In late 1999, the company I worked for, SBN Venture Capital Resource Partners, Inc., was hired by Sarit and Ami Shafrir to try and turn-around their money losing businesses particularly Federal Transtel, Inc.

FTT lost almost <$2,000,000.00> between December 1997 to December 1999.

Within two years, between 2000 to July 2001, with me as chairman and chief executive officer of FTT, Inc. the company made more than $3,000,000.00 in profits.

Click on the below FTT Summary of Net Income and Loss Chart.

I did this turn-around by eliminating clients who were defrauding consumers by billing on their telephone bills bogus charges that would then hurt FTT’s relationship with the phone companies in jeopardy. I also expanded our billing verification and follow-up on complaints by hiring dozens of telephone operators to intercept complaints lodged against any false billing.

My biggest mistake was talking on the phone to Government law enforcement agencies.

The boiler room operators who had been using FTT and other telephone billing companies like IntegraTel to steal tens of millions of dollars from the American public realized that someone in the industry was whistleblowing on them. So, they hired private investigators who wiretapped my phones and found out that I had been cooperating in sting operations against these fraudsters.

One of these fraudsters was Gointernet, Neal Saferstein, and the owners of these companies Mercantile Capital. FTT’s cooperation with the Government caused them to be shut down with a $50,000,000.00 fine. However, because they wisely structured their fraud against the American public by creating bogus loans to Gointernet, after the FTC shut down the telemarketers Mercantile Capital is continuing to this moment to put on phone bills charges to 100,000 people who are unaware that they are paying for services that Gointernet allegedly sold them long, long ago.

When I shut down Gointernet’s fraudulent billing system and informed my competitors of our discovery, Gointernet then went to our competitor, IntegraTel to try their fraud scheme on through them. Shockingly, they agreed! The FTC prosecutors followed up on FTT’s disclosures and whistleblowing information which led to a huge sanction against IntegraTel. See below.

My focus was in recovering money and assets that were removed and stolen from FTT by the previous hidden owners Ami and Sarit Shafrir.

See $6,955,976.57 reserves borrowed by shareholders.

I tried to recover this money which the shareholders "borrowed". They borrowed these millions without paying interest....ever, nor declaring this income on their IRS or FTB filings. To this date, they have not paid any taxes. They prepared for the eventuality of me or another whistleblower, by creating fictitious and bogus losses, like a $5,000,000.00 cash investment that was wired to Hungary from Mr. Shafrir’s bank account at First Credit Bank in Beverly Hills. Amazingly, Shafrir, who sues everybody for everything, never sued to recover the $5,000,000.00 that according to him in his testimony in divorce court just "disappeared into a bad investment". He did however describe it as a "tax loss", in case the IRS or FTB came around to audit his tax returns.

The $5,000,000.00 was re-circulated into the Shafrir’s businesses in ways that I will describe here and in the upcoming criminal trial of US vs. Anthony Pellicano.

STEALING CHUMP CHANGE FROM MILLIONS is the Shafrirs focus in business. Why are they doing this to you? It is simple - it’s very easy money to make and hard to detect on the books. The equation works.  And, it is virtually impossible to stop.

The Shafrirs use different front men to induce people like you to go to their websites and release your personal information so that they can bill a few bogus dollars on your accounts. The list of cohorts including: telemarketers and software programmers only changes in names. The techniques remain the same from scheme to scheme.

Sears-Roebuck has only ONE merchant account. Why do the Shafrirs need so many different guarantors? The answer is that they divide the billing fraud amongst many accounts so as not to attract the attention of the fraud investigators at the banks and credit companies. See VISA and Mastercard Merchant Accounts Shafrir uses to bill you.

I will demonstrate my efforts to uncover the frauds the Shafrirs have admitted to and the ones they are continuing to do. Please check your credit card bills, telephone bills, check by phone bank statements to see if there are any charges that should not be there. That is the purpose of my original whistleblowing activity that I started in 2000 and I am continuing to this date.

Sarit's admissions to the Government can be seen in the below link:

Sarit's Confession

The Shafrirs were engaging in this complicated and high earning fraud activity all the while claiming that they were "indigent".

As CEO of FTT, I reviewed some of our clients new marketing literature  to ascertain their veracity. One day, I stopped in my tracks when I saw the below document.  This led to my whistleblowing activities and an undercover sting into the operations of FTT. 

Please review this letter and note that the asterisked disclaimer at the bottom is the eyebrow raising part.  The company was asking for all of your private information for the sole purpose of engaging in fraudulent activity.

Click image.

There were some individuals operating out of the telemarketing boiler room fraud center in Florida who were marketing discount pharmacy cards to geriatrics. I smelled a major con since I was certain they would cut costs to these members by mailing them bogus pharmaceuticals.

This subject about adulterated and fake pharmaceuticals had a special interest for me. I have six children, two of whom have Chrone’s disease which necessitates on-going pharmaceutical intake.

My father’s life ended due to administering of ineffective medications to combat an infection. I immediately contacted law enforcement regarding the memo that was being marketed through FTT.

Wiretapping: What I did not realize was that the Shafirrs had kept track of me through private investigators by wiretapping my phones, faxes and other communications. In fact, in the midst of a very successful undercover sting operation, the Shafrirs communicated with the Criminal Investigation Division lead agent and informed him of their intimate knowledge of my activities against them and their associates.   This multi-million dollar sting was immediately shut down and scuttled to protect the lives of the undercover operatives.

This and other details are going to be revealed in the upcoming testimonies of the Shafrirs in the federal criminal case of US vs. Anthony Pellicano.