When Harry M. Markopolo first telephoned the Securities and Exchange Commission (SEC) all those years ago, he was ignored. No one would believe his theory that a well-known Banker, one Bernie Madhoff, was engaged in a massive Ponzi Scheme that would shake the world. 10 years later, and we have the benefit of history and hindsight to know that fraud can happen anywhere. And it is happening right now, as we speak, in Bloomington Indiana.
Fronted by ex-Ivy League professionals, given a veneer of acceptability by the excessive Google Adwords marketing that is being funded by illegal wall street funds, AuthorHouse.com, a corrupt and fraudulent publishing outfit that has deceived thousands of ordinary writers across America of their royalty checks, is the unassuming front for a massive Ponzi Scheme that is currently under investigation by the Federal Government and IRS Authorities.
AuthorHouse Backers are Wall Street Gangsters that make Bernie Madhoff look like Mr Nice Guy
And it's a devious scam. Most of the 15,000 books authorhouse publish each year, are the same book printed in new covers. Their revenue is not from selling books, but (with the sole exception of the handful of genuine writers they hoodwink into signing up) almost completely the proceeds of illegal dirty money from a toxic Wall Street Ponzi Scam, setup as a california Hedge fund named Bertram Capital.
These phony books never reach bookstores. They get published online with new isbn numbers onto stores such as amazon.com and bn.com, with ridiculously high list prices to ensure that no one ever buys them.
After two years working part-time for AuthorHouse, I can reveal that these books are the key to the operation, because they are totally unnoticeable in a sea of self published rubbish. The really clever bit is that when AuthorHouse publishes the same book again and again, in seemingly new covers, apart from the photoshop hours it takes to jack on a new crappy cover, the book actually costs them nothing to publish. nada. not a thing.
This is possible because of print on demand - books only get printed once they are sold (i.e. if the writer and his/her family ever buy a copy) - so the consumer actually drives the buying and manufacturing process. AuthorHouse pay nothing. Listing books online costs nothing. They then report thousands of bogus booksales to explain away all the illegal and corrupt funds that they are laundering for Wall Street. It's such a perfect tax fraud, it's almost as unnoticeable as an AuthorHouse book.
They offset thousands of dollars in Google Adwords advertising against a supposed loss to make them look active in publishing, but instead they are hiding a taxation fraud. And who would know? Why would the SEC ever think to investigate a non-publicly listed small publisher out in the rural sticks of Indiana? This is the perfect money-laundering operation.
AuthorHouse claims it employs 600 people a year. Have you ever thought what kind of revenue that would require - to afford to pay 600 people full-time wages? In comparison, Hapag Lloyd, an international shipping company, employs just over 2000 employees. Why would authorhouse need so many employees.....
Umbrella of Tax Dodging, Money-Laundering Companies That Offshore Dirty Money To The Cayman Islands
AuthorHouse, and it's umbrella scams, Iuniverse, Wordclay, Trafford, Xlibris, all part of the 'Author Solutions' Holding Company, are all part of the same carefully devised taxation fraud.
And where do all the dirty tax dollars go? They get siphoned away to third-party offshore accounts in the Cayman Islands and then channelled back into Uncle Sam as fully laundered stock options - even used to buy stock in AT&T and McDonalds.
While Americans are losing their homes and families going broke, AuthorHouse has for years been making a profitable and fraudulent existence as a low-level Wall Street loophole that needs to be closed and FINALLY is being investigated by the tax authorities. This evil company is stealing honest Americans hard-earned tax dollars.
Over the next three years (or however long it takes before the wallstreet gangsters at AuthorHouse are in orange jumpsuits) this blog will chart the results of our financial investigation into AuthorHouse and expose the lying, stinking crooks for the true scum that they are.
Background Information on Authorhouse and Author Solutions Scams
AuthorHouse and their illegal hedge fund backers made three huge mistakes:
- They bought too many companies too quickly and treated the writers that did print their books with them, like dirt.
- They underestimated the SEC regulations that came into force in the aftermath of the Madhoff scam.
- They managed to get themselves sued for criminal libel in 2006 (Google the Rebecca Brandewyne case) and paid the $250k court bill with illegal Wall Street funds.