Your Money's Worth
Harold S. Longs and Your Money Worth, Inc.: Lit. Rel. No. 20140 / June 4, 2007
On June 1, 2007, the Securities and Exchange Commission (SEC) filed an emergency action against Harold S. Longs (Longs) and Your Money Worth, Inc. (YMW), alleging that the defendants have raised at least $755,000 and defrauded over 60 investors by promising annual returns of up to 96% in connection with the unregistered offer and sale of YMW securities.
Here are some points from the SEC's complaint.
1. Since January 2006, YMW has offered prospective investors the opportunity to invest in at least eight separate investment programs, with a one-time minimum investment of as little as $1,000. The programs claim to offer retums from three-percent a month up to eight- percent a month (36%-96% annually), although none of the programs describe in any substantial detail what the investment program entails. For example, YMW Opportunity M states that investors can earn between 3%-5% a month, that the returns are paid monthly, and at the end of one year, investors have the option of re-investing their principal. At no point do any of the
YMW offering documents offer any meaningful explanation of how YMW achieves such returns.
2. Who are the players: Harold Stephen Longs, age 53, of Jacksonville, Arkansas, is registered as the owner of the YMW Internet domain name and opened the PayPal account to which YMW directs that investor funds be sent. On PayPal opening documents he listed YMW as his business name. From May 1999 to February 2000 Longs was a registered representative of Mony Securities Corporation. Before that, he was a registered representative of Conseco from 1992 to 1999, and Primerica Financial Services from 1988 to 1992. In 2001, Longs pled guilty to an Arkansas felony criminal charge of committing a fraudulent insurance act. Your Money Worth, Inc., was organized in the Republic of Panama in May 2006. Longs used and continues to use the company to solicit investors over the Internet from his residence in Arkansas. The company has not registered any offering of securities under the Securities Act or any class of securities under the Exchange Act.
I see, absolutely no good news and a heckuva a lot of black flags.
The website is still running, which always surprises me. Why doesn't the SEC shut these damn things down?
Next comes the lovely pitch,
3. In order to obtain more detailed information about the investment program, potential investors are required to register online and pay a "membership fee," and must certify that they are not employees of any law enforcement or government agency. The registration form does not seek any information wnmning the investor's level of investment experience, sophistication, or fmancial resources. Before participating, potential investors must also click on-screen buttons indicating that they agree with a list of disclaimers, including that "under no circumstances should anything found on this site be considered or construed as an offer to sell
securities or a solicitation to invest in any investment opportunity," that "Your Money Worth disclaims any liability for performance of any investment which comes to your attention here on this website.
You bear total responsibility for all decisions made. You also agree to invest money that you can afford to lose," and that "all information you receive or find on Your Money Worth is of private nature and not available to the general public and is, therefore, exempt from the US Securities Act of 1933 and all amendments or any equivalent laws of any jurisdictions." An additional disclaimer states that "Your Money Worth is an educational and financial training membership organization.. .Your Money Worth does not offer or attempt to sell any investment or registered securities. By virtue of membership, participating members are able to be introduced to qualified and registered practitioners of various disciplines who may be able to assist in specific cases." These purported disclaimers are inconsistent with the language on the site expressly offering investments with stated returns, which clearly constitute securities.
I also agree that you can whack me on my head until I am senseless, steal my household goods, and that these assaults would not be crimes. Good thing that we don't let people to freely contract.
