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1UpAutomated and its Progeny

Prospective "Home Based Business" Participants...
Please read These Materials Before You Spend Any Money!
You Owe it to Yourself and Your Family to do your Due Diligence!

Are you SURE the testimonials you hear on a conference call aren't shills? Are you willing to bet your future on it? Read the materials at the link above first!

Are you sure emails being sent on your behalf aren't fraudulent or otherwise illegal spam? Can you prove that your email recipients expressly asked you for information or otherwise gave you permission to email them? Is it even possible to do email blasts in the huge numbers required to scrape up a few leads that are truly to opt-in lists? Without having to do all the tricks to evade filters? Without having to use so-called "bulletproof" hosts? Don't wait 'till you get sued or prosecuted for spamming to find out the hard way!

Please see http://www.theclubbuiltonspam.com/1upautomated.html for information on the 1upautomated spam problem.

New 1UpAutomated Copycat Schemes

There are a number of new schemes that have "filled the vacuum" of 1UpAutomated, but are very similar, down to all of the trappings:

  • Flash animation appealing to greed and/or desperation, implying quick, easy money without significant amounts of effort, often referred to as a "Movie"
  • Earnings are primarily derived from the recruitment of new members, and the first one or two members recruited by the new members' recruits (hence the term "1-Up or 2-Up")
  • The purported "product" is of little tangible value, such as sales training and motivational materials provided on CD, downloaded, or available on a private web site.
  • Marketing done in large part or exclusively by "email blasts"
  • Use of so-called "bulletproof" hosts

Good expose and explanation of 1UpAutomated in the media

Excerpt from St. Petersburg Times article on 1UpAutomated and similar internet marketing pyramid schemes:

Under any name, consumer protection experts view spam such as JDO Media's as a classic pyramid scheme, in which participants try to make money solely by recruiting new participants. Before the Internet, such get-rich-quick schemes were promoted word-of-mouth and on telephone pole flyers. Now they're being advertised worldwide at hyperspeed.

One more advantage to the Internet: It created potential new products, such as e-mail databases, that made it easier than ever for pyramid schemers to disguise the true nature of their operation by appearing to offer a legitimate product.

"In a pyramid, the product is a fig leaf," said [Federal Trade Commission acting associate director James] Kohm, who declined to comment specifically on JDO Media's operations. "And you don't want to spend money on a fig leaf."

Excerpts from the Oklahoma Pyramid Promotional Scheme Act

"Pyramid promotional scheme" means any plan or operation by which a participant gives consideration for the opportunity to receive compensation which is derived primarily from the person's introduction of other persons into the plan or operation rather than from the sale of goods, services or intangible property by the participant or other persons introduced into the plan or operation... 21 O.S. 1072(B) [Emphasis added]

Any person who promotes a pyramid promotional scheme shall be guilty of a felony and, upon conviction, shall be punishable by a fine of not more than Ten Thousand Dollars ($10,000.00) or by imprisonment in the State Penitentiary for not more than ten (10) years, or by both such fine and imprisonment, for each violation of this act. 21 O.S. 1073

 

Selected documents from Braver vs. JDO Media, Inc., et al

Braver vs. JDO Media, Inc. et al

NEW

UPDATE - January 12, 2004 - On October 26, 2004, co-defendant Jeffrey Mills filed a Motion to Dismiss on the basis of lack of personal jurisdiction and failure to state a claim on account of the two operative Oklahoma statutes being pre-empted by the CAN-SPAM Act.

Braver filed a motion requsting attorneys' fees and for sanctions against Mills' attorney for filing a frivolous motion, in addition to the response and objection to Mills' motion.

At today's hearing, Mills' Motion to Dismiss was "overruled in all respects" and Braver's Motion for (exemplary) Sanctions was also overruled. However, the court will hear the matter on Braver's motion for attorneys' fees at a later date.

Selected documents from Microsoft Corp. vs. JDO Media, Inc., et al

JDO's Motion to Dismiss
JDO's affidavit in support of MTD - points the finger at Tim Roland, Tony Lampert, and Erik Summers
Microsoft vs. JDO Media et al - 1st Amended petition naming Tim, Tony, and Erik
Tony Lampert's Answer to First Amended Petition
Erik Summers' Answer to First Amended Petition
Microsoft's Motion to Amend to add John McLeod (JDO Media President) as a defendant in his individual capacity
Microsoft's Declararion in support of the above Motion to Amend including excerpts of depositions discussing who comprised 1UpAutomated and who got paid
MOTION to Compel Documents from JDO Media, Inc. by Plaintiff Microsoft Corp. Noting Date 12/17/2004. (Attachments: # 1 Proposed Order)(Dzielak, Robert) (Entered: 11/29/2004)
DECLARATION of Robert J. Dzielak filed by Plaintiff Microsoft Corp re 26 MOTION to Compel Documents from JDO Media, Inc. (Dzielak, Robert) (Entered: 11/29/2004)
ORDER granting 24 Plaintiff's Motion for Leave to File amended complaint by Judge Marsha J. Pechman.(MD, ) (Entered: 12/03/2004)
Second AMENDED COMPLAINT against defendant all defendants, filed by Microsoft Corp.(Dzielak, Robert) (Entered: 12/03/2004)
PRAECIPE TO ISSUE SUMMONS by Plaintiff Microsoft Corp. (Attachments: # 1 Summons)(Dzielak, Robert) (Entered: 12/03/2004)
MOTION to Withdraw as Attorney by Defendant JDO Media Inc. Noting Date 12/20/2004. (Attachments: # 1 Proposed Order)(Swope, Karin) (Entered: 12/09/2004)
ORDER granting 26 Plaintiff's Motion to Compel by Judge Marsha J. Pechman.(MD, ) (Entered: 12/21/2004)
ORDER Granting re 31 MOTION to Withdraw as Attorney filed by JDO Media Inc, by Judge Marsha J. Pechman. (MD, Copy to JDO Media Inc ) (Entered: 12/21/2004)
MOTION for Default against Defendant JDO Media, Inc. by Plaintiff Microsoft Corp. Noting Date 12/21/2004. (Attachments: # 1 Proposed Order)(Dzielak, Robert) (Entered: 12/21/2004)
DECLARATION of Robert J. Dzielak filed by Plaintiff Microsoft Corp re 34 MOTION for Default against Defendant JDO Media, Inc. (Dzielak, Robert) (Entered: 12/21/2004)
Stipulated MOTION for Entry of Order Granting Plaintiff Microsoft and Defendant Roland's Permanent Injunction by Plaintiff Microsoft Corp. Noting Date 1/5/2005. (Attachments: # 1 Proposed Order)(Dzielak, Robert) (Entered: 01/05/2005)
ORDER GRANTING PLAINTIFF MICROSOFT AND DEFENDANT SUMMERS' STIPULATED PERMANENT INJUNCTION filed by Microsoft Corp, by Judge Marsha J. Pechman. (MD ) (Entered: 03/16/2005)

 

 

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