools" that offer investors an opportunity to receive passive income through the efforts of others to recruit new investors, according to the complaint. The SEC further alleges that investors do not profit from the sale of DVDs to consumers, but from the recruitment of new investors termed "Associates."

The SEC's complaint also charges the defendants with luring investors through "Opportunity Meetings" held at Wealth Pools's Orlando, Fla., headquarters, in Puerto Rico, and live on the internet. The defendants enticed investors to purchase thousands of DVDs by falsely promising them that they would earn income for life with no further effort, according to the SEC's complaint. The SEC further charged the defendants with failing to disclose, among other things, that Wealth Pools is a pyramid scheme utterly dependent on an ever increasing number of new investors to pay existing ones, and is destined to collapse, leaving investors with substantial losses. Additionally, the SEC alleges that the defendants do not disclose the dilutive effect of new investors on all investors' returns, which renders baseless the defendants representations that 97% of Associates make money and receive a lifetime of passive income. Finally, the complaint alleges that the defendants do not disclose that Lane was president of another company that used similar methods that failed, resulting in it declaring bankruptcy and being enjoined by the State of Florida.

The SEC filed its action in the United States District Court for the Middle District of Florida seeking a temporary restraining order, preliminary and permanent injunctions, disgorgement of ill-gotten gains plus prejudgment interest, and civil penalties. The complaint alleges that the defendants violated the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and the securities registration provisions of Sections 5(a) and 5(c) of the Securities Act of 1933. The SEC also named as relief defendants members of Robert Lane's family and other related entities who received investor proceeds raised in the fraudulent and unregistered offering.

Wealth Pools International Frozen

Npros.com | 1/10/2008