TO
TO DONATE
TO DONATE TO A FAVORITE ORGANIZATION.
ORGANIZATION. >>> TONIGHT A TAKE CARE OF YOUR
MONEY KARE 11 INVESTIGATION.
AS LOU RAGUSE TELLS US, IT
INVOLVES A MYSTERIOUS COMPANY
AND ALLEGATIONS IT HAS BEEN
CHEATING PEOPLE ALL ACROSS THE
COUNTRY.
COUNTRY.
COUNTRY. >>> IT ALL STARTED WHEN THEY
SPOTTED THE JOB OFFERS HERE ON
CRAIGSLIST.
CRAIGSLIST. >> I WAS SUPPOSED TO GET A BASE
SALARY OF $4000 A MONTH.
>> THE THING THAT DREW ME TO IT
WAS A SALARY ADDITION AS
OPPOSED TO COMMISSION ONLY.
>> I WAS VERY INTERESTED IN THE
GUARANTEED SALARY.
GUARANTEED SALARY. >> THREE OF THE PEOPLE ACROSS
THE COUNTRY WHO SAY THEY WERE
TAKEN IN BY A MINNESOTA COMPANY
CLAIMING TO SELL A
REVOLUTIONARY WATER SYSTEM.
>> IT IS TIME TO PRODUCE
DELICIOUS AND HEALTHY WATER AT
HOME.
HOME.
HOME. >>
HOME. >> WERE YOU EXCITED?
>> I WAS VERY EXCITED.
EXTREMELY.
EXTREMELY. >> DAVID MADDOX FROM LAS VEGAS
SIGNED UP EARLY LAST YEAR.
>> OVER THE PHONE, A MAN
CALLING HIMSELF MICHAEL TOLD
DAVID HE WOULD BE WORKING FOR
WATER TECH MARKETING OF ST.
PAUL, MINNESOTA.
PAUL, MINNESOTA. >> SELLING A WATER IONIZING
MACHINE CALLED A K8.
>> THIS IS REVOLUTIONARY.
>> THE IONIZED WATER SHOULD BE
BETTER FOR YOU.
THE ONLY CATCH?
TO SELL THE MACHINE YOU NEED TO
BUY ONE.
BUY ONE.
BUY ONE. >> IF YOU WANT TO BE A
SUCCESSFUL, A HIGH LEVEL
SUCCESSFUL DISTRIBUTOR, IT IS A
MUST THAT YOU GET A K8.
>> THE UNITS COST $5000.
BUT WATER TECH INCLUDED A
MONEYBACK GUARANTEE.
MONEYBACK GUARANTEE. >> WE OFFER A 90 DAY REFUND
POLICY.
POLICY.
POLICY. >> PEOPLE AND INCLUDING KEVIN
WERE TOLD THEIR MONEY WOULD BE
HELD IN ESCROW.
>> HE SAID YOUR MONEY IS
SITTING IN AN ESCROW ACCOUNT.
>> DID THE WORD ESCROW MAKE YOU
FEEL AT YOUR MONEY WAS SAFE?
>> TIME AFTER TIME PEOPLE SAY
THEY PAID THOUSANDS FOR
MACHINES THAT NEVER A RIDE.
>> HOW LONG DID IT TAKE YOU TO
GET YOUR WATER MACHINE?
>> I NEVER RECEIVED ONE.
>> DID YOU EVER RECEIVE THE
MACHINE?
MACHINE?
MACHINE? >> NO.
>> NO.
>> NO. NEVER.
NEVER.
NEVER. I
NEVER. I NEVER GOT THE MISSION.
>> THE PROMISED MONTHLY
SALARIES DIDN'T ARRIVE EITHER.
>> PRETTY MUCH YOU GET YOUR
DREAM SHATTERED AND IT'S LIKE,
YOU KNOW, IT WAS DEVASTATING TO
BE.
BE.
BE. >>
BE. >> IN
BE. >> IN AN EMAIL LAST SEPTEMBER,
THE COMPANY ANNOUNCED WATER
TECH WAS SUSPENDING ITS
DISTRIBUTOR PROGRAM.
DISTRIBUTOR PROGRAM. >> THE IMMEDIATE PAUSE OF OUR
MASTER DISTRIBUTOR PROGRAM.
BUT KARE 11 DISCOVERED AT THE
SAME TIME WATER TECH WAS TAKING
ITS SO-CALLED PATH, ANOTHER
COMPANY WAS BEING CREATED.
WATER INNOVATIONS GROUP,
CLAIMING TO SELL THE SAME
GENES, REGISTERED OF THE SAME
SAMPLE ADDRESS, AND USING THE
SAME VOICE IN THIS NEW
RECORDING RECRUITING MORE
PEOPLE.
PEOPLE.
PEOPLE. >> WE ARE NOT LIKE SOME COMPANY
IN A GARAGE THAT JUST CREATED A
WEBSITE AND SAID TO SEND US
MONEY.
MONEY.
MONEY. THAT IS NOT WHAT IS.
>> IN NEVADA, VAL HEARD THE
PITCH.
PITCH.
PITCH. >>
PITCH. >> SALES POSITIONS, SALARIED,
KAREN T DIDN'T COME.
>> BECAUSE OF RIGHT?
THOUSANDS HE FORKED OVER FIVE
GRAND AND DIDN'T GET A MACHINE
EITHER.
EITHER.
EITHER. >> AND IT JUST KEPT GOING ON TO
THE POINT WHERE I SAID, WELL,
I'M GOING TO HAVE TO REQUEST MY
MIND ABOUT.
MIND ABOUT. >> WHAT ABOUT THOSE PROMISED
REFUNDS FROM MONEY SUPPOSEDLY
IN ESCROW?
IN ESCROW? >> I WANT TO EMPHASIZE
EMPHATICALLY THAT WE WILL BE
HONORING OF COURSE ALL REFUNDS.
>> DESPITE COMES IS LIKE THAT,
MOST OF THE MORE THAN TWO DOZEN
PEOPLE WE TALKED TO FROM ALL OF
THE COUNTRY TELL US THAT THEY
COULDN'T GET REFUNDS EITHER.
>> THERE IS NO RESPONSE.
NOTHING BUT EXCUSES.
>> THE SALES PITCHES CONTINUE.
UNDER ANOTHER NEW NAME.
MILE HIGH THE NEW
>> I FEEL GUILT.
I FEEL NACVE.
>> IN FLORIDA, THIS STAY-AT-
HOME MOM SOME.
BUT HE $5000 HOPING SHE COULD
MAKE SOME MONEY AFTER HUSBAND
WAS INJURED AT WORK.
>> OUR FAMILY WAS IN A TOUGH
POSITION BEFORE AND I PUT OUR
FAMILY IN A WORSE SITUATION.
AND I HAVE TO LIVE WITH THAT BY
LOOKING AT MY CHILDREN AND MY
HUSBAND AND I DON'T KNOW HOW TO
REPAIR THAT.
REPAIR THAT. >> WHEN SHE COULDN'T GET A
MACHINE OR A REFUND, SHE
DECIDED TO CONTACT THE COMPANY
THAT MAKES THE K8 MACHINE.
>> THEY TOLD ME THAT MILE HIGH
THE SAME PEOPLE ARE BEHIND
WATER TECH.
WATER TECH. >> DID THEY SAY THESE WERE
LEGITIMATE COMPANIES?
LEGITIMATE COMPANIES? >> UNFORTUNATELY, THEY TOLD ME
THAT MILE HIGH HDL WERE
SCAMMERS AND I NEEDED TO REPORT
EVERYTHING TO THE AFFAIR.
>> THE MANUFACTURER TOLD US
THEY TERMINATED THE COMPANIES
AFTER TERMINATING UNAUTHORIZED
BUSINESS ACTIVITY.
BUSINESS ACTIVITY. WHO IS BEHIND IT ALL?
WHEN WE CHECKED THE PUBLIC
RECORDS FOR OTHER COMPANIES, WE
DISCOVERED ONE MAN LISTED AS
THE INCORPORATOR.
THE INCORPORATOR. CHARLES FIELDS OF BLAINE,
MINNESOTA.
MINNESOTA. >> HELLO CHARLES, THIS IS LOU
RAGUSE AT KARE 11 NEWS.
WE CALLED AND KNOCKED ON HIS
DOOR, TRYING TO GET HIS SIDE OF
THE STORY.
THE STORY. CHARLES FIELDS DID AGREE TO SIT
DOWN FOR AN INTERVIEW.
WE WERE ALL SET UP AND READY TO
GO AND MINUTES AFTER HE WAS
SCHEDULED TO BEGIN, HE SENT AN
EMAIL CANCELING.
EMAIL CANCELING. >> WE WANTED TO ASK CHARLES
FIELDS WHY PEOPLE DIDN'T GET
MACHINES OR REFUNDS, AND WHITE
WHEN ONE COMPANY SEEMED TO FAIL
, HE JUST CREATED A NEW WENT TO
RECRUIT OTHER PEOPLE?
HE NEVER ANSWERED THOSE
QUESTIONS BUT SAID IN THE EMAIL
HE IS MAKING PROGRESS TOWARDS
TAKING CARE OF ALL OF THE
PARTIES WE OWE ANYTHING TO.
AND AFTER KARE 11 BEGAN ASKING
QUESTIONS, SOME PEOPLE HAVE
GOTTEN REFUNDS.
GOTTEN REFUNDS. BUT OTHERS HAVE NOT.
AND THE IMPACT ON FAMILIES GOES
FAR BEYOND JUST MONEY.
>> I FEEL SCAMMED.
>> THAT APPEARS FROM KANSAS
THOUGHT THE JOB WOULD HELP PAY
DR. HILL'S AFTER HIS SON
EVOLVED A BRAIN TUMOR.
OUT MONEY AND LOST TIME, HE IS
SO ANGRY HE SAYS HE CONTACTED
THE FBI.
THE FBI.
THE FBI. >> HOW HARD IS IT TO JUST
RETURN PEOPLE'S MONEY AND BE
DONE WITH IT?
I FEEL LIKE I WAS PONZI SCHEME
TO.
TO.
TO. THAT
TO. THAT IS WHAT IT FEELS LIKE.
>> THE ATTORNEY GENERAL AND FBI
SAY THEY CANNOT COMMENT ON ANY
ACTIVE INVESTIGATIONS.
ACTIVE INVESTIGATIONS. BUT WE WILL KEEP YOU UPDATED ON
ANY DEVELOPMENTS IN THIS CASE.
THE AG'S OFFICE DOES HAVE THIS
MORNING, BEWARE OF UPFRONT
PAYMENT JUST TO GET A JOB.
AND FOR THE TIP SOME HAD
PROTECTORS OF, CHECK OUR STORY
ON THE WEBSITE KARE 11.COM.
>>> ALL OF THE PEOPLE YOU
TALKED TO WERE ALL OUT-OF-STATE
PEOPLE.
PEOPLE.
PEOPLE. >> I LOOKED AT GREG'S US AND HE
ADVERTISED ON EVERY MAJOR CITY
IN THE COUNTRY EXCEPT FOR