Phonecards On-Line - Written by Alan H. Cohen

March 9, 1997


Issue 70


Phonecards On-Line is written and distributed by Alan Cohen


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News and Views

Administrative Notes

I published an issue after all - I will not be able to respond to any e-mail for this week, as I will be out of the country!

Destiny Revisited

The following is a press release from the California Attorney General’s Office dated March 8, 1997:

On Wednesday, February 26, 1997, in conjunction with the District Attorneys of Alameda and Monterey Counties, the California Attorney General filed a civil action against Destiny Telecom International, Incorporated, based in Oakland. The complaint alleges violations of California Business and Professions Code § 17500 (False and Misleading Advertising) and § 17200 (Unfair Business Practices).

Based upon a request from the law enforcement officials, the court issued a temporary restraining order freezing the company's assets and appointing a receiver to oversee the company's operations until the court rules on our request for a preliminary injunction on March 13, 1997.

On Thursday February 27,1997 the Oakland Police Department assisted the District Attorneys of Alameda and Monterey County in serving a search warrant on Destiny Telecom's Oakland offices. The warrant was executed as part of an ongoing investigation into complaints that Destiny Telecom may be operating an illegal endless-chain, or pyramid scheme as defined in California Penal Code §327.

Pyramid schemes are illegal scams in which each new participant pays for the chance to advance and profit from payments of others who might join later. Pyramid schemes try to hide their true nature in order to fool potential participants and evade law enforcers.

Some pyramid promoters try to make their schemes look like multi-level marketing methods. Multi-level marketing can be a lawful and legitimate business method which uses a network of independent distributors to sell consumer products. The difference between a pyramid scheme and a multi level marketing plan is that the latter must involve the retail sale of a product which consumers can buy without also joining the marketing scheme.

To avoid becoming both a victim and simultaneously violating the law:

Do not let anyone rush you into making hasty and unwise decisions. A good opportunity to build a business in a multi-level structure will not disappear over night.

Take time to consider your investment before signing anything or giving someone your money.

Ask questions about the company and its officers, the products, their cost, fair market value, source of supply and the potential market in your area.

Ask about start up fees, required purchases and about the company's policy on the buy-back of required purchases.

Inquire about the average earnings of active distributors.

Get written copies of all available company literature.

Consult with others who have had experience with the company and its products.

Check to see if the products are actually being sold to consumers.

Try to determine whether these would be a market for the product if the multi-level

marketing structure did not exist.

Verify all information; do not assume that official looking documents are either accurate or complete.

Commentary

Last week, the press release from AP was listed here without any commentary. Due to the tremendous feedback from readers, I am compelled to comment. First, I don’t have any vendetta against Destiny. The press releases I am using comea from reputable sources (unless you do not consider the California Attorney General or the AP News Organization reputable) It seems that more information will be available about this next week. Until then, I have been told that Destiny is up and running, and that this is a civil procedure, not a criminal one. I would like to thank everyone for writing, and apologize for not being able to personally respond. I realize that some of you are involved with Destiny, and don't like negative press. If this company has done something wrong, that will come out in the civil procedure. In the meantime, I think that everyone has the right to know that they have been accused of doing something wrong. However, remember that the US legal system has a fundamental foundation of innocent until proven guilty.

Visa Trash?

A reader alerted me to the existence of this web site. It can be found at http://www.visatrash.com - Apparently these folks believe that they had the idea behind the smart card, and want the world to know that.

Global Freedom Network Press Release

The GLOBAL FREEDOM NETWORK is now offering the world's first individually hand signed (before lamination) collection of Joe Rector Native American Art pre-paid phone cards to the public. The entire collection, when completed will comprise 42 of Mr. Rector's original paintings in 6 sets of 7 images. They were selected from his life work of over 2,000 originals, some of which command 6 figures.

At present there are 7 in the first set, named "Old Favorites". These 7 were selected by Mr. Rector. There are only 3,000 of each of the 7 created, and each image is on two cards. The first card is the hand signed "signature card". The second is the unsigned "carrycard". The photographic technique used to make the cards is that used to make Mr. Rector's full sized wall prints from his original paintings.

Any purchaser of any card may purchase a correspondingly numbered 11x17 matted wall print directly from the Rector Art Gallery (918-438-4940) at the Eastland Mall, Tulsa, OK

Each card pair is numbered from 1 to 3000. Both cards in each pair carry the same image and pin numbers, however only one is hand signed by the artist. Because of this "print" technique, and the proven underlying value of the art, each signature card is, in fact, a miniature hand signed "print" - not just a photograph on a card as other "collectibles" are. These cards, then derive their value from the art, the signature, and the limited edition number, and are considered to be a form of the art itself.

Since no one in America has ever produced an individually hand signed phone card art collection, the Joe Rector Collection is a world first, and therefore claims a special place in the world of truly "collectable cards". This is especially true because Mr. Rector is a Native American member of the Cherokee Tribe.

The cards are available in 10, 30, and 180 unit denominations based on purchase decisions. All cards are rechargeable at $.20 US per unit with a credit card, in multiples of $25.00. The cards retail from $19.99 to $125.00 each, and can be purchased either directly from GFN, or from a GFN Independent Representative or Dealer.

The cards are published by PRI-NET Telecommunications, Inc. of Tulsa, OK, which holds the exclusive rights to the artist's work in the pre-paid phone card medium. Therefore, other images may be licensed for fund raisers or other purposes by negotiation with PRI-NET.

The cards may be viewed, along with details about the art and purchasing options at http://globalfreedomnet.com/rector. They may be purchased via email, snail mail, or phone.

Contact: Global Freedom Network, Inc. 10109 E. Admiral Pl. Tulsa, OK. 74116 918-836-7200 email: sales@globalfreedomnet.com

United Air Lines Update

Thanks to Tim McCann for pointing out that this card must be activated by spending $50 - 15 minutes will then be added to the card, and give you 142 minutes of call time, plus 500 frequent flier miles

Tuff Stuff Collect

Tuff Stuff's Collect! order a subscription and get a FREE Coke Polar Bear phonecard with the magazine's logo on it. 1(800)883-8779 or P.O. Box 5012, Hagerstown, MD 21741-5012

From Kim Oggi

One for All

One For All - Remotes is offering a free phone card good for 10 minutes ($5.00 value). This card is packaged with certain "One Call" models of their universal remote controls. This unit is set up for your tv/vcr/cable box by calling in the brand and model #'s and they program it over the phone. A label on the outside of the package lets you know that a card is in the package. Card expires 12/31/97

From: Tim McCann

Hasta la semana proxima (I think that is correct, have to practice my Spanish!),

Alan

Distribution

Phonecards On-Line is written and distributed by Alan Cohen. It is a weekly newsletter devoted to phonecards - Current news, viewpoints, and reviews of new issues. It is distributed free of charge, and available two ways.

1) On-Line on the World Wide Web. The address is: http://www.cardmall.com

2) Direct e-mail. Send a message to: phoneline@cardmall.com

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