Raygoza Lawsuit Press Release!

Internet Marketing Guru Sued for Racketeering

Promised Millions but Delivered only Misery

John Paul Raygoza was a Millionaire at age 26

Elderly, Disabled, Unemployed Victims Scammed Worldwide in Work at Home Business Scheme ~ Jonathon Levy ~ October 5, 2010

*Edited to update case information on February 19, 2011, by blog author

California: Los Angeles based John Paul Raygoza, and his associates built a worldwide multi million dollar marketing empire within three years encompassing at least ten different corporations with names like SuccessRate, IncFortune and MyEbizNow from Florida to Hong Kong. Raygoza and his partners Ted Molina and David Sipes, who claim to be self made multi millionaires, promised their clients turnkey internet marketing businesses that would make them wealthy and successful too. The only true claim was that Raygoza and his associates had made millions, not legitimately, but by inflicting misery on their victims who were often elderly, disabled, and unemployed.

According to one of the plaintiffs’ attorneys Dr. Jonathan Levy, “This scam is the most coldhearted one I have ever seen. Victims who were already in debt, unemployed, disabled or elderly and living on fixed incomes were left with credit card bills of $30,000 or more while the twenty something year old scammers laughed at and derided those who begged for refunds.”

*Over 50 individuals, from four continents, have filed a proposed Second Amended Complaint, Class Action, listing “causes of action to just two counts, Fraud and RICO.” in a California Federal Court. The case is NO. CV10-9860 DMG (JCx). Defendants are John Raygoza, Ted Molina and David Sipes, “individually & as a joint enterprise with joint & several liability.“*

Typical victims include an 87 year Australian man who was relieved of $55,000, a paraplegic Michigan attorney who was pressured into “investing” $20,000 from his hospital bed, and a 70 year old Georgia man with health problems who lost $20,000 and was threatened by the racketeers when he tried to obtain a refund. None of the 53 named plaintiffs ever earned a dime of their money back and in the aggregate lost over $750,000.

The scammers would cold call prospects who had indicated they were interested in a profitable home based business. A high pressure sales pitch would follow with promises of up to a million a year or more in profits and the initial investment, usually charged on the victim’s credit card with guarantees it would be repaid from profits within 30 days.

When the victims turned over their credit card numbers, they often found their cards were charged to the maximum or beyond. A written verification form prepared by the criminal organization’s attorneys followed and buried within this form was a clause that supposedly disclaimed the lies of the racket’s sales force.

Victims never earned money, but were provided with template websites promoting the scam in an attempt to ensnare yet more victims. Complaints to law enforcement and credit card companies were deflected by the scammers’ legal staff which claimed the victims had signed a contract for services.

The California Department of Justice under gubernatorial candidate California Attorney General Jerry Brown has received over 100 complaints but inexplicably has taken no action to date, possibly because the victims mainly reside outside California. The number of actual victims of the scam is estimated to be in the thousands worldwide.

For more information contact:

Jonathan Levy, Esq.

Thomas Easton, Esq.

1629 K Street NW Suite 300

Washington DC 20006 USA

Tel/Fax 1-202-318-2406

chambers@brimstoneandcompany.com

www.brimstoneandcompany.com

Copies of both court documents may be accessed HERE