United We CAN Put An End To These Criminals!

It's official Payponzi has been caught stealing customers money. Click here for the story.

An Ebay power seller        Items for sale on Ebay 

 and his new escort            " Paypal Verified"      

EBay, the online auction site, has an award system based on volume and customer satisfaction, Bjornstad said. Averill's organization sold about 4,700 items in 2002 with eBay sales of about $300,000, according to police records. "(Averill) went up the line quickly, from bronze award to silver, then gold," he said. "I guess he follows through with his customers. Police said they think the theft ring has been operating for at least five years, Olympia Police Commander Tor Bjornstad said. "This was a very organized, sophisticated business," Bjornstad said. "There were about a dozen employees, and a lot more inventory than we thought." Police suspect items were shoplifted locally by drug users as a way to support their habits, Bjornstad said. Read the full story-- Olympia police say they've cracked stolen goods ring

It doesn't get any better

November 3, 2002

New eBay fraud case under investigation Mishawaka police find second set of deceptions in three months. MISHAWAKA -- Another Mishawaka man is the subject of a fraud investigation by Mishawaka police, who accuse him of selling goods on the popular online auction house, eBay, and not making good on the deliveries. The man's alleged victims live as far away as Sweden, as well as Maryland in the United States. A St. Joseph County prosecutor says the suspect will likely be charged next week. Police say the man allegedly sold computer and musical equipment on eBay, cashed two buyers' checks, but failed to send customers the goods. The recent case is different from an August eBay investigation that led Mishawaka Community Prosecutor Margaret Jones to charge Mishawaka resident Daniel Alvarez with three counts of receiving stolen property, a Class D felony, which is punishable by up to three years in jail and $10,000 in fines. Police records, however, shed light on what the victims contend happened. According to a complaint filed by a man in Sweden, the Mishawaka man allegedly offered for sale a Yamaha DM2000, which is a high-tech production console musicians use to record songs, but he never sent the digital machine. The victim told police he wired $13,180 to the Mishawaka man on July 26 but never received the production console. He said the transaction occurred through an account the suspect set up on eBay. In another case involving the same alleged suspect, a Potomac, Md., man sent the suspect $6,848 on Aug. 5 for computer equipment, but never received it. Police say the suspect also swindled two other victims earlier in the year, but made restitution to the victims, so the investigation was closed. But with the latest two victims' reports, police have renewed their investigation and have turned the case over to prosecutors. The full story New eBay fraud case under investigation. As they say "These are only two of the stories in the naked city". Are there more to come and how many? Will the police knock on your door and tell you "you bought stolen property and have to return it "???

Ebay and Paypal have teamed up to become the worlds largest broker for bootlegged items such as DVDs, CDs, videos, models, action figures, plush toys.  Next time you bid on a Rolex watch (there's 3200+ listed) or a Gucci (7000+ listed) handbag, sunglasses, shoes, etc. remember Paypal is not responsible for "QUALITY OF GOODS" issues and Ebay isn't going to help you either. Prime example, Scarface  This is perhaps the most bootlegged DVD that I have personally seen on eBay.  It is currently OOP, so it is fetching some pretty big dollar amounts.  The original version does not have a DTS track.  This is the easiest way to identify this bootleg.     Bootlegged      Real  Source:  waskydiver Source: The Anime Digital Team "Due to recent court rulings finding eBay not liable for the trade of Bootleg goods on their website, it is strongly advised to use caution when purchasing goods from eBay and similar online auction and trading sites. The sale of pirate merchandise seems to be on the increase on such services and many seem uncooperative when people complain about pirate goods being sold. Currently eBay seems to remove only really obvious pirate items from their auctions. Many people have tried and failed to get eBay to remove pirated DVDs and other goods from their listings." Why shouldn't I buy them? Often the production of unlicensed goods is used by organised crime to launder money made from selling drugs, pornography and prostitution and to generally expand "business" opportunities. Also quality of the goods is often a lot less than official goods. Unlicensed goods go through little, if any quality control, often rushed into production. They haven't been tested by the relevant safety bodies and could be harmful to children. Another more important reason, is money from anime/manga merchandise licenses go into making more anime and manga, so buying unlicensed goods is hurting the anime and manga industry. No one can say how much it is hurting the industry as the bootleggers are not exactly legitimate businesses and don't release their sales figures.

 

Paypal has long been known as being a "hot bed" for criminal activity. Founders and exec's didn't care, after all it was big bucks to them. Press release after press release detailed how they were providing a service for auction buyers and sellers (If run properly it is). Internet searches will show that the big bucks come from, not just auctions, but illegal gaming, pornography, drugs, weapons and believe it or not hate groups (kkk ,white power and neo-nazi's ). It is widely reported that the 2 biggest sources revenue on the internet are gaming and porn. See- suepaypal . Ebay stated when they announced they had purchased Paypal they would cease funding gaming sites. As of this posting they haven't.  It's estimated to be 10-15 % of Paypal's revenue. (estimates are usually high or low depending on the situation ) How much does the porn, drugs and others bring in ??

Let's start at the beginning  The pattern of deceit will shortly become evident. By searching the archives we have found the early events that lead to the foundation of Ebay/paypal.

The concept of Paypal is more than just a great one, but it needed to be founded and run with integrity, which is the single most degrading factor about Paypal. The founders and executive staff were made up primarily of Stanford university libertarians, who's only concern was lining their pockets with money (yours). As an Oklahoma man, who ran an elaborate PONZI scheme on the Internet 3 years ago said " once they sent me their money it was mine". Peter Thiel and his team promised many glorious things, while hiding many facts. 

Lets look at some of them.

1.Paypal is FREE-----Oct 1999 Faq   Does PayPal™ cost anything? No. There is no registration charge. There is no monthly fee. Whether you are making 100 transactions a day or just one a month, PayPal™ offers you the ability to pay your friends without charging you a penny. Fact is the person you sent the money to has to pay the fee.   

2.Paypal insurance----Aug 2000 Travelers  Protection against unauthorized withdrawals from your account at X.com, including unauthorized withdrawals from any bank account you may have linked to X.com, up to $100,000. Fact is XPAYPAL had a policy that covered them, if accounts were hacked. There was a $250,000 aggregate deductible. In other words if your account was hacked for $5000 Paypal pays you. A clear case of false advertising.

3. Paypal FDIC "pass thru insurance"--FDIC Pass-through deposit insurance protects you only against the failure of the bank at which PayPal places your funds, and does NOT protect you against PayPal's insolvency. Through the terms of our User Agreement, we believe that your funds will also be protected from any claims of PayPal's creditors and will be returned to you even in the unlikely event of a PayPal insolvency.  Granted there's little chance of the banks failing, but the fact that Paypal's User agreement (tos) has been ruled unscrupulous, do you think the founders and exec's will stay around and reimburse you out of their pockets ??

4.Paypal protection----Aug 2000 TOS The consumer is fully protected and as the merchant of record we accept final responsibility for all card transactions. Facts are Paypal's Tos were written in a way to make users think they were protected, when in fact, up until Sept 2002 they were operating in violation of California law  (LINK) Also you will find in that link where a Federal Judge ruled that there Tos are UNCONSCIONABLE.

5.Paypal "protection"--From their SEC filing:  Does this scare you.  We could incur substantial
losses from employee fraud and, as a result, our business would suffer. The large volume of payments that we handle for our customers makes us vulnerable to employee fraud or other internal security breaches. We cannot assure you that our internal security systems will prevent material losses from employee fraud. Remember these employees their talking about have all your credit card and banking information. Also don't forget your Social Security Number.

The Horror Stories

Paypal advocates will say these stories are untrue but these are just some of the hundreds of thousands or is it really millions ???

 Auctionbytes recently did a survey of sellers and this little tidbit was among the results: "10% of sellers have had a buyer do a chargeback on a purchase when using an online payment service, and 8% of sellers have had their account frozen by an online payment service due to a problem buyer or by error. (8% of 20 million = 1.6 million)  "As cynical about payment service as I am, these numbers scared even me. I would never have guessed that the problems were this bad. Even a 1% rate would be bad enough. Would you open an account with a bank that said, "We routinely shut down 1% of our accounts with no warning for security reasons"? Would you open a store where the landlord has the right to lock you out of your own store for weeks on an unsubstantiated complaint, even if he only did this 1% of the time? Why are sellers entrusting their entire business to a heavy-handed "partner" whose actions violate every rule of business management or ethics?"  quote from I. Goodman

$45,000 locked in my paypal over $15 ?? 

PAYPAL fraud! 

PAYPAL FEES RIP OFF CANADIANS  

I am a solid 3 year member of Ebay and Paypal.
THEY HAVE JUST RESTRICTED MY ACCOUNT AND HAVE STOLEN MY MONEY !!!!!!
$ 1708.48 that I received for auction payments. 

I SAVED THIS MONEY FOR A WHOLE MONTH TO FEED MY CHILDREN
I HAVE NO MONEY FOR FOOD

  The incredible shrinking paypal account, true story

PayPal's attorneys send threating email to this site! 

PayPal Holding $33,000.00 of my money! You wont believe this!

Check out this site 21 pages of complaints Wall of Shame

PAYPAL HARBORS CRIMINALS 

Because the Internet is so vast, disgruntled customers of this unconscionably run company are spread out, which is the advantage PayPal has.  A detailed and timely search will show hundreds of forums, web sites and groups that have formed to tell  PayPal Horror stories.  Our State and Federal officials have turned a deaf ear on their constituents,  they just pass complaints off on some government agency, when they receive them.  Most of these agencies are run worse then the SEC and we have heard about them lately.  A recent answer to a complaint I sent to Senator Diane  Feinstein of California basically stated that because I wasn't a resident of her state she couldn't help me, she suggested I contact my state officials. My state officials say PayPal isn't a Texas company. Funny how the Federal government rules us all, but makes excuses when it comes to helping us.

 

Some law enforcement agencies have recently probed PayPal.  In New York State, they were required to pay 200k for  processing illegal gaming funds.  200k was such a slap on the wrist, that they still process these illegal funds even now under EBAY. (reports indicate 117 million in revenue or about 15% of their business in the first quarter of the year)  Clearly flaunting the law of the land.  Louisiana had served a cease and desist  notice on them before they complied with their state regulations.  Minnesota recently fine them for "unlicensed activity" (see Money Transmitters) Missouri has issued two Grand Jury subpoena's (PayPal under scrutiny).  I've been told that there is one personal suit in Missouri, which has PayPal desperately trying to settle.  Other suits include, at least 2 for patent infringement (stealing peoples property), suits by stock holders, a multi-million dollar defamation suit, (because of statements made by their CEO Peter Thiel) and several class action suits (which they tried unsuccessfully to avoid by using their unscrupulous Terms of Use. Many customers have taken their claims to small claims court, and have won, (link) but have found that PayPal has refused to abide by a lawful court decision.  Running and hiding from their problems, seems to be a lesson taught to them by their founder and former CEO Peter Thiel, who although he bragged about being invited to the White House, runs and hides from process servers and conveniently gets a last minute call out of town when he was scheduled to testify in an arbitration between PayPal and a customer. Evidently he's still running, he promptly resigned when the merger with EBAY became final.  This is the same person that received a 1.35 million dollar loan and 2.8 million shares from a company (PayPal) in Sept, 2001, when said company was reportedly operating in the RED. HUMMMMMM!!!!  LINK

STAY TUNED

 

If what you've read  so far shocks you please bookmark this page and come back often, as we do have lots more information. Researching subjects for accuracy takes time.  Let me say that this is only the beginning.

 

 

 

 

 

Down with Paypal is not affiliated with Ebay or Paypal and claims no responsibility, and is not in anyway liable for the actions of its enthusiasts and followers.  We waive all responsibility and liability for the actions of anyone who visits this site. All information listed has been researched for accuracy to the best of our ability.

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