North Dakota Securities Commission Investigates Pathway-2-Prosperity
It was just a matter of time before one of the state securities commission would take a closer look at the Pathway-2-Prosperity network. The question now is how much longer will they stay online? Do not think for a moment that this is an isolated investigation.
If the ND Securities believes that P2P is operating illegally in their state, other states will follow suit if there are investors within their borders promoting the program. Some will say the U.S. SEC has no jurisdictions on a Canadian company. While this may be true, there are partnerships between securities regulators of differing countries.
It is in the best interest of each country to enforce compliance on businesses that are violating the laws of a partner country. In return for example, the U.S. would shut down a business in it’s own country if the Canadian SEC deems that it is violating or operating illegally in Canada.
The dominoes may have started to fall, however, no one can be sure what the outcome of the investigation by the ND SEC will amount to. The only facts that we know is that Pathway-2-Prosperity is operating illegally and not registered in North Dakota. It is also stated that those that are promoting the program in North Dakota are also breaking the securities laws.
Will this be enough to start a panic among its membership causing a mass withdrawal? If so, then the death knell for P2P has been rung. Here is the complete warning from the North Dakota Securities Commission in its entirety.
SECURITIES COMMISSIONER WARNS OF INTERNET FRAUD
Posted: August 6, 2008Bismarck, ND – North Dakota Securities Commissioner Karen Tyler announced today that the Securities Department is actively investigating a Canadian-based, internet fraud scheme currently being promoted in several communities in North Dakota, including Bismarck and Jamestown. “Pathway-2-Prosperity” or “P-2-P Network” promises returns of 1.5% to 2.67% per day. An example hyped in its website of $100 invested in the “60 Day Plan” would return over $260 in just two months. “This has all the earmarks of a classic Ponzi scheme with money from later investors used to pay unrealistically high returns to early investor/promoters, who then bring in their family members, friends and co-workers for a ‘referral fee’,” said Tyler.
The scam claims to be a legal, private investment club and not subject to state and federal securities laws. This is completely false. “P-2-P Network” is not registered with the North Dakota Securities Department and offering for sale an unregistered, non-exempt security to a North Dakota resident is a direct violation of the North Dakota Securities Act. Local investors encouraging the scheme and referring others to invest for a fee are also violating the Securities Act as unregistered agents of the foreign promoter and could expose themselves to civil or criminal liability. Commissioner Tyler warned that investor money is leaving the country and when the scheme collapses, as they always do, it will be almost impossible to recover any part of it.
“The key to avoid getting harmed by an investment scam is to make sure you understand the product being offered and thoroughly check both the salesperson and the product with our Department,” said Commissioner Tyler. “Remember, if it sounds too good to be true, it usually is.” The investigation by the Securities Department is ongoing and individuals with information concerning this activity are encouraged to contact the North Dakota Securities Department at (800) 297-5124 or 328-2929 (Bismarck local).
As if that was not enough, more undue publicity about the warnings from the ND SEC hit the Associated Press and mentioned on an affiliated MSNBC site as well. Here is the blurb:
State Warns Of Internet Investment Scam
By Associated Press
KVLY-TV
updated 2:46 a.m. CT, Thurs., Aug. 7, 2008Investigators are warning the public about a Canadian-based internet fraud scheme that’s popped up in Jamestown and Bismarck.
The Pathway 2 Prosperity Network website says $100 invested into a 60-Day plan could return more than $260 in two months.
North Dakota Securities Commissioner Karen Tyler says the P-2-P is operating illegally in the state and investors who recruit more people into the scam could face criminal charges.
So there you have it folks, this “investment” is starting to not sound like an investment but an illegal scam.
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August 17th, 2008 16:52
I have been a member of P-2-P for a year. I started with $1,000 and I have taken out close to $20,000> I have always been paid what I requested. Nick Smirnow is a kind and generous man. Anyone trying to discredit him is “barking up the wrong tree”. P-2-P is totally OFFSHORE based.
Nick has helped thousands of small investors improve their lives. We should be grateful to him for the opportunity he has given us.
Virgee
August 17th, 2008 18:13
I think scam would apply to sites that do not pay. As for the p2p, they are not in that category. While you are a member in the p2p you are not allowed to promote it. It’s by personal referral only. I think that in the case of ND that someone living in that state, was mass advertising and thus got suspend, hence the complaint this person filed. From everyone I have known over the last few years that is in the p2p, the site does pay and is not a scam.
All members in the p2p are advised to pay their taxes on money earned. How much of a scam can this be when people ARE being paid?
I say leave them alone, mind your own business, and let it go.. unless and until it is mass reported that nobody is getting paid you are barking up the wrong tree.
August 17th, 2008 20:06
Maybe the SEC should investigate a real ponzi like the United States Social Security System. P2P is completely offshore the ND Securities Commission wouldn’t know up what tree to bark.
August 18th, 2008 05:53
Wow, what a surprise. Two cheerleaders spewing the company line. P2P is just another in the long line of HYIP scams. $1000 into $20,000 in a year. Sounds reasonable. I’m sure you’ll leave your contact info here so the Feds can look over your ‘legal’ income. You have nothing to worry about right? I didn’t think so. What a tool.
August 18th, 2008 20:16
This area has interested me for quite a while now….I think that before anyone starts to investigate a company that is paying, they b etter think twice……..from what I read, the attorney generals office of Florida and the US attorney’s office are both looking…..well, how can say this politely……not to bright right now by jumping all over ASD……..just because you don’t understand a business model, it doesn’t mean it’s wrong……..over the last several years I have seen many company’s go belly up and not pay the people out…..so why doesn’t our great and intelligent govt go after these people…..why go after a program that is paying??????????? btw…not only is our social security system a ponzi in every sense..our entire govt is a ponzi……truth is they are the largest criminal organization in this country….oh and btw…….that’s not exactly a secret….:))) so here’s whaqt I have to say to the lady from NDakota……go and investigate a company that went down and was indeed a true ponzi…..in fact I will say that to our entire justice/criminal dept in every state………try working for us, the people, and not just for yourself………enjoy the nite
martin
August 19th, 2008 11:32
So if a company is paying, it’s legal? You are more of a tool than the others MB. P2P is a Ponzi, was always a Ponzi and will forever be known as a Ponzi. There are many others that have ‘paid’ as well. P2P is only 60 days behind their TOS and ‘guaranteed percentages. What a joke. ASD may have been trying to present a legal business model, but the 100% matching bonuses, the 10% referral fees, the other matches for sponsors was an absolute disaster for them. How stupid can a company be? They did not need the matches to bring any money in at all. The referral fees would have been more than enough. But no, Andy had to offer asinine matching bonuses that put some people over 1 million dollars in ad packs, and their original ad pack purchase was $5000. Does that make any sense to you?
He blew it big time. He had a chance at real success(for once in his pitiful existence) and he blew it. What an idiot.
August 19th, 2008 12:54
First, I don’t think P2P is a ponzi…..however, most if not all you said about ASD is true……Andy did not need to do the matching bonuses and all the rest, but he did…….from I read, he has the money to everyone and still have 23 million left over…….this has the AG office a little perplexed to say the least…..mu guess is that Andy’s lawyers will make the Ag’s office look stupid and Andy will be back in business…..as to when, that’s anyones guess…..as for going after P2P….now that would be stupid…..but if Karen Tyler has any brains or common sense, she’ll find a program that was without a doubt a ponzi and get the peoples money back for them…..btw….there are a BUNCH of those programs out there……pick one Karen and run with it:) you could become a hero and gain some true respect from voters who have very little respect for the people in this government….enjoy the day
martin
August 19th, 2008 13:09
one more thing……..from what I have heard, Texas did do an investigation of P2P…….they found nothing wrong and shut the investigation down……hence, there are indeed a few honest programs/companies out there……..but only a few….it’s a jungle out there as they say:)
enjoy the day
martin
ps…..here’s what I don’t understand…….why shut down a program that IS paying????? why not go after those that have stopped and run off????? all you do is GREATLY anger the people in the paying program/company…….but you could become a REAL hero by going after the TRUE ponzi’s that have REALLY shown themselves to be ponzi”s……..
August 19th, 2008 16:02
Texas did not do an investigation, that is pure propaganda from ‘Nick’. P2P is a pure Ponzi. There are no piggy back investments, there are no casino investments, there are no investments, period. The onus is on you the true believer to provide proof that P2P is not a Ponzi. Since you have none,
you lose. So do all the people who got in late, or rolled over their ‘earnings’.
August 20th, 2008 05:16
Offshores are legal even in the USA!!! Look at Delaware or New York! They accept offshores and the most huge corporations use the advantages offered by offshores 100% and the government never look for them, but they always will look to small guy who don’t know all the laws [made by who(m)...? for who(m)...?] or cannot fight with the governmets. So, who is trying to define what is legal and what is not, or is out of his/her mind, or is a ‘legal’ server of a governement that is stealing ‘legally’ the money from the normal guy who is so stupid to vote them, for making these ilegal laws against people who elected them. Just an opinion, you can have another one and it could be totally different than mine, but this doesn’t mean we can’t live and enjoy life together, even in the same community. So, common guys, be reliable and flexible, and let each person to decide what to do with their life and money.
Wish good luck to all those who invested and to all theo who didn’t invested.
Theodore
August 20th, 2008 08:47
I just have to say that the wealthy have been making anywhere from 1%-10% daily on their money ever since the 1930’s or 40’s…..programs were set up for the wealthy, by the wealthy, strictly for them in order to gain an even bigger advantage over the average person…….and if these so called illegal companies/programs are illegal, then why is it that so many of our “esteemed” congressmen/women belong to some VERY private trade groups……….look folks, for the average person, these programs/companies have not been available to us until the mid 70’s…….they have been strictly for the “elite”………obviously some of the wealthy have begun to believe that if the average person doesn’t start to make more that the world economy could collapse……which is certainly a possibility……..but please remember this…..the vast majority of these companies are scams, so be careful………..btw…..banks and other financial institutions have used these private trade groups for a LONGGGG time to increase their profits……both for themselves personally and for their company……now don’t that make you feel good all over:)))))
enjoy the day
martin
August 20th, 2008 10:01
Just what we needed here, conspiracy theory nonsense.
Give me a break, What a bunch of sheeple. You read something somewhere and automatically believe it ti be the truth, No wonder there are so many idiot Democrats voting for their welfare and food stamp programs to increase.
Private trade groups are not illegal. Do some basic research, it makes you sound less like a fool when you do.
However, P2P is not a ‘private club’. It is a Ponzi, plain and simple. Please try and prove otherwise. The onus is on you, the true believer.
Any program is open to anyone that qualifies. Did you know that Fidelity Funds have certain funds that require you to invest 5 million dollars to participate?
Boo Hoo! It’s not fair, I can’t participate! It’s a conspiracy!
Get off your lazy rear end and maybe you would qualify.
Pssss….we never landed on the moon. I’m sure you already believe that one. It fits right in with your other CT BS.
August 20th, 2008 11:17
Wasting time, talking in van… some people here seem to be very informed, so please let us know any GOOD REAL EXCELLENT investment fund or club or program that people like me and… probably you, average, normal people can join secure and make some extra bucks for living decently in a indecent political and economical world.
Just think about this: I came back home few years ago… Do you know what I have found here? 99.9% of politicians were unknown before, but after 4 years of governing they are the richest people from my country, found on all rich people top lists and statistics.
I am afraid this is true for almost any country, so doesn’t matter if I tell you which one is mine…
August 20th, 2008 13:38
There isn’t one career politician from the US on the Forbes 400 richest Americans list.
Bloomberg the Mayor of NY is a self made billionaire. Hint: He had the money before he got to office. Thomas Golisano is running for Gov. He also is a self made billionaire. The rest made their money before becoming politicians. Sorry your example does not work here.
Kerry married his money, the two Rockefeller’s inherited the bulk of theirs, the others on the top 10 list earned theirs.
Maybe corruption has helped several politicians to make money in your country. I’m sorry that is the case. Your broad brush dose not cover this country. There are slimy politicians here for sure. Look at Boxer and Pelosi. Both have conflict of interest problems. There are many others as well. But top of the richest list? Not even close.
August 20th, 2008 14:55
Realist, what can I say………you know everything there is to know about everything….:))) so therefore I will no longer waste my time here…..you can inform the readers as you wish….some of the stuff you say is actually true……and then other stuff, is well………good-bye enjoy the day:)
martin
August 27th, 2008 19:49
Hey, want a laugh? Look at what the Receivers rake in after the ponzi goes into receivership. Conspiracy Theories???
What does it take to have a government dude play HYIP investor, and wait till the pot blossoms, then all of a sudden, oh gee, we’re under investigation. Let’s get that lawyer and accountant to freeze the accounts for the poor dummies that ‘invested’, so the poor fools can recover something. Oh, what do you know, there was a mil five in assests, but well, the Receiver and accountant can’t work for nothing. Let’s see, at $350 per hour…. Holy cow, the receiver and accountant get $700,000. Yes our laws certainly protect us dummies don’t they Realist. Do you also think that the Federal Reserve system is just a theory??? OMG, with thinkers like this, is there any hope.
I’m outta here. Can’t stand it.
October 5th, 2008 15:41
I just wanted to say it is a shame how our coutry needs to control businesses. If this is a so call Ponzi then let it be. Its peoples choices to invest in this company called P-2-P. If it goes belly up people should have invested smartly and not have invested all of there money. One of my friends invest 8gs into this company and he swears by it. Many people he knows invest in it and they all recieve there money. And he knows a lot of people who do this just in our area alone. The government getting involved in this is just a waste of taxpayers money. No one is complainning about this company then why should it be put under investigation. I would say if people’s money just vanished then it would be a different story but thats not the case. The US government is just a bunch of bullies. Its taken me a while to realize this that we dont live in a perfect country.
Dear Realist…
Even though are politicans arent in the top 400 richest americans who gives. Maybe they are in the top 2000 – 4000. Anyway my point is. You should look at where are passports are being made. Hm…let me guess Thailand. The person put in charge of this task thought he could make a profit off this by shipping the creation of the US passport to Holland to make money. Which he did and inturn this Dutch company sold it off to a company in Thailand. So if that isn’t corrupt then I dont’ know what is. That also is taking jobs away from Americans. That was recent to.
November 27th, 2008 10:29
Well, P-2-P site is down, all sites connecting to this “company” is down. Typical ponsi scheme, pay out a few and keep em happy so they keep sayin company is legit. Delay, delay, delay, on the rest of the payouts. Give options for reinvestment to maintain cash longer and takem all to the cleaners. No legit company can turn money over and make a profit like that and still be able to payout that high. Any Questions!!
November 29th, 2008 11:47
P2P ltd and P2P Network are both down. . .”do not exist”.
So I loaded my family in the wagon and headed West as fast as I could go. All the while tellin my kinfolk, “There’s gold in them thar hills!” so that many more would come. We’ve arrived! Yeee HA! Unhitch the mules, get out your shovels and pitch forks. . .”What?”. . .the sign on the entrance to our mine says. . .”Sorry, we’re closed.”
Wagons now headed back East. . .will meet up at the Sucker Ranch.
December 8th, 2008 07:00
May I see the law that circumvents the American citizen’s right to enter into any private UNSOLICITED on or /offshore agreement or contract?
The US Supreme Court has upheld this fundamantal right to contract privately with no undue govt interference.
Rules and regulations must be in obeyance, or they are not law, and are unenforceable.
Private, invitation only, and unsolicited is the agreement signed when joining P2P. In the USA, this is the established law – freedom to contract (without harming the rights of others). If any legislation, act, or rule is not in conformity with this fundamental right, it is a nullity.
The law must be clear to the average American – and not subject to interpretation. This is the void for vagueness law. Americans need only go to the highest source to find their answers, and not to federally funded agencies who owe their privileged taxable existance to the labor and consent of the governed.
The federal govt may regulate all things federal, but not all things private. This is beyond their scope.
June 17th, 2009 10:17
Looks like it was a scam after all..
http://www.gravenhurstbanner.com/article/134551