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SEC Shuts Down Pyramid Scheme Targeting Asian-Americans

October 21, 2013

The Securities and Exchange Commission recently shut down a pyramid scheme that “purportedly sold Internet-based children’s educational courses.” Promoters of “CKB” and “CKB168” snookered 400 investors in the US to pony up $20 million, with millions of dollars more raised in countries with significant Asian populations. The majority of the money, the SEC claims, went to the executives of CKB and promoters of the pyramid scheme; there was little to no evidence that real-world consumer sales were being made.

From the SEC press release:

“CKB’s operators and promoters profited by abusing relationships of trust within the Asian-American community and promising investors they can earn more money by recruiting other investors instead of selling actual products,” said Antonia Chion, an associate director in the SEC’s Division of Enforcement. “What CKB really sells is the false promise of easy wealth.”

The SEC also released an investor alert with more information on how consumers can educate themselves on pyramid schemes that masquerade themselves as multi-level marketing companies.

13 Comments leave one →
  1. October 23, 2013 1:53 pm

    I looked at the SEC site, it looks like they missed a bullet: if half of the products offered consist of books written by company’s top scammers, beware.

    This yr they’ve released Tim Marks’ 2nd book & Orrin’s 64th. Gee whiz, guys, give it a rest, will ye?

  2. Melanie Morgan permalink
    October 23, 2013 2:35 pm

    p J-

    Claude wrote one also and Terri brady put her “Letters to Lindsey” blog in one apparently too

    Guaranteed cash flow for them…same undue influenced internal consumption..captive audience that have Already heard and read their material a thousand times…hype it up at major, sell to those non customers..them cram it down on B O M to the same users..even a few times, no one will say anything…, use for “first night, second night, follow material” and have contest to get more sold….spend, spend spend as if the books are consumables……mis-leading people…getting them to believe eheir #1 came outside of the organization as if the have the rest of the world is buying their books. Despicable how they use the people.

    THANKS Amthrax!

    From my experience, I couldn’t say it better. The quote could say Team operators and promoters followed by the rest of quote…..perfect fit……Hope the Sec continues right on to the next “pyramid scheme”. And next….. if or when they would get shut down who would they have to buy their books? My guess….no one…

  3. October 23, 2013 7:20 pm

    Wow Melanie, Terri wrote one too? Seriously?

    You’ll know the gig is up when the Tears of a Viking Primer gets shoveled down for BOM.

  4. Melanie Morgan permalink
    October 23, 2013 9:51 pm

    PJ~

    http://www.amazon.com/Letters-Lindsey-Terri-Brady/dp/0989576329

    I don’t know and won’t ever buy it but did she sounds like or did she take the content from her blog that people read for FREE and use that as the content in this book and now charge $23.95?! If that’s the case….. then shame….

    As with all their other books it is internal consumption and we know their is NO discount or why not sell their books to the members at cost? The captives have all heard or read their material/ blogs or heard their ‘stories’ on cds in some form.

    Worse they put it in hardcover then later it will come in soft after they have raked in all they can while they charge the highest they can get and promote it not as just “get your copy” it’s “stock your trunk” make sure you get “extras” to give them as gifts, then send it down on BOM after they released it at the Majors first!

    As I said despicable how they manipulate and use the captive downline and their money for their own personal gain.

  5. October 23, 2013 11:09 pm

    Please confirm that the contents of Brady’s book is from her blog posts.

  6. Melanie Morgan permalink
    October 24, 2013 5:49 am

    Amthrax~

    I won’t be buying or reading the book and comparing the content to the blog. perhaps someone else can confirm, if not feel free to delete the link and or the comment. Thanks.

  7. Former Round Table permalink
    October 24, 2013 6:00 am

    Amthrax, Terri Brady’s blog, terribradyblog.com, announced the publication of her blog posts in book form.

  8. Melanie Morgan permalink
    October 24, 2013 6:37 am

    One could go to Letters from Lindsey blog and read post on “THE BOOK IS HERE” Terri Brady gives a short introduction to the book. The topics mentioned in the introduction are same as ones on her blog. Only way to confirm for sure, obviously, would be compare the book and blog

  9. Melanie Morgan permalink
    October 24, 2013 6:39 am

    Thanks Former Round Table, didn’t see your comment before I posted.🙂

  10. Melanie Morgan permalink
    October 24, 2013 7:00 am

    Before all the haters of this blog come here and whine with their dogma, and tell me what a loser and quitter they think I am, as hard as it will be for you…understand something..it is NOT about I don’t have anything better to do, or I don’t want to better my life, you haven’t a clue what I do or desire….or even what my opinion of the content would be, or I hate Terri Brady or hate books. nor is it about anyone writting books or whatever you are told then repeat without thinking….GET the point.

  11. Former Round Table permalink
    October 24, 2013 9:50 am

    I am reminded of a discussion I had with a close friend when I was still deeply entrenched with Orrin Woodward et al. My friend had done some internet searches on Orrin Woodward and tried to tell me that he was clearly an egomaniac, and that the “business” was nothing more than a way for Orrin to amass wealth without providing anything of real value. My argument back was that my friend did not know Orrin and his motives the way I did, so could not be a fair judge.

    Fast forward a couple of years. To all of you still loyal and believing in Orrin Woodward and his master plan, here is the difference. I KNOW Orrin, have known him for years, and was much closer to him than 99.9% of you will ever be. My friend was right years ago; I had been deceived, just as you are now.

  12. Melanie Morgan permalink
    October 24, 2013 9:10 pm

    Former Round Table~

    Thanks I am feeling you! This may seem off topic but is it? Check out this story, I’ll provide the link but here is a quote from Phil Vischer the co-creator of the “Veggie Tales”, the story about his ‘bankruptcy’ and the LESSON he learned….Powerful, I challenge every lifer to read it! Maybe they will see? I know I appreciated it!…I think you will appreciate and understand why I am sharing it here. This is a quote to give you an taste:

    “Why would God want us to let go of our dreams? Because anything that you are unwilling to let go of is an idol and you are in sin,” explained the VeggieTales creator. “I realized that my good works had become an idol that defined me. Rather than finding my identity in my relationship with God, I was finding it in my intense drive to do good works.”

    http://www.christianpost.com/news/veggietales-creator-bankruptcy-humbled-me-killed-my-idol-50119/

  13. Melanie Morgan permalink
    October 25, 2013 11:19 am

    Former Round Table-

    I do agree with you and your friend,, sadly people don’t know what you and others know. You had me reflecting on some conversations,. Definitely ego driven but worse more power hungry (they like to call it influence) but it is not true influence if people don’t have a choice, are kept in the dark, the information is controlled and you demand edification of yourself….. full of themselves they are. ….People don’t see it because they are good at acting the part, right up until you question…especially ethics.

    It is amazing.how some refused to face up and the rest are convinced and blind. And scary how many are in awe and act as if they are the Way, Truth, and Life…

    Found a bunch More L L R books, unfortunately but I will have them shredded, don’t have the heart to throw any more in the dump…either way, they are trash! What a waste of money. Glad to be free!!

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