Breaking MLM News: BidiFy Owner Frode Jorgensen Has History Of Legal Issues In The USA

DS Edge Feb 2015

Breaking MLM News

BidiFy Owner Froge Jorgensen Has History Of Legal Issues In The USA

With Past Company PlexPay Network

 

Frode Jorgensen’s move last week to hire MLM attorney Kevin Thompson to make sure BidiFy is legal in the U.S.A. is the best move he could make. Knowing Kevin Thompson personally, I have no doubt he will make sure BidiFy is completely legal to oporate in the USA.

I strongly suggest that ALL U.S.A. based distributors wait to promote BidiFy.com until Kevin Thompson has issues a statement letting the public know that the company is legal to operate as a U.S. based company in all 50 states.

BidiFy Owner Has Pass Legal Troubles In USA

 

Troy Dooly

Troy Dooly is recognized internationally as an influencer in the areas of personal branding, leadership development, marketing campaigns, organizational expansion, and corporate launch strategies. Dooly is a speaker, results coach, and radio host. He is a founding member, show host (Beachside CEO) and News Director of the Home Business Radio Network. He is a founding member, and currently serves on the Board of the Association of Network Marketing Professionals

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Troy Dooly is recognized internationally as an influencer in the areas of personal branding, leadership development, marketing campaigns, organizational expansion, and corporate launch strategies. Dooly is a speaker, results coach, and radio host. He is a founding member, show host (Beachside CEO) and News Director of the Home Business Radio Network. He is a founding member, and currently serves on the Board of the Association of Network Marketing Professionals

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20 thoughts on “Breaking MLM News: BidiFy Owner Frode Jorgensen Has History Of Legal Issues In The USA

  1. Hi Troy, i see you are talking about me in this newsflash.

    There are some major errors in this message and statements.

    If you want to talk to me, you are free to contact me whenever you want. I have sent you a e-mail with my details.

    It seems like you need some updates and info.

    Mabe i can point you in the right direction….

    Frode Jørgensen

    Programmer & Web Designer

    • Frode,

      Please feel free to send me your info. Since the information provided is a Court document, if you have Court documents showing a current change in this older info, I will gladly publish it to bring all info current.

      My contact info is TroyDooly@MLMHelpDesk.com

  2. You mentioned that he did not say he was NOT AN OWNER … That confused me Troy.

    Here is his QUOTE

    "1. I AM NOT THE OWNER OF BIDIFY! AND WHERE DID YOU GET THAT INFORMATION FROM?"

    He said he is not the owner. It appears that you expected him to say "I am not AN owner" vs. " I am not THE owner". I see no difference. You are stretching, my friend.

    Nonetheless, Great Reporting.

    Faith

    • Faith,

      As a reporter and investigator I look at every word used. Similar to what attorneys do reviewing contracts.

      The differentiation I made was as followed.

      At no time did Frode state he was not part of a ownership team, or that through one of his companies he did not have indirect ownership. His clarification was the fact he was not "The" singular owner of the company.

      So, your deduction is 100% correct. I am leaving open the fact, that at no time after contacting him or Kevin Thompson BidiFy's U.S. based attorney was I corrected on the fact that Frode is NOT part of an ownership team, or have indirect equity in BidiFy.

      In reading through Frode's response, I do not see that it is a negative if he is part of an ownership team, or has some indirect ownership. As he states we all should learn from our mistakes.

      And since first reporting on BidiFy, and digging deeper into Frode's current companies, it does seem to me that he has learned from his mistakes and have created some solid businesses with a good client base.

      Living An Epic Adventure,
      Troy

      • Troy,

        Your post above wasn't accurate. After reviewing Frode's letter to you that you posted using Scribd, he stated in #1 the following:

        "I AM NOT THE OWNER OF BIDIFY!"

        He also stated in the end of the first paragraph of #5 the following:

        "But I'm not an owner!"

        Just thought it was important to point out since he stated it both ways which seemed to be important to you. Also, you made it pretty clear in your video that it was still a possibility that he was an owner based on his wording. Hope you will provide some correction in a future video update.

        Regards,

        James A.

        • @James A.,

          Based on the information we have, I will leave this video and post as is.

          I am sure in future reviews, more information on this issue will be made clear.

          Living An Epic Adventure,
          Troy

  3. Understood Troy, but when reading from his letter in your video you didn't represent the content of the letter accurately and certainly gave the impression that he "could" be an owner based on the wording of his letter. Nor did you do so in your follow up post to Faith.

    You may have information that is contradictory to the content of his letter which may be the reason you are letting it stand as is. If that is the case, then those doing due diligence (including myself) would love to know about it.

    Regards,

    James A.

    • James A.,
      you are correct, I did not represent the content fully in this post. However, that is due to the fact the information we have collected does show, that there is more than one owner/founder and that Frode directly or indirectly does have equity in BidiFy.

      As we progress with the research and review of the company then if it becomes an issue I will revisit it.

      But, as Frode stated we all make mistakes and are entitled to second chances.

      Living An Epic Adventure,
      Troy

    • James A.

      I have been thinking of a couple of things you said yesterday. One thing you brought up was what seemed like a bias towards Zeek because I have not removed BidiFy from high-risk.

      After thinking about that and looking at some of the categories, I have come to the same conclusion. So, by next week, we will remove some categories and move some of the companies into the right sub-categories where they belong.

      Our goal was to draw less attention to the high-risk companies than the critics who just boldly call everything a scam.

      Thank you for taking time to share your thoughts on this issue.

      Living An Epic Adventure,
      Troy

  4. Hi Troy,

    Considering all of the "red flags" and operations issues that Zeek is currently experiencing, do you believe that it is appropriate to move them back into the "high risk" category? Just my humble opinion, but considering the following issues and their current growth curve it seems somewhat likely that they may never get these issues resolved.

    1) Current lack of merchant account(s) to process credit card payments

    2) Their bank accounts being closed by their bank(s)

    3) Current lack of quantity and quality customer service resources.

    4) Commission requests currently running way behind.

    5) Continuing daily technological challenges with both of their websites

    Obviously, there are a tremendous amount of people who have previously enjoyed a lot of success with the Zeek opportunity, but it appears that their ability to keep up with growth and getting back in front of these issues are a tremendous concern. Would love to know your thoughts and if you would currently recommend someone putting their efforts and money into the Zeek opportunity, considering all of their current challenges.

    Also, may I ask why Bidify is listed in the "high risk" category? Is it solely because they haven't launched their auction site yet or are there other concerns that we should be aware of?

    Regards,

    James A.

    • @James,

      Fantastic question, and one a few folks have asked. I have given it some serious thought, and decides the following.

      1. The lack of merchant accounts to process cards have been remedied. Since the outside fraud was the issue, it is not the same type of red flag, as was Global Verge who lost their merchant account due to chargeback issues a few years ago. Since all companies on the net must be PCI Compliant, the processing issue was not just a one sided Zeek issue, all parties bare some responsibility. I see it, as I do the Oil Spill in the Gulf a couple of years ago. It was not just BP, they just took the biggest hit in the press.

      2. After talking to several internet based businesses, it seems bank account closures is not as uncommon as it looks. I am also finding many internet based businesses as well as traditional network marketing companies are moving to online companies, which act as banks, but never process checks. Seems PayPal is one such service now owned in part by Wells Fargo. Since I know they now have the issue fixed and new banking relationships, I do not see it as a red flag at the moment. If the same thing were to happen again, then we will truly has issues. Another reason I am not overly concerned is the fact, that now regulatory agency was involved, and the banks did not close any of the personal accounts. This was a business decision, which all banks are entitled. In talking with a few of the banks now in play, I have learned there are many banks who do not accept internet or network marketing based companies.

      3. The CS issue is an ongoing issue. With the speed in which you in the field are building and bring in affiliates at every level this will continue to plague the company for a while. They hired 60 new CS agents last month, have more coming on board, and have put together an international office, I do not see this as a red flag, but a HUGE growing pain. Knowing the plans Zeek has in play, the communication issues should start to clear up.

      4. Commission requests running behind is a red flag. Especially if the company is not communicating why. In this case, Zeek has been very clear about commissions. Plus, when you step back a second and give it some thought, I am surprised any of you are getting commissions. Since there have not been any banks to deposit new funds into, and the processing has only been back on for a few days. The company is paying commissions out of the reserves of the company, not from any new money, which is just now being deposited in the new banks.

      5. Every company I know has technical issues. It is the companies who try and hide them I get real concerned with. I also have to take into account, that I do not know of any other company going through all the challenges they are at one time and are still rocking forward. Of all the companies I have checked out, none have had this growth from all sides, affiliates, auctions, etc. Pinterest which is the fastest growing site in history, doesn't have to focus on processing of money. Facebook, used outside applications from other companies to do all the processing, and they just took their cut.

      When I go back and look at older more mature companies, I do see some of the same issues. eBay, was hit hard with complaints of all kinds. And even today have had over 3000 complaints in the last 3 years, compared to only 21 for Zeek in the last year. PayPal was hacked so many times, people wondered if they would survive, and now they are part of ebay.

      And if I come back inside of network marketing. Primerica lost their underwriters more than once when they were A.L. Williams, and use to send commission checks to the wrong folks. Pre-Paid Legal was sued by several state bars, as a pyramid scheme, and Herbalife was brought up before a Congressional Hearing for Murder.

      Your concerns are valid, and we are watching minute by minute to see how things go. As a matter of fact, Zeek's leadership has gone way above ehat any company has at providing me on going information. Even when it hasn't been pretty. No spin, or hush talk. Just straightforward facts. I even had a bank contact mention to me, how refreshing it was to work with a company who's leadership is willing to share everything.

      I think any company would have trouble with this growth. As a matter of fact, knowing the backside numbers, I have never seen any company experience this type of growth inside of network marketing.

      Now as to your question on BidiFy, that was very simple. When BidiFy launched, they launched in a known international tax haven. Knowing the country is on the watch list of every federal law enforcement protecting the USA today, it was a huge red flag. Not only would ever affiliate have the IRS looking at their bank activity, the Secret Service, FBI and possibly the CIA and NSA because funds were travelling offshore could cause a boatload of issues. Then add to that one of the principles has a legal track record in the states for running offshore ponzi schemes, I raised the red flags.

      Each time the company has addressed the red flags, we have reported.

      Now, as for the category of High-Risk, it use to be titles MLM Scams. After entering into this very discussion, with a rep in both Zeek and BidiFy, I realized that category had outlived its usefulness. So we eliminated several categories and placed each company in a category closer to their niche.

      Again, very valid questions. And without a doubt there are challenges Zeek has faced and are still facing. But as long as they are willing to address them, get them fixed and keep rolling things then the affiliates will continue to grow the business.

      At the end of the day, the faith the affiliates have with Zeek will make or break them.

      Living An Epic Adventure,
      Troy

  5. Having recently had a series of exchanges with the self-described spokesperson for BIdify, Zaydee Cuff, I'm left with the impression that their approach to opinions that are less than fully flattering is aggressive intimidation and threats. Not exactly the approach I'd expect from a company that has an otherwise solid business plan.

    • @Mark,

      Sadly, some self-described spokespersons do not fully understand that in the 21st Century where people are sick and tired of hype and sales pitches, it is better to fully engage and just answer all the hard questions. I connecting with Frode Jorgensen, he has always been willing to speak of his past and present a solid picture for the future of BidiFy.

      I just put up an interview done by MLM Attorney Kevin Thompson and Frode, while they were both in Thailand and Frode shares some pretty good insights into the future of the company and his background. YOu can find it in this week's MLM News.

  6. Bidify is run by former CEO of the Plexpay Network Ponzi/pyramid scheme Frode Jørgensen, with icelander Larus Palmi Magnusson.( http://www.bidify.com/index.php?page=about )

    The Ponzi/pyramid scheme Plexpay Network was run out of Trondhein, Norway, with a mailbox company Evolve Trading in the Carribean money laundering haven Nevis.

    In the USA, Kansas and Alabama issued Cease and Desist orders against Plexpay and Frode Jørgensen.

    However, the legal "issues" were significantly worse in Norway than in the USA:

    On 20 September 2005, Plexpay was raided & shut down by Norwegian police, and Frode J arrested.

    In December 2007, the local court in Trondheim sentenced Frode J to 2 1/2 years prison, plus confiscation of assets, for establishing and operating an illegal pyramid scheme. Other Plexpay leaders were also convicted.

    On 15 Dec 2009, after appeals, the Norwegian Supreme Court sentenced Frode Jørgensen to 2 1/2 years prison (1 year suspended sentence) and confiscation of assets, for operating an illegal pyramid scheme.

    Frode Jørgensen has also run the Ponzi/pyramid schemes AmityFunds and Juugo, after Plexpay Network was shut down by the police.

    • Some documentation on Frode Jørgensen's legal "issues" in Norway are in Norwegian):

      * Trondheim Tingrett (local court) sentenced Frode Jørgensen to 2 1/2 years prison, plus confiscation of assets, on 21st December 2007, for establishing and operating an illegal pyramid scheme ( http://www.hvitvasking.no/Nyhetsarkiv/Rettsavgjor… ).

      * Frostating Lagmannsrett (regional court) sentenced Frode Jørgensen to 2 1/2 years prison (1 year suspended sentence), plus confiscation of assets, on 5th May 2009, for establishing and operating an illegal pyramid scheme. ( http://www.frostating.no/uploads/Plexpay-saken.pd… ).

      * The Norwegian Supreme Court sentenced Frode Jørgensen to 2 1/2 years prison (1 year suspended sentence), plus confiscation of assets, on 15th December 2009, for establishing and operating an illegal pyramid scheme.

      ( http://www.domstol.no/DAtemplates/Article____2179… )

      ( http://www.domstol.no/upload/HRET/Avgjørel… )

      * For those of you who can't read a Scandinavian language, an internet translator of these links will give a reasonable understanding.

    • @S Holmes,

      Thank you for shedding some light on this additional information. I have already reported on this information. Frode, responded very quickly and did not try and hide his past. Since we all have a past of some kind and have done things we are not proud of, I am willing to continue watching Frode and BidiFy and give them room to continue to get their act together and see if they can become a solid competitor to Zeek Rewards.

  7. what s your intent in this whole thing troy? are you for the people or you are in this for your own self; to drive people to your site, view the advertisements and getting paid. I am saying this because in the first half of the year your site didn’t have all these activities. all of a sudden in the second half, you noticed an opportunity and jumped on it to drive business and make money. come on speak the truth…

    • @Mark,

      My intent is to continue to cover this story as I have since Dec. 2011. Not sure what you mean for “myself” I have never had any skin in this game. I was not an owner or affiliate. I was a speaker on compliance and pushed from day one for huge changes to protect the affiliates by pushing for customer qualifications in the RPP to make sure it was fueled with real customer dollars, and not internal bid purchases. So based on that agenda I would say I was for the affiliates.

      Now, I am 100% truth being presented to the affiliates, so they do not get left in the dark, or worse yet, give up their rights to what is theirs. If they are “victims” aka net losers or net winners with no money, they need to know the truth, so they can act correctly.

      As for driving people to my site. Why in the world do people use this same old antiquated crap that was around in 2000? Get with the times. There is far more traffic in social media sites, than blogs. And if you did a little due diligence, then you would be able to quickly trend my traffic from 2009 to current, and see that when a controversial issue in the network marketing community is in full swing, yes I am asked to cover it, and traffic goes up because of our community commenting on it. In 2009 to the spring of 2011 it was the MLM Wireless Wars. In the winter of 2011 until current it has been Zeek. And all through these time periods we go up and down. Traffic is not the focus, information is the focus. But when you go to our US based and international social profiles, there you see cap-out fans and friends and millions in video views.

      Now as for the activity. Our activity on Zeek has fallen off. I started covering lightly the issues in Dec. 2011. In March, I started covering it in a big way, and have ever since. I am sure next year there will be some other issue that comes along we will cover. But we will see.

      And since I allow embedding on the videos, other people get far more traffic, than I do. Traffic does pay the hosting and bandwidth fees, my consulting and business building keeps my family living at the beach. Well that and being married to a best selling author.

      Also, you might want to realize, I do not run a blog, we run a blog network in several different niches. My passion is the network marketing profession, my partners are in different niches.

      Since you seem to be very new to this community. You might want to get a little more details to better understand all the coverage. And by the way, you are way late in the game of speaking the truth… Just go read it is all public!!! I never hide or put doors up on my life.

      Thank you for speaking your mind. I love it when folks are willing to ask the hard questions.

      By the way for clarity… this site is a for profit site, as is the company that owns it :)

      Just go read out disclaimer. I am in network marketing I love capitalism. But ore than that, I love this great profession and the people who make it what it is today!