Brixdale

Title 12: Banks and Banking



§ 205.1 Authority and purpose.
(a) Authority. The regulation in this part, known as Regulation E, is issued by the Board of Governors of the Federal Reserve System pursuant to the Electronic Fund Transfer Act (15 U.S.C. 1693 et seq.). The information-collection requirements have been approved by the Office of Management and Budget under 44 U.S.C. 3501 et seq. and have been assigned OMB No. 7100-0200.

(b) Purpose. This part carries out the purposes of the Electronic Fund Transfer Act, which establishes the basic rights, liabilities, and responsibilities of consumers who use electronic fund transfer services and of financial institutions that offer these services. The primary objective of the act and this part is the protection of individual consumers engaging in electronic fund transfers.

(Oakes): You are only paid for your own personal referrals and their first two referrals. Each time you receive two referrals from someone else you get paid from their two referrals as well and this process continues without limitations.

First off, I'm not your partner so don't call me that.

Secondly, you are of course twisting the points I've tried to make. I did not claim that Regulation E and the NACHA laws specifically addressed mortgages. The point about it relates to the fact that Brixdale uses the ACH system which IS regulated by these laws. If Brixdale errors in any number of different area's regarding the debits they make from their clients accounts, they lose. The consumer/client merely notifies their bank of the error within 15 days for the NACHA law to be used and 60 days for the Regulation E law to be used...either way the client gets their money back and then the clients bank goes after Brixdale. Call YOUR bank if you don't believe me. I DID call my bank before becoming a Brixdale client to MAKE SURE I was protected.

Third, Brixdale is not in any way claiming to be a creditor or offer any types of loans. They are a payment processing service only. The creditor is your mortgage loan company/bank holding the mortgage. Using their service saves me the monthly chore of making out and mailing out a check to my mortgage company myself.

Fourth, your attack on mlm's in general is unfair to all the legitimate mlm companies. Granted there are plenty of scam artists out there using the mlm industry to dupe people, but you shouldn't tag all mlm's as scams without doing individual research on each one you are considering. And your point about a pyramid is off the wall to me. Every legitimate company or corporation has a pyramid structure to begin with. The big guys at the top (CEO, CFO, etc.) ALWAYS are the ones making the big bucks while the little office clerks at the bottom are making peanuts. Also, mlm = multi-level-marketing. That means that commissions are earned from multiple levels of referrals deep where each level earns a certain percentage of the commission.

Brixdale clients earn commissions on ONE LEVEL ONLY = direct sales. 100% of the commission earned from the client on your first level is paid to you...its not divided up in multiple levels. I have done extensive research on the various types of compensation plans that have been offered by the companies out there and this plan does not constitute an mlm structure. I too have been on numerous calls where Tom Oaks is answering questions as well as spoken with him personally one-on-one and if you ask him he will also explain to you WHY the compensation plan is NOT mlm.

People might think that it would take a huge unrealistic number for each client to realize the reward points they speak of, but in reality the number for a client to refer in order to maximize the comp plan is only 4. Really study the plan and you'll see I'm right. The 2up system simply gives the first 2 referrals of each client to that clients sponsor...where do those referrals land? On the first and only level of their sponsor. Only clients on each clients first level earn them the reward points = the commissions.

And oh...you talked about an upfront fee...there is NO upfront fee that new Brixdale clients are required to pay. You simply get set-up to start paying your mortgage/rental payments through them and using their system at the end of 3 months time period you end up in a pre-payment status = 1 payment ahead. This alone, without referring anyone can save a person up to 10 mortgage payments. They do have a fee, but it is deferred for up to 12 months and to get that paid it only takes referring 2 new clients to them. If you don't refer any new clients in 12 months then the fee is equal to one month's mortgage payment amount...whatever that is for you. You still save up to 9 mortgage payments. In every angle I looked at this I saw NO RISK to the consumer/client which was the main thing I was doing my research on.

I'm not here trying to debate with you personally, but I am trying to make available a point of view for others viewing this posting to not mistakenly think that your assessment is correct. Each person should do their own due diligence on any company they are considering and not depend on the opinions of others who have done no research or have only done a partial investigation. Finding things that are worth your time and money are not an easy task, but when I find one I let others know about it. Brixdale IS worth my time and money in my opinion and based on the research I have done personally to date.

resource wrote:

And oh...you talked about an upfront fee...there is NO upfront fee that new Brixdale clients are required to pay. You simply get set-up to start paying your mortgage/rental payments through them and using their system at the end of 3 months time period you end up in a pre-payment status = 1 payment ahead. This alone, without referring anyone can save a person up to 10 mortgage payments. They do have a fee, but it is deferred for up to 12 months and to get that paid it only takes referring 2 new clients to them. If you don't refer any new clients in 12 months then the fee is equal to one month's mortgage payment amount...whatever that is for you. You still save up to 9 mortgage payments. In every angle I looked at this I saw NO RISK to the consumer/client which was the main thing I was doing my research on.

"...
They do have a fee, but it is deferred for up to 12 months and to get that paid it only takes referring 2 new clients to them. If you don't refer any new clients in 12 months then the fee is equal to one month's mortgage payment amount...whatever that is for you ... "
The fee obligation is incurred at contract inception. Where over the contract it may be assessed and collected, and in what manner, is irrelevant. It is a fee upon which membership is conditioned - an up-front fee.

New York Obtains Judgment Against Internet Scam

Brixdale.com Promised Consumers They Could Pay Off Mortgage Early

June 30, 2006


A consent judgment has been issued against a Long Island-based Web site operator and his associates who ran a string of fraudulent Internet operations.

Following the filing of a lawsuit by New York Attorney General Eliot Spitzer's office in September 2005, Jeffrey Augugliaro of Malverne was ordered to immediately pay over $200,000 to consumers who were victimized by a mortgage payment scam he perpetrated through his business, Brixdale, Inc.

The judgment required him to pay additional restitution of over $700,000 to affected Brixdale consumers and to make a payment of $100,000 to a charitable organization designated by the court, with the advice of the Attorney General, that serves the stated objectives of a purported charity through which Augugliaro conducted a separate fraudulent solicitation scam.

The court has designated that the $100,000 be distributed to the American Cancer Society, whose mission is consistent with the purported purposes of the organizations, namely cancer prevention, treatment and service.

In addition, evidence suggested numerous consumers who donated money to the defendants' fake charity thought they were donating to the American Cancer Society.

The judgment also requires Augugliaro to shut down all his businesses and websites, permanently bars him from operating any further internet operations, and unless a $100,000 performance bond is posted, bars him from operating any type of consumer business in New York state.

Using the Web site, brixdale.com, Augugliaro promised consumers that by allowing him to take control of the electronic transfers of their monthly mortgage payments, consumers could not only pay off an entire 30-year mortgage in full, but could also easily make a quarter of a million dollars, all in a matter of months. Nationwide, about 3,000 consumers signed up.

According to the lawsuit, the Brixdale scam was an illegal pyramid scheme, whereby consumers were encouraged to recruit others to sign up. Those new members, in turn, had to recruit new members to perpetuate the scheme.

Consumers were lured into making "extra" mortgage payments, but rather than making the mortgage payments as promised, Augugliaro siphoned off some of the funds himself and to pay commissions to others. As a result, hundreds of thousands of consumers' dollars were drained from the Brixdale account.

In another scam, Augugliaro set up a business named People Helping People and a purported charitable organization named the American Cancer Aid Foundation, and solicited donations for cancer prevention research on the internet. Donors were promised two free airline tickets worth up to $1,600 that they could use to fly anywhere in the world.

The lawsuit charged that none of the money solicited was ever donated to charity, but was misappropriated by Augugliaro and his associates. Furthermore, there were no free airline tickets, and consumers received nothing for their donation. The "free" airline ticket scam was also promoted through other businesses run by Augugliaro, and was offered on his websites, massmarketingprogram.com and jamco.com

Augugliaro recruited individuals to work for him in promoting his airline ticket scams by falsely promising that they could earn as much as $30,000 per month working at home by recruiting others. At one point, he had as many as five thousand "directors" worldwide who promoted his scams.

These directors set up their own websites to promote the "free" airline tickets, placed advertisements on the internet, and in some cases sold fake tickets on e-Bay. The lawsuit alleged that thousands of consumers were defrauded, including cancer victims.