ATM LEASEBACK SCHEMES-- any insight?

[grimreaper]

Just as a point of reference, receivers are almost always attorneys who specialize in this who are appointed by the court and the receivership is done by a letter of appointment, much the way a personal representative in an estate is, and so they don't actually work for the gov't and their sites won't be gov't sites.

I'll stick my neck out here...Hoffman is in charge...just my take.....why on earth would this reputable lawyer pull a fast one? He's an SEC approved lawyer...use common sense.

[itzallgone]

MYLA has posted an article on this: http://mynewsla.com/crime/2014/10/07/ju ... d-systems/

The case has been unsealed.

“We are attempting to cooperate with the SEC to answer any questions they may have,” said James Spertus, Gillis’ attorney. “The case was just filed and we are taking it very seriously in resolving it in a satisfactory way.”

[webhick]

The receiver site has one more document than we have - the order to seal. Additionally, he's a temporary receiver, likely because the T in TRO. Once the permanent injunction comes through at the end of the month, I'm sure either he'll be made permanent or a permanent one will be put in place.

[snookered]

How soon could we expect to see Joel and Ed arrested?

[notorial dissent]

Webhick is exactly right here. Everything will be in temporary status, which is how these things shake out, until the show cause hearing later this month, at which point barring some major change in the universe, the TRO will become a permanent injunction and order and the receiver will be confirmed and can start taking things apart. There is always a specific order to these things and we are just at the beginning of it. There is no telling how long they have been working on this at the moment, but my guess would be for a good while before they moved it. There are an immense number of i's needing dotted and t's crossed before they can take the initial legal action. As Gregg pointed out, the movement of the justice system can sometimes be glacial.

To make things even more complicated, there are most likely two cases going on here, the civil, SEC action, and a pending criminal action depending on who decides to go after them firstest with the mostest. AT the very least I can foresee a whole scad of securities law violation and fraud charges relating to NASI, possible securities violations not directly related to NASI, possible money laundering charges, popping up, probably currency violations, income and tax fraud of any number of stripes, and probably a number of things I haven't even considered. There are all kinds of possibilities, but doesn't mean anything will happen, all gonna depend on what the auditors exhume.

[Judge Roy Bean]

How soon could we expect to see Joel and Ed arrested?

Not until after an indictment or warrant is issued.

[Tednewsom]

On Sunday, April 7, 2013 at 8:57 pm, professional life-advisor and NASI customer Elena Pezzini wrote:

Joel Gillis and Nationwide Automated Systems, Inc. are the most honest and legit business and investment business you will ever find.

As long as you don't look very hard.

I have been happily doing business and invested with them for the past 2 decades.

Anyone need a life-counselor with a remarkable insight into human behavior?

I have also referred family, friends & clients to them and all of us have been very happy.

This year's Thanksgiving dinner with the Pezzini clan ought to provide spirited conversation.

Mr Joel and Nationwide Automated Systems are completely transparent and highly ethical. I highly recommend them

You convinced me. Enclosed please find my check. Go on, find it, I dare ya.

[worried]

It's on the SEC site now...
http://www.sec.gov/litigation/litreleas ... r23106.htm

[grimreaper]

How soon could we expect to see Joel and Ed arrested?

Here's a much bigger Ponzi and it took them 1 year from initial investigation to conviction. NASI investigation started in Mid June this year.

http://money.cnn.com/2010/04/08/news/ec ... m_Petters/

The FBI and IRS began investigating Petters in December 2008 after co-conspirator Deanna Coleman reported that she had been aiding Petters in a multi-billion-dollar Ponzi scheme for ten years.

In December 2009, a federal jury convicted Petters of orchestrating a $3.65 billion Ponzi scheme. The judge found him guilty on 20 counts including wire fraud, mail fraud, money laundering and conspiracies to commit further fraud

[grimreaper]

Now on *PONZI TRACKERS* web site>>

http://www.ponzitracker.com/main/2014/1 ... cheme.html

[grimreaper]

“We are attempting to cooperate with the SEC to answer any questions they may have,” said James Spertus, Gillis’ attorney. “The case was just filed and we are taking it very seriously in resolving it in a satisfactory way.”

Here is the firm NASI has hired to defend them. How in the world they can afford them in light of the asset freeze is beyond me.

http://www.spertuslaw.com/attorney/james-w-spertus/

[Tednewsom]

I just checked for my friend, and (though perhaps this has been brought up previously), some "Clawback" payments are in fact deductible, at least in some cases.

from http://www.ponzitracker.com/top-ponzi-recoveries/

There are typically no winners in Ponzi schemes. Rather, each scheme leaves behind its own unique trail of pain, devastation, and financial loss. There are those who lost their life savings, as well as those who, despite being fortunate enough to withdraw their initial investment and more, face clawback actions for the fictitious profits that were nothing more than the redistribution of investor funds. The Internal Revenue Service has recognized the dire situation typically befalling a Ponzi scheme victim, allowing the deduction of up to 95% of Ponzi losses - thus implicitly acknowledging that the typical recovery is rarely higher than pennies on the dollar.

[grimreaper]

On Sunday, April 7, 2013 at 8:57 pm, professional life-advisor and NASI customer Elena Pezzini wrote:

Joel Gillis and Nationwide Automated Systems, Inc. are the most honest and legit business and investment business you will ever find.

As long as you don't look very hard.

I have been happily doing business and invested with them for the past 2 decades.

Anyone need a life-counselor with a remarkable insight into human behavior?

I have also referred family, friends & clients to them and all of us have been very happy.

This year's Thanksgiving dinner with the Pezzini clan ought to provide spirited conversation.

Mr Joel and Nationwide Automated Systems are completely transparent and highly ethical. I highly recommend them

You convinced me. Enclosed please find my check. Go on, find it, I dare ya.

Interesting. I went to her facebook page and she has 5000 Friends! Have to wonder if she recruited a good number of them? Talk about the ULTIMATE POISION PILL

[grimreaper]

I just checked for my friend, and (though perhaps this has been brought up previously), some "Clawback" payments are in fact deductible, at least in some cases.

from http://www.ponzitracker.com/top-ponzi-recoveries/

There are typically no winners in Ponzi schemes. Rather, each scheme leaves behind its own unique trail of pain, devastation, and financial loss. There are those who lost their life savings, as well as those who, despite being fortunate enough to withdraw their initial investment and more, face clawback actions for the fictitious profits that were nothing more than the redistribution of investor funds. The Internal Revenue Service has recognized the dire situation typically befalling a Ponzi scheme victim, allowing the deduction of up to 95% of Ponzi losses - thus implicitly acknowledging that the typical recovery is rarely higher than pennies on the dollar.

Yes this has been discussed here. If you show an actual clawback, you can take it as a deduction from current income. You can carry forward any amount that is in excess of current income. I think 3K is the max amount you can carry forward to offset future income. but I'm not positive on that.

[itzallgone]

“We are attempting to cooperate with the SEC to answer any questions they may have,” said James Spertus, Gillis’ attorney. “The case was just filed and we are taking it very seriously in resolving it in a satisfactory way.”

Here is the firm NASI has hired to defend them. How in the world they can afford them in light of the asset freeze is beyond me.

http://www.spertuslaw.com/attorney/james-w-spertus/

Oh they still got assets and money....

Also. I spoke to Mr. Del Greco today, the next court date is set for October 27th on the matter of the Temporary Restraining Order, whether it will become a Preliminary Injunction.

[itzallgone]

How soon could we expect to see Joel and Ed arrested?

Not until after an indictment or warrant is issued.

How do we even know they are still in the States.

[grimreaper]

Made the *A* list tonight>>

http://www.secactions.com/

SEC Brings Another ATM Based Ponzi Scheme Case
October 08, 2014

Ponzi and investment scheme cases are a staple of SEC enforcement in the post Madoff world. Emerging, however, may be a new trend based on a subset of these frauds – investments in ATM machines. At the close of last month the Commission filed an investment fund fraud case centered on the solicitation of investors for a business which operated ATM machines. SEC v. Ferguson, Civil Action No. 3:14-cv-04188 (N.D. Cal. Filed September 29, 2014). Now the Commission has brought another Ponzi scheme case centered on the lease of ATM machines. SEC v. Nationwide Automated Systems, Inc., Civil Action No. CV 14 07249 (C.D. Cal. Unsealed October 7, 2014).

Nationwide names as defendants the company, Joel Gillis and Edward Wishner. The company purports to be an ATM machine provider which works with high-traffic retail locations and claims to have 80 branches and 1,000 certified technicians on standby. Nationwide claims to service more than $1 billion in ATM transactions per month. Mr. Gillis is the president of Nationwide. He essentially runs the business. Mr. Wishner is the treasurer, vice president and secretary of the company.

Beginning in 1999, and continuing to the present, Nationwide and Mr. Gillis have offered securities in the form of ATM sale and leaseback agreements to the public. Since January 2013 the Defendants have raised about $120 million from investors through the sale of the ATM leaseback offering.

Defendants used a standard set of agreements to implement their scheme. Those included an ATM Equipment Purchase Agreement, a lease agreement and an addendum. Typically investors paid $12,000 to purchase an ATM. The machine was then leased back to the defendants who operated it. Investors agreed in the contracts not to interfere with the operation of the machine which included not ever contacting the site where it was installed.

Nationwide agreed to pay the investor $0.50 for each approved transaction at the machine. In addition, the investor was guaranteed a return of 20% or more and was assured that the firm had a 19 year track record of success.

Payments were in fact made to investors who were also provided a monthly statement regarding their investment. The payments came largely from money paid to the company by other investors. For example, during April, May and June 2014 over $23 million was deposited in the Nationwide bank account. Only a little over $390,000 came from legitimate ATM transactions. At the same time about $18.4 million was deposited from investors. Yet the firm paid about $23.4 million to investors under the sale and leaseback agreements. Portions of the money raised were also transferred to entities affiliated with Mr. Wishner.

In August 2014 Nationwide bounced about $3 million in checks written to investors. By the end of the month the firm’s bank accounts were reduced to about $200,000. Hundreds of investors called seeking payment. Investors were offered excuses. At the same time the defendants continued to raise money from other investors. For example, in late August and early September 2014 about $3.8 million was raised from investors. During the same period only $52,436 was raised from ATM transactions while about $2 million was paid out to investors.

The Commission’s complaint alleges violations of Exchange Act Sections 10(b) and 20(a), Securities Act Sections 5(a) and (c) and of each subsection of 17(a). The case is pending. See also Lit. Rel. No 23106 (October 8, 2014).

[JamesVincent]

This year's Thanksgiving dinner with the Pezzini clan ought to provide spirited conversation.

You missed your calling Ted, need to be writing one liners with Wes.

[The Observer]

ade the *A* list tonight>>

That is a blog from a law firm. Hardly an A list item. When it hits the LA Times or the Orange County recorder, then we can start talking about the NASI scam making the big news.

[grimreaper]

ade the *A* list tonight>>

That is a blog from a law firm. Hardly an A list item. When it hits the LA Times or the Orange County recorder, then we can start talking about the NASI scam making the big news.

It's followed by many. Doesn't matter now>>Shit hit the fan today. You want further confirmation? It's comming.