| HOW NEW LEAF ASSOCIATES IS SCAMMING PEOPLE | ||||||||
| Assumptions | The purpose of this table is to help you conceptualize how the New Leaf Associates program could maintain a façade of legitimacy for a period of time and leave clients with credit card lates they didn't have and no chance for debt elimination. | |||||||
| Avg Debt Submitted | $38,000 | |||||||
| Avg Client Fee | $3,700 | ($4200-$500 to marketing rep) | ||||||
| Stages | # New Clients | Revenue | Debt Enrolled | Debt Satisfied | Cash retained by New Leaf | Notes | ||
| Jun '04-Aug '04 | 200 | $740,000 | $7,600,000 | $0 | $740,000 | An initial group of people are convinced to enroll in the program | ||
| Sept '04-Nov '04 | 1,000 | $3,700,000 | $38,000,000 | $0 | $4,440,000 | Based on seemingly legitimate activity (phones answered, mail received, details discussed), referrals are produced and more people enroll. At the end of this phase, people from the first phase are told they are almost done creating a feverish response of people seeking relief. | ||
| Dec '04-Feb '05 | 10,000 | $37,000,000 | $380,000,000 | $7,600,000 | $33,840,000 | The instigators have hit a critical mass with little or no exposure. They pay off accounts from the Jun-Aug group making the opportunity seem highly legitimate. And, by guaging the level of momentum may take this to the next stage. It is also possible they have fled the country and are funnelling funds through offshore accounts | ||
| Mar '05-May '05 | 25,000 | $92,500,000 | $950,000,000 | $38,000,000 | $88,340,000 | The company now has 1200 "Satisfied Clients" from phases Jun-Nov. Many have gone through credit repair and seen results, so the entire scheme seems legitimate, making it possible for the heads to maybe take this one more step. No complaints have been filed because they are "producing results." | ||
| June '05- Aug '05 | 50,000 | $185,000,000 | $1,900,000,000 | $380,000,000 | ($106,660,000) | The scheme will likely begin to break down during the previous phase or this phase after generating between $35mil and $100mil for the founders. My guess is they will begin their exit right after critical mass sees signs of slowing and/or they understand they can't maintain the facade of legitimacy. $36 million would afford someone a nice life in a safe haven. | ||