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Prosperity Automated Systems

Posted: Sat Apr 18, 2009 10:41 pm
by soapboxmom
http://www.sec.gov/litigation/complaint ... p19848.pdf

Anyone here with PACER and Westlaw access have time to check for any updates on PAS? We had quite a celebration when the SEC shut them down, but there is nothing online about the status of the case. The suspense is killing me!

Thanks!

Soapboxmom

Re: Prosperity Automated Systems

Posted: Sun Apr 19, 2009 12:11 pm
by wserra
That's a very good question, SBM. I had completely forgotten about these guys. So many crooks, so little time.

PACER shows that the SEC case against them was "administratively closed" in July of 2007. Administrative closure is not a final result - it generally occurs (as it did here) when the parties are working on a settlement, but one which will take more time to arrange than the court's schedule will permit. A case which is administratively closed is generally reopened, either to get a settlement agreement "So Ordered" or to place the case back on active status if a settlement was impossible to reach. Neither of those things happened here - the order administratively closing the case is the last docket entry, nearly two years ago. That is a little strange.

The explanation may be that they just don't exist anymore. The only hit on a Westlaw business search for "prosperity automated" is
COMPANY INFORMATION

Name: ALL AMERICAN PROSPERITY AUTOMATED SYSTEM GROUP


FILING INFORMATION

Identification Number: 10089094
Filing Date: 09/13/2006
Expiration Date: 09/13/2016
Status: ACTIVE
Business Type: TRADE NAME

Where Filed: SECRETARY OF STATE/CORPORATIONS DIVISION
20300 STATE CAPITOL
LINCOLN, NE 68509


PRINCIPAL INFORMATION

Name: ALL AMERICAN PROPERTIES, L.L.C.
Title: OWNER APPLICANT
Address: 16418 M STREET
OMAHA, NE 68135

AMENDMENT INFORMATION

Amendments: 09/27/2006 MISCELLANEOUS PROOF OF PUBLICATION
09/13/2006 MISCELLANEOUS TRADE NAME
which may or may not be the same folks. It was, however, started in September of 2006 - just when the SEC initiated proceedings against PAS. That alone seems quite a coincidence, if they are not somehow related. However, a google of that address comes back to a "Prestige Realty".

The scammer-in-chief of PAS was one William M. Osterhout. A search on him reveals only the SEC lawsuit and a Chapter 7 bankruptcy filed in NC in 1998. Isn't it amazing how many financial wizards declare bankruptcy?

However, a search on Osterhout as a corporate officer reveals the following:
EXECUTIVE INFORMATION

Principal Name: WILLIAM OSTERHOUT
Principal Address: [redacted]

Registered Agent: BRYCE TERRELL
Registered Agent Address: [redacted]


BUSINESS INFORMATION

Business Name: THE PROSPERITY NETWORK, INC.
Business Address: 140 ENCINITAS BLVD
ENCINITAS, CA 92007


OTHER INFORMATION

Filing Date: 07/19/2004
Status: SURRENDERED
Business/Filing Type: CORPORATION
Identification No.: C2665979
A quick google shows press releases which say that "The Properity Network, Inc" was the owner of PAS. So it looks like they folded up shop, leaving the marks in the lurch, and the SEC went away.

And a lot of the marks probably went on to give their money to the next huckster who came along. "This isn’t just another one of those get rich quick schemes. This scheme is guaranteed to get us rich… and quick!" - Homer Simpson.

Re: Prosperity Automated Systems

Posted: Sun Apr 19, 2009 4:23 pm
by soapboxmom
Thank you! I tried to access the district court site and the website was down. It is disappointing to say the least that Osterhout was allowed to slither away. I will be watching for that snake to reappear with another scam!

Soapboxmom

Re: Prosperity Automated Systems

Posted: Tue Apr 21, 2009 12:19 pm
by wserra
My pleasure, sbm. Whenever you need something like this, don't hesitate to ask.