A couple of weeks ago, The Salty Droid had an interesting piece on Stephen Pierce and his company Stephen Pierce International. Stephen allegedly provides internet marketing consulting services in exchange for a fee. However, it appears that angry consumers are complaining about what they received from him.
I found a number of complaints:
- This one alleges that the consumer paid Stephen Pierce $10,000, but did the product was not as advertised, no services were provided, and no refund was given.
- This one alleges that the consumer paid $2,000 to attend Stephen’s the Make Real Money on the Internet (MRMI) seminar, and learned nothing but stale information easily found on Google.
- This one is more serious, alleging that the consumer paid Stephen Pierce $20,000 for his Product Creation Lab (PCL) program that was never delivered, with “…only a small fraction of the promised program actually being delivered.”
- This complaint alleges that Stephen Pierce’s “…Internet Income Workshop is a scam; a fraudulent multi-state ponzi scheme of sorts.”
- This complaint alleges $4,997 was paid to attend one of Stephen Pierce’s seminars, the consumer had problems with the program, but has been unable to get any substantive help or a refund
- This complaint alleges that the consumer paid $10,000 for Stephen Pierce’s Platinum Consulting Program, and did not get the results represented or the refund promised.
- This consumer complaint states that $20,000 was paid to Stephen Pierce, and the consumer never received a lengthy list of services that were promised.
- An alleged former employee of Stephen Pierce has a website about the man and his business practices, and says he is part of a lawsuit that will be filed against Mr. Pierce.
I have no idea how many consumers are complaining about Stephen Pierce, or whether any of the above complaints are from the same people. What I do know is the more complaints I see, especially those with details about their experience, the more I am inclined to believe there is a problem.
Digging a little further brings us to this press release from the U.S. Commodities Trading Commission regarding an enforcement action against Stephen Alan Pierce. The release states:
The CFTC order, entered on January 21, 2003, finds that, from approximately March 2000 through July 2002, Pierce, a registered commodity trading advisor (CTA), sold subscriptions to his futures trading recommendation services through various internet websites.
The order finds that Pierce touted his trading record and failed to disclose that it was based on hypothetical or simulated trading and not actual performance. Further, the websites overstated the profit potential for Pierce’s trading recommendation services and understated the risk of loss. Finally, as a registered CTA who acted as such, Pierce was required to keep certain books and records, including client or subscriber information. The CFTC order finds that he failed to keep such records. The CFTC order arises out of an administrative complaint filed against Pierce on July 30, 2002 (see CFTC News Release 4683, July 30, 2002).
Go back to that earlier press release, and you see the following:
Specifically, the CFTC complaint alleges that Pierce promoted and offered to the public futures trading systems, referred to as the “Rapid Fire Swing Trading” and “The Chart Traders” systems, through advertisements over numerous internet websites that Pierce created and maintained. Pierce, the complaint states, made false representations of profits, overstated profit potential, and mischaracterized the performance record of the systems, in violation of antifraud provisions of the Commodity Exchange Act (CEA) and CFTC regulations.
Is this the same Stephen Pierce I found the consumer complaints about? If you go back to the Dallas, Texas Better Business Bureau report on Stephen Pierce International, you see the following:
Stephen Pierce, President of Stephen Pierce International, McKinney, TX, is also President of Impulsive Profits, Inc., Ann Arbor, MI.
A separate BBB Business Reviews is available on that business. See http://www.bbb.org/eastern-michigan/business-reviews/financial-services/impulsive-profits-inc-in-ann-arbor-mi-40000301/ .
That BBB profile includes the following information:
Impulsive Profits, Inc.
Phone: (734) 741-8392
Fax: (734) 741-8393
2322 S. Main Street #421,
Ann Arbor, MI 48103
It appears we have a match between the Stephen Pierce of Rapid Fire Swing Trading in the enforcement action, email@example.com on the Eastern Michigan BBB website, and Stephen Pierce International on the Dallas BBB website.
Let’s look a little more closely at some of the allegations in the enforcement action:
The description of Pierce’s services conveyed a false impression to the public that Pierce was actually trading, when in fact Pierce was not. For example, on his various websites, Pierce advertised to the public:
- “All tactics in this eBook are actually used everyday by real Chart Traders making real money … We are blessed to bank thousands of dollars each week in net winning profits from the markets. They have blown by so fast, some days they actually bank over $5,000.00 in net realized profits. It’s A Fact.”
- “Take a look at a recent month of real time trading results using this method. These are NOT hypothetical results – This is all actual money made by using this method in real time trading. That’s 12 trades on a single contract basis, in 5 recent months (not back testing) of this year, producing net total profits after losses of =$45,127.50. Staying in each trade for a MAXIMUM of 3 DAYS! These are not back tested results. These are real trades – made in real time with our Chart Traders.”
- “Just last month we had 33 trades of which 18 were winners producing =$10,207.00 in profits-we had 15 losing trades producing – ($4,132.15) in losses for a NET PROFIT of =$6,074.85 in one month. Trading one contract in just a few short minutes each day and holding the contract on average of ONLY 3 DAYS!”
10. Based on the misleading nature of the promotional material, many subscribers understood that the performance results represented Pierce’s actual trading, not simulated or hypothetical results.
For example, on his various websites, Pierce advertised to the public:
- “You’ll [sic] can make money and get the benefit of knowing you’re dealing with consistent winners that have years of commodity experience successfully trading commodities and futures.”
- “An extremely valuable bonus that can easily pay back more than double your eBook Action Pack fee the SAME DAY. When you purchase, you’ll be granted the rights to use the Chart Traders Trend Monitor-which is responsible for over $25,329.35 a month in average profits for the small trader!”
Stephen Pierce entered into an Offer of Settlement with the CFTC, in which he neither admitted nor denied the allegations, but agreed to cease and desist from violating the regulations, pay a $25,000 penalty, and not misrepresent performance or profits in the future. He also agreed not to make any public statement denying the findings in the order.
Note that in his LinkedIn profile, Stephen Pierce mentions “commodities and futures trading” and “offering free trading tips online and through e-mail newsletters,” and that he “established his own trading service.” Too bad he forgot to mention the little old enforcement action by CFTC!
Robbins owns rights to his “Unleash the Power Within” and “Wealth Mastery” seminars. He claims Pierce advertises his businesses on the Internet by using Robbins’ photo, without permission, accompanied by statements such as, “one-on-one phone coaching appointment with an Anthony Robbins Success Coach;” and “The people attending the event where [Robbins] spoke and this video was captured paid $8,000 to attend, but you can have access to that video without spending $8,000.”
More specifically, the complaint alleges that “…Pierce, individually and through his companies, Stephen Pierce International Inc., and Impulsive Profits, Inc., have continued in their fraudulent scheme, misappropriation and unfair business practices for purposes of advertising and selling, or soliciting purchases of, their products, merchandise, goods and/or services.”
The Tony Robbins complaint alleges that Pierce secretly recorded Robbins at his Wealth Mastery Seminar and began selling unauthorized copies of it. It further states that Stephen Pierce was falsely stating that he got permission from Robbins to sell the recording.
The case was dropped shortly thereafter, but the allegations are interesting nonetheless, because again Stephen Pierce is alleged to have made improper claims in advertising his business.
In 1995, there was a business led by Stephen Pierce called Black America Online. A Washington Times news article reported:
For those 12 months, BAOL would rake in more than $3.8 million in revenue, with a profit margin of at least 70 percent, according to the projections. By 2000, the company would be clearing $17.6 million in revenues and $10.5 million in profit.
The company quickly went belly-up, and investors say they never got any money back, and couldn’t even track down Stephen Pierce.
So back to the current complaints with Stephen Pierce International. What has Stephen’s response been? Lawsuits.
The lawsuits against all three of these men are for allegedly writing false and defamatory things about Pierce at the following sites:
- Brown at stephen-pierce-scam.com
- Cantu at stephenpiercescam.net
- Keane at 911copywriters.blogspot.com
The main objection of Stephen Pierce seems to be the characterization of Stephen Pierce’s business as a scam – – defined in the lawsuits as “a fraudulent business scheme.” The plaintiff claims that his business “… provide legitimate programs, as advertised.”
I think what is most interesting about these lawsuits is the statement that Stephen Pierce provides programs “as advertised”. It seems to me that the complaints I found on the internet allege that he does not provide the services “as advertised.” The complaints I read seemed to have one thing in common: The consumers say they did not receive what they were promised, nor have they received refunds.
Is the failure to follow through on promises in a business transaction a scam? Or is it simply a bad business practice? You decide.
As for using the word scam to describe Stephen Pierce and/or his business activities… It seems the CFTC would agree with that characterization. As might the BBB. As might many other consumers reading about all of these activities. I draw no conclusion one way or another as to whether Mr. Pierce is committing fraud or engaging in scams. But I think intelligent readers are capable of drawing their own conclusions.