On April 24, 2007, a Federal Grand Jury handed down an indictment charging e-gold Ltd., Gold & Silver Reserve, Inc., and the Directors of both companies with money laundering, operating an unlicensed money transmitter business, and conspiracies to commit both offenses.

Dr. Douglas Jackson, Chairman and Founder of e-gold, speaking on behalf of his fellow Directors and both companies vigorously denies the charges, taking particular exception to the allegations that either company ever turned a blind eye to payments for child pornography or for the sale of stolen identity and credit card information.

Dr. Jackson states, “With regard to child pornography, the government knows full well that their allegations are false, yet they highlight these irresponsible and purposely damaging statements in order to demonize e-gold in the eyes of the public. During the Inquisition, accusations of witchcraft and heresy were used to sanctify torture and seizures of property. In post 9-11 America, child porn and terrorism serve as the denunciations of choice. e-gold, however, as a matter ofincontrovertible fact, is the most effective of all online payment systems in detecting and interdicting abuse of its system for child pornography related payments. e-gold Ltd. is a founding member of the National Center for Missing and Exploited Children’s (NCMEC) Financial Coalition to Eliminate Child Pornography. e-gold is the only member institution to demonstrate with hard, auditable data a dramatic reduction of such payments to virtually zero, while billions of child porn dollars continue to flow through other (heavily regulated) payment systems. [Most members, that is, all the banks and credit card associations are utterly unable to even provide an estimate of the volume of such payments processed by their systems. eBay’s PayPal subsidiary, who may have the ability to make such a determination, has refused to do so and has indicated they destroy payment records after two years.] What is worse, until August 2005 when NCMEC courageouslybroke ranks with US law enforcement agencies and began directly notifying e-gold of criminal sites via the CyberTipline, component agencies of the US Department of Justice purposely concealed their knowledge of child pornography abuses from e-gold’s investigators, subordinating actual crime fighting to a policy agenda designed to dirty up e-gold.”

In December 2005, the Secret Service (USSS) deceived a Federal Magistrate judge with bogus testimony in order to obtain search and seizure warrants authorizing the government to seize the US bank accounts of Gold & Silver Reserve, Inc. The seizure, which netted the government about $ 0.8 million, was designed to put e-gold out of business without due process, since G&SR serves as the contractual Operator of the e-gold system. At a subsequent emergency hearing, thegovernment made no effort to defend their (sealed) allegations of lurid criminality, falling back to a position that their action was warranted because of a licensure issue. At the hearing, G&SR described its ongoing dialog with the Department of Treasury, initiated by formal request of the company in Spring 2005, to determine a possible basis for regulating the company’s activities, since it was patently clear to competent authorities that G&SR’s exchange service was not encompassed within any existing regulatory rubric [subsequently re-confirmed by experts at the Federal Reserve]. The US Attorney for the District of Columbia, responsible for the prosecution, was completely unaware of this orderly proceeding, as well as Treasury reports issued the same week that acknowledged e-gold as an innovation not meeting definitions of a money services business or a money
transmitter.

Since this time, the government has been confronted with overwhelming evidence that the USSS had made a horrible mistake in its attack on the e-gold system and its repeated defamatory claims in the media that e-gold is anonymous, untraceable, and inaccessible to US law enforcement. They have concealed the fact that Dr. Jackson had personally arranged to come to USSS headquarters to train the USSS cybercrime squad in December 2004 (along with agents of the UK’s National High Tech Crime Unit, and the Australian Federal Police) on advanced techniques, particularly in the area of efficient interaction with e-gold’s in-house investigative staff, but was prevented when senior USSS management learned of the initiative and forbade the training on the grounds of a policy declaring e-gold as their designated boogey man.

The Department of Justice has had to determine whether to continue to stand behind their component agency. Their decision to close ranks has directly resulted in a gross misallocation of resources, with the result that vicious criminals who might have been brought to justice remain at large. An example of this is the Shadowcrew investigation, hyped by the USSS as a major success in disrupting international credit card thieves. The USSS did not subpoena records from e-gold atany time in their investigation, or engage with e-gold’s superb in-house investigative staff, with the result that the sophisticated hierarchy of the ring was unmolested and probably strengthened while the USSS hauled in the low hanging fruit, “a dime a dozen and relatively easy to track down and pop”.

Similarly, there is compelling evidence that the international cartel of commercial vendors of child pornography continues to operate because the FBI Innocent Images Unit and Special Agents within the Immigration and Customs Enforcement Agency have been forbidden to follow investigative protocols developed by Dr. Jackson, apparently for fear of further belying the party line that e-gold is itself a nefarious operation.

With regard to allegations of money laundering, Dr. Jackson notes “G&SR’s online exchange service, OmniPay, has for years followed stringent customer identification procedures and an absolute policy of only accepting money payments by bank wire. If bank wires aren’t already “clean” then what is? Furthermore, e-gold Ltd. can scarcely be construed as a money launderer since it does not accept money payments from anyone in any form and has never owned a single dollar, yen, euro or any other brand of legacy money. As far as the possibility of a criminal successfully obfuscating a money trail, e-gold is a closed system. The only way to obtain e-gold is by receiving a transfer from someone who already has some. e-gold is also the only payment system accessible by the public that maintains a permanent record of all transfers.”

On April 27, 2007, the government served seizure warrants on G&SR ordering it to freeze, liquidate and turn over to the government the operating e-gold accounts of G&SR and e-gold Ltd. The value seized, about $762 thousand worth of e-gold from e-gold Ltd. and about $736 thousand worth of e-gold from G&SR [on top of the $0.8 million seized from G&SR in 2005, and the approximately $1 million spent by G&SR so far in its defense] constitutes the bulk of the liquid assets of bothcompanies. Perplexingly, a post-indictment restraining order states “Nothing in the provisions of this restraining order shall be construed as limiting the e-gold operation’s ability to use its existing funds to satisfy requests from its customers to exchange e-gold into national currency, or its ability to sell precious metals to accomplish the same once approval has been obtained.” Having taken virtually the entire operating funds of G&SR and e-gold Ltd., that is, the e-gold in both companies’ own e-gold accounts, it is unclear if the government has even a basic grasp of the operations it has been investigating for three years at a taxpayer expense in the millions.

The most remarkable element of the restraining order is that the US government deputizes e-gold with plenipotentiary powers to act as judge, jury and executioner against any account user e-gold itself has deemed to be a criminal: “It is further ordered that upon receipt of this order the defendants are required to freeze, that is, not conduct or allow any further transactions in e-gold accounts that the e-gold operation itself has identified as being used for criminal activity”. Although not accompanied by an outright letter of marque, this commission (the financial equivalent to double ought status?) would appear to be an acknowledgement that e-gold’s ‘Know Your Customer’ prowess far exceeds that of any regulated financial institution, who would be obliged to rely on court orders or other legal writs to determine if freezing an account is warranted.

Concurrent with this latest attempt to knock e-gold Ltd. and G&SR out of business and thereby effectively deny them due process, the government also attacked other prominent exchange services that deal in e-gold; IceGold, The Bullion Exchange, Gitgold, Denver Gold Exchange, AnyGoldNow, and Gold Pouch Express, plus a sophisticated and secure alternative payment system called “1MDC”. All of the listed exchange services also follow stringent Customer IdentificationPrograms congruent with what would be required of a currency exchange business, if the law supported such a classification. Two of the services, IceGold and AnyGoldNow, are located in Europe and deal primarily with non-US customers. As a direct and immediate result of the seizures, these companies, all of who had built a reputation for honoring their obligations to customers in a timely fashion, have been disrupted, and, at least in the case of Gitgold, checks to customers issued in fulfillment of exchanges have bounced. This is a repeat of what happened to G&SR as a direct result of the 2005 seizure, when over 200 checks to customers bounced and refunds had to be sorted out with severely crippled liquidity and without a US bank account.

It must not be overlooked that the search warrant obtained by misrepresentations before a magistrate judge in 2005 resulted in the government helping themselves to the financial records of hundreds of thousands of American citizens [plus citizens of virtually every other country] who had not been accused of any wrongdoing. Since the initial raid, the prosecutor has caused the Grand Jury to order complete dumps of the e-gold data base on three additional occasions.

This case has nothing to do with criminal activity, at least not on the part of e-gold Ltd., G&SR, the named individuals or these other exchange services of high reputation. It is about a Department of Justice that is out of control, cognizant of having made a horrible mistake but determined at all costs to preserve its turf. In a meeting at the US Attorney’s office in Washington on December 29, 2006, a Chief Assistant US Attorney told us that the United States knew we weren’t “bad guys” and that the United States had no interest in sending any of us to prison or causing e-gold to go out of business. This was in virtually the same breath as proposing that the current defendants plead guilty to Federal felony charges.

The plain fact is that the repeated statements and actions of the government since 2001, especially the USSS, are directly responsible for crippling e-gold’s ability to market its service to mainstream businesses and consumers, slowing [but fortunately not stopping] e-gold’s continuous development of advanced anti-crime capabilities, subordinating US law enforcement’s cybercrime fighting efforts to the forlorn hope of destroying e-gold, driving market share to non-US based alternative payment systems and making the US law enforcement community the laughingstock of competent cybercrime fighting agencies worldwide because of its obstinate inability to back down from the USSS’s longstanding e-gold vendetta.

All inquiries should be directed to the law offices of:
http://www.fuerstlaw.com/

All members passwords to accounts in SmartBizGroup were changed during security update. This notification has been received from the admin.
Here is a few steps to receive your new password:
1. Go to their website
2. Click on Login tab
3. Click on Reset Password link
4. Enter your email address and request password
5. A confirmation code will be send to your email address
6. Copy & paste it on the Confirmation Box
7. A new password will be send to your email address after confirmation

WebMoney is a powerful online payment tool. The proprietary client software enables Internet users to conduct real time secure transactions using multi currency WebMoney units (WM-units). This ‘WM Keeper’ software provides users direct digital money access and allow users to manage their accounts from anywhere in the world.

The Webmoney Transfer system has been widely used since 1998 and provides online payments and shopping for millions of digital money users. In 2006 the Webmoney Transfer system executed over $1.45 Billion dollars in customer transactions. You won’t need a bank account or a credit card to open an account with WebMoney Transfer plus registration is fast & free.

Today I am interviewing Peter Darakhvelidze Director of corporate affairs from WebMoney Transfer.

Q) How long has Webmoney Transfer been in operation on the Internet?

Since November 1998

(Q) What areas of Webmoney online commerce has shown the most growth and popularity in recent years?

Gambling, online games (MMORPG at first), FOREX, internet services (hosting, domains etc.) Also you use WebMoney and pay almost all MNO, ISP, IP telephony providers and even utility bills in countries of ex-USSR.

(Q) How many users does the Webmoney system currently have?

At this moment we have 3.58 million registered users. The active body of our auditorium amounts to 600,000 users.

(Q) Webmoney Transfer offers multiple - currency equivalent user purses including WMZ (US Dollar), WMR (Russian Rouble), WME (Euro), WMY (Uzbek), WMU (Ukrainian Hryvna) and WMB (Belorussian Roubles). Is it possible using the Keeper software for account holders to simply move funds back and forth between these different currency purses?

All mentioned currencies are independent from each other; that is the guarantor behind each currency is a small and separate “central bank”. You can exchange one type of unit to another using a specially designated tool, designed as a bourse / exchange, where the exchange rate is established based on parity call-demand ratios. From one side, the Guarantors are involved in backing-up and trading the currency at the exchange. From another side, the exchange rate between WMZ and WMR at our exchanger is 3% higher than a real, “live” rate. And we are not going interfere into this layout, this is a market prerogative. [the system functions by market demand]

(Q) The independent agents transacting in Webmoney, are they required to keep their fees and exchange rates at a certain level? Can the agents charge what they desire for transactions in Webmoney?

Yes, all agents are absolutely independent businesses and all fees are up to them. We have been in business now for over than 8 years and competition between agents has eliminated from the market those who kept their rates too high.

(Q) What are the 3 most popular methods to ways to add funds to a WM purses?

Historically prepaid cards were the most popular, but now cash-in machines even outpaced the prepaid cards. Of course, bank wires, Western Union-like systems and postal orders are also popular.

(Q) How does Webmoney Transfer make it easy for everyday users to convert cash currency into digital Webmoney?

Our global retail network keeps growing. The idea is that we are a platform and a turn-key technology that is openly offered. A number of independent dealers and entrepreneurs, who build their business on WM and with WM is increasing constantly.

(Q) I’m interested in your prepaid Webmoney cards. Prepaid cards are huge business in places like the United States. When a local card seller is near, this method of funding seems most convenient for all users. Do a lot of people buy & use these cards?

Yes, exactly, we have grown so fast mainly due to the easy availability of the cards all over our territories. By the way, the cards can be used independently, without opening an account with WM - many merchants and services accept WM-cards pin-codes via phone IVR systems, thus people without any access to Internet at all can use WM as a payment means. Every card as well serves as a Paymer.com check , that is it can be split, merged or forwarded to other customers. Here we go - pure electronic money.

(Q) I read from your web site that prepaid Webmoney cards are available from automatic vending machines in Russia and Ukraine? I am very curious where you position a card vending machine. Are they located in shops, banks, subway stations or airports?

There is a boom of such cash-in machines in Russia, one of the reasons is that people are still mostly unbanked. You can find such cash-in in every shop, cinema, even in pedestrian subway. Of course the headliners are mobile network operators, but e-currencies and internet services are also widely presented.

(Q) I have some online friends and associates who may want to become involved distributing WM cards in the US and Europe. Does Webmoney Transfer allow global users to become distributors of WM prepaid cards? What is required?

Nothing. Anybody can issue pin-codes from your Webmoney purse using service www.paymer.com and start selling them. Our commission is 0.3%-1%, depending on volume.

(Q) I see that Webmoney Transfer requires all Exchanger Agencies to be verified merchants and hold WM Personal Passports. Why do you take this additional step and to identify and ‘know’ who is transacting in Webmoney? Why does Webmoney require independent agents to disclose information on themselves?

The logic is very simple - to give the established exchange businesses the possibility to work comfortably and within current legislation [laws & regulations]. Suppose somebody moved dirty funds from WebMoney to another payment system or withdrew them; then, a court or other authority would ask for traces of this operation. If the transaction came through verified exchange agent, then this agent would indicate the receiver’s account in another system, of the person who received the cash, we believe him and don’t treat him as a beneficiary. But if traces breaks into anonymous account, this owner will bear the liability to prove to us and to the court that he is not a true and final beneficiary.

(Q) I hear this statement a lot from new e-gold users when they want to make a retail purchase online, “How do I know an e-gold merchant will deliver the items after I pay them in e-gold?” What is a Webmoney coded transaction and how does that help protect buyers using WM?

WebMoney code-protected transaction are used exactly for such transactions. You transfer funds to the merchant protected by a code. Funds are withdrawn from your account so the merchant sees that you are a fair customer. The merchant can’t do anything with these funds unless you have received the goods/service you paid for and you will reveal the code to him. In case this measure is not enough, seller and buyer can establish mutual WM trust: http://trust.webmoney.ru/ .

Continued in Part II   e-gold webmoney

We’ve received a few complaints about spam. Please be careful. Admin of Your-Pay HYIP (your-pay.info and your-pay.biz) is spamming people using a fake e-mail address in the FROM field.

We never send spam and hate spammers!
Please contact us in case you will receive anything appeared to be
from us again, we will try to do everything to block spammers.

I recently posted some information and my opinions that ‘e-gold had hit the wall’.

It was clear early in the day, Friday, that many large e-gold accounts had been frozen or blocked by a US government action. Additional information early in the day on why or how government authorities ‘froze’ the accounts was unknown.

Late Friday afternoon the Justice Department put out a press release stating what action had taken place. This information enlightened us all on why the e-gold exchange agents’ accounts had been frozen and what may happen to e-gold Ltd. from this day forward. We’re getting copies now of the actual court docs but reading the will probably take a week.

Many facts are still unclear and everyone who reads this should remember that persons indicted are innocent until proven otherwise. So any mischief discussed here is only alleged to have occurred. Also understand that a grand jury is a tool of the prosecution. Grand jury indictments are not the final word they are the first word.

What happened?

Early Friday, it was reported on the 1MDC web site that major e-gold exchange agents’ accounts, including 1MDC, had been frozen by a US Government court order or similar document. Later in the day Friday, several news organizations released stories based on the Department of Justice press release.

The four-count indictment, handed down on April 24, 2007, and unsealed today, charges E‑Gold Ltd; Gold & Silver Reserve, Inc.; and their owners Dr. Douglas L. Jackson, of Satellite Beach, Fla.; Reid A. Jackson, of Melbourne, Fla.; and Barry K. Downey, of Woodbine, Md., each with one count of conspiracy to launder monetary instruments, one count of conspiracy to operate an unlicensed money transmitting business, one count of operating an unlicensed money transmitting business under federal law and one count of money transmission without a license under D.C. law. *usdoj.gov

The indictment alleges that the defendants conducted funds transfers on behalf of their customers, knowing that the funds involved were the proceeds of unlawful activity; namely child exploitation, credit card fraud, and wire (investment) fraud; and thereby violated federal money laundering statutes. *prnewswire.com

What account were frozen?

The accounts that were targeted by the investigation and alleged to have been involved with the illegal activity were frozen and that appears to have been only accounts owned by some larger exchange agents and the 1MDC account(s)

“Subsequent to the indictment, the Department of Justice also obtained a restraining order on the defendants to prevent the dissipation of assets by the defendants, and 24 seizure warrants on over 58 accounts believed to be property involved in money laundering and operation of an unlicensed money transmitting business.” * prnewswire.com

Is e-gold still in business?

There was no official information release from e-gold, Gold & Silver Reserve or OmniPay yet. Their web site is still up, funds still transfer and it appears YES! No one knows yet what will happen in the coming days. However, we are taking an educated guess that they[gov] will allow ‘outexchanges’, redemptions…whatever you want to call it, account holders should be able to get national currency from an agents (if you choose to sell). It seems that the government will allow e-gold / GS&R et al. are allowed to sell bars in storage for exchange of national currency to account holders, under their supervision and with prior approval. We believe they are NOT allowed to buy any gold and sell any e-gold digital currency, only outexchange. So the bar count will only go down from here.

Can I get the funds out of my e-gold?

It would appear YES, but no one is sure if you can liquidate immediately. If agents are buying, you can sell to them. I would think if you can transfer the digital money to an exchange agent and they are willing to pay you, its smart to seize that opportunity to get your cash. Again, this is our opinion based on the facts so far.

The information reads that only the frozen accounts will be restricted, all other regular accounts are still open and contain value.

The restraining order does not limit the E-Gold operation’s ability to use its existing funds to satisfy requests to exchange E-Gold into national currency for customers of non-seized accounts, or its ability to sell precious metals to accomplish the same, once approval has been received.” *pr-inside

Not to fear….your funds look safe, however the last line above says, “…once approval has been received.” I’m not sure if that means the court has to approve the sale of gold and/or disbursements of funds. That’s unclear. It seems the funds are safe but may need approval from the .gov before they can be liquidated, that includes bars in storage but its not 100% clear.

But as the wording reads above, they[e-gold] will be allowed to convert e-gold back to national currency for the existing account holders. Until someone points out different I assume that is the case.

Is 1MDC out of business?

Yes, 1MDC accounts that were backed by e-gold…..the e-gold was frozen/seized. That part of 1MDC is over. I don’t know how they are progressing with Pecunix or other currencies but perhaps we’ll get an update next week.

All funds that were in 1MDC, are they gone or can I get them back?

Good question, anyone know?

Where do we go now for our online businesses?

• Webmoney
• Liberty Reserve
• Loom
• eCache
• e-bullion
• Pecunix

Why are they so hard on illegal [alleged] money transmitters?

From Ian’s Financial Cryptography Web

Which leaves operating an unlicensed money transmitting business. This is the core charge. As we recall, this law came in in the aftermath of 9/11, when a Hawala was found to have transmitted one of the payments needed to finance the terrorist attack (the vast majority of the funds went through normal bank transfers). This then started a war on Hawalas, and the regulations were put in place * with a clear offer: license yourself as a money transmitter or face the consequences.

e-gold declined the offer. I recall that they argued they were not a money transmitter business because e-gold was not money, and the sales operation of Omnipay just used the banks to transmit the dollars back and forth. (This is from memory, these arguments were made in public in either the press or the mailing lists.)

I don’t know about you, but that was a ludicrous position to take then, and now. It was pretty clear that the point was, come in from out of the wild wild west, or well go and hunt you down. To argue on a technicality like that was just insane, as courts will ignore such nonsense on the basis of a “reasonable man” test.

Is e-gold more or less in the money transmitting business? A reasonable man will say yes.

Infinity Shares closes E-gold deposit,

Dear members,

We have closed E-gold deposits for a couple of days until we have looked deeper into the current situation. We want to avoid that people use IS as a stocking place for their gold.

It would not be fair to the other members if all of a sudden the worst case scenario occurs for E-gold, which I personally think is almost nihil, but still, for the members, we did anticipate and blocked E-gold deposits for now.

Also, we are looking at pecunix and E-bullion as backup option in case anything happens.

Regards,

Steven, Stijn and Xtian

Infinity Shares updates with good news on changing of broker,

Good Day,

After 2 weeks of searching, we found an alternative broker that we feel covers our trading needs. Our new broker is HMS, which is also based in Lux, making our transition from Internaxx a lot easier and faster. Paperwork will be done on Monday, applications, bank wires and other required materials. Of course once everything is approved, we will allow a few people to audit the new account to verify that everything is there.

We expect to resume trading as soon as all of the requirements are met and things are looking up for IS so far.

Concerning the E-gold situation, we have around 10% of total IS capital in e-gold, but we will be reducing that down to 2% this Monday to ensure the safety of the funds. The 2% left online will be maintained to cover short-term withdrawals and from our point of view is an acceptable risk to deal with rather than go through the process of exchanging small amounts back and forth between accounts.

Pet Project Photos will also be posted in the forum within the week.

Chris’ father is slowly improving, and will be (hopefully) out of the hospital in 2 weeks.

Some good news at least.

Steven, Stijn and Xtian
http://www.infinityshares.com

ji

EarnByLoaning sent out the following email earlier today:

Dear EBL members,

We hope you are all well.
We are very busy in the background here doing what needs to be done for getting the members a much better site and back office, than what we have now.
Ok..down to business.

1 -As some of you may already know we have been having some discussions with some forum owners about E-Gold and the fees associated with it. you can read one of them at….
http://hyipblog.nobshyip.net/2007/04/23/earn-by-loaning-follow-up/ here is a snippet of a post on the forum from Kerry….

“If we followed someone’s advice and built up a reserve in Egold of say, $20k and the market dropped like it did last summer, and we had to payout loans through Egold of say $10,000.00, Quest Holdings would have been handed it’s preverbal ass.

That’s not something we are willing to live with. The precious metal market is too chaotic to count on.

I am seriously inclined to recommend to the owner, Craig, to just drop Egold all together as a payment processor. Payout the loans we have already and be done with it.

This may seriously deplete our membership, but that is the price of protecting a programs integrity. It would not affect the remaining members because as we have said all along, we do not need new members or new money to keep meeting our obligations.

I will meet with Troy and Craig and we will seriously discuss this.” ———————————–

Well…we had a discussion about it ( a long one ) and we have come to a decision that some members will not like and some will like.

Effective immediately E-Gold will no longer be a funding option.

Any currently active E-Gold funded loans that members have will be paid out within the next week with whatever interest they have accrued ending April 29, 2007, plus their principal.
No One will be left out, everyone will be paid.
The loans will not be renewed at all, if anyone tries to rollover an E-Gold funded loan it will be reversed and funds returned. We do have the right to not renew loans.

At the moment it will cost you 8% to withdraw your money to E-Gold when you make a withdrawal..
HOWEVER …when your current E-Gold funded loan gets paid out in full to you within the next week we will absorb 50% of the cost.
Yes you heard us right.. We will NOT charge you the full 8% withdrawal fee when your Current E-Gold funded loan is payed out.
We will only charge you 4% withdrawal fee.

If you wish to continue to loan to EBL, you will need to use our other forms of funding. You can not use our internal exchange to exchange to other forms to be paid out to.
EG: PayPal, check/money order, bankwire.

This has been decided after much consideration and discussion, so please understand we are doing this for the good of the program.

It will be business as usual for loans funded with check/mo- PayPal- and bank wire.

2- Now, after much discussion and speaking with the company lawyers, we will be closing the internal currency exchange system.
As E-Gold will no longer be a funding option, there will not be a huge need for this.
Please note*** If you fund your loans with any of our accepted funding options for EG: Paypal … you will be able to email support and simply say “Can I please have my PayPal funds withdrawn to a bankwire or check.” So you are not locked into only one withdrawal source, it is interchangeable by us after you request it.

3- Commissions:
We are still trying to come up with a solid plan for those who have referrals from egold users. We will be meeting through out the weekend on how to deal with this issue. We will update you by Monday morning with our decision.

4- We are temporarily closed for new applications while we are doing maintenance.
We are also deciding on a the way people will sign up, so please be patient.
We are working on the new script with new features and it will be worth the wait.
We appreciate your patience with this.

Well we hope you understand this update and if you have any questions please email us at support or catch us on Skype voice/text live chat.

All the best,
Regards

Craig Jolly
and the
EBL support team.

I just have a couple of comments. First, points 1 and 2 are not negotiable. However, you may request other online payment processors, except those backed by precious metals. There is no guarantee that they will implement the payment processor, but they will consider it. I have no updates on point 3. I do have an update for point 4. Registration is now open. It was closed briefly due to script issues, which have been fixed.

In addition, Craig is looking in the allegations concerning Quest Holding’s Nevada registration. Hopefully he will have a definitive answer for us in the coming weeks. I speculate that if the status needs to be changed, it was just an oversight. Folks, Quest Holdings is real and they are not about to let their registration lapse.

JMO - Sharon

EarnByLoaning sent out the following email earlier today:

Dear EBL members,

We hope you are all well.
We are very busy in the background here doing what needs to be done for getting the members a much better site and back office, than what we have now.
Ok..down to business.

1 -As some of you may already know we have been having some discussions with some forum owners about E-Gold and the fees associated with it. you can read one of them at….
http://hyipblog.nobshyip.net/2007/04/23/earn-by-loaning-follow-up/ here is a snippet of a post on the forum from Kerry….

“If we followed someone’s advice and built up a reserve in Egold of say, $20k and the market dropped like it did last summer, and we had to payout loans through Egold of say $10,000.00, Quest Holdings would have been handed it’s preverbal ass.

That’s not something we are willing to live with. The precious metal market is too chaotic to count on.

I am seriously inclined to recommend to the owner, Craig, to just drop Egold all together as a payment processor. Payout the loans we have already and be done with it.

This may seriously deplete our membership, but that is the price of protecting a programs integrity. It would not affect the remaining members because as we have said all along, we do not need new members or new money to keep meeting our obligations.

I will meet with Troy and Craig and we will seriously discuss this.” ———————————–

Well…we had a discussion about it ( a long one ) and we have come to a decision that some members will not like and some will like.

Effective immediately E-Gold will no longer be a funding option.

Any currently active E-Gold funded loans that members have will be paid out within the next week with whatever interest they have accrued ending April 29, 2007, plus their principal.
No One will be left out, everyone will be paid.
The loans will not be renewed at all, if anyone tries to rollover an E-Gold funded loan it will be reversed and funds returned. We do have the right to not renew loans.

At the moment it will cost you 8% to withdraw your money to E-Gold when you make a withdrawal..
HOWEVER …when your current E-Gold funded loan gets paid out in full to you within the next week we will absorb 50% of the cost.
Yes you heard us right.. We will NOT charge you the full 8% withdrawal fee when your Current E-Gold funded loan is payed out.
We will only charge you 4% withdrawal fee.

If you wish to continue to loan to EBL, you will need to use our other forms of funding. You can not use our internal exchange to exchange to other forms to be paid out to.
EG: PayPal, check/money order, bankwire.

This has been decided after much consideration and discussion, so please understand we are doing this for the good of the program.

It will be business as usual for loans funded with check/mo- PayPal- and bank wire.

2- Now, after much discussion and speaking with the company lawyers, we will be closing the internal currency exchange system.
As E-Gold will no longer be a funding option, there will not be a huge need for this.
Please note*** If you fund your loans with any of our accepted funding options for EG: Paypal … you will be able to email support and simply say “Can I please have my PayPal funds withdrawn to a bankwire or check.” So you are not locked into only one withdrawal source, it is interchangeable by us after you request it.

3- Commissions:
We are still trying to come up with a solid plan for those who have referrals from egold users. We will be meeting through out the weekend on how to deal with this issue. We will update you by Monday morning with our decision.

4- We are temporarily closed for new applications while we are doing maintenance.
We are also deciding on a the way people will sign up, so please be patient.
We are working on the new script with new features and it will be worth the wait.
We appreciate your patience with this.

Well we hope you understand this update and if you have any questions please email us at support or catch us on Skype voice/text live chat.

All the best,
Regards

Craig Jolly
and the
EBL support team.

I just have a couple of comments. First, points 1 and 2 are not negotiable. However, you may request other online payment processors, except those backed by precious metals. There is no guarantee that they will implement the payment processor, but they will consider it. I have no updates on point 3. I do have an update for point 4. Registration is now open. It was closed briefly due to script issues, which have been fixed.

In addition, Craig is looking in the allegations concerning Quest Holding’s Nevada registration. Hopefully he will have a definitive answer for us in the coming weeks. I speculate that if the status needs to be changed, it was just an oversight. Folks, Quest Holdings is real and they are not about to let their registration lapse.

JMO - Sharon