What is Genesis Acquisitions International?
Had a request to look into something called Genesis Acquisitions International from a reader.
Doesn’t seem to a website available and there’s talk of investments, NDAs, real-estate in Kentucky, SEC compliance and all sorts of nonsense.
So, what’s Genesis Acquisitions International all about?
With publicly available details on the company being sketchy at best, here’s what I’ve been able to put together.
We’ll start with an email sent out to potential investors sometime recently:
In regards to Genesis Acquisitions International, LLC and Michael Palermo.
In early August I became aware of this opportunity via an associate who knew Michael for some years.
Michael was introduced to the Principal Land person who owns his own Farm ($1.7M est. value, purchased some years ago @ $1.2M) which is put into a Land Trust (July 2013 and verifiable, also thru County Records).
This man, Bill A., is well connected and is said to be able to purchase land at wholesale price points and has many such offers in the Millions of dollars at any time. He also has buyers at retail level, and can broker these deals in a single closing.
Alright, before we go on – some background information.
Michael Palermo, as he’s known in MLM circles, was involved in Commodities Online LLC (2011).
Run by James C. Howard III and Louis N. Gallo III of Florida, the Receiver in the case stated in court-filed documents that
from January 26, 2010 until April 1, 2011, Howard and Gallo operated and controlled a Ponzi Scheme designed to defraud investors that allowed Howard, Gallo and their confederates to steal and misappropriate investor funds.
One of the companies used to perpetuate the fraud was ‘SSH2 Acquisitions Inc, controlled by nondefendant Michael Palermo‘.
As for Bill A., no idea. The lack of a full name provided indicates some effort to mask this individual’s identity.
Back to the investor letter:
In July a several million dollar deal was in process when one of the individuals putting up $864,000 died and his estate went into probate.
The others involved and Bill wished to get this done quickly — step in Michael who asked to be given the chance to bring in that cash (as he has previously raised large capital successfully).
How Palermo raised the cash is of course not disclosed. If his past is anything to by though…
The Closing was set for September 9th and for Michael to gain confidence and capital on the 1st Pinewood Contract was slow. Actually at the last hour a big player wanted to put in $700,000 — but it was soon found that his funds were not available for 30 days.
I wrote Ken and others at that time and I also got involved: “I was able to do a Counter Deposit at Wells Fargo. I could have simply done a transfer to Mike’s account,…but my experience is it takes a day and a half to clear.
So you should see the deposit of $35,000 Transaction # 064 0075 made at 5:58 p.m. MST 8/13/14 at store #0006486 6 credited on 8/13/14.”
I then decided to up my involvement and made another deposit of $50,000 08/18/14 WITHDRAWAL MADE IN A BRANCH/STORE $50,000.00 and similarly deposited.
I heard that all went well on the Closing and on 9/10 Michael initiated a bank wire back to me of my Principal $85,000 + 20% interest ($17,000) = $102,000 09/11/14 WT SEQ115880 DREAMCATCHERS INTERNATI /ORG= SRF# 0066623254774991 TRN#140911115880 RFB# $101,970.00 (bank wire fee took $30 + a receiving fee from my bank of another $15).
My sponsor was also paid on his contract. All others affirmed the same on a members call.
So wait what?
Palermo raised funds through a group of investors, something something magic and then a month or so later paid out a 20% or so ROI? On seemingly hundreds of thousands of invested dollars?
Sponsors…. member’s calls… sounds MLM’ish to me. Oh dear.
Of course this wasn’t a one-off, with the above fairy tale used to procure a new wave of investors:
First Contract PAID and Second Contract Now In Process.
For those sitting on the sidelines, wondering if this was/is the real deal… well I am here to tell you it is (well for sure I cannot argue that I was paid)…and there may still be time for you to get involved with the next contract!
Oh of course, totally a “real deal” – yet the only “evidence” that exists are claims that those at the top of what appears to be a newly birthed Ponzi getting paid.
SEC Compliant – Filing in Process
100% Secure – Principle Backed By Verifiable Land Trust
100% Transparent Wholesale/Retail Land Transactions
20% Return (may vary on future contracts, each is individual)
$5k min by Bank Wire (I personally bank at the same bank so direct deposited)
Funds and Contract Due: TBA (was already extended past original date)
Payout Date is: Friday 10/24/14
SEC compliant and 100% legal? Who are they kidding?
That Palermo is allegedly registering himself or Genesis Acquisitions International after they’ve allegedly solicited investments and paid out ROIs should set off a major alarm bell.
Ditto the “payout date” of the 24th of October. Because, y’know, guaranteed 20% ROIs on fixed schedules is totally how legitimate operations work.
As for the other claims, hell the toilet paper I used this morning holds more legitimacy.
Roll on the bullshit!
However, legally this is a Private Placement Offering, and as such you are required to sign a Non-Circumvention and Non-Disclosure Agreement which will need to be returned in order to have full access to details and documentation. this must be scanned and returned to Genesis.
Anything I have said should NOT be taken as True (Ozedit: no shit?), as you must hear directly (by Law) from the Broker (which I am not). What I have said is my truth and perhaps some opinion.
Do your own Due Diligence. Naturally I am involved with this 2nd contract which has raised over 3x the amount of our first.
Those who are involved wish to preserve what we have found, and ask that you take seriously our Agreement as a Club.
Last Thursday, Michael invited his SEC savvy attorney for our members call and he is aligned to advise Michael appropriately.
This week Michael is in New York away from home so has been quite busy; Bill had advised him to study up for his Series 7 test (SEC exam).
A password protected website is half constructed to make membership more streamlined, but up to this point we have used DropBox and e-mail for sharing docs.
I am involved with several other real Projects, however these are well advanced and mostly closed. I am looking forward to see if Genesis manages to attain that type of sophistication.
So far, so good. Looks like a bright future for those who decide to join.
Jim ‘Walks Simply’ Goohs
PLEASE REMEMBER THAT GENESIS ACQUISITIONS INTL. LLC. IS A PRIVATE OFFERING.
DO NOT SOLICIT OR ADVERTISE IN ANY PUBLIC FORUM, WHETHER IT BE ONLINE, VIA FACEBOOK, TWITTER, YOUTUBE, OR ANY OTHER MEANS OF SOCIAL MEDIA.
Bloody hell. SEC savvy attorneys? Private Placement Offerings? NDAs?
Who do these guys think they are kidding?
And Jim Goohs, a LinkedIn profile exists for a Goohs in Arizona but it wasn’t anything special. Gooh’s involvement in the greater MLM industry remains a mystery.
This email appears to have been sent out in the last week, with other communications between insiders revealing that a website to better coordinate investors is on the way:
Did we reach the 1 million dollar mark??? Or did we not???… Please join us tonight, Thursday October 9th at 9:00pm EST to find out where we stand in regards to our Pinewood TCI 2 Contract…
No money will be accepted for this contract after 5pm EST tommorow FRI 10-10-14. Tommorow is our last day to fund this contract. So do not be left to sit on the sidelines while others reap the awesome benefits of our membership!!
There is a lot to learn about this exciting and lucrative opportunity so please join us!
See you on the call tonight!!!
CALL# (760) 569-7676
PLEASE REMEMBER THAT GENESIS ACQUISITIONS INTL. LLC. IS A PRIVATE OFFERING. DO NOT SOLICIT OR ADVERTISE IN ANY PUBLIC FORUM, WHETHER IT BE ONLINE, VIA FACEBOOK, TWITTER, YOUTUBE, OR ANY OTHER MEANS OF SOCIAL MEDIA.
DOING SO WILL BE GROUNDS FOR TERMINATION FROM THE MEMBERSHIP.
A million dollars? Sounds like these guys are starting to get serious.
Like I said at the beginning of this article, details on the MLM opportunity side of Genesis Acquisitions International are scarce.
At the time of publication the only other document I was able to find in relation to the scheme was a “Genesis Executive Summary”.
The document was uploaded by a “Cynthia Schmidt” on September 12th to Scribd. I believe its purpose was to drum up new investors for the “second round” of investment mentioned in the promotional emails above.
Schmidt’s document provides more details about the first supposed “contract” Genesis Acquisitions International offered their investors. It also outs “Bill A.” as “Bill Apostelos” and introduces us to the company “WMA Enterprises”.
Genesis Executive Summary
One of our companies is entered into an agreement to loan to 3 members of a farm co-op $864,000.00 dollars to allow them to purchase 2017 acres of land at $1,750.00 per acre just outside of Henderson, KY. The total cost of the land being bought thru a private estate sale is $3,529,750.00.
The co-op members already have 1006 acres sold at $4000.00 an acre for a total of $4,024,000.00. So you see, as is, there is proﬁt built into the pre sold land.
Now the closing was to happen on July 18, 2014, however 2 weeks ago one of the 3 partners died putting the land purchase into probate.
The remaining 2 partners have a working relationship with Bill Apostelos (the principle of the offering/WMA Enterprises) and they have asked him to come up with the outstanding balance of $864,000.00 to purchase the remaining parcel of land.
Bill is very politically connected in Kentucky and based on those relationships he has been afforded the opportunity to acquire land at wholesale price points.
Bill’s relationship with the Lieutenant Governor of Kentucky, County Commissioner, and primarily the various estate attorneys that he deals with on a daily basis allows him to be notiﬁed about land that is going to auction before it actually does so.
Bill has been doing these types of transactions for the past 11 years and has buyer’s ready to buy at a retail price point simultaneously as he purchases at the wholesale price point.
In regards too this speciﬁc contract (the club’s ﬁrst with Bill), Bill has capital to complete the transaction, however when he was asked by the co-op to cover the balance it was at this time that a discussion began between Genesis Acquisitions Intl. llc. (our private investment club) and Bill.
This relationship was birthed out of the potential realization that Genesis Acquisitions Intl. llc. could not only cover the cost of the outstanding balance of $864,000.00 due to complete the transaction, but also increase Bill’s overall buy rate on the wholesale side.
It was explained that Bill had been leaving hundreds of millions of dollars worth of contracts on the table due to his limited funds. To date Bill and his co-ops have been buying land parcels in the $100,000 to $2,000,000.00 range with enough buyer’s on the retail side to pre sell the land.
Genesis Acquisitions Intl. llc. and it’s partner’s have a long history of raising millions of dollars for projects world wide (Ozedit: Ponzi schemes) and we see this new relationship as being very lucrative moving forward.
Upon asking Bill if he would be able to support signiﬁcant growth on both the buy/sell sides his answer was a resounding, yes.
So Genesis Acquisitions Intl. llc. has entered into agreement with WMA Enterprises to increase his/our overall purchasing power. It will then be up to WMA to fulﬁll all land buys and share a pre negotiated commission back to Genesis Acquisitions Intl. llc.
Upon delivery of all monies to Genesis Acquisitions Intl. llc., Genesis will then distribute said monies based on a pro rata share back to the member’s of Genesis Acquisitions Intl.
This process can be repeated several times in an approximate 4 to 6 week timespan with negotiated commissions ranging anywhere from 15 to 45% per contract. For the contract at hand Bill is willing to pay 20% to the lender and a 10% referral which will pay on September 9th, 2014.
This is a signiﬁcant ROI and delivered in a very favorable time frame. So our ﬁrst order of business is to complete this outstanding contract of $864,000.00 and bring it to closing on September 7th.
Moving forward there are several keys to what will make this relationship so very special.
First, the frequency of land purchases on Bill’s buy/sell side. Bill can comfortably execute up to 10 land contracts a month. Second, with proﬁt margins ranging anywhere from 15% to 45%, our membership will be the envy of even the most sophisticated investor.
Third, the time frame for ROI based on the criteria set forth will typically be in the 4 to 6 week range and last, and perhaps most important is the overall safety of how Bill performs or in laymen’s term’s the proverbial icing on the cake…
Bill has an unencumbered land trust worth $1.7 million dollars that he will allow Genesis Acquisitions Intl. llc. to take a 1st position lean on during the duration of the transaction.
Once closed and club member’s paid, Bill will then remove Genesis Acquisitions Intl. llc. from the trust. This process can be repeated and the trust used multiple times without cease as long as the investment does not exceed the value of the trust or that the trust is leaned to capacity.
With that said it is important to note that Bill has several properties across the U.S. totaling approx. $9,000,000.00 in value. So in essence, multiple land trusts can be created to collateralize the increased purchasing power that the club will bring moving forward.
The land trust thus protect’s our membership’s principle investment by acting as collateral and essentially until we ﬁll the entire collateral position of the trust Bill is taking all of the risk.
Simply due to the fact that in the event that he defaults he will have to liquidate and pay back the member’s far more than the principle invested by the membership.
So based on the fact that the land trust is worth nearly double the principle investment at the $864K investment level he is not going to let an investor walk away with that property and even if he does you now own 1.7 million dollars of farmland that is producing a yearly revenue of 85k.
The fact that Bill has been performing these exact type transactions for the past 11 years, the ratio of land trust value to investment principle, and Bill recognizing how powerful this new relationship can be moving forward, would suggest that Bill will not default on paying our back our membership. It certainly would not be in his best interest to do so.
So it is important to remember, if he pays we move forward with the relationship and if he does not Bill has a 10 day cure period to make the membership whole.
In case of default, Genesis Acquisitions Intl. llc. will then contact the Executor of the land trust and demand that the trust be fully liquidated and be done so at the full expense of the Executor/Trustee of the land trust, Attornet (sic) at Law, Mr. Steven Scudder.
Upon liquidation of said land trust all monies will be dispersed back to Genesis Acquisitions Intl. llc., where by then Genesis Acquisitions Intl. llc. will then disperse back to Genesis Acquisitions Intl. (and) all member’s who contributed funds based on a pro rata share. Thus making them whole by returning all monetary difference that will remain between the total principle investment and entire liquidation of the land trust.
The time frame for liquidation will vary, however based on due diligence and historical evidence in the surrounding areas of the trust location, it should take no longer than 3 to 4 weeks to liquidate.
In case of a ﬁre sale there is the distinct possibility that the liquidation could be completed within 1 week. So it is important to internalize that all parties are protected and the criteria of a lucrative, lasting, and most important, a safe investment model is being provided.
As we further develop our relationship with WMA Enterprises not only will we be earning commissions through the buy/sell model but the opportunity to acquire/purchase land will also be made available to us.
Many of the buyer’s that Bill is selling land to on the retail side are buying the land along the I-69 corridor in Henderson, KY and zoning it commercial. They are doing so in preparation for the eventual development that will begin in the near future.
At that time the value of property will be worth far more than what Bill is selling it for retail right now let alone what he paid for it wholesale. It is also important to note that Bill acquires many parcel’s of land and the option to buy land that is producing crops will also be made available to us.
This is important because as history has shown, when the markets/economy takes a negative turn the prices of commodities sky rocket. To have ownership of producing farmland will be very attractive.
Moving forward as stated earlier, there are many of these buy/sell opportunities that Bill will make available to us. So this can easily be a 6 to 7 ﬁgure monthly income for all Genesis Acquisitions Intl. lllp. member’s once established.
In closing, with Bill’s proven history of performance and the overall safety of each transaction this offering should be taken very seriously.
Other than ascertaining that “Bill Apostelos” is better-known as “William Apostelos”, I was unable to dig up any further information. MLM is my thing, with real-estate leaving me kind of clueless.
The implication of a working relationship between Apostelos and the Lieutenant Governor of Kentucky and County Commissioner didn’t go unnoticed though.
As for WMA Enterprises, it would appear to be an Ohio corporation set up by Apostelos. Genesis Acquisitions International LLC meanwhile appears to be registered in Nevada:
The fact that WMA Enterprises was only registered in 2009 kind of puts a dent in the whole “Bill Apostelos has been doing this for a decade” ruse. Or at the very least he hasn’t been flipping properties under that business name.
Putting all of this together, what we know is that people tied to Ponzi schemes in the past are running soliciting investments on the promise of 20% ROIs with referral commissions. They’re telling people this is 100% legal and that they are in the process of registering with the SEC, despite already claiming to have paid out 20% advertised returns and referral commissions on at least one investment offering.
Anyone who has access to more information about this emerging shady scheme is invited to send in what they have via the contact form (the “docs” being shared via DropBox and email are naturally of particular interest).
Over to you readers… what do you know about Genesis Acquisitions International?