James L. Paris Christian Financial Advice

Worldwide Ponzi Scheme Targeting Christians

In this episode - An update on Profitable Sunrise, the worldwide Ponzi scheme that has been shut down by regulators. The value of Bitcoin continues to rise after recovering from a recent crash. How to protect yourself from online identity theft, and when does it make sense to get dump your old car and buy a new one?  Hosted by James L. Paris and Robert G. Yetman,  Jr.

Click here to download…

Protecting Your Family From ID Theft

Jim Paris interviews Brian Zimmer President of The Coalition For A Secure Driver's licents. Mr. Zimmer will be addressing identity theft and how relaxed new laws make it easier for ID thiefs to obtain fraudulent driver's licenses. http://www.blogtalkradio.com/jameslparis

Profitable Sunrise - Jim Paris Investigation

http://www.profitablesunriseinvestigation.com In his ongoing investigation of Profitable Sunrise, Jim Paris brings on the program Lynn Edgington a fraud investigator with Eagle Research http://eagleresearchassociates.org . More shocking information about Profitable Sunrise, its promoters, and the shadowy past of many of those involved.

Profitable Sunrise: Christians Hope To Cash In

Listen to internet radio with Jim Paris Live on BlogTalkRadio

Follow The Latest Legal Filings On Profitable Sunrise - Click Here

 

New White Paper - What You Can Do Now To Recover Your Lost Funds  Click Here

 

Major TV Expose' On Nanci Jo Frazer

 

 

Click On Excerpt For Full Story

New Zealand Warns About Nanci Jo Frazer's Group (NJF Global)

April 15, 2:52 pm - We have confirmed that Roman Novak did not show up at the SEC hearing today.  We have also learned of a new e mail sent out to investors by Nanci Jo Frazer's group.  The e mail portrays Nanci as a victim and minimizes her involvement with Profitable Sunrise.  It continues to make reference to those of us that exposed the truth as 'cyber bullies.'  Read Update Here

An excerpt -

"SERVING WITHOUT FINANCIAL REWARD 

We are figuring that most of the people in Profitable Sunrise received her support without Nanci having any financial gain. Only one of the leaders you heard doing the conference calls and webinars was in her pay plan.  She worked up to 18 hours per day supporting those needing help even though she has never met Roman in person.  She was excited to see the charity grow even though she was never compensated from the charity. The point is, her story is not all that interesting and those who are making up false information are just hurting a Christian sister and her family.  This needs to stop now. Please join us to protect one of our own who to this day picks up the phone to help. She has never stopped working for all of us. She has always been there for us."   

 

SEC Files Suit Against Profitable Sunrise
April 5, 2013 1:00 pm Eastern

Profitable Sunrise - An Ongoing Investigative Report from ChristianMoney.com. This article was originally published on February 12, 2013 (see original article below).We are continuously updating this story and those updates appear in chronological order (most recent first). The worldwide scam targeted Christians offering a daily interest rate of 1.5% to 2.7%, and the amount of money involved is estimated to be more than $100 million.  As the blog that first broke the story, we have numerous sources providing ongoing tips,  recordings of past sales calls, and access to password protected portals. If you would like to arrange an interview with James Paris, please contact him by e mail.  If you are an investor and have lost money, we advise you to contact your state securities regulator as soon as possible. Nationwide Securities Regulators 

***Jim Paris Appears With Pat Robertson On The 700 Club To Issue Warning***

 

List of provinces, states, and countries issuing warnings or cease and desist orders since we published this article: New Brunswick, Quebec, Ontario, British Columbia, Alberta, Manitoba. In the United States: Kentucky, Ohio, Florida, Wisconsin, Nevada, Minnesota, California, Indiana, New Mexico, Texas, Delaware, North Dakota, South Dakota, Alabama, North Carolina, South Carolina, Alaska, Maryland, Maine, New Jersey, Louisiana, Tennessee, Missouri, and Oregon. Other countries: New Zealand, and United Kingdom. 

March 4 Press Release 

March 11 Press Release

March 15 Press Release

March 21 Press Release (YouTube Censors Our Videos)

Follow 24/7 Updates On Twitter #profitablesunrise

 

   

NJF Global Keeps Investors At Bay With Yet Another New Story About
Why The Profitable Sunrise Website Has Been Offline For 3 Weeks

Shocking new conference call March 26, 2013.  The speaker is Mike Rothermel.  I was amazed at the disrespectful and arrogant tone throughout, as people try to simply get information about the money they have invested in Profitable Sunrise.  At 51 minutes there is a very interesting interaction with an IRS agent that you don't want to miss.

 

 

 

Ohio Notice Of Intent To Issue Cease And Desist Order 
(thanks to our friends at RealScam.com)
*** To View Full Document Click On It

We have been provided this recording from a source who tells us that the main speaker on this call is Tony Infante.  The mini audio clip below is from an unknown additional speaker (this clip is included in the larger recording but has been excerpted since we believe it is very significant).  The call took place at 9 pm on March 21, 2013.

"The cease and desist orders from the states...well they're telling you to cease and desist on selling securities, we're not selling any securities and we're free citizens. We have free will our rights are protected by the Constitution and the government is restrained by the Constitution.  We can do what we want... just because the government says you can't do something that's... if it's an unconstitutional rule it doesn't apply to us.  So, unless you're the attorney general the rule that they put out saying that you can't have anything to do with Profitable Sunrise that applies to him that doesn't apply to us..." Mike Rothermel

 

 

  

March 20, 2013 6:30 pm - NJF Global Group holds conference call and warns followers 'not to be worried if the Profitable Sunrise site is not back online until Monday.'  Despite attendees attempt to ask questions they were told that no questions would be taken.  Followers were told that there will be no more conference calls for at least two weeks.  Everyone was told to be patient and not listen to anything that James Paris or Lynn Edgington are saying.  Attendees were advised to make complaints to the sites that stream our show. Nanci Frazer demanded that we take down her picture and audio from this site or further action would be taken against us.

*** March 20, 2013 -  We have multiple unconfirmed reports that the top leaders and promoters of PS are telling people that the Profitable Sunrise website will not be coming back online.  After promising that the site was coming back online repeatedly and changing the time frame multiple times, now the story has changed again.  There is supposedly going to be a new website and entirely new program that will come online on Friday.  PS investors will be moved into the new program. If you have more complete information on the 'new plan' please post in the comments section below.

*** March 19, 2013- A New Scam Being Perpetrated On Profitable Sunrise Investors.  You may be contacted by someone claiming to work with the government.  They will offer to assist you in obtaining a refund of the money you have invested.  You will be asked to pay a fee of $30. Some are informing me that they are also being asked to provide their banking information. The government will appoint a receiver and any assets will be distributed by the receiver's office. This usually takes a few months to happen.  I would be highly skeptical of any other offers for the return of your money, especially if they want you to pay a fee and they require your banking information.  This is not how a legitimate receiver operates.

March 18, 2013 - List of provinces, states, and countries issuing warnings or cease and desist orders: Ohio, Florida, Wisconsin, Nevada, Minnesota, California, Indiana, Maine, New Mexico, Texas, Delaware, North Dakota, New Jersey, South Dakota, Alabama, North Carolina, South Carolina, Alaska, Maryland, New Brunswick, Quebec, Ontario, British Columbia, Alberta, New Zealand, and United Kingdom. 

March 18, 2013 11:25 am -  It appears that top promoters of Profitable Sunrise are closely monitoring this page as they have now password protected most of their website and changed the password.  Top leaders continue to promote the idea that the servers are being migrated and that the site will be back online soon in Hong Kong.

Post made this morning to the NJF Global Group site-

"WE ARE ALL WAITING FOR SERVER MIGRATION TO BE COMPLETE. We cannot email support until it is back online to be advised as to the decisions of their Legal Team as to the function of their website in relation to those states and countries requesting registration. We are confident Mr. Novak will keep his word on all things as he always has thus far.

We ask that the Christian Media Gurus and others be respectful of the many Christian individuals and families who have come to this program because of the positive research that was presented for the past three years. We as Christian brothers and sisters are to lift each other up and support... helping all to end up in the right direction.  We insist that you remove all destructive posts if you are who you say you are. We keep you in our prayers as well."

 

From the Profitable Sunrise Facebook page -

March 16, 2013 11:22 am - Top Profitable Sunrise promoter Nanci Jo Frazer defies cease and desist orders by continuing to market the opportunity on her website. That page is now password protected but she is giving out the password 'successtoday' for access. Additionally, she continues to tout the future viability of Profitable Sunrise to her followers suggesting that Roman Novak's website will be back online soon.  Some of her followers are now posting in the forums that the Profitable Sunrise website is being moved to China (Hong Kong) to avoid U.S. jurisdiction.

 

 

*** New Audio Below Just Posted March 15, 2013 ***  

   

 

March 18, 2013 3:46 pm - New Jersey’s top law enforcement official and the Division of Consumer Affairs’ Bureau of Securities issued an alert to all New Jersey investors regarding a foreign-based company known as Profitable Sunrise. Click here. 

March 18, 2013 11:19 am - Maryland Attorney General issues cease and desist order against offshore internet investment scheme. Click here. 

March 17, 2013 2:00 pm - Maine warns of online investment scam. Click here. 

March 14, 2013 7:39 pm -  Sources informing us that many of the promoters of Profitable Sunrise being served subpoenas by law enforcement today.

March 14, 2013 6:05pm - Our sources inform us that California and South Dakota are now joining the growing number of states taking action against Profitable Sunrise. 

March 14, 2013 3:05 pm -  Investor alert: Ohioans warned about potential fraud tied to foreign website. Click here.

March 14, 2013 2:50 pm - Florida Office of Financial Regulation warns Florida investors about possible fraud with online overseas investments. Click here. 

March 14, 2013 2:43pm - Attorney General Beau Biden puts an end to a profitable investment scam in Delaware. Click here. 

March 14, 2013 12:11 pm - Minnesota regulators accuse Profitable Sunrise of fraud. Click here. 

March 14, 2013 10:26 am - Wisconsin officials encouraged anyone who has invested with Profitable Sunrise to contact the state Division of Securities enforcement office. Click here.

March 14, 2013 9:23 am -  Today the Kentucky Department of Financial Institutions (DFI) issued an emergency cease and desist order against an international company called Profitable Sunrise and its operators. Click here.

March 14, 2013 8:33 am - ProfitableSunrise.com is now offline. 

March 12, 2013 4:00 pm - The British Columbia Securities Commission is warning the public not to send money to Profitable Sunrise, an entity that purports to be incorporated and registered in the United Kingdom, and claims to provide short-term bridge loans to companies in the United States.

 

March 12, 2013 12:49pm - Ontario Securities Commission | OSC INVESTOR ALERT: Inter Reef Ltd., Roman Novak and Radoslav Novak (doing business as Profitable Sunrise)

March 11, 2013 1:33 pm - Anonymous tip suggests server address of Profitable Sunrise servers may be traced to Montreal

Profitable Sunrise.com points to 208.64.126.220 IP which belongs to BlackLotus AntiDDOS, which is just providing a layer of protection by means of a tunnel to the real site which is hiding its location. The tunnel endpoint (and actual PS host) is at server1.profitablesunrise.com with IP address 184.107.117.134 which is provided by Server4Sale hosing reselling company and the block of 6 IP addresses was leased from iWeb Technologies Inc. of Canada.  So, if anyone wants to shut them down or seize their database, logs and files, might be able to contact http://iweb.com/ Montreal, Canada.

March 11, 2013 11:15 am - The Alberta Securities Commission issues warning on Profitable Sunrise.

 

 

March 10, 2013 10:15 am - Profitable Sunrise added to Wikipedia HYIP Scam page

March 9, 2013 9:25 pm - We have learned that the Better Business Bureau has given Profitable Sunrise an F rating, issued a special warning, and has classified the business as a Ponzi scheme.

March 9, 2013 7:50 pm - James Paris makes public offer to Nanci Jo Frazer and Roman Novak to appear on his live Sunday night show to give their side of the story on Profitable Sunrise.

The company everyone has been told is legally operating in the UK is now banned from operating there. The Financial Services Authority has added Profitable Sunrise to its list of Unauthorized firms as of March 5, 2013 (see below).  We are unable to find any license for securities or investments that ever existed for Profitable Sunrise in the UK.  Profitable Sunrise Banned In UK

March 8, 2013 5:51 pm - We have learned that Profitable Sunrise has now been added to the list of unauthorized firms and individuals by the FSA in the United Kingdom.

An "Insider's View" Of NJF Global Group

 

          

"The Securities Laws Are So  Loose Here In The United States... They Won't Touch

You Until You Hit About $50 Million Dollars Per Month ... When I Saw Profitable

Sunrise Was Offshore, That Was The Very First Thing That Attracted Me..."  

   Nanci Jo Frazer (full unedited audio below)

 

 

March 7, 2013 12:55 pm - NJF Global Group website comes back online with a new message from Nanci Jo Frazer.

"Change is Awesome!

As you all know we have been blessed and highly favored with a Profitable Sunrise Monday -Friday for 170 business days which is over 240 calendar days now. With the global growth of our NJF Global Group Community we have now come to a point where we need to make sure that everything is in order to insure a solid and compliant relationship with the program for my next 170 days. 

There are two areas which will make sure we are protected:

1. The Door to our Ark is Closed until at least April 1st, 2013.

Our Leadership Team has been requesting for the past two weeks that we have grown large enough and need to take a pause to take care of our folks we have and get everyone's accounts perfected. I was not sure if Roman could grant this request (as we are his largest group). 

With the recent inquiry in North Carolina... I decided to go ahead and put in a request to Roman as a part of our Spring Cleaning. I feel it is important to protect our community participants from any controversy by being mistaken as a salesperson for investments or securities. Even though at no time has Profitable Sunrise been officially proclaimed as a security, we know that in the USA the laws are very loose and could be molded to work against anyone if pressed. 

  

So lets get rid of the problem and make sure nobody can sell, present, recruit or sign up anyone to protect our community participants from any harm. Problem solved... Roman did listen and has granted for us to be a fully closed community and shut off the sign up link capability. We will then revisit if we should open things up again depending on whatever policies are best to insure the longevity of our group and Profitable Sunrise.

2. The next step is to make sure that all participants pay their taxes. Before we were entrusted to do so on our own but as you know, not everyone is going to be honest about that and a small group who are not honest could hurt our entire community and the company. I have attached the founder of ProSun, Roman Novaks letter below for you to review on this matter. 

I am on vacation right now but I wanted to stay in touch... Be Blessed Nanci Jo Frazer"

 

March 7, 2013 2:30 am - NJF Global Group website (Nanci Jo Frazer) disappears and is replaced with a website template featuring a picture of a cat with no explanation.  All information about Profitable Sunrise has been purged from the site.

March 6, 2013 8:31 am - (click here for full story)

March 6, 2013 3:39 am - New NJF Global Conference Call "More confident than ever about the legitimacy of the program..."  Note that they did record this call not us, and the recording was posted online and then forwarded to us by one of our readers.  Very strange at the end how they are 'unable to take questions' from participants.  Also, how they tell everyone not to call or contact their office for the next several days.

 

From Dave Ramsey On Twitter -

March 2, 2013 9:21 am -  The New Zealand Herald confirming our reporting that Profitable Sunrise can be traced back to a shell corporation with the sole shareholder and director being a 45 year old woman by the name of Agnes Jouneau who lives in Seychelles.  

"The Weekend Herald can also reveal that Ms Jouaneau was the director of 178 businesses registered in New Zealand that have been struck off. They were part of 1,800 shell companies removed by the Companies Office, following an investigation into one of these companies, SP Trading Ltd, which chartered a cargo plane carrying 35 tonnes of North Korean arms - including anti-aircraft missiles and rocket-propelled grenades - to Iran. The plane was stopped in Thailand in December 2009."

March 13, 2013 5:38 pm -  I just got off the phone with an individual at Pastor Nanci Jo Frazer's office and he says that she just left for vacation with her family and is unavailable for comment.

Profitable Sunrise Breaking News - North Carolina Issues Cease And Desist Order

On February 27, 2013, the Securities Division of the North Carolina Department of the Secretary of State issued a Temporary Order to Cease and Desist to Roman Novak, Radoslav Novak, and Inter Reef LTD d/b/a Profitable Sunrise. Roman Novak, Radoslav Novak, and Inter Reef LTD d/b/a Profitable Sunrise were ordered to cease and desist from offering for sale, soliciting offers to purchase or selling, in or from North Carolina, any securities unless and until such securities have been registered and Roman Novak, Radoslav Novak, and Inter Reef LTD d/b/a Profitable Sunrise become registered as dealers or salesmen of securities. The Temporary Order to Cease and Desist found that Roman Novak, Radoslav Novak, and Inter Reef LTD d/b/a Profitable Sunrise offered investment contracts in the form of investment plans, made available through their website http://www.profitablesunrise.com, in violation of the North Carolina Securities Act. The Temporary Order to Cease and Desist gives Respondents 30 days in which to request a hearing. If no such request is made during that time, the Temporary Order to Cease and Desist shall become final.

Pastor Nanci Jo Frazer On Conference Call (Below) (New audio obtained March 3, 2013)  *** We do not have the date when this was originally recorded.

  

 

Original Story (below) published on February 12, 2013

The investment opportunity is called 'Profitable Sunrise,' and after a week and a half of investigating it, I can honestly tell you that I have more questions than when I started.  I first learned of it from a friend who is a full time minister who shared with me that he had invested $250 in the program. He also informed me that a friend of his had invested $30,000. I posted a comment on my Facebook page looking for others that may have invested, and one more individual came forward to let me know that they had done so. It seems that I have just scratched the surface, not realizing how many people it seems are investing their money into this program. 

New Video Just Added Feb 27, 2013

 

 

 

The company's motto is 'Get Richer With Every Sunrise.' The claim: investors will earn 1.6% to 2% daily with no risk. Just to give you an idea of what this really means, I thought it would be interesting to do the math on $100 over the course of one year at 2% daily.  The result - $137,000.  Of course, you would expect that anyone making such claims of returns like this would have a lot to back it up, right?  No, not at all. What's more, the people I interviewed for this story seemed to have little concern about getting their hands on anything that would represent reasonable due diligence before having made their investment.   See the full presentation here.  I stand corrected - The interest is only paid on 'business' days and over the course of one year there are 250 business days.  At 2%, $100 would grow to be $14,126 during this period.  It is still a ludicrous claim, especially when they are telling people that is is a 'risk free' return. Additionally, I have never heard of interest not being owed on a holiday (but that is their system).  If a loan is outstanding, interest accrues (holiday or not). Nonetheless, I want to be as accurate as possible here as we continue to uncover more details.

Special note on the three videos below.  These videos were at one time on YouTube and were embedded here.  The videos were then removed from YouTube by the promoters.  We expected that, and downloaded copies of the videos and are hosting them now on our own server.  We will not take them down under any circumstances. One of my sources has informed me that as of March 2 the organizers and promoters are working frantically to take down everything they have posted on YouTube to cover their tracks.

ChristianMoney.com located two individuals online who were promoting the investment opportunity.  Although we were not able to get any of the details on the compensation being paid to promoters, there appears to be some sort of network-marketing-like structure to the recruitment of new investors.  One individual explained to me that he has reached the point in his spiritual walk that he no longer needs to ask how, he can just accept on faith that the returns are real.  Another individual, informing me that she is a pastor, says she is recruiting more than 100 people per day into the investment opportunity.  She claims that the organization is operating offshore and is exempt from securities regulations and U.S. laws. Despite going on the record with ChristianMoney.com for thirty minutes, she requested (afterward) that we not mention her name.

   

Who is behind Profitable Sunrise?  This is the question we have tried to get an answer to and it was not easy.  Checking the registration of their website, we found two phone numbers, both of which have area codes placing them in Central Florida.  The pastor we interviewed could not tell us where the company was based, but we did find a Birmingham, England address on their Internet records.  Despite this address, we were told that this was just a 'drop box' and that there was no one physically at this address.The corporate name behind the operation is Inter Reef, LTD. but we don't know where this entity is incorporated or if they have any physical office location.

 

The principals behind the company are two brothers;  Roman and Radoslav Novak. Where are they? We don't know and have not been able to find out. Over a week ago, ChristianMoney.com submitted a formal request for an Interview through the company's website and we have yet to receive a response.  The pastor we interviewed refused to connect us with the principals, saying that interviewing them would be a waste of their time. Of course, I pointed out that we are the website of record for Christians and money and that we would be publishing an article with or without their participation; nonetheless we never received a response.

The pastor we interviewed explained that the investors she is recruiting are tired of the U.S. banking system, which she explained takes in your money and profits from it while sharing with depositors very small rates of interest.  She said that Profitable Sunrise allows investors to do what the bank does with its own money.  These disenfranchised bank depositors and U.S. investors have turned to Roman Novak who has graciously provided them a way to make the 'real money' like the big banks and corporations.

How Does Profitable Sunrise Earn These Returns?

When asked how these returns were able to be generated, we were told that Roman Novak makes 'hard money loans' at very high interest rates to businesses that need short term funding.  "The loans are at zero risk since they are insured and backed by hard assets."  Each of the individuals we interviewed said they know that the opportunity is legitimate since they have already seen early investors being paid. Of course, there is the possibility that early investors returns are coming from the deposits of the current investors. 

I have a very open mind. In fact, probably too much so.  This is not about me trying to spoil the party for my Christian brothers and sisters.  If this investment is legitimate, we ask for Mr. Novak to provide us with a physical office addresss, audited financial statements, and an on the record interview.  We will gladly provide you the chance to share your side of the story.  

Helping you make the most of God’s money!

James L. Paris
Editor-In-Chief ChristianMoney.com 
Follow Me on Twitter Twitter.com/jameslparis
Christian Financial Advice
Jim Paris 24 Hour Radio

*** Important Note On Comments Below - The comments extend beyond one page and you must hit the small arrow key at the bottom of the page to move to the next page.

A $1 Billion Dollar Bet Against A Well Known Home Business Opportunity

Herbalife Ltd, one of the world's largest distributors of weight loss and nutritional products, is facing an unusual financial challenge.  Hedge fund mogul Bill Ackman says the company is a pyramid scheme and has taken a short position of $1 billion dollars.  A short position allows Ackman's hedge fund to profit if the stock of Herbalife goes down in value.  Ackman sold the company's stock short on Dec 19, 2012.  Since the Ackman short, the stock has lost about 30% of its value but has slowly recovered its loss and is nearly back to its prior levels.

Herbalife has been a darling of other investment gurus such as Jim Cramer, who touted the stock on his 'Mad Money Show;' see video below.

 

 Bill Ackman says Herbalife goes after the poor.  See video below.

 

Herbalife advertisements do include very optimistic testimonials of individuals claiming substantial monthly earnings. The ads do not directly promote Herbalife but rather a website known as 'Income At Home.com.'  If you look around on the website you will eventually find some details about the earnings of Herbalife distributors (Herbalife Income Disclosure).  Honestly, we found these figures very difficult to bottom line. It appears, however, that the median earnings of a sales rep (that qualifed as a 'leader') in 2011 appear to have been $741. This would be only about $62 per month.  The following line is also added to the earnings disclosure - "The amounts above are in addition to and do not include profits earned on the resale of products to consumers or other Distributors."  

Ackman's position is that a very tiny percentage of the company's sales reps are making money and he seems very confident in his assertions. ChristianMoney.com has also found quite a lot of additional negative reviews of the company on YouTube, as well.

 

To be fair, Herbalife has been around since 1980 and has endured countless inquiries from state and federal regulators. I have seen so many of these kinds of business opportunities come and go over the years, and yet Herbalife is still standing.  The major problem for Herbalife, in the end, may be with regulators.  In recent years, the Federal Trade Commission and state regulators have been targeting business opportunities that make income claims that do not fairly represent average results. By so heavily highlighting income claims into their marketing, Herbalife may have opened the door to serious scrutiny of their advertising. The company does have an A+ rating with the Better Business Bureau and does offer a 90 day money back guarantee on its starter kit.

My advice; be very careful when evaluating home based business opportunities. It appears, based on Herbalife's own figures, most people are not earning anywhere near the level of those they are featuring in their advertisements.  On a side note, the IRS is offering a new easy method of claiming expenses for a home office.  The streamlined deduction provides a flat $5 per square foot up to 300 square feet.  Of course, one of the big benefits of starting a home based business are the tax deductions you become entitled to.

James L. Paris
Editor-In-Chief ChristianMoney.com 
Follow Me on Twitter Twitter.com/jameslparis
Christian Financial Advice
Jim Paris 24 Hour Radio

Related articles

Carl Icahn Initiates Long Position In Herbalife

Live Blogging Herbalife's Investor Meeting

Herbalife comes out swinging

The Next Robo-Signing Scandal - Credit Cards?

A local judge told the  New York Times that 90 percent of credit card lawsuits in his court are flawed, and the credit card company can not prove that the debt is actually owed.  The judge went on in the interview to describe the testimony and evidence provided by many credit card companies as tantamount to 'robo-signing' and 'robo-testimony.' This is a reference to the foreclosure scandal and the challenge that many lenders face proving that they own a mortgage on a specific property. Some lenders had employees signing thousands of documents per day attesting to their claim. The employees had no firsthand knowledge of what they were swearing to and were mindlessly signing the affidavits (thus the term robo-signing).

 

I was actually not surprised to read this article as I have heard countless stories like this and experienced it myself.  I was recently contacted by a creditor that claimed I owed a debt from a very long time ago.  I believe they said it was from ten years ago.  I had no memory of this debt and made a very simple request.  I asked them to send me proof that this debt was, in fact, owed by me. The collection agent got very upset with me and told me that they didn't have to provide this information. I followed up by asking why this information could not be provided to me if I actually owed this debt.  The collector hung up and I have not heard from them since.

 

If In Doubt, Ask For Proof From A Debt Collector

If you receive a phone call from a collector and don't believe you owe the debt or question the amount, you have every right to ask for proof of their claim.  If they don't have any back up, you may be able to negotiate for a reduced amount.  I am not suggesting that we, as Christians, use a legal technicality to get out of a debt that is legitimately owed. The reality is that many times once a debt is sold to a collection agency, the amount is doubled or tripled from the original balance (when late fees and penalties are added).  Working out a settlement is generally a win-win for both parties. Since collection agencies routinely purchase debts at a very deep discount (sometimes pennies on the dollar), settlements of 30% to 50% are typical.

 

What To Do When You Receive A Collection Notice You Disagree With

If you begin receiving collection notices and you do not agree that you owe the debt or the amount in question, you should send a certified letter putting the creditor on notice of your dispute.  If you don't do this, you may run into trouble in court.  In some jurisdictions, not disputing a debt collector's written claim can be considered an admission to owing the debt.  I found an excellent template for a debt validation letter that you can use.

What To Do If You Receive A Lawsuit

If you receive a lawsuit, you have very limited time to respond.  Most courts allow 20 days for you to file your written answer to the lawsuit. You may be able to represent yourself if the case is considered a 'small claim.'  If you need legal assistance and can't afford a lawyer, you can contact your local county Bar Association to inquire about low cost or free legal assistance that may be available. A service that I personally use is Pre Paid Legal.  For about $25 monthly, you can access attorneys by phone in most states.  Another great resource, if you are a do-it-yourself type, is NOLO Press. NOLO offers a vast array of books on how to deal with just about every legal situation imaginable. It is important to realize that you must respond to a lawsuit or the creditor will win by default and you will end up owing the entire amount, and possibly legal fees as well.

Helping you make the most of God’s money!

James L. Paris
Editor-In-Chief ChristianMoney.com 
Follow Me on Twitter Twitter.com/jameslparis
Christian Financial Advice
Jim Paris 24 Hour Radio

 

Free Software To Protect Your Passwords

It seems that about once every month we hear in the news word of another major security breach where hundreds of thousands of passwords are compromised. Most people don't realize the full scope of the problem that losing a single password can cause.  A few weeks ago one of my friends had his e mail account hacked.  I learned this along with everyone else on his e mail list by receiving a ton of spam messages from his account. I alerted him that his account was hacked and he seemed to have little concern about it.  In fact, a week later I asked him if he contacted his e mail provider to get a resolution to the problem and he still had 'not gotten around to it.'  I thought he might need a little motiviation so I shared with him how someone could now access his online banking and clean out his bank account.  Yes, that got his attention.

His first reaction was to challenge me on my the notion that his bank account was vulnerable.  I asked him if this was the same e mail account he had registered with his online banking.  He answered that it was.  I next showed him how someone could go into his account and request a password reset and that a new password would be sent to the hacked e mail account.  I kid you not that he turned three shades of purple and looked like he was going to get sick.  He went directly home and got the e mail issue resolved and changed all of his other accounts with the same log in credentials.  My friend's reaction is probably typical of most people that don't connect the dots and see that one hacked account could have very broad consequences.

 

LinkedIn reportedly had six million username and password combinations compromised by a hacker last week.  I am sure that most people yawned and simply concluded that it was not big deal if someone got their LinkedIn password.  The reality is that most people use the same username and password for multiple accounts.  By getting just one of your log in combinations a hacker will likely be able to gain access to several other accounts and this could include your e mail, online banking, and credit cards.  We also know that even if all someone is able to accomplish is to take control of one of your social media accounts, this can be used to send out messages to everyone in your contact list and these messages will appear to be coming from you.  There are a myriad of scams that can be employed in just this one scenario alone.

How To Smartly Deal With Passwords

I reached the point recently that I had so many passwords and accounts that I was about to pull my hair out.  My adult daughter works with me and has a gift of being able to remember my passwords and bails me out at least two or three times a day.  I believe I have finally found an answer to all of this with what is called password management software. I am now using a program that encrypts and stores all of my passwords.  All I need to remember is just one username and password to access the program and then it auto completes my log in information.  I can not tell you how wonderful this is and how much it is helping me to keep my passwords straight.

Most people use easy to remember passwords such as their children's names, birthdays of family members, etc...  These kinds of passwords are not difficult for a hacker to guess.   Even worse, sometimes people use 'password' or '12345678' and other ridiculous log in credentials.  Password management software can automatically create incredibly difficult passwords and then save them for you.  You know, the passwords that have upper case and lower case letters, numbers, and even those rarely used characters like ~ on your keyboard.  These are passwords you would never be able to remember and you don't have to once you install a password management program.

Here are four that were recommended in a recent tech article I saw this weekend -

LastPass (the one I use) -  Free but also offers a premium service for $12 per year. They additionally offer a number of other upgrades as well.  I have the premium level service and love it and it is worth what comes out to $1 a month.

1Password - A one time fee of $49.99

KeePass - Open source and completely free.

My Padlock - Completely free option.

 

I went with LastPass Premium rather than one of the completely free options.  I like the ability to share passwords without having to send them by e mail.  This comes up frequently when there is a group project going on in our office.  I also like the fact that I can log in from any of my computers or a mobile device and gain access to my password vault. These features really make me a big LastPass fan.  Based on your own circumstances a free option may work just fine.

If you have your own recommendation on a password software program please share it in the comments section below.

Helping you make the most of God’s money!

James L. Paris
Editor-In-Chief ChristianMoney.com 
Follow Me on Twitter Twitter.com/jameslparis
Christian Financial Advice
Jim Paris 24 Hour Radio

 

Can You Really Get Paid To Do Online Surveys?

This topic has been on my list of articles I wanted to write and I am finally getting around to it.  I have heard about the idea of getting paid to do online surveys but I have also heard that many of these offers are scams. This would probably fall into the same category of a recent article I wrote on the topic of how to make money as a mystery shopper.  Most people dismiss the idea as illegitimate since there are so many scams that use the concept as a front.

Not only have I been generally aware of the survey opportunity, but a cousin of mine that has a seasonal job shared with me last year that she makes quite a bit of money during her 'off season' completing online surveys.  This was the first time that someone I knew actually vouched for the legitimacy of getting paid to do surveys.

 

Separating The Scams From The Real Thing

The tip off of a paid survey scam is when you are asked to pay money upfront to become involved. Legitimate survey opportunities do not ask you to pay them - they pay you. Another very common thing you will see if you do any Google searches for survey opportunities are thousands of people selling lists of online survey companies.  You really don't need to spend $30 or more for a list as I am providing one for you below.

Reputable Online Survey Opportunities

Opinion Outpost

Opinion Place

Cash Crate

Survey Savvy

InBox Dollars

Send Earnings

eSearch.com

How Do You Get Paid?

The above sites pay out most via Pay Pal.  Most offer a variety of rewards programs such as airline miles, credit at Amazon.com, and other online stores. The compensation you will receive is disclosed upfront, so you can decide if the offer is worth your time to participate. 

How Much Will I Earn?

Shorter surveys (5 minutes or less) pay about $1 while longer surveys (45 minutes) can pay $30 or more.

How To Get Started

Get started by registering with any of the above sites.  The registration process involves sharing some information about yourself that will help the survey company to determine what surveys would be appropriate for you to complete.  Most of the sites will allow you to start completing surveys immediately after registration.  You will also be contacted by e mail when any surveys you qualify to complete are available.  For example, they may be currently looking for mothers of young children and if you don't fit into that category you may not find anything currently available for you.  This appears to be the most limiting aspect of the survey opportunity.  You can not just sit down and complete an unlimited number of surveys.  You can only complete surveys you are invited to participate on. One way to combat this is to sign up for multiple survey sites to increase the odds on your survey invitations.

Conclusion

Don't quit your day job.  Depending on your consumer profile you may only get the opportunity to do a handful of surveys each week.  The only way to find out how in demand you may be as a survey taker is to sign up for a few sites and complete their profile questionnaire.  

Please use the comments section below to share your own experience (good or bad) with the world of paid online surveys.

Helping you make the most of God’s money!

James L. Paris
Editor-In-Chief ChristianMoney.com 
Follow Me on Twitter Twitter.com/jameslparis
Christian Financial Advice
Jim Paris 24 Hour Radio

 

Talk Show Hosts Touting Diamonds Offer Flawed Advice

My curiosity was piqued recently when I began to hear a number of conservative radio talk show hosts promoting diamonds as an investment.  For those who are my regular readers, you know that I don't much put stock in the investment advice of talk radio hosts as they seem to be willing to pitch anything.  We have covered extensively a company called Goldline which is aggressively promoted by Sean Hannity and Glenn Beck.  Goldline sells gold and gold coins and was criminally charged in 2011 and recently settled those charges by refunding $4.5 million dollars to affected customers.

It seems like the latest hot investment to hit talk radio is diamonds.  Michael Medved, Dennis Prager, and Laura Ingraham, are among those promoting diamonds as an investment.  I have always been very skeptical about unusual investments such as this. After all, what's wrong with good old mutual funds, stocks, and bonds?  Many people simply feel that this is too boring of a path for them and they have a need to go on a hunt for the exotic.

Click Here To Listen to this shameless promotion by Laura Ingraham as she receives a free diamond from her sponsor Pinnacle Diamonds 

 

The typical listener to one of these radio shows has zero experience investing in diamonds.  This is what makes me deeply concerned about this.  I have spent most of my adult life working in the investment world and I know nothing about investing in diamonds.  In fact, for several days I have been doing research for this article and in the end I think I am more confused than when I started.

To determine the value of a diamond you have to take into consideration the 4 C's

1. Cut
2. Color
3. Clarity
4. Carat

The claim is that diamonds rose 22% in value last year.  That may be true, but I have no way of independently verifying this as there are far too many variables.  Perhaps the more important question is what the retail markup is of these diamonds?  As I have pointed out in prior articles on gold coins, in some cases you must see a 30% or more increase in value just to break even.  That is because you are paying retail and must sell your coins back at wholesale.  A quick review of the legal disclosure on Pinnacle's website suggests that the 'spread' between retail and wholesale would be 20% and 35%. Who would buy an 'investment' that was worth 20 to 35 percent less on the first day they owned it?  Based on this disclosure, even if you had invested with them last year and earned 22% you would most likely not be able to sell your diamonds back for what you paid.

The truth is that the average listener to one of these talk shows has no business investing in diamonds.  Just like investing in art, collectibles, antiques, and the like, I believe that the only people that should invest in diamonds are those that are experts in that field.  There are far too many variables and subjective determinants to calculate a fair market value. 

Another reason to be wary of diamonds as an investment is that one corporate entity largely controls the diamond market. De Beers at one time maintained a virtual monopoly in the diamond market and still control an estimated 40% share.  This one of the major reasons why diamonds do not trade as legitimate commodities such as gold and oil.  There is a move afoot to form an exchange traded fund that would buy diamonds.  I have to admit that I find this interesting and if I were to ever invest in diamonds I would probably do so within the framework of an ETF such as this.

For now, I would have to give diamonds a big thumbs down as an investment.  Agree or disagree, please use the comments section below and let's start a conversation.

Helping you make the most of God’s money!

James L. Paris
Editor-In-Chief ChristianMoney.com 
Follow Me on Twitter Twitter.com/jameslparis
Christian Financial Advice
Jim Paris 24 Hour Radio

 

Student Loan Interest Rates About To Double?

It appears that the latest political football is the interest rate on student loans.  The loan program in the news this week is the Stafford subsidized loan program.  The government guarantees the repayment of these loans which are made by private lenders.  In the case of the subsidized version of the Stafford, the government funds the cost of bringing the interest rate down as well. The current interest rate on these loans is 3.4% but may be doubled to 6.8% if the government interest subsidy is not renewed by July 1.  The interest is paid entirely by the government while the borrower remains a full time student.  It is only after that status changes that interest charges begin being applied (again, this applies to the subsidized version only).  This topic being in the news gives me a chance to write an article that is long overdue about how I feel about student loans in general.

Of course, being an election year, this is prime fodder for a 'who cares about you more' appeal by both presidential campaigns.  I don't have a position on whether the rate should change or not as I guess we are so far down the rabbit hole it may not matter at this point.  It is fascinating to me how we are following the exact same script of Europe as austerity measures seem nearly impossible to implement by elected politicians.  At some point the government spending must be reigned in, but each individual interest group believes it should not be them but someone else's government trough that should be taken away.

See the video below as students at Santa Monica College are pepper sprayed after refusing to disperse during a protest over tuition rates.

 

The Amount Owed In Student Loan Debt Nears $1 Trillion Dollars

Student loan debt is now nearly $1 trillion dollars.  This is more than the amount owed on credit cards or auto loans.  Making available easy money for college appears to have  had widely negative consequences for our culture (seems to almost always be the case when the government gets involved).  This appears to be not much different that the subprime mortgage crisis.   With student loan proceeds flowing into America's colleges we have seen unprecedented inflation in college costs.  Basic economics: more money chasing the same goods an services = higher prices.

From FinAid (a leading website on how to pay for college)

A good rule of thumb is that tuition rates will increase at about twice the general inflation rate. During any 17-year period from 1958 to 2001, the average annual tuition inflation rate was between 6% and 9%, ranging from 1.2 times general inflation to 2.1 times general inflation. On average, tuition tends to increase about 8% per year. An 8% college inflation rate means that the cost of college doubles every nine years.

One Man Seems To Have Revealed The Truth About Student Loans

Alan Collinge, author of The Student Loan Scam, offers some of the most shocking revelations about the downside of America's student loan industry on his website.  Young people are simply not aware of what they are getting into when signing up for a student loan.  Most do not know what the cost will be to repay the loan over its term, as rigorous disclosures associated with credit cards, mortgages, and auto loans are not required.  To make matters worse, many students are graduating today with little hopes of a career that will provide them with enough income to sustain a reasonable living standard and even make a dent in their college loans.

If being in debt up to your eyeballs is not bad enough, credit card debt among undergraduate students has skyrocketed.  Despite the Student Credit Card Protection Act of 2007, credit card issuers have come up with a way to get around it. 

Perhaps no story illustrates the absurdity of what is happening today with student loans than that of Joe Therrien.  Therrien quit his job as a New York school teacher to pursue his passion.  After earning his Master's Degree in puppetry and accumulating $35,000 in student loan debt he returned to his old school looking for work.  Due to a hiring freeze he was unable to get a teaching position.  What did he do?  He joined the Occupy Wall Street movement.  Who knew you could get a Master's in puppetry?  I guess Sesame Street is not hiring either...

Occupy Wall St. Protester Wants College Paid For Because That's What He Wants (not the puppet guy as outlined above)

 

My Advice On Paying For College

1.  Not everyone should go to college; you may very well be better off pursuing a shorter term educational program.  Computer techs, X-ray techs, and a myriad of other professions are in demand and do not require a college degree.  19 Great Jobs That Don't Require A College Degree.

2.  Attend a community college first and live at home w/ parents.

3.  If you go on to attend a University, do that while living at home w/ parents.

4.  There is no shame in taking more than four years to complete your degree (giving you time to earn the money and 'pay as you go').

5.  Join the military for one enlistment before going to college and tap into their college funding program.

6.  Don't ever borrow money unless you have a plan to pay it back.  Student loans are no different.

Check Out This Full Length Interview With Alan Collinge Of Student Loan Justice

 

I will spare you the blah blah on scholarships and grants.  Any money you can get for college that does not have to be repaid is a good thing, but you didn't need me to tell you that.  If you are looking for a good website on this, I really like FinAid.

If you are really interested in the dark side of student loans, check out the documentary The College Conspiracy. 

Helping you make the most of God’s money!

James L. Paris
Editor-In-Chief ChristianMoney.com 
Follow Me on Twitter Twitter.com/jameslparis
Christian Financial Advice
Jim Paris 24 Hour Radio