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SeekingAlpha
Reality Check: Raising the Red Flags on YTB International
Thursday February 8, 4:28 am ET

 

Andrew Left (StockLemon.com) submits: YTB International (YourTravelBiz.com) has a Market Cap north of $450 million with no current financials. Any stock that rises straight up 900% in two months is always an object of interest.

    Add to that a publicly traded company based on a multi-level marketing scheme [MLM]. These are always intriguing because of the potential for Ponzi-scheme type abuses.

   Add to that a publicly traded company that hasn't reported its financials in over a year: one that trades on the pink sheets because of lack of adequate financial reporting.

.....One that has recently declared its historical financials for at least 3 prior years invalid and in need of restatement.

......One that, the last time it reported its numbers, had three times the revenues from selling business   opportunities than it had from selling its core product.

.....One that guarantees a minimum commission for recruiting even more participants.

.....One whose operators include a minister whose primary accomplishment is building a large church congregation.

... .and finally, one whose compensation program is tied to the promise to issue large blocks of stock at a set price less than 6% of today's market price ($1 a share).

   Seems impossible, but its all true.

   Multi-level marketing is not illegal. A few multi-level marketing companies have been very successful. But far more collapse because of the potential abuses in the business structure that create the conditions of a Ponzi scheme.

   Among the huge red flags swirling around this issue:

   What are the real numbers? Is this company even profitable net of its multi-level compensation promises?

   What are the legal implications and financial effects of promises of large blocks of below-market stock into an MLM organization st $1 a share?

   Would regulators be concerned if MLM participants are being encouraged in any official or unofficial way to form an affinity group to buy the stock ?

And of course --- what has changed for this company in the last two months ?

Cautious Investing To All.

Disclosure: Author is short YTBL.PK.

Related Articles



The Informer 03/12/2007

Informer
Janet Novack, Matthew Rand and William P. Barrett 03.12.07

 

                                                 Certainly an Opportunity for Him

   YTB International (other-otc: YTBL - news - people ) didn't make any quarterly filings for 2006, prompting an o-t-c bulletin board delisting last summer. Yet shares trade in the Pink Sheets at a recent $7.90, nearly six times their price a half-year ago, for a $194 million market cap.

  This rise came as the Wood River, Ill. firm, which went public via a 2004 reverse merger, announced a restatement that doubled its accumulated deficit to $13 million. That action also accompanied its admission of a "lack of independence" from its previous auditor. YTB runs a Web site called yourtravelbiz.com, catering to work-at-home travel agents who are solicited by a network of 100,000 commissioned sales reps.

   YTB tells FORBES the missing quarterlies will be filed while suggesting gung-ho travel agents are bidding up the stock. In January YTB Chairman J. Lloyd Tomer sold 1 million shares, roughly 25% of his holding (to repurchase his "dream home," a press release stated). A testimonial posted on the Web site lauds YTB as "the opportunity of a lifetime." --Matthew Rand



YTB Chairman, J. Lloyd Tomer Clarifies 1,000,000
Share Stock Sell. WHY? Feeling The HEAT?
 

 
Press Release Source: YTB International

YTB INTERNATIONAL Chairman Provides Clarification Re: Real Estate Transaction
Thursday February 8, 10:23 am ET

 

   WOOD RIVER, IL--(MARKET WIRE)--Feb 8, 2007 -- YTB International, Inc. ("YTBI" or the "Company") (Other OTC:YTBL.PK - News) and its Chairman of the Board, J. Lloyd Tomer, provided clarification today regarding Mr. Tomer's disposition of 1,000,000 shares of YTBI's common stock in payment of the purchase price in a real estate transaction that had closed in January 2007. As required under federal securities laws, Mr. Tomer filed a Form 4 disclosing the transfer of the shares as part of the purchase of a piece of real estate. While the disposition of the shares was technically deemed a "sale" under the rules that govern Mr. Tomer's SEC filings, in reality the shares were merely used as a means to purchase a piece of property that had long-standing sentimental value to Mr. Tomer.

   The Company released the following statement in clarification of the true story behind the share disposition: "Coach Lloyd Tomer sold his dream home a few years ago to help fund YTBI at a critical time in the Company's growth. A few days ago he regained ownership of his dream home by giving one million shares of YTB International, Inc. stock to the person he sold it to, John Simmons. In return, Coach got the real estate back."

   ABOUT YTBI: YTB International, Inc. provides Internet-based travel booking services for travel agencies and home-based independent representatives in the United States, Puerto Rico, and the US Virgin Islands. It operates through three subsidiaries: YourTravelBiz.com, Inc., YTB Travel Network, Inc., and REZconnect Technologies, Inc. YourTravelBiz.com division focuses on marketing on-line travel agencies through a nationwide network of over 69,000 independent business people, known as Independent Marketing Representatives, or "IMRs." YTB Travel Network division establishes and maintains travel vendor relationships, books travel transactions of on-line travel agents (RTAs,) collects travel payments and licensing fees, and processes travel commissions. The RTA sells travel through a personalized Internet-based travel Website. The REZconnect Technologies division builds online reservation systems for suppliers within the travel industry.

   Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and the Company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances.

Contact:

     Contact:
     YTB International, Inc.
     Andrew Cauthen
     Corporate Secretary
     1901 E. Edwardsville Rd.
     Wood River, IL 62095
     Email Contact

 At the YTB COMMAND of J. Lloyd Tomer, Scott Tomer and Ted
             Lindauer (the YTB attorney). The Phinneys below...
    Have Stole my YTB business and monthly income PERIOD!

         All above and below in total VIOLATION of the YTB
                                   "BILL OF RIGHTS"

That's right take a good look at the smiley faces (on the left) of the 2 thief's that stole food out of my families mouths.

 These two snakes jumped right in, receive my entire downline addresses from YTB before my Termination Appeal Process was complete.

 Now they are feeling the backlash of   their thievery. My entire group is canceling YTB at an astonishing rate do to this website ytbscandal.com and joining a real company I am promoting NOW!
 
  Thank God for the internet that allows you and me to prove the truth when someone or anyone feels froggy and leaps! Here is my advise to anyone reading this information...
              GO THROUGH THIS ENTIRE SITE AND YOU DECIDE!!!

 
This is your business and your job is to RESEARCH the TRUTH Before you promote YTB anymore. Drop your feelings and know this... I turned down perk after perk cash after cash from YTB and this is ALL revealed on this site "If You Care for your group or Downline...YOU WILL RESEARCH THIS NOW! If you don't your group will find out and ask you why you did not tell them about the TRUTH in this site.

   Just for your information...The YTB Bill Of Rights is suppose to protect your monthly income NO MATTER WHAT! Mine Is GONE!!! The Phinney's Got it. Anyone in Kirk and Cathy's downline should cancel YTB NOW!!.

  Ask yourself this question. You have read this one page with all the reports of Stock transactions Right? Now look at this site with All the Truth revealed here...

  
Why did J. Lloyd Tomer purchase his Mansion On The Hill with YTB Stock on the backs of the RTA's in YTB who brought up the YTB Stock as they were told to buy the YTB stock from the Tomer Cartel Promotional Antics. So the over the counter Stock reaches and unbelievable $18.00 a Share in a couple of months or less rising from the ashes of $3.00 a share and when that happens, J. Lloyd Tomer SELLS, SELLS, SELLS and the stock drops like a bomb.

      Who Gets HURT? You got it, the RTA's who brought the Stock up! Now your getting the picture. What if you bought the YTB Stock at $18.00 a share as an RTA. Do you think (The Coach) J. Lloyd Tomer cared about YOU? Let me answer that for you, NO, NO, NO. Tomer has a FREE Mansion On The HILL, PAID FOR on the Backs of the RTA's PERIOD!

  Editor NOTE... If you see this any other way I have a flying Saucer I would like to sell you I just got from a Mars Martian.

  And Last But Not Least. You see this site right? I mean YTBSCANDAL.COM in your face right. Well lets nail this shut. Why didn't (The Coach) J. Lloyd Tomer settle with my downline instead of buying that Mansion On The Hill knowing this site is ALL true?

  I mean come on Coach, bite the bullet on the truth and pay the damages. That's what ANY company would do to protect their opportunity. Not the Coach he would rather spend YTB money for a free Homestead than protect your opportunity! That's the reality, FACE IT!

   YTB is being investigated by the BBB as you can see with the email below. It seems that behind the YTB hidden dark walls will soon have some light shined behind them, REVEALING THE TRUTH...
 


From: 
To:
Sent: Friday, March 02, 2007 3:24 PM
Subject: YTB Complaint

 
Do you have any documentation, materials, instructions or paperwork from your dealings with this company? If so, could you please fax them to my attention at 314-584-6722. We are looking a little more closely at their business practices and any additional info would be appreciated. Thank you.
 
Scott C .Thomas
BBB

Tune into ytbscandal for continual reality updates into YTB business ethics!
Exposing the Truth, for you!

Please tune in again as I will show you exactly how much money the Tomer's make on your business building backs!!! The Tomer Cartel CANNOT LOSE!

Stay Tune!!
 

Written by...Chuck king and My opinion only!!! But lets not forget the truth!
 

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