With the recent news of E-Gold founders pleading guilty to money laundering comes another shocking revelation that has the digital gold world turned upside down. Pamela Fayed, the estranged wife of James Fayed who is the principal owner of Goldfinger Coin & Bullion Sales and e-Bullion, was found stabbed to death in a Century City parking garage last week.

James Fayed was taken into custody by the FBI and his lawyer Mark Werksman, said his client was likely charged with operating a money transmitter business without a license, and he guessed the arrest involved “money laundering charges or some other federal racketeering crimes.”

The Fayed’s have been involved in acrimonious divorce proceedings since late October and Pamela Fayed complained in divorce records that her husband never properly licensed or bonded their E-Bullion electronic gold exchange service. Court records also show James Fayed accusing Pamela Fayed of embezzlement, claiming she had illegally moved hundreds of thousands of dollars from business accounts into her personal account in order to pay for licenses.

The Fayeds were the only shareholders in the business, and Pamela Fayed said the couple had bank accounts worth more than $12 million.

So much for those of you who didn’t heed the warnings we have repeatedly given about using these fraudulent digital currency systems which are primarily used to fund accounts in online ponzi and pyramid schemes. These are dark days for anybody who had funds remaining in E-Bullion or E-Gold. Maybe some might heed the warning signs that Liberty Reserve will be the next one of these black market payment processors to bite the dust.

With the state of the current economy, more and more consumers are turning to eBay to find deals on items they would normally purchase at retail outlets. As a seller, eBay can be a profitable way to test a new product, market an existing product or service or just clear out some of the clutter from your attic or garage. For a growing number of internet entrepreneurs eBay has become their sole place of business with their online storefront parked at eBay. The most appealing aspect of selling on eBay is that entrepreneurs can get their feet wet without having to set up a merchants account for credit card processing or setup a website of their own, both which can be time consuming and costly endeavors for inexperienced or first-time entrepreneurs. Hopefully these tips for selling on eBay will assist you in getting started down the path to being a successful seller on eBay.

1.) Pictures Sell Products - They say a picture IS worth 1000 words and it’s self evident that buyers will always like to see the goods before they place a bid on them. For successful eBay selling, make sure any itemss you list on eBay are accompanied by the best quality photographs you can muster. Poor quality pictures can cause as much of a negative impact as no picture at all. If you’re uncertain of your ability to take a convincing photograph, Nathan Huppatz has written an excellent tutorial Taking Great Product Photos which will help you through the process.

2.) Research is Golden - Always do some basic before you list a particular product. If you spend just a few minutes checking out history and price details of similar products on eBay, you will better know where you should set your reserve prices and starting points. eBay’s Advanced Search allows you to Show completed listings only which can be invaluable to making sure you don’t undercut yourself or over-value your item and end up without a sale.

3.) Master Your Niche - Niche mastery is an essential element for your prolonged success strategy. Find your own niche, define your market and you will come to understand the type of consumers who you will be selling to and how to specifically target them in your future acutions. Rome wasn’t built in one day and to become a power seller on eBay requies niche mastery and expertise in your given niche. These skills take time to develop but if you start out with the intention of developing these skills, you will cut out a lot of the baptismo del fuego (baptisim by fire).

4.) Avoid the Obvious - Forget about trying to sell cellphones, computers, digital cameras, iPods or plasma TVs. I’ve provided links to the first two of those afformentioned niches for you to take a look and see how stiff the competition is within those areas. Unless you have deep pockets, there is no way you can compete with the big guys who have the resources to post thousands of auctions per day and litter the listings. Also, the majority of drop shipping sites and programs which claim to have those products are mostly scams and will more than likely garner you bad reputation when they fail to deliver or ship items late (I have listed one reliable program at the end of this article).

5.) Don’t Forget Shipping - One critical aspect many novice eBay sellers overlook is packing and shipping costs. I routinely see new sellers offering free shipping or ridiculously low shipping rates. This mistake will eat away at your profits more so than any other costs involved in selling on eBay. Take the time to learn the costs involved in shipping and set your pricing accordingly. Most buyers purchase items on impulse and they are not paying attention to shipping costs when they want a product. Don’t shortchange yourself and don’t be greedy and try to turn a heft profit on shipping and handling.

6.) Use a Spell Checker - Always make sure to pay as much attention possible to your spelling and overall grammer when you’re writing up an eBay listing. I can’t tell you how many times I’ve nailed a great item for a song because somebody mis-spelled the item in the title of an auction and didn’t realize their error until it was too late. Additionally, strong writing skills can be the difference between a few bids and a landslide of bids that rockets your auction into the profit zone. If you’re not the world’s greatest speller, by all means, use a word processor to spell check your copy.

7.) More Payment Options Equals More Bids - Offering as many payment options as possible can literally double or triple the number of bids on an auction. Don’t be scared to accept money orders or personal checks and don’t limit yourself to Paypal only auctions. Sometimes buyers who need to pay by check or money order will bid higher on an item than if they were using Paypal. Remember, not everybody trusts Paypal, so don’t limit yourself or your auction’s potential.

8.) Keywords, Keywords, Keywords - Always use keywords in your auction headline and description. It is a known fact that over 65% of eBay bidders find what they are looking for by using eBay’s search function. Be sure to use carefully chosen and accurate key words in your title and description. eBay gives you 55 characters in your headline. Be sure to use all of them. This will help you get more traffic to your auction. Important keywords include the brand, color, size, and model number.

9.) Feedback is King - While many people feel that feedback is a necessary evil of selling on eBay, getting positive feedback is one of themost important keys to success as an eBay seller. Merchants who have an overall positive feedback record will find an easier time finding perspective buyers who will not only bid more often but they will also be willing to pay higher prices for your offerings. It is highly recommended when starting out to first spend a few months buying items on eBay and establishing at least 10-20 positive feedback ratings before trying your hand at selling. If you do want to rush in, start with your most inexpensive items or items you’re willing to lose a few bucks on ot establish your feedback rating.

10.) Be Professional - Never forget that when you are selling on eBay, you have a responsibility to your customers to act professionally. Be courteous and provide the type of superior customer service that you would expect from any major corporation or business. This will not only build your reputation but it will bring you repeat buyers who follow your auctions to purchase time and again.

That’s my 10 best tips for selling on eBay, but I would like to add that you make sure that you’re following all the standard business rules that apply, such as registering your business and paying any applicable taxes associated with your online business. Selling on eBay is just like any other business in that success lies in customer satisfaction and fair business practices. eBay has an uncanny way of weeding out the bad eggs, so make sure you’re following the terms of service and striving for excellence and you’re success on eBay is guaranteed.

Feel free to discuss this at our forum: Buying and Selling on eBay

If you’re not already an eBay member, please click the banner below to join !!!

If you’re already an eBay member and you’re looking for a fast track to being a PowerSeller, here’s a few products that may be of interest to you :

eBay for Dummies - eBay for Dummies Auction Success Kit is the easiest way to get your share of the fast-growing $10.6 Billion eBay pie. The wide range of topics covered include : How you can start selling in under 10 minutes, How to get the highest bids and maximize profits, How over 25 successful Powersellers have generated easy profits from eBay and much more.

SaleHoo - SaleHoo is where over 50,000 other online sellers, retailers and bargain hunters have discovered the best place to find legitimate, pre-screened wholesalers, dropshippers, liquidators and manufacturers for every type of product imaginable. A great service for anybody contemplating serious selling on ebay.

eBay EZ Auction - EZ-Auction offers a free starter kit to help you get started selling on eBay right away. This program has been featured on TV, so visit the site and get your freebie from them today.

 Chalk up one more victory for the US Secret Service, IRS, FBI and US Department of Justice in their war to prevent online crime and keep us all safe from financial predators. E-Gold, the digital currency the Department of Justice labeled as a safe haven for internet scammers, online pyramid schemes, pedophiles and black market makers worldwide has been officially rendered defunct by the US government. Key to E-Gold’s demise was it’s anonymous nature and just like those Swiss Banks who booted US account holders at the IRS’s request last week, it’s become more than obvious that the US Government is engrossed with invasion of citizen’s personal and financial privacy on a level that would have our founding fathers turning over in their graves.

The Department ofJustice released the follwing press release entitled “Digital Currency Business E-Gold Pleads Guilty to Money Laundering and Illegal Money Transmitting Charges” :

WASHINGTON – E-Gold Ltd. (E-Gold), an Internet-based digital currency business, and its three principal directors and owners, pleaded guilty to criminal charges relating to money laundering and the operation of an illegal money transmitting business, Acting Assistant Attorney General Matthew Friedrich for the Criminal Division and U.S. Attorney for the District of Columbia Jeffrey A. Taylor announced today. E-Gold and its corporate affiliate Gold & Silver Reserve Inc. each pleaded guilty to conspiracy to engage in money laundering and conspiracy to operate an unlicensed money transmitting business. The principal director of E-Gold and CEO of Gold & Silver Reserve Inc. (Gold & Silver Reserve), Dr. Douglas Jackson, 51, of Melbourne, Fla., pleaded guilty to conspiracy to engage in money laundering and operating an unlicensed money transmitting business. E-Gold’s other two senior directors, Barry Downey, 48, of Baltimore, and Reid Jackson, 45, of Melbourne, each pleaded guilty to felony violations of District of Columbia law relating to operating a money transmitting business without a license. E-Gold, Gold & Silver Reserve and the three company directors were charged in an indictment returned by a federal grand jury on April 24, 2007. At sentencing, E-Gold and Gold & Silver Reserve face a maximum fine of $3.7 million. Douglas Jackson faces a maximum prison sentence of 20 years and a fine of $500,000 on the conspiracy to engage in money laundering charge, and a sentence of five years and a fine of $250,000 on the operation of an unlicensed money transmitting business charge. Downey and Reid Jackson each face a maximum of five years in prison and a fine of $25,000. Additionally, as part of the plea, E-Gold and Gold & Silver Reserve have agreed to forfeiture in the amount of $1.75 million in the form of a money judgment for which they are joint and severally liable. Sentencing for all defendants has been set for Nov. 20, 2008. In addition to the fines and prison sentences, each of the defendants agreed that E-Gold and Gold & Silver Reserve will move to fully comply with all applicable federal and state laws relating to operating as a licensed money transmitting business and the prevention of money laundering which includes registering as money service businesses. Also as part of the plea agreement, the businesses will create a comprehensive money laundering detection program that will require verified customer identification, suspicious activity reporting and regular supervision by the Internal Revenue Services’ (IRS) Bank Secrecy Act Division, to which the Financial Crimes Enforcement Network delegated authority according to federal regulations. E-Gold and Gold & Silver Reserve will hire a consultant to ensure their compliance with applicable law and hire an auditor to verify the companies’ claims that all transactions are fully backed by gold bullion. Under federal law and District of Columbia law, in addition to other jurisdictions, the E-Gold operation was required to be licensed and registered as a money transmitting business. However, according to information in plea materials, the E-Gold operation functioned as a money transmitting business without registering with the federal government and without a license in the District of Columbia. Because these businesses and individuals illegally failed to register and follow applicable regulations under federal and District of Columbia laws, the resulting lack of oversight and required procedures created an atmosphere where criminals could use “e-gold”, or digital currency, essentially anonymously to further their illegal activities. Specifically, according to information contained in plea materials, the E-Gold operation provided digital currency services over the Internet through two sites: www.e-gold.com and www.Omnipay.com. Several characteristics of the E-Gold operation made it attractive to users engaged in criminal activity, such as not requiring users to provide their true identity, or any specific identity. The E-Gold operation continued to allow accounts to be opened without verification of user identity, despite knowing that “e-gold” was being used for criminal activity, including child exploitation, investment scams, credit card fraud and identity theft. In addition, E-Gold assigned employees with no prior relevant experience to monitor hundreds of thousands of accounts for criminal activity. They also participated in designing a system that expressly encouraged users whose criminal activity had been discovered to transfer their criminal proceeds among other “e-gold” accounts. Unlike other Internet payment systems, the E-Gold operation did not include any statement in its user agreement prohibiting the use of “e-gold” for criminal activity. “By failing to comply with money laundering laws and regulations, the E-Gold operation created an environment ripe for exploitation by criminals seeking anonymity in conducting online transactions,” said Acting Assistant Attorney General Matthew Friedrich. “This case demonstrates that online payment systems must operate according to the applicable rules and regulations created to ensure lawful monetary transactions.” “The operations of E-Gold Ltd. and the other defendants undermined the laws designed to maintain the integrity of our financial system and created opportunities for criminal activity,” said U.S. Attorney Taylor. “Because of the successful prosecution of these defendants, digital currency providers everywhere are now on notice that they must comply with federal banking laws or they will be subject to prosecution.” “The Secret Service is pleased with the successful outcome of the E-gold investigation,” said U.S. Secret Service Assistant Director for Investigations Michael Stenger. “This case demonstrated that even the most sophisticated criminals cannot escape the combined resources of the Secret Service and our law enforcement partners. The Secret Service is committed to our mission of safeguarding the nation’s critical financial infrastructure and we will continue to pursue criminals seeking to use the Internet and new technologies to commit crimes.” The case was investigated by the U.S. Secret Service, IRS Criminal Investigation and the FBI. The case was prosecuted by Assistant U.S. Attorney Jonathan Haray of the U.S. Attorney’s Office for the District of Columbia, Senior Counsel Kimberly Kiefer Peretti of the Criminal Division’s Computer Crime and Intellectual Property Section and Laurel Loomis Rimon, Deputy Chief of the Criminal Division’s Asset Forfeiture and Money Laundering Section, with assistance from the Criminal Division’s Child Exploitation and Obscenity Section. William Cowden of the U.S. Attorney’s Office Asset Forfeiture Unit assisted with forfeiture issues involved in the case. Source : http://www.usdoj.gov/opa/pr/2008/July/08-crm-635.html

The July 21, 2008 press release by the Department of Justice has many former E-gold customers scratching their head, wondering if their IP addresses and personal information will make them subject to further investigation by the feds but suffice to say, only the largest accounts, which made up 80% of the E-Gold system will have to worry if Uncle Sam will be shaking his bony finger in their direction.

Following the release of the DOJ information, Dr. Douglas Jackson made a public statement on the official E-Gold blog assuring that E-Gold would begin a process to become properly licensed to operate as a money services business in the United States.

In harmony with this transformation, we acknowledge that e-gold is indeed a Financial Institution or Agency as defined in US law and should be regulated as a Financial Institution. E-gold Ltd. has submitted an application to FinCEN to be registered as a Money Services Business and will be seeking licensure in all states that require it. Most importantly, working in conjunction with US government agencies, we will be exerting every effort to bring e-gold into compliance with US law and regulation as quickly as possible.

Many readers of this blog will remember that in the past, we have exposed Paypal as being allowed to operated their money services business in each respective state despite the fact that for over a decade Paypal has not been operating with proper licensing in each state they do business in.

Call this a conflict of interest or call it a government conspiracy, the truth is that both E-Gold and Paypal have been at odds for years. eBay, who owns Paypal, conveniently removed E-Gold as a valid payment processor for auctions several years ago, as they have removed every payment processor that threatens Paypal’s cash cow. Granted E-gold’s non-repudiation policy does not compare to Paypals supposed “buyer protection”, however anybody who has ever been scammed on eBay or somewhere else using Paypal, knows very well that Paypal doesn’t do very much to protect buyers and sellers using their service.

While it is not the intention of this blog to edify E-Gold’s legitimacy nor transmute Paypal’s squeaky clean image, it still seems rather ignorant that at a time when many US banks and financial institutions are imploding because of the mortgage crisis and the US dollar is being devalued against every major world currency, a payment system such as E-Gold which is based on the gold standard has more stability than a payment system based on the shrinking US Dollar. Not to mention, if the US keeps locking up citizens at the current rate of incarceration, there’s not going to be anybody left on the outside to pay the taxes which finance the booming prison industry.

Tagged : E-Gold, Department of Justice, Paypal, Douglas Jackson, FBI, IRS

 Wachovia Corp (NYSE: WB) led the US based banks posting dismal second quarter earnings as losses piled up related to the mortgage crisis and other debt the company failed to account for. The total loss for Wachovia was $8.86 billion according to Reuters which also reported Fifth Third Bancorp (NasdaqGS: FITB) and KeyCorp (NYSE: KEY) posted losses which have many bank customers wondering if their bank will be the next IndyMac.

Regions Financial Corp (NYSE: RF) and SunTrust Banks Inc (NYSE: STI) also posted losses. A SunTrust representative stated profit available to common stockholders fell 21 percent to $535.3 million, or $1.53 per share, from $673.9 million, or $1.89, a year earlier. Regions said net income fell 54 percent to $206.6 million, or 30 cents per share, from $453.3 million, or 63 cents, hurt by losses tied to home equity loans and homebuilders.

“The banking industry is suffering from the tail end effects of a burst housing bubble,” said Gerard Cassidy, an analyst at RBC Capital Markets. “While capital markets operations weren’t hit as badly as in the first quarter, what dominates results now is good, old-fashioned credit deterioration. We’re going to see more.”

The losses incurred by US banks have had an impact on the the Forex market and the value of the US dollar. Thomson Financial reported the US dollar has dropped against major currencies as a direct result of lackluster earnings results from Wachovia Corp. At 11:20 a.m. GMT, the euro was trading at $1.5938, having dropped to around $1.5907 at around 9:25 a.m. GMT. At 8:19 a.m. GMT, the euro had traded at around $1.5935.

What does all this mean to US consumers ? For investors with stock in Wachovia, either in their portfolio or as part of a mutual fund, it means that they can expect to share the pain with the 10,750 Wachovia employees who will lose their jobs as part of a turnaround plan. Other investors will feel the pain of Wachovia cutting their quarterly common stock dividend to 5 cents per share following a May dividend cut to 37.5 cents per share from 64 cents.

“These bottom-line results are disappointing and unacceptable,” says Lanty Smith, Wachovia’s chairman. “While to some degree they reflect industry headwinds and weaker macroeconomic conditions, they also reflect performance for which we at Wachovia accept responsibility. Our company is facing up to these issues, is addressing the challenges head-on and has redirected near-term strategic priorities.”.

Tagged : Wachovia, SunTrust, KeyCorp, Fifth Third, Regions

  IndyMac Bancorp Inc. (IDMC.PK) is currently under investigation by the FBI for possible fraud in connection with home loans the company made to risky borrowers. Indymac was taken over last Friday by the FDIC and assets were seized by federal authorities after the mortgage lender giant fell due to the credit crunch combined with tumbling home prices and the rising foreclosure rate.

Hundreds of customers waited in line to recover funds they had deposited into the failed bank and most deporsitors were granted immediate access to up to $100,000 held in their accounts with a threshold set at 50% for recovery of funds above the $100K mark. Fortunately for retirees and families, customers with joint accounts or retirement accounts were allowed to withdraw greater amounts.

IndyMac isn’t alone in under the FBI’s scrutiny. At least 21 other companies, including Countrywide Financial, are currently under investigation due to possible fraud tied to the subprime mortgage crisis. Authorities are looking into over 1,400 cases of mortgage fraud nationwide and at more than 400 real estate player who have been indicted since March 2008.

More information about the FBI investigation ofIndyMac is available at the following sites :

• Time Magazine - FBI Investigating IndyMac Bancorp
• Courant.com - FBI investigating possible home-loan fraud at IndyMac Bancorp.
• The Street - FBI Probing IndyMac, Report Says
• Reuters - FBI probing IndyMac for possible fraud: report

For the average person and/or family, the three biggest financial pitfalls to avoid are new vehicles, credit car interest, and short-term loans. Any and all of these can drain a person’s or family’s coffers of much needed funds. At best, they create opportunity costs, i.e., money spent on them could be better spent on sound investments like a home or stocks (both of which appreciate in value over the long term) or on college or retirement savings. At worst, they can eventually create financial hardship and even lead to bankruptcy.

Buying brand new cars, trucks, SUVs, etc. can be a real money-eater. They all depreciate in value, some much faster than others, of course. Most vehicles depreciate the most in their first year or two of life, so the person buying a vehicle when it is new will have to absorb the bulk of its depreciation costs. With the price of new vehicles as they are today, that amount can be quite excessive. On top of that, many people have the financially disastrous habit of trading them in about every two to three years for another new one. That habit will result in the piling on of depreciation and debt.

Instead of buying new, I suggest buying a low-mileage vehicle that’s about one to two years old. There are services available now like CarFax which allow you to trace a vehicle’s history. If you look around, you can find previously-owned, former-rental, or former-lease vehicles of every type, make, and model which are in like-new shape and have less than 20,000 miles on them. You can even find them on Ebay now! Once you have found one, I suggest keeping it for least three years after paying off the loan. Ideally, I would suggest paying cash for it to avoid those used car interest rates and then keeping it for at least seven years, but I know paying cash is not an option for most people.

If you absolutely feel the need to give yourself or a family member the gift of a new car some day, I wouldn’t fault you for that. However, I suggest planning this out over several years, similar to how one would save for a college education for a child. Estimate the amount that you are saving by buying used cars instead of new ones and pay yourself that money by putting it in the bank on a regular basis. Over time that money will add up. Once you have saved enough, wait until a dealer that sells the kind of vehicle you want offers one of those deals in which you can get zero percent interest or a rebate. Pay cash for the vehicle and take the rebate. That way, you get the zero percent interest and the rebate!

Credit card interest is another item that will erode a person’s or family’s financial assets very quickly. The interest rates you pay are about 534,457,469 percent! Just kidding, but it does seem that way sometimes. Seriously though, they often run as high as 18 to 21 percent. A $20 meal will end up costing $36 when paid for over a five year period at an 18 percent interest rate! Paying only the minimum payment can result in an endless cycle of debt that will eventually be practically impossible to escape, outside of bankruptcy.

If you find yourself already in this situation, I suggest you see a professional credit counselor as soon as possible. If you are already paying more than the minimum payment, try to gradually increase this payment and suspend all new credit card charges, if possible, until you’ve paid off the balance. Obviously, the only sensible way to handle a credit card is to pay off all charges each month as they are accrued and not maintain a balance, thus avoiding all interest. A credit card is a nice convenience tool. However, if you don’t have one and you feel that you could not pay off the charges each month, then you are far better off not having one. If have one or more cards and have run up balances that you have had to struggle to pay off, you would be better off getting rid of it/them.

Short-term loans are also debts to be avoided like the plague. These include those “quick refunds” offered by many tax preparers, those “pay day” loans offered by predatory lenders popping up like cancers on seemingly every street corner, and many kinds of unsecured loans. The worst thing about short-term loans is their deceptiveness. Most people don’t realize what kind of wild interest rates they are paying. For example, $10 in interest paid to keep $200 for one week results in an annualized interest rate of 260 percent! Allowing a tax preparer to deduct $100 from your $1500 refund so you can get it instantly instead of waiting six weeks for the I.R.S. to send it to you will result in an annualized interest rate of 58 percent! I bet someone advertising those kinds of interest rates would have difficulty finding any takers, yet people take on these kinds of loans all the time as long as the interest rates are disguised.

People who are wise financially avoid most, if not all, of these biggest wastes of money. Most people who are financially independent right now got that way in whole or in part by avoiding wasteful spending.

About Today’s Guest Author
Terry Mitchell is a software engineer, freelance writer, and trivia buff from Hopewell, VA. He also serves as a political columnist for American Daily and operates his own website - http://www.commenterry.com - on which he posts commentaries on various subjects such as politics, technology, religion, health and well-being, personal finance, and sports. His commentaries offer a unique point of view that is not often found in mainstream media.