Profits4InvestingToo Revisited

I received an email recently concerning the failed HYIP/ponzi Profits4InvestingToo (P4I2). The email appears authentic. It was also sent to the email address which I used for Stormpay, so I assume that's where they got my contact email. Though P4I2 is long gone, it is only now that it seems the authorities are clamping down on its activities. Here's the email:

To: xxx

March 8, 2006

Greetings,

I am a detective assigned to the Major Crimes Unit of the Clark County Sheriff's Office, in Vancouver, Washington. I am currently working an investigation, along with other agencies, into alleged financial misconduct by, or involving, a subject named Edwin Garcia. Mr. Garcia is believed to be doing business under the following entities:

Profits4u
Offshoreprofits
P4itoo (profits4investingtoo)
Money4u

and other business entities. Some of these entities or investment businesses may have been active for relatively short periods of time (less than 60 days in some cases).

I am interested in speaking with you regarding investments you may have entrusted with this individual, or any of the listed businesses or any similar investment businesses. In particular, I am interested in knowing what promises or statements may have been made to you regarding returns on your investments, amounts invested or solicited, tiered payments made or promised, what lengths of time the investments were to be held, whether or not you actually received returns on any monies invested, and/or any other information you may be willing to provide.

I can usually be contacted Monday through Thursday, 0700 hrs to 1730 hrs Pacific Time. My direct telephone number is: (360) 397-2032. I can also be reached by pager (360) 759-8350) or FAX (360) 759-5491.

Your assistance would be greatly appreciated.

Kevin Harper
Detective 3216
Major Crimes Unit
Clark County Sheriff's Office
707 W. 13th St / PO Box 410
Vancouver, WA 98666
Kevin.harper@clark.wa.gov

When I first put money into Profits4InvestingToo (P4I2), I was new to the HYIP arena. However, I was savvy enough to know that most of these HYIPs were short term ponzis, with lifespans less than 1 month. Knowing that, my 'investment' in P4I2 was minimal, using Stormpay's Stormclix earnings only. It was, in my eyes, a pure gamble. I never expected a return. Yet, 1 month later, after I placed a request, I got paid. Since it was such a small amount, Stormpay fees took a large portion of the money - about 20%.

Now, if I had not received any payment from P4I2, chances are, my account would still be active. However, since I did receive something from P4I2, Stormpay has since charged back the money (the total sent, not the total received, meaning they pocket the difference), and suspended my account.

I am trying to decide how to respond to the official email. As far as I'm concerned, it was a gamble on my part, not an investment. Most of these ponzi/HYIPs use the Goldcoders HYIP script, which looks like this. By default, the text states something that implies some form of investment in forex and stocks, and if I recall correctly, P4I2 didn't change anything, except for the % returns.

The term 'ponzi' implies that new investors are used to pay off the old, without any real investment. For any online HYIP offering daily, weekly or monthly returns, some of the money WILL have to come from new members. Otherwise, it'll be a transaction nightmare. So, does that make all online HYIPs ponzis? OR does this only apply if more than 50% of payments are made using money from new investors? The legal definitions vary from country to country. It isn't a clear-cut case of black or white.

No, the problem with online HYIPs, is regulation. Or rather, the lack of. Something which the authorities want to change. To control. To tax.