Network World Uncovers More Dirt On Zer01
NetworkWorld published its findings on the suspicious histories of the men behind new cellphone company Zer01 just two days ago, but they clearly sent someone behind the scenes scrambling. This afternoon they reported that Zer01's parent company "has stripped its Web site down to only basic information," and that "new details have also come to light suggesting a past connection between two of the involved companies, despite claims to the contrary."
Bob Piilani, CEO of Zer01's parent company, told NetworkWorld he only met Mark Petschel, CEO of Global Verge (which is actually selling all Zer01 "services") this past May and had no idea of Petschel's current probationary status for securities fraud. But NetworkWorld found information that suggests that at least their companies knew each other, even if they allegedly didn't:
Several Global Verge marketers have Web sites that include links to a Global Verge program for selling PC equipment. Prior to Wednesday, the URL for that program, nextdaypc.com [see note below. -Ed.], opened a Web site for Piilani Computers, described as a division of UTG. One of the marketer's Web sites includes that link on a page dated Dec. 17, 2008. Piilani's biography said that one of his former companies, I-Net, also sold the Piilani Computers line.
But by Wednesday, the "Piilani Computers" headline on the top of the nextdaypc.com page was replaced by the words "Your Smart Choice." In some areas of the country, the Piilani Computers banner is still visible.
Looks like we need to modify that chart.
Update: NextDayPC contacted us to insist that they have had nothing to do with either Petschel or Piilani. They are an unrelated third party company and don't want their name dragged into this mess:
Our company, NextDay Network, Inc., is a hardware, software and electronic products reseller since 1999. We operate through 2 web sites, NextDayPC.com, which is a customizable storefront so technology consultants and any other interested parties can join our independent sales force and benefit from their sales under our agency model. We also operate ResellersOnly.com which is our back office portal for our sales force.
As long as our Terms of Use for these 2 sites are followed, any individual or company can sign-up as a NextDayPC reseller at ResellersOnly.com and immediately receive a co-branded web site which they can customize with their own logo and contact information. All transactions are conducted strictly between NextDay and our end-customers and the only exchange of money between our company and our independent sales agents are through bi-monthly commission checks that are sent out on the agent's sales for the previous month.
On October of 2008 Global Verge became one of our 12,000 affiliated sales companies. As of today, Global Verge and their partners have generate a total of $3,000 in sales, all of which has been processed and shipped. Furthermore, we have placed Global Verge on a cancellation notice and intend to contact their team members and explain our decision shortly.
As you can imagine, with the recent series of controversial articles on Global Verge and Zer01, it is extremely important for us to make sure that our companies good name will not be inaccurately associated with these 2 companies and your readers will not gain the wrong impression that NextDay Network has been involved in any wrongdoing.
PCWorld spoke with NextDay Network and found out more about their very limited relationship to Petschel's company Global Verge. Says their CEO, Arthur Smaal, "If this thing blows up, I don't want to be a part of this."
"After report questions service, Zer01 parent strips Web site" [NetworkWorld]
"PC Reseller Distances Itself From Global Verge" [PCWorld]
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Comments:
These guys thought they could get away with all of this without anyone noticing??? With all the information at our fingertips today... Come on!
All of their web sites screem scam also. Props to the consumerist for continuing to follow this story, saw it a few days ago on a tech web site.
Anyone out there know one of the "Thousands" of people who have signed up to market this thing (And paid for the right to do so?)?
@John Israel: The post about the iPhone app? It's in that brief limbo between the first page and the second page (there are always a few posts not appearing in page views between those), but you can find it if you use the search function. Here: [consumerist.com]
Maybe he attended Georgetown in the Cayman Islands? Is any state AG following this as a suspected Ponzi scheme?
@pmcpa4: I do. They live upstairs from me. The wife of the couple and I had a nice chat a few weeks back and she started get on this. I could tell she was in pitch mode, and even from what she told me, I smelled something fishy. She then e-mailed me a link to her site - which was a dreadful looking site that is obviously made from a template site. It took me all of a few clicks to determine it was an MLM.
She wanted me to look at and tell me what I thought. I never responded to it or brought it up. But now, I guess I'll have to show them these reports...
@John Israel: Please keep posts on topic. The front page weirdness is definitely a known issue, but you can search for the page. If you have questions that aren't related to a thread, please don't comment - there's a whole list of contact information in the left panel.
Thanks floraposte for posting some helpful info though!
Figured out these dissapearing posts the other day (and yes, apparently the Consumerist team is working on this):
The page displayed at [consumerist.com] doesn't include as many stories as [consumerist.com] (I've seen between two and seven get cut off). Problem is, when you get to the bottom of the page at [consumerist.com] and click "next >>", it takes you right to [consumerist.com] and those extra stories that would have been at the bottom of [consumerist.com] never get displayed.
@Stephen Schenck: URL formatting has obscured my point, but it's a (plain consumerist) URL vs (consumerist/?p=1) vs (consumerist/?p=2) issue.
As shady as this company may be, at the least it brings to the forefront the inability for anyone to compete on a legitimate level with the big providers.
The US is littered with cell towers, yet we pay 78 cents/kilobyte for text messaging, and lord knows how much for highly-restricted "unlimited" data plans.
Well, those cell towers didn't just grow there. Anyone who wants to compete is welcome to - just spend $10 billion buying spectrum and another $5 billion building a network, and you'll be a nationwide wireless player.
Check it out! Their "unlimited voice and data coverage" map is identical to a now defunct Scenic City Communications.
Heh, I knew this was fishy. Smelled it all the way over here!
more fuel on the fire:
[blog.laptopmag.com]
claim that it's the resellers making claims
few phones to ship to journalists "next week"
[www.techdirt.com]
speculations of legitimacy
@John Israel: Don't let Roz be a killjoy. As long as you keep calling people dicksmacks, you can post whatever you want.
I have been researching this company for several weeks now and have found out some disturbing things about it. First, there is no product yet. That is a big red flag. Supposedly the first top 2000 people that joined were to get their SIM cards and phones by June 1st, then it was delayed to July 1st, and now it may be 2 - 3 months before they even can see the technology. Second, it seems like all they are doing now is signing up "distributors" that pay $400 over 6 months for an "e-affiliate website". So far the company has raised $8,000,000 in the last 6 weeks just signing up "distributors". I would stay away from this one!
I'm not sure where you're getting information, let me tell you the real story: I've been involved since May so I've seen the positive changes for more thana few weeks!! We were NEVER Promised Service in June. The date was ALWAYS July and I don't feel like being one month behind is all that big a deal, considering the industry. I don't know where you're getting your numbers from, they are totally wrong. The cost is only $34.95 a month and considering the amount of Associates, you're about 8 times too high!!!! By the way, anyone who didn't want to wait it out, could request a refund which was processed immediately!! If you're going to recommend something, make sure you have the facts first or are you here simply to promote your book??
![[sceniccitycommunications.com]](http://sceniccitycommunications.com/uploads/2009/02/coverage-map.png){kind=link}
What happened to the weed-related post? Did it get shut down because everyone posting there were acting like a bunch of dicksmacks?