Dear Offshore Club Members, I writing this sad news to share you some facts that affected our business and put Offshore Club in a situation where we can't move any step to any direction. To sum up the story, we will tell you exactly what happened with Offshore Club from the beginning of 2006. First of all, let's remind you with what happened with our e-gold account before 2006 which was our first financial disaster. E-gold start blocking all our accounts without any reason or previous notification. We have supplied required Due Diligence documents 3(1) times to them, but they refused it accordingly to item 4.6 of their Terms of Use: Quoting: 4.6. Right of Association Issuer reserves the right to refuse service to particular individuals or entities, at its sole discretion, with or without cause. In the middle of 2006, the impact was harder which was made by another payment processor which was Uniclear Express. As you already know Uniclear stopped withdrawals from their system and significant amount of Club assets was frozen there. I strongly believe that Uniclear would be in business later, but we can’t get our funds back still. The same big drama kept going on.. and this time it was our wire transfer processing system. During short DDOS attack on our hosting provider some of our customers ordered charge back of wires sent to the Club. Banks of this customers began investigation and had put our bank account in “black list”. This situation draw unwanted attention of authorities and we faced with many other problems both online and offline. In the last period of about two weeks ago, we were working very hard and thinking on how to solve our financial problems. Unfortunately, after long investigation we decided stop risking with our member’s funds. We do not want to happen that situation when all our payment accounts would be frozen by authorities. As I already mentioned our investigation shows that situation is critical. In light of this facts we decided to close Offshore Club as online investment opportunity. As we stated we guarantee our investors principals and we would start refunding process in next few days. You will find more information about refunding process on our forum. Please do not trust any other information sources and trust only official information from the Club. I suggest our members do not panic and calm down: We will refund your principals.
After reading this letter, I am sure all my clients are going to be upset, because they all trusted in our potential, but I also can say that a few people will be “happy” and they will say in the blogs and forums: “I said that it would happen”. What I have to say today, is not that we are closing the company, but that we had a huge lost in the last days. We will have to change some points so we can get back what we lost without worrying about the weekly profit. We are also changing the broker so we can give you a better service. We are going to change those points: - the daily profit is going to be zero; - we will not accept withdraws; - we will not accept deposits; The company asks you to not worry about the situation, our website will be online and we are going to be here working, trying to help you in the best way. I am sure that most of our clients rely on our service and will understand why we had to change those points. After everything is all right, we will update you, as we always did. We hope to return to our normal activities in a few weeks. We are doing everything to provide you a better service.
On April 21, 2006, and May 20, 2006, Thomas F. Lennon, the United States District Court appointed Receiver sent e-mail letters to a large number of e-mail addresses derived from 12 DailyPro and StormPay databases. The Receiver has now recovered additional e-mail addresses and is using them, as well as all the previous e-mail addresses, to send this e-mail. The previous letters as well as this document can be viewed at www.tlennonfor12dailypro.com. In addition, the Receiver's website contains his e-mail address and a list of Frequently Asked Questions with recent updates along with other case information.
As previously noted in the letters sent to investors/members, investors who used credit cards for a credit transaction are not prohibited from initiating a charge back through their credit card issuer. Investors that used checks, electronic fund transfers and debit cards are prohibited from initiating a charge back by the Orders issued by the Court. The Orders are also posted on the web site. Please note that in many situations the period within which you could have initiated a charge back may have passed. The rules of the credit card issuer determine the time allowed. The rights of consumers to dispute electronic transfers are limited to unauthorized debits or errors in the amount of debits, but do not provide a right to reverse a transfer because the consumer has discovered that the recipient was perpetrating a fraud. Moreover, all investors and creditors are enjoined from initiating any legal action against 12Daily Pro, LifeClicks or Charis Johnson.
The Receiver realizes that the investors have many questions and concerns. The web site referenced above and the FAQ will answer many of those questions in more detail, but some of the answers to your questions can be summarized as follows:
All investors, foreign and domestic will be treated equally under the law. Investors who used EMO and E-Gold as payment processors will be treated the same as investors that used StormPay. Any distribution plan proposed by the Receiver will be done on an equitable basis. The length of time an investor was invested in the program will not be a considered in distributions. If you received this e-mail or the first e-mail sent on April 21, 2006, or the second e-mail sent on May 20, 2006, you are on the investors list. The Receiver will be providing the Court and all interested parties Reports on the status of the case as required and when otherwise appropriate. These Reports will be posted on the Receiver's web site. While queries to the Receiver by phone and e-mail will continue to receive a response, it is not the Receiver's practice to provide updates to individual investors because of the prohibitive costs associated with trying to communicate with thousands of investors on an individual basis. Please minimize these costs by checking the website and the FAQ before calling or e-mailing the Receiver. The Receiver realizes that this is an extremely frustrating situation for investors, but please understand that he is working as diligently as possible to reach a fair and equitable result. Please check the website for updates and further information including answers to Frequently Asked Questions.
This message is to inform you about potential danger for your E-Gold accounts. There are viruses\trojan horses which are not being detected by popular anti-virus software (like Norton Antivirus or MacAfee). It is strongly recommended for you to pay attention to the following potential dangerous viruses\trojans:
1. Win32/Goldun.ia (One customer said he did not find anything when he ran Norton and McAfee anti-virus software, but he found the Win32/Goldun.ia Trojan when he used a software called 'Kaspersky')
2. T SPY_HAXDORY (A customer who was receiving the fake login confirmation page located a virus with Trend Micro Housecall identified as T SPY_HAXDORY. Removing this seemed to solve the problem without having to reinstall windows.)
3. TROJ_GOLDUN.DO which has a file named CPU.EXE found in the c:\windows directory. This was found with Trend Micro's PC-cillin.
4. cpu.exe (Aladinz.l Trojan) more information regarding this virus can be
found at http://www.auditmypc.com/process/cpu.asp . This is most dangerous trojan program for your E-Gold account! Do a search on your machine for cpu.exe file. If it is found - then your computer is infected and your E-Gold account is at danger! Please note that you should go to another computer and change your passphrase and DISABLE automation access for your E-Gold account and do NOT use the computer you have been using to access the account until are able to remove this software from your computer.
5. GDIWXP.DLL
6. pwsteal.trojan
Even if those viruses are not found on your PC, DISABLE AUTOMATION ACCESS TO YOUR E-GOLD ACOUNT ANYWAY!
If you have some additional questions or comments, feel free to post them in this thread: http://www.hyipranks.com/forums/viewtopic.php?t=6413
I hope you will read this update closely, and consider all that I say here carefully, with the understanding that the Compact Network will be implementing further changes in the coming weeks, but we are here to stay for the long term as I have promised from the beginning.
As of today, Friday, June 16, 2006, Compact Surfing upgrades will be disabled. Allow me to clarify our reasons for doing this, and our plans for the coming weeks ahead:
1. The price of gold per ounce, as all of you know, has dropped significantly in the past several weeks. Because of this, the Egold funds in reserves that I had to maintain for the operation of CS diminished in value tremendously on a daily/weekly basis. There has been a 15 to 20% drop in the value of gold in the past several weeks, from above $700 an ounce in May to around $570 as I write this. What this means is that most upgrade values that were sent to CS and held online in order to provide the old trademark “fast payouts” dropped in $$$ value while waiting to be paid out. This has been occurring for weeks now. We persisted, believing there would be a turn around with the gold markets, that things would average out, but to date, this has not happened.
We’ve reevaluated the situation, and have decided now to stop taking upgrades until such time as the gold markets stabilize, we hope by mid-summer. We feel this is best for both the company and our members financially. Members have faced the same situation CS has when their payments arrive to their accounts and drop in value within hours…what took several days to build in profits has sometimes been diminished within hours, sitting in members Egold accounts. In accordance with this decision, the ability to upgrade to CS accounts will be disabled today.
For those who do not understand why drastic drops in Egold might affect the reserves of a program designed like CS, here’s why. The 3 cashout requests per month combined with the processing of requests every day of the week, and 48 hour “fast payment” meant we had to keep a majority of Network funds in reserve in Egold rather than offline. 48 hours was not long enough to move funds through exchangers online for payments or offline for protection of capital, especially on weekends when banks are closed. This is why, in our last newsletter, we established the 7-business day timeframe as being more realistic and manageable for the future of CS, however, since that last update, we have considered the situation further.
2. On June 9th, we processed nearly $500,000 USD in cashout requests. I continued to use the remaining funds left to pay as many requests as I could, and you can view a screenshot of all payments sent here: http://compactsurfing.com/first1.PNG http://compactsurfing.com/second2.PNG http://compactsurfing.com/third3.PNG 3660 payments were sent the last 2 days and each single sent was paid.
Moving Forward: We are going to do refunds for members with pending requests, put the program on hold and relaunch in the summer, when hopefully the gold markets have stabilized and by which time I will have had time to implement Compactpay with features available and debit cards. All funds in my possession less operation costs will be used for refunds. In the coming weeks, the support staff will assist me in this work. Members in profit will not receive refunds. Those members not in profit will be returned a percentage of their initial upgrade purchase dependant upon the total available for distribution. Earnings and referral commissions will be deducted from your pendings in our calculations. Please be advised that I am doing this despite the fact that our terms have always stipulated that upgrade purchases are non-refundable.
3. All Compactpay members with funds in CP, please rest assured that your funds are secure. I will announce next week the procedure for how returns of whatever you funded into your Compactpay accounts will be executed. After the funds have been removed from the system, during the next few weeks, the database for Compact Pay will be inaccessible to members as my programmers and I work to implement features which I have not had the chance to dedicate time to. Please be patient and I will update further regarding this in the coming weeks. For those members who have made recent Bank Wire Fundings, I cannot address those until next week when the bank is open so please be patient with this as well.
With that said, the following actions will be taken in the coming weeks. The Compact Network will be relaunched at the end of August/early September and I have decided for now that the following three sites will be the focus of my time and resources: Compact Surfing, Compact Lottery, and Compact Pay
A. Compact Surfing
1. Expect a new layout and design to the site. The site will offer 14% daily for 9 days on your upgrade purchases tentatively. Upgrade units will be $10 USD each and the maximum member balance with active upgrades will be $10,000 USD. Payout Timeframe: Upgrades will become pending in your Cashout History automatically upon expiration. They will be processed within 7 business days following date of expiration. No more having to request cashout. This setup is perfectly clear on when members will be paid. In addition, I will know exactly what is needed ready in my online payment processor accounts each week to process payouts. As such, I can store the majority of funds offline accordingly so that we are no longer at the mercy of gold price fluctuations.
2. Compact forum will still be in place; possibly changed to vbulletin format as I have received feedback requesting this from members.
3. More details to be announced when available.
B. Compact Lottery
1. Expect a new layout and design to the site
2. No more purchasing tickets from cash balance; you will be able to purchase directly from Egold and tentatively Compactpay as well. Winners will be paid within 5 business days following announcement of weekly lucky numbers.
3. Cash prizes will be greater in amount, though the number of winners will be less than the past track record to allow for ease of management in distributing payment of prizes. The amounts for Weekly prizes will be announced on the site as well. Distribution of rewards still to be determined by the administrator.
C. Compact Pay
1. I will work in the coming weeks to develop relationships with exchangers to bring on board to offer funding/withdrawal options for Compact Pay that they will handle individually and efficiently.
3. I welcome any member suggestions with regards to implementing debit cards. Compact Debit Cards are still planned, but due to the current situation, and recent comments made by members regarding their wishes for certain cards, I have cancelled our previous order for cards. For those of you who prefer Cardoneplus over Virtual Money, and vice versa, please contact Nvus with your reasoning and he will forward me details and I will make a final decision in the coming weeks: cn_nvus@yahoo.com
4. The Shopping Cart Interface will be made available and upgrades/cashouts through CS via CompactPay will be available as well to coincide with relaunch of CS.
Expect further announcements from me in the coming days. The Compact Network is here to stay and we are not going anywhere, I assure you all. After 3 months of hard work and dedication I will not give up and I ask that you do not give up on me now either. We have faced obstacles beyond our control in the past several weeks, but the above plan of action will allow us to return, stronger than ever. Thank you all for your continued support.
