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FDRS - Federal Debt Relief SCAM

Monday, August 25, 2008

My request to Genesis Communication Network to pull the FDRS ads

Please see My request to Genesis Communications Network to terminate all FDRS advertising

I sure hope they’ll pull the ads.

Wednesday, July 23, 2008

The new FDRS site

Federal Debt Relief System SCAM exposed:

http://fdrs-debt-elimination-scam.info/

Have to say that I like WordPress a lot, it’s so much easier than Movable Type, TypePad and ExpressionEngine.  While there’s still a lot to learn and customize, at least it’s up and running.

I’m trying some Google ads, that sure takes away from the site.  But it’s also interesting to see how many of these debt related companies advertise.  Every time I reload I see new ads. 

Plan to add about 10 posts with the major info about FDRS, their ads, my communications with them, etc.  I just hope I’ll get it done soon.  Stephen Snyder, NCO and TU are next with their own sites.

Tuesday, June 17, 2008

Bear Stearns hedge fund managers may face criminal charges

Bear Stearns Hedge Fund Managers May Face Indictments

By KATE KELLY
June 16, 2008; Page A1

Federal prosecutors, capping a yearlong investigation, are preparing to file criminal charges against managers of two Bear Stearns Cos. hedge funds whose collapse helped mark the start of the credit crisis.

The U.S. Attorney’s office in Brooklyn is slated to complete interviews of witnesses and other key people in the case this week, and has indicated to lawyers with interest in the case that indictments could be imminent, according to people familiar with the matter.
[Ralph Cioffi]

The former Bear Stearns managers, Ralph Cioffi and Matthew Tannin, managed two high-profile bond portfolios for the securities firm’s asset-management unit. They could be charged with securities fraud within the next week, says one of the people familiar with the matter, though evidence could emerge that would change that.

Rosy Picture

At issue is whether the managers intentionally misled investors by presenting a rosy picture of the funds at a time when they were privately communicating with colleagues about their worries over how the investment vehicles would ride out weakness in the mortgage market. Any indictments would be the first criminal charges against Wall Street executives arising from the credit crisis that swept the financial world last year.

A spokesman for the U.S. Attorney for New York’s Eastern District declined to comment, as did a lawyer for Mr. Tannin, 46 years old. A lawyer for Mr. Cioffi, 52, didn’t return a call for comment. During the investigation, Mr. Cioffi has told people that he and Mr. Tannin were grappling with the fast-changing dynamics in mortgage markets just as the rest of the financial world was, and didn’t mislead anyone.

There has been no indication that broader charges are being contemplated against Bear Stearns, now part of J.P. Morgan Chase & Co., or its executives. But any indictments over the two hedge funds could set a chilling precedent for other companies and executives now under investigation for alleged criminal missteps related to the mortgage-market meltdown.

Federal prosecutors in Brooklyn are investigating whether the Swiss bank UBS AG improperly valued its holdings and whether the collapsed mortgage lender American Home Mortgage Investment Corp. of Melville, N.Y., engaged in accounting fraud, people familiar with the matters have said. Prosecutors in Manhattan and Los Angeles are respectively probing whether mortgage lender Countrywide Financial Corp. engaged in securities fraud or loan fraud. None of the companies have commented.

The collapse of the Bear Stearns funds, which cost investors $1.6 billion, rang early alarm bells about the imprecise valuations Wall Street firms were putting on their holdings of mortgage securities. Since then, financial firms world-wide have written down $387 billion in mortgage and other holdings, according to the Institute of International Finance Inc., a Washington-based banking group.

The funds’ implosion in June 2007 came weeks after Messrs. Cioffi and Tannin had given a positive outlook to investors. The carnage caused other financial firms to begin to recalculate their valuations of mortgage securities, which are traded off exchanges without publicly available price information.

Pulling Money Out

The shuttering of the funds also represented the beginning of problems at Bear Stearns, raising questions about its managerial oversight and risk controls. Bear Stearns’s woes extended far beyond the two hedge funds, however. Worries over its own large mortgage portfolio and overreliance on short-term funding came to a head in March. Clients panicked and pulled money out of the securities firm, triggering its collapse and a shotgun sale orchestrated by the Federal Reserve.
[photo]

Using substantial amounts of borrowed cash and securities, the High-Grade Structured Credit Strategies Fund and a riskier sister fund invested, among other things, in pools of bonds backed by low-end “subprime” mortgages. Mr. Cioffi, a former mortgage salesman at a firm known for its prowess in mortgage-bond trading, was well regarded by investors. From late 2006, when the riskier fund was launched, investor money rolled in, some of it from sophisticated professional investors and corporate titans.

But in February 2007, the feverish activity in the subprime-mortgage market began to slow, and securities tied to the mortgages swooned. Still, Mr. Cioffi and a number of his colleagues remained upbeat about the subprime market, and Mr. Cioffi told investors at a conference late that month that a meltdown in the sector was “unlikely to occur.”

On Feb. 27, 2007, a warning signal came from a closely watched slice of the ABX, an index that tracks subprime-mortgage securities. The indicator slid to a low of 63 from well north of 90 at the beginning of the year, stoking investor fears.

In March, the ABX recovered some ground. That’s when Mr. Cioffi, who had worked at Bear Stearns for 22 years, sought and received permission from the firm’s compliance officials to move $2 million of the $6 million he personally had invested in the riskier hedge fund into a separate internal fund called Structured Risk Partners, people familiar with the matter said.

It is unclear what Mr. Cioffi’s expectations for the mortgage market were at the time. During the investigation, he has said that a shift of that size would have had no material impact on his substantial net worth at the time. He told colleagues that it was an effort to use money gained from his investment in the High-Grade fund to give a boost to a neighboring hedge fund at the firm. To bring charges, prosecutors would have to allege that Messrs. Cioffi and Tannin deliberately misled investors.

In April 2007, Mr. Cioffi exchanged emails with colleagues in which he expressed concerns about the credit markets, and wondered how a downturn might affect his investors, according to people familiar with the matter. In an April 25 call with fund investors, however, he sounded an upbeat note, telling participants he was “cautiously optimistic” about his and Mr. Tannin’s ability to hedge their portfolio.

‘Quite Comfortable’

“The market will stabilize,” Mr. Cioffi said, adding: “We have a plan in place that will get the funds back on track to generate positive returns,” according to a review of the transcript of the call. The two funds had solid financing from lenders, he said, and “significant” cash on hand. It is unclear how much money the funds actually had at the time. Mr. Tannin echoed Mr. Cioffi’s reassurances, counseling investors not to be alarmed by “articles daily about how the world is coming to an end.” He added, “We’re quite comfortable with where we sit.”

The swoon wasn’t reported to investors until early June, partly because of the standard delays in calculating monthly returns. But in May, the fund managers began selling billions of dollars in bonds to raise cash for the struggling funds. As the bad news leaked out, some investor rushed for the exits, demanding that Messrs. Cioffi and Tannin return their money.

But the fund managers didn’t have enough cash handy to repay investors and meet “margin calls”—demands from lenders for additional cash or collateral—so they refused the redemption requests. This created further investor anxiety.

By late June, the riskier fund, which faced unmet margin calls and notices of default, essentially was left to die. To salvage the less-risky High-Grade fund, Bear Stearns officials agreed to lend it as much as $3.2 billion to meet its immediate needs. (Bear Stearns ultimately lent just half that; the loan was never fully repaid.) On July 31, the funds filed for bankruptcy protection in a New York federal court.

Bear Stearns never quite recovered. Following additional losses from its overall bond business and an investor panic, the 85-year-old securities firm, one of Wall Street’s best-known, was subsumed into J.P. Morgan last month.

Write to Kate Kelly at

This is a timely article since I spent a lot of time in recent days discussing options for FDRS ex employees who didn’t get paid and what to do about Mark Cella at http://creditsuit.org/credit.php?/blog/comments/frds_victims_sue_mark_cella_asap_anyone_near_san_gabriel_cal/

So the Bear Stearns hedge fund managers lied to their clients.

What about the criminals like Mark Cella and his employees who lie to consumers about being able to “eliminate” their debts when in fact, they just take their money, do NOTHING to settle the debts, have NO intention of ever doing anything for the clients and contrary to their promises RUIN their credit rating, forcing many into bankruptcy?

How about THAT?

I sure hope it’s not going to take a YEAR until they shut down FDRS, once somebody FINALLY files the complaint with the AG—giving them time to ruin many more lives.

Saturday, June 07, 2008

Updates and reader mail: Another FDRS victim forced into bankruptcy

was reading your blog about fdrs, I fell for these scum bags and I had to file bankruptsy. I just went to court the 27th of may.

I let these leached take money out of my bank for about 6 of 7 months over four hundred dollars twice and then a little over two hundred dollars the rest of the time until I couldn’t take the phone calls anymore feom my creditors and I had to dig up the money to pay a lawyer to file bankruptsy.

These people did nothing. they said they sent out a letter but they couldn’t have and they refused to return my money. they are the lowest of low. I should have known better. I had good credit until I trusted these people now I am ruined. I wish I could get my money back I live on social security disability and they prey on the weak.

Thanks for reading my mail

Thing is, reading the mail doesn’t change anything.  As I wrote in my last post, FDRS needs to be sued out of business.  Since they’re paying their telemarketers $250,000/year, is seems that they have the money for refunds.

Notably, the “victims” have the money to throw thousands of dollars at FDRS, then pay a bk lawyer, but I have yet to receive a single donation re. FDRS.

I’ve been VERY busy, didn’t have time to post anything all week.

So many projects, finally have the water preheating system on the roof going and it’s too cool to have the sun doing the heating.  Yesterday I got my first concrete experience helping a neighbor after the form for the basement wall broke.  You can read every book on concrete, but nothing comes close to being there.

My nephew took off today to go mountain biking for a week and I’m trying to clean up my office and catch up on paperwork.  We also hung some more cabinets, it’s time for major reorganization.

Had some good news regarding my litigation.

First I received an order from the appeals court denying the Focus motion to dismiss, which I had not even received.  Then I got the order for my case against the CRAs and NCO, allowing me to amend my complaint to include my claim of tortuous interference with my business against TU.  That’s the best news I’ve gotten in a long time, I’m so tired of the CRAs ignoring factual disputes.  I also got some discovery responses to scan and post.  I’ll post details in separate posts over the weekend. 

Monday, May 26, 2008

FDRS expanding: Easy money—$10-25,000 a MONTH with no experience

10-25K A MONTH is EASY HERE-2 Weeks Paid Training+4 Week Draw/CLOSERS ($$$HUGE MONEY$$$)

--------------------------------------------------------------------------------
Reply to: see below
Date: 2008-05-21, 3:34PM PDT

NO EXPERIENCE NECESSARY. Dream Sales Position/Inside Sales/2weeks Paid Training...then 4 week draw. THE MONEY IS AWESOME HERE.

Warm leads, no cold calling, paid training and weekly paychecks!!! $120,000 a year is only considered average here and it just keeps getting better. GREAT commission+bonus+spiffs+MASSIVE residuals and awesome company outings with the best crew you’ve ever seen! Forget mortgage, auto warranties, gold etc. THIS IS WHERE THE REAL MONEY IS NOW!!! A rapidly expanding company that promotes all management only from within. No experience necessary but closers will find this the easiest money you’ve ever made in an incredibly positive and supportive environment. Full time. Mon.-Thurs. 10am-7pm Fri. 10am-5pm PROFESSIONAL DRESS FOR INTERVIEW.

If you are dependable, punctual and have a great attitude, come work at a job you love that really pays!!!! Sell a product you believe in to people who really need it and have requested your call. We are expanding from a room of 30 seats to eighty. If you’re not in one of them,THE growth industry is passing you by. Everyone is a potential manager trainee.

APPLY IN PERSON DAILY at 6362 Hollywood Blvd, 4th Floor Hollywood (between Ivar and Cosmo) 11am-6pm Federal Debt Relief System
Convenient to: Sherman Oaks, Studio City, North Hollywood, Glendale, Burbank, Los Feliz, Santa Monica, Orange County, Culver City, Hollywood

Hiring Organization: FDRS.ORG
Location: $$$HUGE MONEY$$$
Principals only. Recruiters, please don’t contact this job poster.
Please, no phone calls about this job!
Please do not contact job poster about other services, products or commercial interests.

PostingID: 689966189

A reader just posted the link to the Craig’s List ad.  Freaking unbelievable!

And I thought that they might have gone out of business because I didn’t hear their ads anymore and nobody posted about FDRS.

It’s really too bad that nobody is FINANCIALLY supporting my efforts to bring these bastards down.  So, you get what you pay for. 

Of course I appreciate the people posting updates such as this job ad and I’ll publicize it here and at Eliminating FDRS (Federal Debt Relief System), but don’t expect me to waste many more HOURS on YOUR problems and YOUR refund without pay.  I already have at least 50 unpaid hours in FDRS.

FDRS is expanding because you (the victims) won’t get off your lazy ass and you’re not willing to pay me to do the work FOR you.

If you were scammed, sue.  All the info is at Eliminating FDRS (Federal Debt Relief System).