Global Film Fund on Page 2 at Nobullshit Network Forum

**opie999** · 04-23-2007, 04:41 PM

GFF seems to be off to a good start. Referral commissions have been paid. Some members made more in commissions than what they orginally paid for their loan pack.

24oz · 04-24-2007, 02:45 PM

Has someone really checked them? I do not like matrix structures and programs where referral commissions are an important part. More info appreciated

liveyourdream · 04-24-2007, 04:49 PM

Hi 24oz

Quote:

Has someone really checked them? I do not like matrix structures and programs where referral commissions are an important part.

The matrix portion is not an important part of the program. In fact, I could have easily created the program without it. The main part is involvment with "direct to DVD" film. But that is a long term investment, 6 months to a year

So I wanted to also offer the participants a way of earning short term profits. That is the only reason for the Matrix. Almost every program out there has referral commissions. I just made my more profitable for everyone even those who can't get referrals. And it seems to be working. Out of the $75.00 for each loan pack, $25 goes toward referral commissions. And with this being the first week of the program, we made our first weekly commission payouts Sunday night. Out of that first commission payment, 75% of the members got their $25 back already and 15% got their $75 and more back. So now the long term part of Global Film Fund will be 100% profits for those 15%.

As for checking me out, many people posting on this forum and others are part of a independent due diligence committee who checked me and the program out completely before I ever launched it. And they will continue to monitor the program and me. You can see who is involved if you go to our website.

I hope that helps answer your questions. Let me know if you need anything else.

Gary
Admin of Global Film Fund

24oz · 04-26-2007, 08:34 AM

Call me lazy, but I posted a request to check globalfilmfund in another forum and this is what they answered:

Quote:

The only fact that they are offering such structure and the high referral commissions should already be a red flag.

But let's get into investments clubs legislation

Quote:

Are investment clubs regulated by the SEC?

Investment clubs usually do not have to register, or register the offer and sale of their own membership interests, with the SEC. But since each investment club is unique, each club should decide if it needs to register and comply with securities laws.

We'll discuss two securities laws that might apply to investment clubs:

* Under the Securities Act of 1933, membership interests in the investment club may be securities. If so, the offer and sale of membership interests could be subject to Federal regulation.

* Under the Investment Company Act of 1940, an investment club may be an investment company, and regulated.

When does an investment club have to register the offer and sale of its membership interests with the SEC under the Securities Act of 1933?

Since the Securities Act requires the registration of the offer and sale of most securities, the investment club must first decide if its membership interests are "securities." Generally, a membership interest is a security if it is an "investment contract."

Generally, a membership interest is an investment contract if members invest and expect to make a profit from the entrepreneurial and managerial efforts of others.

If every member in an investment club actively participates in deciding what investments to make, the membership interests in the club would probably not be considered securities. If the club has any passive members, it may be issuing securities.

Sometimes offers and sales of securities do not have to be registered because they are exempt under the law. For example, a non-public offering is exempt.
When does an investment club have to register with the SEC as an investment company under the Investment Company Act of 1940?

An investment club must register with the SEC as an investment company under the Investment Company Act of 1940 if all of the following three conditions apply:

1. the club invests in securities,

2. The club issues membership interests that are securities (see above), and

3. The club is not able to rely on an exclusion from the definition of investment company.

For example, a "private investment company" may not need to register with the SEC. To qualify, an investment club

* must not make, nor propose to make, a public offering of its securities, and

* must not have more than 100 members.

How do you know if an investment club is making a public offering?

An announcement that a club is looking for new members might be considered a public offering, but this is determined on a case-by-case basis. An attorney with experience in securities law can help the club determine if its membership interests are securities, and if the club is making a public offering of those securities.
Do securities laws apply to a person who provides advice to an investment club?

If the adviser is compensated for providing the advice regarding the club's investments, the adviser may need to register according to the Investment Advisers Act of 1940. Also, if one person selects investments for the club, that person may have to register as an investment adviser.

In general, a person who has $25 million or more in assets under management is required to register with the SEC under the Investment Advisers Act of 1940.

A person managing less than $25 million may be required to register under the securities laws of the state or states in which the adviser transacts business.

Both the Investment Advisers Act of 1940 and many state laws do not require registration for advisers with a small number of clients.
Source: Investment Clubs and the SEC

Quote:

So this offering as is presented MUST be registered with the SEC under the securities law of 1933, reason:
In this program the members are going to be paid an interest (membership interest) which they are going to obtain from the entrepreneurial and managerial efforts of others, which is exactly one of the reasons why an Investment Club MUST be registered as you can see in the above extract from SEC website.

In the other hand the program manager has just changed the restriction of "A private investment club does not need to be registered is does not exceed the 25 Million", this is completelly FALSE as you can see in the above source from the SEC. because the 25 million restriction applies to the investment club's adviser, if the club's investment adviser manages funds in exceed of 25 million, he needs to be registered if not he doesnt need, but under no cirscunstance this restriction applies to investment club's, they have changed the restriction to look legit.

So as you can see from the above the program is illegal by all means in the US, so even if the program manager has a good business plan (which I doubt after seeing his manipulation of the law to look legit, the programs structure and the return) investors are in high risk of having the funds frozen.

liveyourdream · 04-26-2007, 05:17 PM

HHello Everyone

I received an email questioning the legality of Global Film Fund. Sighting all the laws pertaining to “Investment Clubs in the US.”

In my answer I told them the truth, that I researched all of those laws and found that if I wanted this to be an investment program, that I could really only take it to accredited investors.

So, I knew I could not run Global Film Fund as an investment program. But in my research I came across Global Online Depository and their loan program. As I continued to research on offering a loan program, I found out that Global Online Depository is a US corporation and also one of the founders is an attorney and the former State District Attorney for the State of Idaho.

I figured if he was a former State District Attorney, he knows the laws and would not break them.

So I continued my research and found that I could run it as a loan program and stay within the SEC rules.

When the post I referred to at the beginning of this letter, hit the NoBSHyip Forum, I was preparing to assure the person that GFF is a legal program because we do not take investments and we are not an investment program., we are a loan program. In my desire to give a strong defense to my answer, I went back to Global Online Depository to get the information about what they do. When I went to their website, I found that they have stopped the loan program and this bit of news.

Quote:

“The Securities and Exchange Commission announced today that it has filed a Complaint in the United States District Court for the Northern District of Georgia to halt the sale of unregistered securities by Global Online Direct, Inc. (Global), a Nevada corporation headquartered in Union, Oregon, and its principals, Bryant E. Behrmann (Behrmann), of Henderson, Nevada, and Larry "Buck" E. Hunter (Hunter), of La Grande, Oregon.”

I was comfortable I was doing everything according to US laws. And as I read more on the Global Online Depository it seem like they are going to fight this and they may win.

I still believe I am operating within the guidelines of the SEC since I am not an investment club but a loan program. And I would never knowingly break any US laws or SEC rulings.

But I have no desire to fight the SEC or the desire to spend millions of dollars to fight them. So I have no choice but to stop Global Film Fund immediately and refund everyone his or her money.

I apologize for my mistake. For everyone who made a loan I am returning his or hers money. By the time you read I will have started the refunds. If you did not receive a refund in your e-gold account by the end of today (U.S. time) please let me know. I will let everyone keep his or her referral commissions.

My sincerely apologizes for any trouble this may have caused anyone.

Sincerely,
Gary D. Nice

**Jude** · 04-26-2007, 05:22 PM

Thank you. You earned my respect for making such a decision

24oz · 04-26-2007, 06:11 PM

You have proof that you are an honest man which such decission.

I asked in the same forum if US based loan program need to be registered with the SEC or not, and the answer was:

Quote:

In the leading opinion, the Supreme Court of the United States, held that the definition of a security includes an investment contract, which is "a contract, transaction, or scheme whereby a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or third party..." Designating such instruments as "loans" does not alter their legal status as securities. SEC v. W.J. Howey Co., et. al, 328 U.S. 293, 66 S. Ct.1100, 90 L.Ed. 1244 (1946).

so this is probably the reason why SEC acted against global online depository.

**allinvain** · 04-26-2007, 11:00 PM

Hmm..this gets my thinking about Legisi and other popular "loan" programs. Woudl it be reasonable to expect them to be next? What about EBL too?

**sharonsopinion** · 04-27-2007, 04:00 AM

Hi Alin,

As I understand it, the SEC is interested in securities, including secured interest loans. If a loan is secured by inventory, investments, trading, or any other thing that generates revenue to pay back the loan with interest, then it is a secured interest loan. If a loan is unsecured, like at EBL, then it falls outside of the SEC jurisdication.

Note: I am not a lawyer and the above is only my opinion on the interpretation of the SEC laws. I am not responsible if you use my interpretation as your own opinion. Please do your own research.

JMO,
Sharon

P.S. I moved this to the closed program folder.

**opie999** · 04-27-2007, 05:02 AM

Udachu and FF both on the same day and now GFF. I'm having a very, very $h!tty week.