Earlier this month Frank Calabro Jr. posted a sequence of rants in opposition to the North Carolina Securities Division.
In a single supplied courtroom transcript, it’s revealed Calabro Jr. stole at the least $2.2 million from USI-Tech Ponzi victims.
The transcript pertains to a listening to held in October 2018, a number of months after Calabro Jr.’s property was raided and proof seized.
Calabro Jr.’s legal professional argued that, within the absence of data pertaining to investigations into his shopper, Calabro Jr.’s seized belongings must be returned.
As put forth by Calabro Jr.’s legal professional;
We inquired as late as yesterday afternoon of the Division of the Secretary of State what company or authority is investigating Mr. Calabro.
The response we acquired was that they weren’t licensed to inform us who that was.
What we do know is initially once we filed this movement, we have been advised that we should always converse to the U.S. Legal professional’s Workplace within the Western District of North Carolina, notably Mr. Ryan, Dan Ryan, and we did that to speak in regards to the return of the property and have been in a short time advised that the U.S. Legal professional’s Workplace was not going to be pursuing an investigation.
In order we stand right here at present, we don’t know whether or not there’s an investigation. We don’t know who is perhaps conducting it.
In response, First Assistant District Legal professional Howard Cummings clarified Calabro Jr. was
being investigated by investigators and forensic analysts below the course of Mr. Haislip who’s a particular prosecutor on the Secretary of State.
First ADA Cummings then questioned Particular Agent Shawn Pruett, who described how Calabro Jr. earns a dwelling as follows:
Mr. Calabro will inform you that he’s a advertising and marketing tutorer, if you’ll. He trains folks on advertising and marketing strategies.
He calls himself an affiliate marketer and his experience, he’ll inform you, is — and I say he’ll inform you as a result of I’ve spoken with him immediately — his experience is —
(overruled objections)
that he’s a coach for — trains folks in methods to be an web affiliate marketer.
To that finish, he runs an internet site referred to as planetmillionaire.(dot)com which is type of the hub of his web enterprise or his web exercise.
Inside — inside planetmillionaire.(dot)com, there are specific sections the place anyone can go to view a video, for instance, of how he trains folks on affiliate marketing online and methods to market with the web.
these movies then find yourself all going into one thing that Mr. Calabro was truly promoting to somebody. And so you could watch a video on methods to use e-mails for advertising and marketing.
By the tip of that video, he’s then strolling you into both a MLM, a pyramid-type scheme, or in some instances Ponzi schemes.
On the request of Calabro Jr.’s attorneys, the Securiteis Division examined a field ‘labeled 2017 for his tax functions.‘
SA Pruett: We discovered that field, and sure, there have been many ledger gadgets and notes inside that field referring to USI Tech.
First ADA Cummings: And may you — if you referred these ledger sheets, have been you in a position to decide something from them? Did they’ve dates on them or quantities of issues?
SA Pruett: They did. There have been — Mr. Calabro is superb at accounting or taking notes, if you’ll.
Calabro Jr.’s Legal professional: Objection. Transfer to strike about an opinion on Mr. Calabro being good at something.
Court docket: Overruled.
SA Pruett: Mr. Calabro’s, what we assumed to be his personal handwriting on these items that now we have that we seized, would state or there have been written out in order that you can see how a lot income he was pulling in from the commissions from USI Tech, the place he then despatched the cash or what gave the impression to be cryptowallets that he despatched cash to or from.
…
Primarily based on a restricted evaluation of his — of the data that was inside particularly field 2017, for the three months from September 17 to January 18, or I assume the final quarter, he had, in keeping with his personal information, had pulled in about 2.3 million {dollars} from the assorted issues that he was doing.
Our forensic accountants took a better take a look at it and decided that out of that 2.3 million {dollars}, that 96 % of that 2.3 million {dollars} got here from the sale of USI Tech.
96% of $2.3 million is $2,208,000. And keep in mind that’s over simply three months.
USI-Tech launched as a foreign exchange Ponzi scheme in 2016.
In July 2017 the corporate jumped on the cryptocurrency Ponzi bandwagon.
By late 2018, the rip-off had collapsed.
The entire quantity Calabro Jr. stole from USI-Tech victims has not been made public.
Calabro Jr.’s involvement in Visitors Hurricane was additionally introduced up;
FADA Cummings: After which there’s a crystal ward in a — crystal award in a blue field. What’s that from?
SA Pruett: That’s an award that states that Mr. Calabro was a number one salesperson for an funding program that was referred to as Visitors Hurricane.
So I imagine that Visitors Hurricane awarded Mr. Calabro the award for his efforts at promoting.
First ADA Cummings: Have you ever tried to find out what Visitors Hurricane is?
SA Pruett: Sure, sir. I’m aware of Visitors Hurricane.
First ADA Cummings: What’s Visitors Hurricane?
SA Pruett: Visitors hurricane is an internet program by which a number of individuals acquired concerned with — it — numerous lawsuits got here out of it and there have been allegations that it was a Ponzi scheme.
Visitors Hurricane was Ernie Ganz’s short-lived Visitors Monsoon Ponzi reboot.
The SEC shut down Visitors Monsoon in 2016. Visitors Hurricane launched after the shut down however collapsed inside a couple of months.
Upon cross-examination, Particular Agent Pruett confirms Calabro Jr.’s involvement in Visitors Hurricane constituted promotion of an unregistered safety.
As to the character of the case, First ADA Cummings sheds some gentle on the Calabro Jr.’s case.
it’s the state’s place that something within the nature of money, some other foreign money or any gold or silver cash, that that’s the results of the sale, the illegal sale of securities and the solicitation of the sale of securities and that must be held and both forfeited to the Faculty Board or used to attempt to repay a number of the victims on this case as a result of there are, the truth is, victims, and that’s how this investigation acquired began.
Past that nonetheless, particulars are scarce.
Calabro Jr.’s Legal professional: Is there any prosecutor’s workplace, both state or federal, not the Division of Secretary of the State, any prosecutor, county prosecutor, federal prosecutor, state prosecutor, who’s at present prosecuting an investigation in opposition to Mr. Calabro, to your data?
SA Pruett: Is there any? Sure, sir. There are different investigations happening.
Calabro Jr.’s Legal professional: Apart from the investigation by the Division of Secretary of State?
SA Pruett: That’s appropriate.
Calabro Jr.’s Legal professional: Who’s that?
SA Pruett: I’m not at liberty to say, sir.
It’s effectively established that neither the SEC or DOJ touch upon open instances.
The October 2018 listening to ended with the Decide taking the matter below advisement.
A December twelfth submitting supplied by Calabro Jr. is an order granting his software for the return of seized property (the matter mentioned on the October listening to).
Two days later, on December 14th, an arrest warrant was issued for Calabro Jr.
Observe that I’ve not personally seen the warrant. Neither is it supplied on Planet Millionaire.
On the time Calabro Jr. was in Texas. He claims he flew again to North Carolina on or round December 18th to show himself in.
After paying a $20,000 bond, Calabro Jr. claims he was launched.
On December seventeenth, North Carolina filed movement objecting to the December twelfth asset return order. This movement is just not supplied on Planet Millionaire.
On December twenty first the beforehand granted October asset return order was overturned.
As of August 2019, the belongings are believed to be within the FBI possession.
In April 2019 Calabro Jr. was indicted. I’ve not seen this indictment, neither is it supplied on Planet Millionaire.
In October 2019, Calabro Jr. claims state-level proceedings in opposition to him have been dropped. I’ve not seen the withdrawal submitting, neither is it supplied on Planet Millionaire.
If taken as true, a touch as to why the state degree case was dropped may need been unintentionally disclosed within the October 2018 transcript:
Calabro Jr.’s Legal professional: Mr. Pruett, it’s appropriate that america Legal professional’s workplace for the Western District of North Carolina declined to analyze Mr. Calabro, isn’t it?
SA Pruett: We didn’t — jurisdictional points, sure. That’s appropriate.
Calabro Jr. claims the North Carolina Securities Division case value him $250,000 in authorized charges. This equates to 9% of the cash he stole from USI-Tech victims.
In what seems to be a retaliatory transfer in opposition to North Carolina authorities, Calabro Jr. has printed what seems to be residential addresses for SA Pruett and one other agent on Planet Millionaire.
Calabro Jr. maintains the North Carolina Securities Division and investigating brokers are “terrorists”.
Whether or not there’s a federal case pending in opposition to Calabro Jr. and different US USI-Tech promoters stays unknown.