Daniel Reed Smith Wiki

This page on Wikipedia is slated for deletion in 4 days - and for blindingly obvious reasons. Since the page's subject matter is Dan Smith, from the Smith & Merritt Institute, and is thus relevant to other posts on this blog, I've decided to copy the text of the entire page, warts and all, along with the associated discussion page. Please note that I am not the author of any part of either page, and my reproduction of their information here is in no way an endorsement or corroboration of any of their content.

Daniel Reed Smith

Daniel Reed Smith is currently residing in North Salt Lake City, Utah, USA. He and Kathryn Merritt are longtime co-workers and friends who started the company Acentus. This company was based out of Salt Lake City, Utah and in 2006 was bought out by the College Partnership. Acentus was a sales marketing company that housed different accounts, the main one was Transforming Debt into Wealth by the world famous Finacial guru John Cummuta. Acentus worked off 2nd hand leads provided by The Prosper Learning Company, based out of Provo, Utah. They held the leadsource and their sales teams would solicit existing "TDIW" clients and offer them a long term coaching program which is very successful to this day.

Several members of the upper management broke off from Acentus when they suspected both Dan and Kathryn of fraudulent motives with the companies dealing with both employees and clients as well as Prosper. They ended up working for Prosper and learned that Acentus owed Prosper $2.2 million in debt, a falsehood as Acentus claimed they were "debt free". The downward spiral started when their employees started experiencing dishonest acts and most of which each obtained employment at The Prosper Learning Company with the understanding that the ties they had formerly with Acentus would be left at the door as to let the legal teams battle it out and keep the then existing relationship professional. A few former members of the Management team who had been recruited by Prosper filed a claim with the Utah Securities division in which it was claimed Acentus was committing fraud by not disclosing formal paperwork for investing with the company and becomming a shareholder. Acentus is guilty of taking money from the employees offered this deal (only management and a select few at that were offered this deal) before any paperwork was drawn up. The company was scheduled to go public on the trading market in August 2006, and then they claimed they would go public by December 2006. Both dates never happened and the company never made it public at all. One reported "shareholder" did recieve their money back but with a threat of a lawsuit, several others are in the process of getting back their money, some of which had filed together as a tag team.

Daniel Reed Smith is guilty of Tax fraud as well as Securities Fraud, he also has other fraud business practices pending filing. He is to date being sued and/or has negative claims to fraud pending in the states of AZ, CO, UT, CA and NV. He is currently married to Misty Adams Smith and resides in North Salt Lake City, Utah. A divorce for the obvious reasons above has been pending between the two. They have no natural children together as "Dan" has had a vasectomy. Dan has two other children from a first wife of whom he divorced from. She is living in a suburb of Salt Lake City, Utah. He was known to be pompus and arrogant and will try and sell you his own toilet water if it means he will make a profit of it. He was heard by several members of his company speak very candidly about his trip he took his wife on to Paris, France and on one activity there ate at the top of the Eiffel Tower in the resturant with a meal costing $700 when no one in the whole company was making a cent, even his own family members whom he fired unfairly because they called him out on his dishonesty and would not stoop to his disgraceful level. He was known in the company to be tolerant of loose morales and values with several members of his administrative offices performing sexual acts of being Swingers and all modesty out the window running a down low high priced hooker fest. Several of the company members who left the company state this is one of the main reasons they left besides not making any money. Many people are wittness to this activity and it is not yet determined if an underground prositution ring lawsuit will still be filed. Wittnesses are still being gathered for this illegal (by the State of Utah) activity. It is claimed with wittnesses that Dan did engage in this vulgar activity. No verification if Kathryn was involved as of posting date to this article.

Prosper Learning is not associated with acts of this conduct or dishonest dealings. They are in no way connected to this information other than a company both Dan and Kathryn own money to and have dealt dishonestly with.

Dan and Katheryn both wrote a book called Abundance Spend your way to Wealth, however the book was never published. They did however try and sell the book and coaching program while waiting for approvals on all legal aspects for the book and program to be approved.

It is known that Dan is trying to file personal bankruptcy and it would be a very minor sentence for even one fraud act he is guilty of to serve 7-10 years in prison for. For more information on how you can add your claim to get a lawsuit filed and join in on the complaints please contact your local BBB as well as the Utah Labor Commission and Securities Division as well as the Tax dept of the USA. Numerous claims on the internet were circulating and that is the reason for this info to be pooled together for the strength in community to bring this dishonest man down for coorporate fraud and give him the sentence he deserves-BEHIND BARS!

Talk: Daniel Reed Smith

At the attention of the over all article it is written in a way as to push blame and origin to others you have heard the allegations from. If none of the said “fraudulent acts” or “disgraceful behavior” happens to concern you directly, there is no reason for you to put your words into such a situation.

I can disclaim many of your accusations with solid facts. If you were trying to post a document so that you may reach out to others concerning what was once a blooming company, than you should not have tried to slam Daniel Reed Smith’s personal reputation in the process. It now is a trash filled nonsense article.

I’ll correct you on just a few “facts” you have written about. You wrote, “One reported shareholder did receive their money back but with the threat of lawsuit,” the said “shareholder” did not receive the money back because of a lawsuit threat. If you or the “shareholder” truly believes the money was returned over bullying, you are mistaken.

You wrote, “Their [Acentus] employees started experiencing dishonest acts and most of which each obtained employment at The Prosper Learning Company with the understanding that the ties they had formerly with Acentus would be left at the door as to let the legal teams battle it out and keep the then existing relationship professional.” Although I know you may believe many of the previous Acentus employees that chose to work for The Prosper Learning Company left ties at the door, it’s apparent that is not true. Leaving ties would most likely include not contacting employees still working for Acentus to recruit, illegally. Yes, a non compete was signed by most if not all of the employees that were once with Acentus. Also, since the “professional” relationship you stated as a then existing one, I can only be lead to believe that they are no longer associated with one another. If that is the case, then why is it that you have taken the matter to yourself and not just let the legal teams battle it out? It seems that no matter what the relationship status, legal teams seem to be what should be on hand, not someone with a grudge and a quick-to-judge personality writing this document slandering Daniel Reed Smith’s name.

You wrote, “He is currently married to Misty Adams Smith and resides in North Salt Lake City, Utah. A divorce for the obvious reasons above has been pending between the two.” First of all, there is no logical reason for stating where they reside. Second of all, you have no clue as to why the two may or may not have a pending divorce. The second sentence calling the divorce over “obvious reasons stated above” in your text still cracks me up. The third paragraph in your document is all together hilarious. It’s as though you were there on top of the Eiffel Tower looking at the receipt for their supposed $700 meal. I’ll correct you sentence by sentence starting with, “They have no natural children together as Dan has a vasectomy.” How do you know if Dan has a vasectomy or not? If you were so close to Dan as to knowing something like that for fact, why are you wasting your time writing this? If he does, how is that any of our business? Again, there is no reason to state where anyone resides. Dan would not sell you his own toilet water if it means he’ll profit from it. Whoever told you all this garbage would sell you THEIR toilet water because it favors them. Your accusations are, after all, shit. Dan’s family members had their reasons for leaving. I’d like to hear from the administrative staff about a so called hooker fest involving Daniel Reed Smith, because I can then call them liars. I don’t believe anyone from the administrative staff to say such crude lies. I believe them to be better people than that. I know for a fact neither Daniel Reed Smith or Katheryn Merritt to be involved in an underground prostution ring, or engage in any of the alleged vulgar activity. If such activities did occur, it was not known to Daniel Reed Smith.

I hope you have sent a copy of this to Daniel Reed Smith and Katheryn Merritt. If you can say it here, you can say it to them. Without mentioning anything about your grammer I’d just like to tell you that the Tax department of the USA, is also widely known as the IRS. Where else may we find these allegations on the internet? Here is a better question, where may we find the truth circulating around on the internet? Like they say, there’s two sides to every story. Susan Peters 19:33, 26 July 2007 (UTC)S. Peters

College Partnership versus Smith & Merritt

Here is the current case summary for the suit between College Partnership and Acentus/SMI. I'm going to write to the court and try to get copies of things like the complaint, etc., but in the meantime, if you happen to be in Jefferson County Colorado and wouldn't mind stopping in...

Case Number: 2007CV002010 Date Filed: 05/03/2007 College Partnership Inc v. Acentus Consulting Group Llc Et. Al. Injunctive Relief; CV -Civil -District Summary Judge: Tamara S Russell Court: Jefferson District Court Division: 4 EFiled: Y Appealed: N Case Closed Date: n/a Case Status Judge or Magistrate Name BAR Number Tamara S Russell 17037 Agency Agency Agency Case Tkt/Summons Nbr Arrest Nbr Participants Litigant Attorney College Partnership Inc Murr, Joseph Allen Plaintiff 1 Role: Privately Retained Attorney BAR: 14427 Primary Attorney: Y Welch, Torben M Role: Privately Retained Attorney BAR: 34282 Primary Attorney: Y Acentus Consulting Group Llc Walker, Edward Timothy Defendant 1 Role: Privately Retained Attorney BAR: 35120 Primary Attorney: Y Schmidt, Lauren E Role: Privately Retained Attorney BAR: 37002 Primary Attorney: Y Smith and Merritt Institute Llc Schmidt, Lauren E Defendant 2 Role: Privately Retained Attorney BAR: 37002 Primary Attorney: Y Modius Financial Llc Schmidt, Lauren E Defendant 3 Role: Privately Retained Attorney BAR: 37002 Primary Attorney: Y Frv Partners Llc Schmidt, Lauren E Defendant 4 Role: Privately Retained Attorney BAR: 37002 Primary Attorney: Y Smith, Daniel R Schmidt, Lauren E Defendant 5 Role: Privately Retained Attorney BAR: 37002 Primary Attorney: Y Merritt, Kathryn Schmidt, Lauren E Defendant 6 Role: Privately Retained Attorney BAR: 37002 Primary Attorney: Y Rees, David M Schmidt, Lauren E Defendant 7 Role: Privately Retained Attorney BAR: 37002 Primary Attorney: Y Vincent, Jeffrey M Warden, Daniel Francis Defendant 8 Role: Privately Retained Attorney BAR: 13514 Primary Attorney: Y Schmidt, Lauren E Role: Privately Retained Attorney BAR: 37002 Primary Attorney: Y Flint, George Warden, Daniel Francis Defendant 9 Role: Privately Retained Attorney BAR: 13514 Primary Attorney: Y Schmidt, Lauren E Role: Privately Retained Attorney BAR: 37002 Primary Attorney: Y Lautes, Albert Schmidt, Lauren E Defendant 10 Role: Privately Retained Attorney BAR: 37002 Primary Attorney: Y Garner, Julie Schmidt, Lauren E Defendant 11 Role: Privately Retained Attorney BAR: 37002 Primary Attorney: Y Mello, Melissa Schmidt, Lauren E Defendant 12 Role: Privately Retained Attorney BAR: 37002 Primary Attorney: Y Grogg, Bruce Schmidt, Lauren E Defendant 13 Role: Privately Retained Attorney BAR: 37002 Primary Attorney: Y Dowding, Clark Schmidt, Lauren E Defendant 14 Role: Privately Retained Attorney BAR: 37002 Primary Attorney: Y Johnson, Nicolas Schmidt, Lauren E Defendant 15 Role: Privately Retained Attorney BAR: 37002 Primary Attorney: Y Parker, Robert Schmidt, Lauren E Defendant 16 Role: Privately Retained Attorney BAR: 37002 Primary Attorney: Y Anderson, Dee Schmidt, Lauren E Defendant 17 Role: Privately Retained Attorney BAR: 37002 Primary Attorney: Y Nelson, Jeff Schmidt, Lauren E Defendant 18 Role: Privately Retained Attorney BAR: 37002 Primary Attorney: Y Wilbur, Justin Schmidt, Lauren E Defendant 19 Role: Privately Retained Attorney BAR: 37002 Primary Attorney: Y Roat, Don Schmidt, Lauren E Defendant 20 Role: Privately Retained Attorney BAR: 37002 Primary Attorney: Y Ricks, Michael Schmidt, Lauren E Defendant 21 Role: Privately Retained Attorney BAR: 37002 Primary Attorney: Y Lott, David Walker, Edward Timothy Defendant 22 Role: Privately Retained Attorney BAR: 35120 Primary Attorney: Y Schmidt, Lauren E Role: Privately Retained Attorney BAR: 37002 Primary Attorney: Y Bradford, Steve Walker, Edward Timothy Defendant 23 Role: Privately Retained Attorney BAR: 35120 Primary Attorney: Y Schmidt, Lauren E Role: Privately Retained Attorney BAR: 37002 Primary Attorney: Y Ricks, Kristin Walker, Edward Timothy Defendant 24 Role: Privately Retained Attorney BAR: 35120 Primary Attorney: Y Schmidt, Lauren E Role: Privately Retained Attorney BAR: 37002 Primary Attorney: Y Grace, John J Murr, Joseph Allen Defendant 25 Role: Privately Retained Attorney BAR: 14427 Primary Attorney: Y Jones Dr, Janice A Murr, Joseph Allen Defendant 26 Role: Privately Retained Attorney BAR: 14427 Primary Attorney: Y Charges Count Date Details Scheduled Events Date Time Details 05/24/2007 8:30 Temporary Restraining Ord Hrg Room: 5C Judge: Tamara S Russell Status: Hearing Held 06/08/2007 10:00 n/a Room: 5C Judge: Tamara S Russell Status: Hearing Held Proceedings Date Code Description 05/03/2007 CMPL Complaint ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 COVR Civil Case Cover Sheet ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 MOTN Motion ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 MOTN Motion ATY/ Welch, Torben M PTF/ College Partnership Inc 05/03/2007 FOTH Filing Other ATY/ Welch, Torben M PTF/ College Partnership Inc 05/07/2007 ORDR Order 05/08/2007 NOTC Notice Filed ATY/ Welch, Torben M PTF/ College Partnership Inc 05/08/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/08/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/08/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/08/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/08/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/08/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/08/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/08/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/08/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/08/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/08/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/08/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/08/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/08/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/08/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/08/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/08/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/08/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/08/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/08/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/08/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/08/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/08/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/08/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/18/2007 SUMM Summons Issued ATY/ Welch, Torben M PTF/ College Partnership Inc 05/22/2007 RS Return of Service ATY/ Welch, Torben M PTF/ College Partnership Inc 05/22/2007 RS Return of Service ATY/ Welch, Torben M PTF/ College Partnership Inc 05/22/2007 RS Return of Service ATY/ Welch, Torben M PTF/ College Partnership Inc 05/22/2007 RS Return of Service ATY/ Welch, Torben M PTF/ College Partnership Inc 05/22/2007 RS Return of Service ATY/ Welch, Torben M PTF/ College Partnership Inc 05/22/2007 RS Return of Service ATY/ Welch, Torben M PTF/ College Partnership Inc 05/22/2007 RS Return of Service ATY/ Welch, Torben M PTF/ College Partnership Inc 05/22/2007 RS Return of Service ATY/ Welch, Torben M PTF/ College Partnership Inc 05/22/2007 RS Return of Service ATY/ Welch, Torben M PTF/ College Partnership Inc 05/22/2007 RS Return of Service ATY/ Welch, Torben M PTF/ College Partnership Inc 05/22/2007 RS Return of Service ATY/ Welch, Torben M PTF/ College Partnership Inc 05/22/2007 RS Return of Service ATY/ Welch, Torben M PTF/ College Partnership Inc 05/22/2007 RS Return of Service ATY/ Welch, Torben M PTF/ College Partnership Inc 05/22/2007 RS Return of Service ATY/ Welch, Torben M PTF/ College Partnership Inc 05/22/2007 RS Return of Service ATY/ Welch, Torben M PTF/ College Partnership Inc 05/22/2007 RS Return of Service ATY/ Welch, Torben M PTF/ College Partnership Inc 05/22/2007 RS Return of Service ATY/ Welch, Torben M PTF/ College Partnership Inc 05/22/2007 RS Return of Service ATY/ Welch, Torben M PTF/ College Partnership Inc 05/22/2007 RS Return of Service ATY/ Welch, Torben M PTF/ College Partnership Inc 05/22/2007 RS Return of Service ATY/ Welch, Torben M PTF/ College Partnership Inc 05/22/2007 RS Return of Service ATY/ Welch, Torben M PTF/ College Partnership Inc 05/22/2007 RPRT Report ATY/ Welch, Torben M PTF/ College Partnership Inc 05/22/2007 ENTR Entry Of Appearance DEF/ Acentus Consulting Group Llc DEF/ Smith and Merritt Institute Llc DEF/ Modius Financial Llc DEF/ Frv Partners Llc DEF/ Smith, Daniel R DEF/ Merritt, Kathryn DEF/ Rees, David M DEF/ Vincent, Jeffrey M DEF/ Flint, George DEF/ Lautes, Albert DEF/ Garner, Julie DEF/ Mello, Melissa DEF/ Grogg, Bruce DEF/ Dowding, Clark DEF/ Johnson, Nicolas DEF/ Parker, Robert DEF/ Anderson, Dee DEF/ Nelson, Jeff DEF/ Wilbur, Justin DEF/ Roat, Don DEF/ Ricks, Michael DEF/ Lott, David DEF/ Bradford, Steve DEF/ Ricks, Kristin 05/24/2007 MINC Minute Order (Print) 05/24/2007 NTHR Notc of Hearing DEF/ Acentus Consulting Group Llc DEF/ Modius Financial Llc DEF/ Frv Partners Llc DEF/ Merritt, Kathryn DEF/ Rees, David M DEF/ Flint, George DEF/ Lautes, Albert DEF/ Garner, Julie DEF/ Mello, Melissa DEF/ Grogg, Bruce DEF/ Dowding, Clark DEF/ Johnson, Nicolas DEF/ Parker, Robert DEF/ Anderson, Dee DEF/ Nelson, Jeff DEF/ Lott, David DEF/ Bradford, Steve 06/05/2007 MOTN Motion DEF/ Acentus Consulting Group Llc DEF/ Smith and Merritt Institute Llc DEF/ Modius Financial Llc DEF/ Frv Partners Llc DEF/ Smith, Daniel R DEF/ Merritt, Kathryn DEF/ Rees, David M DEF/ Vincent, Jeffrey M DEF/ Flint, George DEF/ Lautes, Albert DEF/ Garner, Julie DEF/ Mello, Melissa DEF/ Grogg, Bruce DEF/ Dowding, Clark DEF/ Johnson, Nicolas DEF/ Parker, Robert DEF/ Anderson, Dee DEF/ Nelson, Jeff DEF/ Wilbur, Justin DEF/ Roat, Don DEF/ Ricks, Michael DEF/ Lott, David DEF/ Bradford, Steve DEF/ Ricks, Kristin 06/06/2007 RSPN Response DEF/ Acentus Consulting Group Llc DEF/ Smith and Merritt Institute Llc DEF/ Modius Financial Llc DEF/ Frv Partners Llc DEF/ Smith, Daniel R DEF/ Merritt, Kathryn DEF/ Rees, David M DEF/ Vincent, Jeffrey M DEF/ Flint, George DEF/ Lautes, Albert DEF/ Garner, Julie DEF/ Mello, Melissa DEF/ Grogg, Bruce DEF/ Dowding, Clark DEF/ Johnson, Nicolas DEF/ Parker, Robert DEF/ Anderson, Dee DEF/ Nelson, Jeff DEF/ Wilbur, Justin DEF/ Roat, Don DEF/ Ricks, Michael DEF/ Lott, David DEF/ Bradford, Steve DEF/ Ricks, Kristin 06/06/2007 RMDS Response to Motion to Dismiss DEF/ Acentus Consulting Group Llc 06/07/2007 RSPN Response DEF/ Lott, David DEF/ Bradford, Steve DEF/ Ricks, Kristin 06/08/2007 MINC Minute Order (Print) 06/08/2007 ORDR Order 06/13/2007 MOTN Motion DEF/ Acentus Consulting Group Llc DEF/ Smith and Merritt Institute Llc DEF/ Modius Financial Llc DEF/ Frv Partners Llc DEF/ Smith, Daniel R DEF/ Merritt, Kathryn DEF/ Rees, David M DEF/ Vincent, Jeffrey M DEF/ Flint, George DEF/ Lautes, Albert DEF/ Garner, Julie DEF/ Mello, Melissa DEF/ Grogg, Bruce DEF/ Dowding, Clark DEF/ Johnson, Nicolas DEF/ Parker, Robert DEF/ Anderson, Dee DEF/ Nelson, Jeff DEF/ Wilbur, Justin DEF/ Roat, Don DEF/ Ricks, Michael DEF/ Lott, David DEF/ Bradford, Steve DEF/ Ricks, Kristin 06/17/2007 ORDR Order 06/29/2007 SUMM Summons Issued ATY/ Welch, Torben M DEF/ Grace, John J DEF/ Jones Dr, Janice A PTF/ College Partnership Inc 06/29/2007 SUMM Summons Issued ATY/ Welch, Torben M DEF/ Grace, John J DEF/ Jones Dr, Janice A PTF/ College Partnership Inc 06/29/2007 SUMM Summons Issued ATY/ Welch, Torben M DEF/ Grace, John J DEF/ Jones Dr, Janice A PTF/ College Partnership Inc 06/29/2007 SUMM Summons Issued ATY/ Welch, Torben M DEF/ Grace, John J DEF/ Jones Dr, Janice A PTF/ College Partnership Inc 06/29/2007 SUMM Summons Issued ATY/ Welch, Torben M DEF/ Grace, John J DEF/ Jones Dr, Janice A PTF/ College Partnership Inc 06/29/2007 ACMP Amended Complaint ATY/ Welch, Torben M DEF/ Grace, John J DEF/ Jones Dr, Janice A PTF/ College Partnership Inc 07/13/2007 ENTR Entry Of Appearance ATY/ Warden, Daniel Francis DEF/ Vincent, Jeffrey M DEF/ Flint, George 07/16/2007 MODS Motion to Dismiss ATY/ Warden, Daniel Francis DEF/ Vincent, Jeffrey M DEF/ Flint, George 07/16/2007 ANSC Answer and Counterclaim DEF/ Acentus Consulting Group Llc DEF/ Smith and Merritt Institute Llc DEF/ Modius Financial Llc DEF/ Frv Partners Llc DEF/ Smith, Daniel R DEF/ Merritt, Kathryn DEF/ Rees, David M DEF/ Lautes, Albert DEF/ Garner, Julie DEF/ Mello, Melissa DEF/ Grogg, Bruce DEF/ Dowding, Clark DEF/ Parker, Robert DEF/ Anderson, Dee DEF/ Wilbur, Justin DEF/ Ricks, Michael DEF/ Lott, David DEF/ Bradford, Steve DEF/ Ricks, Kristin 07/16/2007 MOTN Motion DEF/ Acentus Consulting Group Llc DEF/ Smith and Merritt Institute Llc DEF/ Modius Financial Llc DEF/ Frv Partners Llc DEF/ Smith, Daniel R DEF/ Merritt, Kathryn DEF/ Rees, David M DEF/ Vincent, Jeffrey M DEF/ Lautes, Albert DEF/ Garner, Julie DEF/ Mello, Melissa DEF/ Grogg, Bruce DEF/ Dowding, Clark DEF/ Parker, Robert DEF/ Anderson, Dee DEF/ Wilbur, Justin DEF/ Roat, Don DEF/ Ricks, Michael DEF/ Lott, David DEF/ Bradford, Steve DEF/ Ricks, Kristin 07/16/2007 MOTN Motion DEF/ Acentus Consulting Group Llc DEF/ Smith and Merritt Institute Llc DEF/ Modius Financial Llc DEF/ Frv Partners Llc DEF/ Smith, Daniel R DEF/ Merritt, Kathryn DEF/ Rees, David M DEF/ Vincent, Jeffrey M DEF/ Lautes, Albert DEF/ Garner, Julie DEF/ Mello, Melissa DEF/ Grogg, Bruce DEF/ Dowding, Clark DEF/ Parker, Robert DEF/ Anderson, Dee DEF/ Nelson, Jeff DEF/ Wilbur, Justin DEF/ Ricks, Michael DEF/ Lott, David DEF/ Bradford, Steve DEF/ Ricks, Kristin 07/16/2007 MOTN Motion DEF/ Acentus Consulting Group Llc DEF/ Smith and Merritt Institute Llc DEF/ Modius Financial Llc DEF/ Frv Partners Llc DEF/ Smith, Daniel R DEF/ Merritt, Kathryn DEF/ Rees, David M DEF/ Vincent, Jeffrey M DEF/ Lautes, Albert DEF/ Garner, Julie DEF/ Mello, Melissa DEF/ Grogg, Bruce DEF/ Dowding, Clark DEF/ Johnson, Nicolas DEF/ Parker, Robert DEF/ Anderson, Dee DEF/ Wilbur, Justin DEF/ Ricks, Michael DEF/ Lott, David DEF/ Bradford, Steve DEF/ Ricks, Kristin 07/17/2007 SUMM Summons Issued DEF/ Acentus Consulting Group Llc DEF/ Smith and Merritt Institute Llc DEF/ Modius Financial Llc DEF/ Frv Partners Llc DEF/ Smith, Daniel R DEF/ Merritt, Kathryn DEF/ Rees, David M DEF/ Lautes, Albert DEF/ Garner, Julie DEF/ Mello, Melissa DEF/ Grogg, Bruce DEF/ Dowding, Clark DEF/ Parker, Robert DEF/ Anderson, Dee DEF/ Wilbur, Justin DEF/ Ricks, Michael DEF/ Lott, David DEF/ Bradford, Steve 07/17/2007 SUMM Summons Issued DEF/ Acentus Consulting Group Llc DEF/ Smith and Merritt Institute Llc DEF/ Modius Financial Llc DEF/ Frv Partners Llc DEF/ Smith, Daniel R DEF/ Merritt, Kathryn DEF/ Rees, David M DEF/ Lautes, Albert DEF/ Garner, Julie DEF/ Mello, Melissa DEF/ Grogg, Bruce DEF/ Dowding, Clark DEF/ Parker, Robert DEF/ Anderson, Dee DEF/ Wilbur, Justin DEF/ Ricks, Michael DEF/ Lott, David DEF/ Bradford, Steve 07/17/2007 SUMM Summons Issued DEF/ Acentus Consulting Group Llc DEF/ Smith and Merritt Institute Llc DEF/ Modius Financial Llc DEF/ Frv Partners Llc DEF/ Smith, Daniel R DEF/ Merritt, Kathryn DEF/ Rees, David M DEF/ Lautes, Albert DEF/ Garner, Julie DEF/ Mello, Melissa DEF/ Grogg, Bruce DEF/ Dowding, Clark DEF/ Parker, Robert DEF/ Anderson, Dee DEF/ Wilbur, Justin DEF/ Ricks, Michael DEF/ Lott, David DEF/ Bradford, Steve 07/19/2007 RS Return of Service DEF/ Acentus Consulting Group Llc DEF/ Smith and Merritt Institute Llc DEF/ Modius Financial Llc DEF/ Frv Partners Llc DEF/ Smith, Daniel R DEF/ Merritt, Kathryn DEF/ Rees, David M DEF/ Lautes, Albert DEF/ Garner, Julie DEF/ Mello, Melissa DEF/ Grogg, Bruce DEF/ Dowding, Clark DEF/ Parker, Robert DEF/ Anderson, Dee DEF/ Wilbur, Justin DEF/ Ricks, Michael DEF/ Lott, David DEF/ Bradford, Steve 07/19/2007 RS Return of Service DEF/ Acentus Consulting Group Llc DEF/ Smith and Merritt Institute Llc DEF/ Modius Financial Llc DEF/ Frv Partners Llc DEF/ Smith, Daniel R DEF/ Merritt, Kathryn DEF/ Rees, David M DEF/ Lautes, Albert DEF/ Garner, Julie DEF/ Mello, Melissa DEF/ Grogg, Bruce DEF/ Dowding, Clark DEF/ Parker, Robert DEF/ Anderson, Dee DEF/ Wilbur, Justin DEF/ Ricks, Michael DEF/ Lott, David DEF/ Bradford, Steve 07/19/2007 RS Return of Service DEF/ Acentus Consulting Group Llc DEF/ Smith and Merritt Institute Llc DEF/ Modius Financial Llc DEF/ Frv Partners Llc DEF/ Smith, Daniel R DEF/ Merritt, Kathryn DEF/ Rees, David M DEF/ Lautes, Albert DEF/ Garner, Julie DEF/ Mello, Melissa DEF/ Grogg, Bruce DEF/ Dowding, Clark DEF/ Parker, Robert DEF/ Anderson, Dee DEF/ Wilbur, Justin DEF/ Ricks, Michael DEF/ Lott, David DEF/ Bradford, Steve 07/20/2007 NOTC Notice Filed DEF/ Acentus Consulting Group Llc Judgments # Date Details Bond Information ID Details Financial Summary Un-Assigned Rcps Received ----------------- -------- Civil Filing Fee $270.00 Court Security Cash Fund $10.00 Civil Action Tax $1.00 Stabilization Fund - USER Fee $190.00 Total Un-Assigned $471.00

College Partnership continuing "growth plan"

The comments continue to roll in on my Spend your way to lameness post (why it's specifically that post that attracts all the comments is something I still haven't figured out).

One comment in particular makes the claim that College Partnership is now suing Smith & Merritt. Is it only me who finds it odd that a company would sue its own wholly-owned subsidiary?

I admit that I'm incredulous at this point - though certainly curious to learn more.

Meanwhile, College Partnership seems intent on improving their image in the marketplace:

LAKEWOOD, CO -- (MARKET WIRE) -- 05/16/07 -- College Partnership, Inc. (PINKSHEETS: CGPA) announced today that it has engaged The Eversull Group of Dallas, Texas for investor relations consulting.

Dr. Janice A. Jones, Executive Vice President and co-founder of College Partnership, remarked, "After an extensive search, we selected The Eversull Group to assist the firm in building credibility and shareholder value with the investment community. The Eversull Group was recommended to us as a trustworthy and successful communicator that could guide our firm in attracting capital, gaining support and sponsorship. With their help, we expect to recommence executing our growth plan."

With SMI in tow (and no history of profitability), they've got a hard road ahead, in my humble opinion. I also feel compelled to remark that the Eversull Group's web page is currently so awful that perhaps they ought to be concerned about the log in their own credibility before they deal with the mote in College Partnership's.

Smith & Merritt: Waffle Your Way To Wealth

I'm beginning to like S&M's slogan. It's such an easy target.

Below is a scan of a refund letter sent to gthomp62, a commenter here on Die Eigenheit, signed by Kathryn Merritt herself. In it, she says that Smith & Merritt are "sorry", "embarassed", and, "most of all, deeply apologetic" about "unforeseen problems and issues" that "took longer to overcome" than they planned. They're also "truly sorry" and sad about the "anxiety, frustration, and inconvenience" they've caused.

The reason the refunds are late? The acquisition of S&M by College Partnership, which has a board of directors who are now in charge of managing and approving "the funds to be allocated and released to Smith and Merritt for past client services and refunds." I might be naïve about such things, but that sounds like bullshit to me. When one company acquires another it does so with the full knowledge and understanding that it has existing assets and liabilities, as well as pending agreements and obligations. Those things don't suddenly become null and void or change their terms just because their ownership has changed!

Oh, I love this quote (my emphasis):

We have begun putting a comprehensive plan in place to provide better and timelier information to you regarding refunds...As this is decided and we receive the information, we will be able to give you a better idea of the timing on your refund and when you can expect to receive it.

Not just the timing, you see, but also when you're going to get it, since "Nothing is more important than providing [the refund] you expect."

Whew! I'm sure everyone who got a copy of this letter feels better already.

Smith & Merritt: Scam Your Way To Wealth?

I called it.

I don't mean to toot my own horn, here, but back almost a year ago, when Smith & Merritt were endlessly assaulting my ears with their inane slogan, “Spend your way to wealth”, on the Howard Stern Show, I said this:

They don’t seem to have any “products” for sale—except a “Free Report and Consultation,” which has to be some sort of loss-leader designed to get you to buy the “real” (and no doubt “real expensive”) stuff, whatever that is.

Shortly after I wrote that and the post following it, the Smith & Merritt advertising contract with the Stern Show ended, and they promptly dropped off my radar screen.

I gave them no more thought, until recently, when the number of hits to my blog via Google searches for “Smith and Merritt” started spiking. Then the comments started trickling in. Most painting an incomplete picture of some sort of high-pressure sales scam designed to bilk people out of $9,995 (or $3,895... I'm not sure which) with the promise of “materials” and/or coaching sessions.

Now, think about this for a second. People are coming to S&M for some sort of financial education, which, presumably, they need because they aren't doing so well, financially, right? So what's the likelihood that these people are going to have $9,995 in ready cash to spend on the S&M program? Undoubtedly, “But I don't have that kind of money” is a common objection, and it seems S&M have a ready “solution” - something that, based on the comments in this post, they dubbed a “student loan”. Apparently they counsel their clients to do a balance transfer from their credit cards to their checking accounts, after which S&M withdraws the money from checking. I may be wrong about this, but I believe that such a setup makes it more difficult to dispute the charge if you feel you've been ripped off - otherwise why would S&M go through the trouble?

A check at the BBB website for S&M or the deceptively named “College Partnership” (their other company?), reveals a number of unresolved complaints that seem similar to the ones people have been leaving on Die Eigenheit. I'd like to quote at length from a very detailed comment left today:

When we signed up for this program, we understood that we would get sound financial advice. Being this was our first experience with financial coaching & the cost of the program, we had no other reason to assume we weren't going to get financial advice. The salesman used high-pressure sales tactics & a needless sense of urgency in selling us the program stating that even if we wanted coaching there was a chance we wouldn't get "accepted". From the sales call (we have detailed notes of the call) he stated we'd have "unlimited access" from the best people in the business which implied financial advisors, yet he NEVER told us that we would NOT get coaching from financial advisors or planners. Had we known this, we wouldn't have signed up for the program. We purchased on Aug 7, 2006 for $3895 for 3 months of coaching. Even though we had 72 hrs to cancel after purchasing we hadn't started any coaching to determine that our coaching was just a professional form of cheering rather than financial advising. The first two sessions focused on our abundance statement and not finances! We realized especially after the 3rd session (around the beginning of September 2006) that this was not the service we expected. Besides calling us late, our coach hadn't even reviewed our financial reports we had emailed to her & after talking with our coach on the phone she informed us that she was not LICENSED to give us financial advice & we discovered that she didn't have a strong financial background! We were then assigned another coach because he used to sell insurance & had a "strong" financial background, yet after tolerating 2 sessions with him, we made the decision to seek a refund. We contacted the head of coaching and explained our concern & over the course of a few weeks or so she kept meeting with a "committee" giving us the impression that a decision would be made as to our refund. However, we eventually received a letter from a "customer care" lady stating that we should continue coaching & later another letter that we were to continue with 6 more sessions due to "contractual responsibilities" (whatever that means) & then they would reevaluate our complaint. Knowing that the coaching does not advise like we originally understood, this is an unreasonable request. She mentioned in the letter that we needed to file an "official withdrawal" from the coaching program & other pertinent information, yet when we have called the SLC office to receive further instruction to get the form or other information, we have had no response. We have made numerous attempts to talk the salesman regarding the sale & others regarding a refund & neither has returned our calls. We filed a complaint with the BBB on March 1, 2007 & the information was sent apparently to California & was returned with a correspondence stating that he wasn't in charge of refunds. We filed a complaint with the SLC office. That BBB complaint came back unanswered.

If it wasn't clear before that Smith & Merritt is a company to avoid, it seems quite clear now.

Smith & Merritt – Spend Your Way to Lameness?

I know I mentioned this briefly in the update to my previous post, but it still irks me, so I thought I’d bring it up again.

Back on July 3rd I put a comment up on the blog of the “Spend Your Way to Wealth” guys, Smith & Merritt—specifically on their post about Payday loan places. By July 5th my comment had been removed. Admittedly, of course, it’s their prerogative to decide what can and can’t be up on their blog, but consider what they say in this post:

Feel free to play rough and tumble, challenge us, ask us questions. All we ask is you keep it polite. No foul language or rudeness. We love a good dialogue and we love explaining why we believe the way we do. Still, we do reserve the right to edit posts if we determine them to be offensive.

They apparently have an unreasonably broad definition for the term “offensive” (as well as “edit”). I certainly didn’t use any foul language. Nor was I rude—unless they define “rude” as any disagreement with them. Unfortunately I did not save a copy of exactly what I wrote, but here is the gist of it:

Payday loan places may be a “scourge,” but how will making them illegal be helpful to their typical customer? Reducing a person’s available options seems rather likely to hurt them, instead.

If you truly believe that these businesses are overcharging their customers, then this suggests a profit opportunity. Why not set up a competitive shop in the neighborhoods where you find these places and then undercut them? I suspect, though, that their near-ubiquity means that they are already quite competitive with one-another, and are thus already charging the lowest price the market will bear. This means that making them illegal will almost certainly result in making credit even more expensive for the very people you are complaining are already being overcharged! How is what you suggest, then, going to be helpful?

It was something like that, anyway. Does that seem rude or offensive to you? If not, then why do you suppose they removed the comment?

Subsequent to the deletion of my first comment I wrote a second one expressing my disappointment at what I saw as cowardice on their part. Not surprisingly, that one was also quickly removed. Could it be that Smith & Merritt have no room for gray areas when it comes to debt? Unfortunately, if you are faced with a situation where you have to choose between spending an extra $50 or having your electricity shut off for 2 weeks, then sticking your head in the sand, as Smith & Merritt would apparently counsel you to do, isn’t going to help.

Advertise Your Way To Wealth

As I’ve mentioned before, I’m a big fan of the Howard Stern Show. I have been since my girlfriend (at the time) introduced it to me in 1993 (for this I can almost forgive her the broken heart). I followed Stern to Sirius and consider the show to be better than ever. One contributing factor: while there are still too many commercials, they are far fewer in number than they were on “testicle” radio.

Thankfully the national nature of his show spares us listeners from the endless hammering we used to get from the local auto dealers, brake shops, and Guitar Centers. God, how I don’t miss those! This is not to say that the current crop of advertisers is any better, though. Given the quality of the ones who remain, I can’t help but worry about the future of Stern’s employer. Apparently Stern has already paid for himself. Nonetheless, Sirius has yet to show any earnings, and its stock appears to be languishing at around $4.50 a share, off from a high of almost $8 back in early January (sadly I bought when it was over $5—What can I say?). I can’t help but wonder if there might not be an element of desperation behind their decision to accept, as Stern show advertisers, companies like The Prosperity Automated System (PAS) and The Smith & Merritt Institute (S&M).

PAS is a pure Ponzi scheme. Unlike companies like Amway/Quixtar or ACN, PAS doesn’t even pretend to have any product, other than the system itself. This is such a huge red flag I am convinced they are mere days away from being shut down by the FTC (then again, when has the federal government ever been on top of anything—except for threats to its own revenue, that is?).

I have less of a problem with Smith & Merritt, but my recent foray into the world of the get-rich-quick scammers has made me hypersensitive, I suppose. Like Burley’s 7 Levels and Kiyosaki’s Cash Flow Quadrant, S&M have a catchy little slogan that they undoubtedly hope will be the “hook” that catapults them to fame, fortune, and guest spots on Oprah: “Spend Your Way to Wealth.” If that isn’t enough of a red flag, a visit to their web page isn’t helpful. They don’t seem to have any “products” for sale—except a “Free Report and Consultation,” which has to be some sort of loss-leader designed to get you to buy the “real” (and no doubt “real expensive”) stuff, whatever that is. It’s all pretty vague.

The stuff they say on their blog seems pretty harmless and vanilla (“Stay out of debt” and “live within your means” are common refrains—clearly different and less catchy messages than “Spend your way to wealth,” though, huh?), but some of what they say is a little odd, some shows a disturbing lack of economic understanding, some suffers from extreme oversimplification, and some of it just plain wrong.

Examples:

In this post they decry the “rampant poverty” throughout the world. I’m not going to disagree that there are people today who live in appalling conditions. On the other hand, when you compare the living standards of today’s poorest Americans and Europeans with those of people from just 50 years ago, you can’t help but feel that there really is no such thing as poverty in the West any more. But the US is where S&M are focusing their efforts. And their “solution” to world poverty? “Live Abundantly!” Seriously. I wonder how well that advice would go over in Darfur.

Not surprisingly, they repeat the tired canard that personal debt is soaring. However, take a look at the Federal Reserve Data for the debt service ratio for Americans over the past 25 years:



Does that look like “soaring” to you?

They think that Pay Day Loan places should be made illegal. As I point out to them in the post’s comments [UPDATE July 6th: My comment there has been deleted!], this would likely have the perverse effect of hurting the very people S&M claim they would like to see helped. See here for an excellent explanation for why that is the case.

They think it’s a good idea for everyone to pay off their mortgage ASAP. However, if you’re paying less than 7% interest and you’re also saving for a retirement that is still a couple decades out, it makes far more sense to put as much money as possible into your retirement fund, where your returns are likely to be a lot higher than 7%, especially if you’re using an IRA or 401K (due to their tax advantages).

In a similar vein, they say you should amass an emergency cash reserve prior to paying off your high-interest debt. I think this is absurd. If you’ve got revolving credit card debt costing 18%, why would you set aside thousands of dollars, meanwhile, in a low-interest-bearing savings account instead of using the money to pay the credit cards off as fast as possible? Doing it that way is more expensive and thus slows the process down. I think you should start amassing the emergency funds once the credit cards are paid off. Cancel all the cards except one, which you keep at a zero balance. Use it as your emergency cash reserve until you actually have a real one to use.

They call Adjustable Rate Mortgages “evil,” but fail to mention that sometimes they make sense. Why pay a relatively higher 30-year interest rate on a home loan that you know you’ll only be paying on for 5 years, because you plan to move to a new place at that point or sooner (this is what most people—especially first time homebuyers—do)?

I can get behind the message to pay off your debts and always live within your means (but who would disagree?). The rest of it, though, is highly questionable, and I sincerely hope Sirius and the Stern Show are able at some point to land some less annoying advertising contracts.