Topic: Got off the phone with the Guy from the S.E.C - page 8. (Read 28522 times)

The US Govt claims all .com, .net, .cc, .tv and .name domains fall under US jurisdiction. Source from http://www.wired.com/threatlevel/2012/03/feds-seize-foreign-sites/.

I believe .info and .org also fall under US jurisdiction based on the contract-holder with ICANN. The contract with ICANN is what matters, not where you bought your domain.

I hope this doesn't bring down GLBSE...

Best of luck to all involved.

I was curious too.  I called the lawyer at 5:00 pm EST and he picked up right away.  He recorded our call and had an intern in the room with him.  I answered all his questions and he answered most of mine.  I told him how much I had invested in PPTs (883 BTC) and how much I had recovered (455 BTC).  He wanted to know how I got my GLBSE account.  He wanted to know the terms of each PPT contract.  I told him.

He told me that the SEC can investigate any security.  That securities do not have to involve dollars.  He cited two supreme court cases in which a security was not a dollar instrument one of which involved oranges.  He said that most contracts promising a return are securities unless there are specific court decisions that say otherwise.  He mentioned Mortgages and car loans as not securities.

Questions he would not answer: How did the investigation start?  How many people are working on the investigation?

He implied that he has investigated other Ponzi schemes.

He hinted that he has talked to a lot of people.  He was surprised at how young some of the people contacting him were.

He said that my explanation of a bitcoin wallet was the best he has heard so far.  There is a lot he still doesn't understand about bitcoins. I just said something simple about public keys and private keys.  Why can't all you other informants explain things better?

+1

And I'd say the same for anybody who has offered shares on GLBSE; I am not a lawyer, but you should talk to a lawyer about whether or not you might have broken some laws you had no idea existed, and if you did, what you should or shouldn't do about it.

I told you I would answer questions it later,

First off I called the guy just to see if the email was true. This was all after the asked about the dividend payments. I called the guy left a voice mail, and told him to email me. I went about my day, I was about to get in the shower when he called back. He identified himself as Sr Investigator in charge, of the S.E.C and was a lawyer yadda yadda. He then Asked me first about the GLBSE, fee's, how you got money on the accounts, asked about the Mt.gox how you added funds, Hit hard on how you withdraw funds, and the amounts. Asked me about butterfly labs, Look you slow facks he has been reading the forum for a while now, with help from some interns. When I told him my name he already knew I had a mining company. Like investigators always do they ask questions to answers they already know. I told him about sonny and how much we think they have in USD. And they had not posted a picture or anything of the product they were selling, He told me to submit a report with the FTC and the NC attorney general. We talked about PPT's in depth about if people knew what they where investing in, If I knew. Yes I had some exposure but only 2 btc on a insured pass through, lol
I told him, about the system why it was called a Pirate Pass, He asked if BCST was ever pirate bank or something like that. I said I had no clue it was before my time.

If you want to tell your part here is his office direct line
Philip Moustakis  Senior Attorney (212) 336-0542  [email protected]
The dispatch center number is 212 336 1100
[email protected]

I had no intent to do anything but make sure the email was real, I usually check all that crap who comes on the forum. Its just I don't trust a 1 of you greedy pigs lol JK kinda

I'm Going to ask him join under his name, so you all can attack him and not me lol

Hmmm, I thought this wasn't true, but actually it does fit. Zeek apparently was 1.5 daily, or 10% weekly and I seem to recall pirate saying something like his process makes 10% and he pockets the difference. There's also that whole thing about him wanting the price to be stable.

Also, everyone who is asking about BFL, THERE IS NO CONNECTION. The OP brought up BFL with the investigator and the investigator blew him off, saying he should go to the FTC and the GA. But I'm telling you right now the GA isn't going to care about people getting their boxes 5 weeks late. Every case I know of, BFL always offered a refund when it was late (in my case, even in advance of the due date). It's a complete non-starter.

I would assume he got a visit and they sat down and had a long conversation.  That is how it usually works.

He shut down on the day the SEC closed Zeek.
Pirate's rates were slightly below those of Zeek (so he'd make a profit passing funds through to there).
Now that the SEC is investigating Zeek they're interested in Pirate.

Coincidence?

I gotta wonder, did Pirate shut down before or after he learned the SEC was investigating him? He's obviously known for some time now.

Sounds like an seasoned pro. 

Dude busted a 400 million ponzi last year. I very much doubt he needs the pirate case to "make a name". 

They didn't, hence why the agent told the OP to contact the FTC and his state AG.

http://business.ftc.gov/documents/alt051-selling-internet-prompt-delivery-rules

"By law, you must have a reasonable basis for stating that a product can be shipped within a certain time. If your advertising doesn't clearly and prominently state the shipment period, you must have a reasonable basis for believing that you can ship within 30 days.

If you can't ship within the promised time (or within 30 days if you made no promise), you must notify the customer of the delay, provide a revised shipment date and explain his right to cancel and get a full and prompt refund.

For definite delays of up to 30 days, you may treat the customer's silence as agreeing to the delay. But for longer or indefinite delays - and second and subsequent delays - you must get the customer's written, electronic or verbal consent to the delay. If the customer doesn't give you his okay, you must promptly refund all the money the customer paid you without being asked by the customer.

Finally, you have the right to cancel orders that you can't fill in a timely manner, but you must promptly notify the customer of your decision and make a prompt refund."

Dude lay off whatever you think you've gleaned by watching half-hour tv shows. The guy involved (Philip Moustakis) is already senior, has a name and so forth.

Ok, well that explains the pirate approach but SEC is going to have a problem with connecting BFL.  Again this sounds like an SEC agent trying to make a case to make a name. 

This whole discussion is sad and short sided.  Pirate sucks we all know that but I would think we all support bitcoin or somthing like it but if you want to see it end keep poking the bear.  Washington will come down on this whole thing so fast and we can go back to business as normal.

"Information should ideally be provided by xxxxxx or PPT operators' lawyers.  If not lawyers, then at least knowledgable and respected forum members."

I would like to point out some of these "respected members" turns out to be people involved in not so great business ventures that have caused a lot of heart ache on this board from reading through many posts.   For the record, I am not referring to the member in the redacted text, that person was just name dropped.  

BFL:  I hope there is no connection behind the scenes of Pirate and BFL, that would throw us all for a loop.  We really need to get an official list from the OP on exactly what questions where asked and what he replied to the best of his knowledge.  

To add if BFL did violated an SEC regulation please tell, I can't figure that one out. 

Did zeek offer registered securities?
Its a rhetorical question, but to be sure, I just googled it, and found this:

http://www.sec.gov/news/press/2012/2012-160.htm

How can GLBSE be under FSA?  Won't that be an issue once you are a registerd company?  I agree with you on SEC.  Just asking because I have had little involvement with FSA but I understood that they followed the same views as the SEC when it comes to companies that their ownership is traded, public or private.

People turning State's evidence in ...3....2......1.....NOW!


This is some serious s**t people.   Sure we let of bankers that commit fraud with Billions but they are most likely just looking for an excuse to come down hard on our alternative.   This is why I was going after all the illegal businesses that were trying to IPO through this forum months back.   It was only a matter of time.


In closing THINK ABOUT THIS:    Pirate going to prison?   Maybe on a reduced sentence.   You think he might not of already turned State's evidence and is spilling his beans right now?   While everyone was fawning over him, they most likely thought he was a friend and told him many many things that they thought would never come out because he was their buddy and they were in the cool kids cliche.