The Gold Blog

In a post 9/11 world, “due diligence” is constantly on the forefront—or at least we are expected to believe that. Although banks these days are preaching “due diligence,” it appears that at least one bank does not practice what it preaches. Monterey County Bank, based in Monterey California, http://www.montereycountybank.com that supports several card platforms for businesses providing prepaid debit card products for use on the internet and at atms, has missed the boat on “due diligence,” at the expense of those who entrusted it.

One of those businesses that it sponsors, Digital World Global Card, Inc., http://www.digitalworldcard.com , based out of New York, New York, is owned in full by sole shareholder Joseph Simon LaCroix, aka Joseph Simon, a convicted felon in the province of Ontario, Canada, according to Rowena McDougall, Senior Manager, Public Affairs, for the Financial Services Commission of Ontario (FSCO) .

On October 3, 2005 Joseph LaCroix, the sole officer and director of Digital World Financial, pleaded guilty to the charge of conducting the business of a loan and trust corporation without being registered in the province of Ontario. LaCroix was fined $50,000 and placed on probation for two years. As a condition of the probation LaCroix must pay approximately $2.2 million in restitution to depositors. Good luck on collecting that!

LaCroix also pleaded guilty to carrying on the business of insurance in Ontario without a licence and was fined $5,000. Seems Canada garners favor with criminals, as its criminal penalties certainly don’t seem to discourage crime.

For more on LaCroix’s convictions, see the following:

http://www.claimsurvey.com/english/pubs/news/2005/20051007-digitalworld.asp

http://www.fsco.gov.on.ca/english/pubs/news/2005/20051007-digitalworld.asp

http://www.ontarioinsurance.com/english/licensing/ceasedesistorders/cdo-digitalworld.asp

http://www.ontarioinsurance.com/english/pubs/bulletins/mebulletins/2006/g-03_06.asp

http://www.sfsc.gov.sk.ca/ssc/files/enforcementorders/2002_enf/temporary/digitalworldfinancialinc(temp)feb27-02.pdf

http://www.sfsc.gov.sk.ca/ssc/files/enforcementorders/2002_enf/extending/digitalworldfinancialinc(ext)mar13-02.pdf

http://www.fsco.gov.on.ca/English/licensing/ceasedesistorders/cdo-digitalworld.asp

Now, less than three years later, LaCroix’s Digital World Global Card, Inc. was shut down on April 1, 2008, by Monterey County Bank after LaCroix has allegedly misappropriated the funds of its many cardholders. Those cardholders had put their trust in Digital World Card, Inc. as well as Monterey County Bank—after all, if you can’t trust a bank, who can you trust? To add insult to injury, LaCroix had his staff to tell cardholders that their accounts were being audited by the bank, implying that they had somehow done something wrong. His staff has since become non-existant. Calls to the company (866) 878-8020 go directly to voice mail, and are not returned. Calls to LaCroix’s cell phone (347) 853-4746 went unanswered.

It should be noted that apparently all of LaCroix’s resellers were left out in the cold. It should also be noted that the ONLY cards affected are those that have the name Digital World Global Card at the top of the card – No others. Funds were sent to Digital World Card, Inc. for the benefit of cardholders, and instead, went to the benefit of LaCroix. In reported cases, LaCroix even emptied funds already on cardholders cards!

LaCroix’s site, Digital World Card, Inc., still maintains its website at http://www.digitalworldcard.com . Do Not Order From This Site! Do not become one of his victims! If the bank backing your prepaid debit card is Monterey County Bank, do your OWN due diligence!

Please remember that Monterey County Bank merely shut his program down on April 1, 2008. They offered absolutely NO COMPENSATION for their cardholders whatsoever. Do you think they would feel the same if you owed them money?

Remember, Buyer Beware!

On a darker note, we now learn that the FBI has actually frozen the funds of all US clients, which were still ‘on account’ at NETeller the online e-wallet. It was earlier believed that the digital money would be refunded to US players and now they are calling it evidence and the cash is on ice.

Strangely enough, the authorities are attempting to link NETeller’s online payment processing of gambling money to terrorist funding. Despite the fact that NETeller in the UK has public shareholders, pays dividends and offers 100% audited financial statements, the FBI is pursuing an argument that e-wallet funds are being used to finance terrorist.

Additionally, despite the transparent nature of all these UK payment companies, subpoenas have been issued to the following Wall Street investment banks HSBC, Credit Suisse, Deutsche Bank and Dresdner Kleinwort. All of these fine companies participated in underwriting public offerings for some of the more popular online gambling webs. They all have offices in London and now they all have records being subpoenaed.

This is simply bizarre. Its a great political move because now you have all the other digital currency operators thinking…Am I next?

One notable online gaming expert is quoted as saying:

“(Terrorism is) a smokescreen thrown up by the right-wing Christian lunatics in the government who want to control every facet of human behavior from birth to death. As far as I know, there isn’t a scintilla of evidence there’s any link between online sites and terrorist groups.” *lvbusinesspress.com

Wow, talk about chasing a wild goose! I have not seen anything like this since Roy Cohn and Joe McCarthy crusaded during 1950’s to stop the ‘Red Threat’. Should we start calling this the ‘Poker Threat’ of 2007?

Look closely, the US has gone from Rep. Bob Goodlatte’s (VA) bill, H.R. 4411, which originally got support from the Christian Coalition in an attempt to ban all Internet gambling, up to the present day which is, David Litterick — the U.S. attorney for the Southern District of New York attempting to connect the dots between online poker money and Osama Bin Laden style funding support. I just don’t see it. The original anti gambling bill was about stopping kids’ access to online gaming. How did they arrive at this new prosecutorial frontier?

Mr. Litterick is one of the finest legal minds in the US and in the past has prosecuted terrorists involved in the 1993 bombing of the World Trade Center, the bombings of the U.S. embassies in Kenya and Tanzania and now holds a top position at the Department of Homeland Security.

The significance of Mr. Litterick’s appearance here is quite a shift in politics since August of last year when Rep. Goodlatte had to burn the midnight oil to gain support for his anti gambling bill. With this kind of persecution ahead of them, I don’t think the NETeller execs have a snowballs chance in hell of surviving the case.

This should be a big warning for the gold backed digital currency e-dinar. Formerly operated by the e-gold think tank this electronic money is based on the Islamic Dinar. Operated from Malaysia and Dubai Internet City (a great headquarter for any online business), the primary function of the e-dinar system is to render payments, in gold (e-dinar) and silver (e-dirham), from one customer account to another.

If they are trying to paint ‘poker’ money as terrorist financing, I can’t imagine what they will say about e-dinar. Of course e-dinar is not yet processing 7 billion + each year. Although its a fine digital gold currency, I don’t think it is quite that popular!

This is IMHO a very dark time for the US. Now at the dawn of a new age of ‘electronic money’, short sighted US regulators are taking one step forward and three steps back.

Digitalmoneyworld.com

Technorati Tags: NETeller, FBI, terrorist, online gambling, online gaming, anti gambling bill, NETeller

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Covers.com

By Joe MacDonald, Wed, Jan 31, 2007

On January 16, 2007, the Department of Justice announced that it was charging two founders of Neteller, Stephen Lawrence and John Lefebvre, with laundering billions of dollars of Internet gambling proceeds.

Neteller is a company that was founded in Canada, a sovereign country, in 1999. Neteller later moved to the Isle of Man, and is publicly traded in the United Kingdom. Both are Canadian citizens. These two gentlemen no longer even work for Neteller.

Lawrence and Lefebvre are both charged with conspiring to transfer funds with the intent to promote illegal gambling. If convicted, both defendants face a maximum sentence of 20 years` imprisonment. I am not making this up. That information is all contained in the press release provided by the DOJ.

Twenty years in jail. Twenty years. Read the rest of this entry »

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Technorati Tags: VISA, MasterCard, E-currencies

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Three mutual funds, Benchmark Mutual Fund, UTI Mutual Fund and Kotak Mutual Funds have filed offer documents for gold ETFs in India. These funds will make it possible for people to invest in gold and allow the purchase of small amounts over a period of time. When they want to sell, they can either receive the actual gold or simply sell the units back into the market. There is just a minimum buy of one gram of the precious metal so anyone can make a investment and plan their future.

Units can be traded like shares of stock and investments can be quickly bought and sold at market price. The new funds will base their prices on the prevailing London Metal Exchange. Any household can buy and sell gold in units for as little as Rs 1,000.

Much like e-gold, GoldMoney and Pecunix the mutual funds work through a third party custodian for storage of the physical gold since fund houses have no practical experience in storing precious metal.

Newkerala.com

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