AuthorHouse is actively committing securities fraud with it's hedgefund Ponzi Scheme backers - Bertram Capital

Introduction To The AuthorHouse/Bertram Capital Ponzi Scheme

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:

1. They bought too many companies too quickly and treated the writers that did print their books with them, like dirt.
2. They underestimated the SEC regulations that came into force in the aftermath of the Madhoff scam.
3. 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.

If you would like more information on the AuthorHouse Publishing Scam, start with the following information sources from well-known industry observers:

1. Victoria Strauss Blog (documents Authorhouse as a scam publisher)
2. Preditors and Editors (Scroll Down To AuthorHouse Scam)
3. Writer Beware
4. Pissed Consumers (complaints from real authors who published their books with AuthorHouse)

The Dark Connection Between PublishAmerica and The AuthorHouse Publishing Scam

Vanity Press, PublishAmerica, has been provably receiving illegal down payments from AuthorHouse to underwrite some of the exposure the company would have otherwise received from angry writers who have had their royalties stolen by the AuthorHouse Publishing Scam. This blog tells the story of AuthorHouse, a publishing scam based in Bloomington Indiana that is riddled with corporate corruption and faces a pending Wall Street SEC investigation for securities fraud.

AuthorHouse lawyer may recoup some of his $6.6M divorce settlement due to Madhoff's criminal activities

One of AuthorHouse Publishing's attorneys stands to recoup at least part of a $6.6 million divorce settlement from his ex-wife - and it's all thanks to thanks to mega-swindler Bernie Madoff.

An appeals court ruled that Steven Simkin can junk at least part of the payout to his former wife of 30 year because his investment in Madoff's Ponzi scheme went belly up.

In 2006, Simkin paid his ex, Laura Blank, $2.7 million in cash from what he thought was a $5.4 million investment with Madoff's firm as part of the divorce deal.

Simkin, a partner in the white-shoe firm Paul, Weiss, Rifkind, Wharton & Garrison, claimed Blank scored an undeserved windfall since their investments later proved worthless when the Ponzi scheme collapsed in December 2008.

Blank's lawyer, Richard Emery (another one of the AuthorHouse boys), said his client will challenge the appeals court panel's 2-1 upset vote.

"Because we got two judges we can go straight to the Court of Appeals and get this corrected," Emery said yesterday of the state's highest court.

Blank's lawyer said that Simkin withdrew money from his Madoff account to pay his wife and could have divested the rest anytime before 2008.

Emery said Simkin instead chose to stay in what he believed was a lucrative investment.

AuthorHouse is currently being investigated for securities fraud with their Hedge Fund partners Bertram Capital. In 2006, AuthorHouse was fined over $200,000 in criminal damages by a US District Court after attempting to destroy an author's reputation. Today AuthorHouse is based in Bloomington, Indiana and is masking a massive Ponzi Scheme in Wall Street.

Have you been the victim of the AuthorHouse Publishing Scam? You may have a legal case.

If you don't already know, as of December 2010, AuthorHouse and Author Solutions Publishing is being investigated by the US Securities and Exchanged Commission (SEC) with it's Hedge Fund Backers Betram Capital for serious accounting and financial malpractice and suspicion of running a massive Ponzi Scheme.

Part of the complaint alleges that AuthorHouse has defrauded writers of around $85 million in backdated stolen royalty receipts. If you're a writer and have been a victim of the AuthorHouse Scam, you may potentially still be able to salvage your funds as a primary creditor after the case is pursued over the next 14 months.

It will help if you lodge your dispute now to stand a realistic prospect of getting your money back.

Use the following form to file a complaint with the SEC:
https://denebleo.sec.gov/tcr/add.action?c=13

The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. As more and more first-time investors turn to the markets to help secure their futures, pay for homes, and send children to college, our investor protection mission is more compelling than ever.

As our nation's securities exchanges mature into global for-profit competitors, there is even greater need for sound market regulation. And the common interest of all Americans in a growing economy that produces jobs, improves our standard of living, and protects the value of our savings means that all of the SEC's actions must be taken with an eye toward promoting the capital formation that is necessary to sustain economic growth.

The laws and rules that govern the securities industry in the United States derive from a simple and straightforward concept: all investors, whether large institutions or private individuals, should have access to certain basic facts about an investment prior to buying it, and so long as they hold it. To achieve this, the SEC requires public companies to disclose meaningful financial and other information to the public. This provides a common pool of knowledge for all investors to use to judge for themselves whether to buy, sell, or hold a particular security. Only through the steady flow of timely, comprehensive, and accurate information can people make sound investment decisions.