Wurld Media Execs Facing 50 Years Jail Time
Yet another adware company is facing legal woes. It looks like the stuff has hit the fan for Wurld Media. The CEO, Gregory Kerber, and the CFO, Richard Saxton, were arraigned on Friday on a number of felony and misdemeanor charges. The charges include second-degree grand larceny, third-degree grand larceny, fourth-degree money laundering, first-degree falisifying business records, first-degree offering a false instrument for filing, failure to pay benefits, second degree criminal contempt and failure to withhold income taxes. This follows a seven month investigation by Spa City police and State tax agency. The two face a possible 50 years in jail.
Those who have been in the industry a while should remember Wurld Media, who ran a P2P network way back, Morpheus, and bundled this with their adware, Buyersport. Buyersport is still around and Wurld Media markets their charity loyalty shopping platform (including the adware) through the Grow Hope Network. Wurld Media provides turnkey solutions of their shopping solution (adware included) for such reputable charities as Special Olympics, Arthritis Foundation and United Cerebral Palsy.
Much of the opposition to revenue generating tactics of adware applicatlions within affiliate marketing began with the Buyersport software. I think of them as the “grandfather” of adware. There were also several people who were outspoken against the practices who received personal “visits” on behalf of Buyersport, myself included. Personally, I was told Wurld Media was considering criminal and civil action agains me for views I had expressed publicly. So these charges hold a bit of irony for me.
I have to wonder what the charities response to this will be. Allegations of money laundering, even for a contracted third party, just doesn’t seem the type of thing such reputable charities would want to be associated with. I have the same thoughts about some of the big brand merchants partnered with Buyersport. What will their response be? And how will merchants feel towards networks who have recommended Buyersport as valued affiliate partners?
Of course, all of this is alleged at the the moment. Kerber and Saxton have a right to a fair trial and the presumption of innocence. But then branding is about image. This one will certainly be interesting to follow.
Its about time these two individuals are paying the price for their actions as of the past few years. There is another individual whom should be held accountable…Kirk Feathers, the CIO of Wurld Media. He was well aware of the actions and holds an equal share of the responsiblities of the outcome of these criminal actions. I am somewhat upset since the article does not elaborate on their worst crime of all…not paying their employeee, some for as much as a year plus. Even when Wurld was purchased by Roo, the owners, and their loyal ass kissers were paid their outstanding payrolls, but those who moved on, most for financial reasons, were at one point offered, by ROO Media, 40% of what they were owed, and some who agreed to these rediculous terms never even saw the 40%. How can ROO as a public company get away with this?? Im not sure, but the wheels of justice turn very slooooow…..stay tuned, more to come….
Comment by Betty — December 3, 2007 @ 11:53 am
Justice may blink, but eventually she sees.
Comment by Jordan Glogau — December 3, 2007 @ 4:56 pm
You need to make a coorection Wurld Media did not ever own or run Morpheus Streamcast Networks did .
Wurld Media in 2005 started a Music Industry endorsed p2p network called Peer Impact that was shut down by the company that aquired Wurld Medias assets ROO Media in early 2007.ROO should also be investigated as they took ownership of Wurld Media’s woes and are a publicly traded company .
Comment by Matt — December 4, 2007 @ 7:19 am
Wurldmedia was responsible for the technology and coding of Morpheus 2.0 I beleive….
Comment by Betty — December 4, 2007 @ 8:55 am
Mr. Saxton has been vindicated of 80% of the charges against him, all of which were the most serious. I have no doubt that he will eventually be completely cleared. Here is a man who has a sterling reputation in the community who has been villified by an over-zealous DA office and the news media just because he happens to be the accountant for a company they’re going after. If this horrible nightmare could happen to this man of integrity, it could happen to anyone.
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