Scams Frank Ross on 05 Oct 2006 06:47 pm
Prosperity Automated System Exposed as Ripoff
I knew it. I keep a daily Google news alert for the terms ‘home business’ and ‘home-based business’. Approximately one half of what I get are limp press releases announcing the latest and greatest home business opportunity.
On name that kept coming up (over and over) under this category was Prosperity Automated System. Now it looks like the long arm of the law is finally catching up to them.
The Securities and Exchange Commission is seeking to shut down a network of 25,000 websites, accusing operators of running a $15-million pyramid scheme that promises to shower participants with easy cash. Prosperity Automated System, which bills itself as a marketing network, “is destined to collapse and leave the vast majority of investors with substantial losses,” the SEC said Wednesday.
Visitors to the sites fill out forms and are later called by representatives selling memberships for as much as $3,895, the SEC said. New members are issued their own websites and eventually can receive a share of the money when more people buy memberships via their sites, according to the allegations. “Websites that come with the memberships do nothing but sell more memberships,” said Stephen Donahue, an SEC enforcement official in Atlanta.
I stand behind pursuing the uphill road less traveled in ecommerce home based businesses, because these schemes always come crashing down at some point. A house of cards such as this is precarious but a well structured business will have a strong foundation. At least their press releases should stop now.
– Frank Ross