The Recovery Tax


Last week :: the FTC filed an amended complaint in the case against one of Utah’s {via New York City} worst boiler rooms … The Tax Club. The new complaint seems aimed at shoring up the government’s argument that the dozens of shell companies :: merchant accounts :: and bank accounts involved … were all in service of the same fraudulent scheme … and that most of the profits from that scheme had flowed through to just two assholes.

Michael Savage and Tedd Johnson … d-bags extraordinaire.

According to the complaint :: The Tax Club fraud scheme was able to bilk victims for $220 million … and that in just the last four years. It’s a shit ton of harm :: and a shit ton of money … enough to attract a swarm of Internet ambulance chasing lawyers. Or at least that’s what one might expect :: if one didn’t understand how totally fucking clueless your average lawyer is regarding the Internet. Sadly {and fucking pathetically} :: lawyers are far more likely to fall victim to a web scam {or represent one} than they are to sue a web scam.

Billions of dollars in fraud losses each year :: combined with a complete lack of interest from the plaintiff’s bar … has led to a void filled with money. Like dark matter :: scammers fill all voids … and so the existence of the “recovery” niche inside scamworld.

Recovery scammers help victims recover lost monies :: by scamming them again for more of their monies. If you love crime :: then it’s quite a beautiful thing … like art almost.

The turd wears many disguises :: but basically … some useless fuck is going to charge you 30% of what you’ve lost to fill out your credit card chargeback requests. Maybe they’ll be “nice” and not gouge you until after you’ve actually recovered the funds :: but prolly not … they’ll prolly charge you upfront … or just after your scam losses have been removed from your credit card statement :: but before any final decision has been made … aka … upfront.

Chargeback forms are something you can :: and should … fill out and file by yourself. It’s your right :: as the FTC’s ammended complaint points out …

A consumers’s right to initiate a credit card chargeback is guaranteed by Regulation Z of the Truth in Lending Act, 15 U.S.C. §§ 1601-1616.

… for realz :: that sounds official enough to be true.

And you don’t need to know no serious sounding shit like “Regulation Z” either :: if you were able to fill out the credit card application … then you can fill out the chargeback request. Go do one now … it’ll be fun.

According to the complaint :: The Tax Club’s chargeback rate averages in at a shocking 20%{ish} … where 1% would be considered pretty effing bad. That means that just this one shitshop is creating a chargeback stream of $10 million per year.

Back to the complaint …

When a consumer successfully disputes a charge through the charge back process, the consumer’s issuing bank credits the consumer’s credit card for the amount of the disputed charge. The issuing bank, in turn, recovers the amount of the charge back from the merchant acquiring bank, which typically collects that amount from the payment processor. The payment processor then typically collects the amount of the chargeback from the merchant.

Three layers of financial intermediation between the victim and the blatant fraud :: charging each other fees as the charge and chargeback are passed up and down the chain … until a walloping fine is laid at the feet of the scam merchant. If the scam merchant can pay the huge chargeback fine with money scammed from other victims :: then the financial system makes money processing both sides of the fraudulent transaction.

Scamworld is big business for big banks.


Bullshit recovery services company FIAD Services is leaching off the very end of the scam money train. They’re the best at it though :: or something …

With an exceptional win rate, a preeminent knowledge of the system and regulations in place to protect the consumer, and a adamant assiduous need to win every case we can, you can be certain that your case is in the best hands with FIAD Services.

Put their prodigious :: illustrious :: intransigent :: punctilious … use of the thesaurus to work for you today.

FIAD Services is currently fake helping victims of The Tax Club to recover their monies …

The Tax Club has scammed many consumers across the U.S. and Internationally. They take advantage of the elderly and disabled. If you have fallen victim to The Tax Club SCAMS. – Please contact our firm to be added to the class action lawsuit.  Lead Investigator – Jonathan Donavich – Please call 800-753-6724 or email

… says one of the FIAD Services promotional blurbs spammed around the web.

But there is no class action lawsuit :: it’s just fraudulent and misleading advertising by FIAD. They tried the same thing here on the fake robot site last year :: leaving this ridiculous comment on an old post about boiler room butthole John Paul Raygoza …

I GOT MY MONEY BACK! I also signed on which cost me roughly $8,500 and was told that this was the only money I would have to pay. After doing some research 3 months into the supposed program I came across these complaints. I got in contact with my lawyer who referred me to a company who got me my money back within about 2 months after them taking my case. The company did NOT charge me any upfront fees and did what they promised “FIAD Services” out of Pompano Beach FL their website is “” the guy I worked with was Luke Daniels email “” or phone 800-753-6724 ext. 222 all in all they were great gentleman/company to work with he was sometimes hard to get a hold of but he did what he promised nice to know there are still some honest people out there. They also added me to a list they are putting together to file a class action lawsuit against these thieves. THANK YOU! -Terri & George H

Fake. Fraud. Fucking lies.

The Raygoza boiler room had long since been shut down :: a lawsuit had already been filed … and a default judgement rendered. I found several nearly identical testimoanials {regarding other scammers} attributed to “Terri & George H” left around the web that same day. I gave Luke Daniels :: and FIAD Services owner Michael Cooper :: a full year to prove to me that Terri and George H. were real … but they could not … and so did not.

FIAD Services tries to find victims of false representations :: by making false representations … it’s fucked up … kinda like the opposite of “nice to know there are still some honest people out there.”

The Tax Club is {barely} in the news because the FTC is moving against them :: so FIAD Services is spam reminding victims that FIAD Services is available to help fill out chargeback forms {and organize fake class actions} … in exchange for a huge piece of the money. FIAD Services would hate for your refund to feel too much like a refund.

Nineteen videos by YouTube user Thescam Rreporter :: spam the SEOs about FIAD’s hotshit association with The Tax Club takedown. Videos with original titles like …

  • The Tax Club Scams – GET YOUR MONEY BACK !!!!
  • The Tax Club Utah – GET YOUR MONEY BACK !!!!
  • The Tax Club Lawsuit – GET YOUR MONEY BACK !!!!
  • The Tax Club Complaints – GET YOUR MONEY BACK !!!!
  • The Tax Club Scam NYC Scam – GET YOUR MONEY BACK !!!!

Four exclamation points worth of GETTING YOUR MONEY BACK !!!!

For the sake of exploding ironies :: each video is clearly marked “Published by FIAD Services” throughout … but features FTC Bureau of Consumer Protection attorney Christine Todaro explaining the {unenforced} Business Opportunity Rule.

So yeah :: but otherwise :: I’m sure our whole system is working fine.

>> bleep bloop

20 thoughts on “The Recovery Tax”

  1. I’m gonna start a business where I help victims recover money lost to recovery scammers who help ‘recover’ money from other scammers. I’ll only charge 15%, cuz I just wanna help.

    But you need to act now, I’ll only be able to charge this for the first 25 clients.

  2. What would be interesting to know is how much of the 44 million dollars The Tax Club paid for leads went to companies like and since they are still publicly promoting the Corporate Tax Network ( 1-800-Accountant ( as “Partners” on their respective websites.

    Someone should get in touch with & and let them know their “partners” are in some deep sh*t.

    Talk about some bad PR – wonder what their venture capital partners would think of this association…

    Note: Both Corporate Tax Network & 1-800-Accountant are named in the original and amended complaint filed by the FTC.

  3. So yeah :: but otherwise :: I’m sure our whole system is working fine.

    I sense sarcasm. But let’s look at for a momment..

    A system designed such that no matter what happens, the banks make a profit? It looks like the system is working fine to me–it’s certainly not working for me, but I think it’s working very well. E.g.: if someone were feeding me, feet first–still alive–into a wood chipper, and the chipper was properly mincing me into little slivers of meat and bone, then in that case the system would be working just fine.

    Maybe there could be discussion points sometime about what the system’s actual goals are.

    * The Tax Club was in the big club… but they got stupid.

    * “American Dream” == “and you can too!”


    That was probably depressing. Here’s a kitty:

    Furry cows moo and decompress.

  4. Drug money saved banks in global crisis.

    I like when Carlin says, ” The American Dream, cause you have to be asleep to believe it”

    Weird how when people say this they are called “Conspiracy Theorists”, and it’s just a history lesson thrown at them lol.


    I thought LegalZoom and RocketLawyer were good companies. I created some documents on Rocket Lawyer and Spoke to a Guy at LegalZoom about an LLC.

    Hope that they are not part of a shitstorm lol. Doubt it lol.

    Most Affiliate Marketers have no idea of the things that go on in this SCAMWORLD. It has been said so many times that over 90% of Affiliate Marketers fail and that the top 3% make more than 90% of Affiliate Networks Money…

    Meaning most money flowing into a network is made by a few, everyone else is small change.

    Still the people like the ones being sued are never in the “circle” of Affiliates, I never see them or hear them speaking about the latest WordPress Templates and the best Security for a Blog and also The cheapest hosting providers. These are topics Online Marketers discuss.

    Wierd how they are always the ones “untouchable” and you never hear them until the FTC is involved.

    There is a fine line between Affiliate Marketing and what these people do. That is like saying every one who ever went to law school is a Ambulance Chaser and from the point of Passing the Bar exam is looking for a rich client to kill and transfer his money to the Cayman Islands…… gawd

    I wanted to ask Mr. Droid. Do you really love carrot cake? Cause I do and will u post some recipes please?

  5. Affiliate marketing / so-called internet marketing where fake gurus regurgitate each other’s catch phrases like learn why 97% fail and how to be part of the 3%. as George would probably say, cause it’s all bullshit. It’s DESIGNED that way. It will ALWAYS be that way. So take your money and go buy a lottery ticket with it cause your odds are better. :-P

    Most of the shmucks who get into this racket are suckers who will feed the scambosses and fail over and over until they are broke and feeling like crap because they don’t know the real reason why they are failing.

  6. Mark the avg affiliate is not spending money and this is why it attracts to many people, because you do not need money lol.

    It takes creativity to sell someone a pair of shoes from your website.

    The guru type crackheads are a part of scams.

    I have learned from people who make money legally, but they do not have issues with bad press or FTC lawsuits lol

    Ask yourself, if anyone ( females ) ever made money from a MaryKay makeup party and how many get to have a Pink Caddy?

    The big popular brands brown-nose also and keep that 97% at the top.

    1. @Phoebe,

      technically u r right about affiliate marketing not costing any money out of pocket Phoebe,
      I have been involved in affiliate marketing since 2004 in various arenas. Back then I had spent little
      money at all and tried doing it via all free methods. I think my income came out to about 4-5cents and hour when you divide the money I made in a year by the 1000s of hours I spent trying to figure the game out.

      I should’ve been more specific in my prior comment.

      In my head, I was thinking of the sort of ‘affiliate’ systems that are usually promoted by a pseudoguru and the initial cost is $100s-1000s of dollars to enter the game followed by untold amounts of money for ‘marketing the crap’.

      I personally know plenty of other people who have lost months and years and untold amounts of money trying their hardest to make more than a few 100 dollars or less a year for all of their efforts.

      Mary Kay et al. are old school. Lots of brainwashing bs goes on in MLM. (I have been involved in enough of those to speak from experience). Making a career in MLM is simple but NOT EASY at all and most people are not cut from the right cloth to succeed very far.

      For every actually decent MLM type company with a truly good product, there is probably a dozen or more total crap bordering on scam /scam companies taking advantage of the industry.

      Didn’t quite get what you mean by “the big popular brand brown nose…”

  7. Marz i mis spoke lol, i should explain how Super Affiliates are basically waited on hand n foot and have a good relationship with the top brands. They get more help when it comes to promotions. Bigger % on sales.

    For example if you are a CPA affiliate and you bring in huge amounts of traffic. Your manager will tell you what is selling and how you can make more money, vs to a new person just starting out and bringing little traffic and sales. Some managers will give away your methods of promotions ( bad managers ).

    I think a lot of people who come to this website are convinced marketing is a scam, because they lost money to scamers.

    I say:

    Watch out for self proclaimed gurus. People who want to sell you affiliate training. All of this info is FREE to read online.

    Thats my rant lol

    1. @Phoebe,

      Yup you are so right. It’s almost like cronyism, lol. Same thing goes on in other industries, nothing unique to online, well except the easy entry to every tom’s harry dick (is that how you say that ;-).

      What’s really not funny is how some of the more polished and skilled self proclaimed gurus have managed to make it appear as if they are such. All this at the expense of 1000s of duped people.

      and now for an open question to long dead dudes.
      Mr. Barnum, were you a total a-hole who had a good press agent to make you appear likable? Or were you just a sucker like the rest of us?

  8. Funny how I haven’t seen anything about this on CNN or the other channels that were shilling for these douchebags. I guess “they” don’t want you to know about this.

    1. @Rafael Marquez,

      What they would probably say is that they don’t find it newsworthy.

      But maybe it’s more like it doesn’t fit theirs or their audience’s model of how things work.

      Apparently, it seems, that promoting Noisy Shiny Crap (with a vicious soul-eating scam at the center of every box) is just business as usual in the TV world. As is not reporting much when one of the pieces of Noisy Shiny Crap gets torn down because it got too sloppy or something.

      Furry cows moo and decompress.

    2. @Rafael Marquez, It’s really Good Business to speak up. Nobody needs to be loosing money and getting scammed will all the information out there. This includes Nigerian Scammers taking the whole loot and life savings from Elderly People who think they are on a business venture or helping the needy.

      I think and I may be wrong, but a lot of Marketers do not speak up about this subject because they feel they will loose connections and friendships may be burned if they speak out.

      I have always been pretty vocal about what I do and do not. I do not feel like I would be burning any bridges If I spoke. These people don’t feed me or do anything for me. I would not loose a dime lol.

  9. Directing marketing trade publication Response Magazine recently had an article on chargebacks that gives the vendor-side view. I thought this assertion was interesting:

    Most credit card holders will immediately call their credit card providers if they sense any resistance by the merchant to issue a refund.

    So, like Salty says, go ahead and join the crowd. Request a chargeback.

    1. @Lanna,

      I don’t know if it’s true in general. But it was certainly true in my case.

      I had just managed to track down the business that my $112 had mysteriosly gone to–an amusement park based several states away. I talked to a couple real, live humans.

      I’ve got a pretty hair trigger definition of “resistance” when we’re talkin’ ’bout my money that just went poof. (Actually I think that makes me very normal. The way most saltydroid profiled scams work is the CONfidence game part acts like anesthesia so you won’t react normally.)

      The conversations went ok. But they were saying that since the tickets had already been used (wtf!?) they wouldn’t be able to simply refund my money but that there might be some longer process.

      I said “OK” and hung up. And about 20 seconds later I reached the conclusion that their answer, in fact, was that they really didn’t care if I ever saw my money again.

      Chargeback time! I called my credit union. It turned out they were interested in helping. I had to write a letter and fax it.

      Stuff happened, then

      Success! :-)

      Furry cows moo and decompress.

  10. Normally I get all Robin-hoody about stuff like this, but I haven’t the time right now. Thought I’d toss it out there for someone like-minded to disect, as these guys and going hard on (that’s what she said… yes, I’m a 12 year old boy) anyone they can find tied to the boiler room shiz.

    Fiad rebirth or knockoff?

    Ryan Clark
    Homeland Arbitration
    4023 Kennett Pike, Suite 519
    Wilmington, DE 19807
    Tel: (800) 659-5094 Ext. 201
    Fax: (800) 659-5095

    If you’re in need of a laugh, check out their oh-so official logo. As Dave Niehaus would say, “My oh my”.

    It appears to be a UPS mailbox, which of course would make it funny that they say “suite” 519 vs PMB 519. Berry Professional.

    Super duper computer automated voicemail system.

    Then there is this-

    Wondering who put it up… my guess is not likely a victim of any of these guys (homeland or boiler rooms) as the title tag is
    Have you been contacted by Homeland Arbitration? | Homeland Arbitration – Scam?
    Yes, it’s WordPress. Yes, they make stuff pretty for dummies and smarties, but the ” | ” is interesting….

    1. @MrsFeatherbottom, Re-read before posting next time- aim for coming across only partially nonsensical.

      Mrs. Featherbottom

  11. And now for “Utah Consumer Advocates”…

    Utah Consumer Advocates proudly tells us about that they are now accredited by the BBB:

    Meanwhile, BBB proudly tells us they suspended Utah Consumer Advocates accreditation.

    I wonder who can be the proudest in that one?

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