This post is an URGENT public call for the immediate suspension of trading within the Universal Currency trading platform following my expose of fraud within the system, exactly 24 hours ago. Mismanagement of the UC Currency has and will continue to expose traders to unreasonable risk based on fraudulent conduct by the Administrator, IRTA. An unreconciled accounting system for a start indicates deliberately hidden information let alone a plethora of unanswered questions. I show how IRTA’s responses to a crisis situation indicate a deliberate attempt to obfuscate and distract. This is a serious situation for all involved.
In my recent posts in this series on Barter, I exposed fraud within the Universal Currency.
I detailed nine areas of concern:
- System Imbalance
Why is there a system imbalance [missing/hidden accounts] of -$199,711.10? This is outright fraud.
- Administrator Deficit Spending.
IRTA has three House accounts in deficit, totalling $207,001.57. Deficit spending by the Administrator (IRTA) is against the By-Laws and is fraud, period.
- IRTA Board Gaming of the System
The figures show nepotism and preferrential treatment
- Issuing Credit Illegally
UC has many Delinquent Accounts and I believe has not followed proper protocol in the issuing of creditlines.
- High Levels of Toxic & Aged Debt
I said and I stand by it:
“The Debt Recovery situation is chronic. UC’s aged debt is extraordinary. Thirty Members have a total of $185,298.00 in debt with NO SALES EVER! If this Aged Debt is bad debt then UC is actually bankrupt!”
- Abuse of Systems
There are multiple account over their credit limits
- Cash Fees
Cash fees total $38,122.46 are outstanding.
- Unbalanced benefit
I mentioned my concerns about some favouring the system over others.
- Tax Implications
I believe that there are tax compliance issues that may include both tax avoidance and probably evasion. The bottom line is that UC’s figures are NOT legit – they simply don’t even balance – and that’s a BIG red alert to any tax authority on the planet!
These are serious claims all based on analysis of UC’s own figures! I also have other concerns and mentioned some of them previously.
IRTA’s President, Annette Riggs, has published the following on a LinkedIn chat in response to my claims of fraud within IRTA.
The Facts About UC
1) UC is thriving and is not mismanaged or even struggling, let alone anywhere near bankruptcy. Members continually seek to earn more UC which reflects the high demand for the currency. The UC users themselves know this to be the case.
My post detailed analysis from UC’s own figures that showed first and foremost that the system is out of balance, therefore fraud MUST have occurred! Issuing sales drivel (aka spin) is a nonsensical way to run a currency! Balance the books, then audit the figures, then present them to the world and THEN the currency may survive. Anyone can fudge something to look good but the fact that there are people happily using a system doesn’t make that sound. A LOT of people got onto the Titanic but not all of them got off. In fact many users have difficulty quitting their trade dollars which indicates rampant inflation but the point is that there is FRAUD – not whether people use it or happy with it!
2) IRTA’s UC account is currently at -206,308, which is typical for this time of year, five weeks before the IRTA convention. Like most years, IRTA had to pre-pay the hotel 128,634 in UC for the convention on May 16, 2014. As in prior year’s IRTA will earn that pre-payment back from convention sponsorships and convention registration revenues, plus IRTA receives an 80,000 trade management fee from UC in December. UC’s bad debt reserve account has a healthy surplus.
Oops! I don’t think I would have admitted that so readily Ms President! According to the Rules under which IRTA operates UC, the Administrator is not permitted to operate a negative account, period! I detailed this very clearly in my post analysing the figures. Breaking the law in a game of Monopoly is fun. Doing it in the real world makes Mickey Mouse look like a genius!
3) UC is set up to allow members to see the balances of other active UC members, however they are not able to view the trading history of other members or system reports, hence Mr. Smith is obtaining information about UC from a mysterious source and apparently an unreliable one.
It is a big mistake on IRTA’s part to squabble about sources of information. It’s a red-herring and a deliberate distraction. I detailed very fully and carefully from where the information came. My tipline works well and the figures are accurate. I’ve verified them from multiple sources to what I consider well over 99% accuracy, the differences due to different date ranges in supplied data.
4) UC reports its ACTUAL trade volume generated directly from the GETS monthly reporting system.
Big deal! I have never raised any issue in regards to trade volume. Again this is confusion, obfuscation or stupidity. The figures speak for themselves – fraud, collusion, intent to deceive, corruption, incompetent and dishonest management. All this derived FROM THE FIGURES!
5) Nordic Barter has not had a sale in UC since 2007 and the account is listed as a collections account/frozen.
Oops! I don’t think I would have admitted that in public, but whatever, let’s run with that example for a minute (there are many more BTW) . . . so a 7 year old debt is still in the figures? This is ludicrous . . . people selling goods and services into the UC system are making decisions based on the value of a trade dollar that includes a BAD DEBT that is seven years old? Are they aware of that? NOPE, certainly not until I’ve exposed this immoral conduct! Nordic Barter went out of business YEARS ago. Write the bad debt off IRTA, and then you’ll help make the currency trustworthy. Leave it there however and we’ll all know that it’s all a sham, by your own confession! There are heaps more BAD DEBTS and TOXIC DEBT. The facts need to be brought into the open. I’m doing that, day after day.
6) No IRTA board members or staff are gaming/milking the UC system for their personal benefit. Such statements are defamatory and malicious.
Sue me IRTA. Sue me IRTA Board Members. Sue Me Ms President. Sue Me PLEASE!!
Let’s bring the whole rotten barrel out into the open in a court of law where an independent adjudicator can assess the information, assess the statements I’ve made and then see where the defamation lies eh?
For the record, I believe that truth has no need of violence, neither is it in a hurry. I have all the time in the world and can easily sit back day after day showing how individuals have benefited unduly from their positions. I haven’t yet because I have no interest in pulling people down and I’m giving them all time to regroup, think what to do and then do the right thing, but I will get the facts out there.
UC Members can do the simple exercise themselves like I did . . . go to a IRTA Board Members account balance. Establish their last years’ trading figures and compare the difference. If their balance is more in debt than it was at the beginning of the period – that’s a net benefit at the expense of other users of the system. Add them all together and then there is the trend. Oh Golly! Bring on the lawyers – please!
Next look at the trend. The majority of the Board members are what . . . in debit or in credit? There’s more, much more, but at this simple mathematical exercise, I rest my case for the moment.
7) Richard Logie (the software provider) has repeatedly stated for years, that UC is the model exchange system in the industry and operates as a true zero-based system. Nothing has changed in the last four weeks to change that correct assessment.
What? Richard Logie is an authority now? OMG, don’t let that slip out please! Universal Currency is DEFINITELY NOT a zero-based system! It may have been set up as one. It may have been when I looked into it in mid April but as at the time I blogged it was out of balance by almost $200k (that I know about) and I back my professional assessment from days of fulltime research using the actual UC figures compared to some half-baked emotional defense splashed out in a LinkedIn forum with only 890 members from someone who doesn’t even know how to use the actual UC system!
Conclusion: UC is healthy, professionally managed and setting new trading records virtually every month.
Conclusion: UC is a sick, bankrupt, corrupted system with open fraud, concealed information and is inflated to high heaven by a self-serving marketing machine living in a dream-world. IRTA’s Executive are either oblivious to the rot occurring right under their noses or they are right in the thick of it. Either way there is a serious CRISIS at Universal Currency!
Rest assured that when the facts come out – heads will roll!
I call for the suspension of trading forthwith pending an urgent review and audit of the UC accounts and processes that led to the crisis.
Vendors buying and selling with the Universal Currency are currently doing so on the basis of PURE MARKETING SPIEL and not FACT. UC Members should log in to the UC Management Console and verify the information I have shared on my blogs, so that they are fully informed and are working with factual information. Members can rely on me only in that I have taken live data and filtered and sorted it to extract important points. My findings can and should be validated by interested UC Members.
UC Members in CREDIT would be wise to buy whatever they can from whoever will sell to them while they can or they risk losing in any devaluation or adjustments. Doing so may protect their financial interests however their transactions are visible to all UC Members and this reduction in exposure in the UC currency will be visible to all.
IRTA should be contacting the indemnity lawyers immediately and lodging a claim on multiple counts. The Executive Director should be suspended forthwith pending a full and proper investigation and all data and records frozen and secured in preparation for turning over to the authorities.
I would recommend that the President Annette Riggs stop spouting sales spiel in the face of a SERIOUS SITUATION; actually look into her own system; actually view the data objectively; ask the same questions that I have been asking; speak to the key people involved; and then commence an immediate private investigation that exposes the rot, identifies the perpetrators, brings them to justice and then implement serious surgery so that the Universal Currency has some chance of survival.
Office Holders of the Universal Currency and the Administrator IRTA are highly exposed, legally, for historical actions or inactions in the line of duty. Their exposure increases enormously in the light of public disclosure of the fraudulent activity, for they cannot now use the defence that they never knew about it.
Members with Credit balances are exposed should the currency devalue further.
The reputation of the Universal Currency brand is at risk, especially if inaction, coverup or further deceit occurs.
I repeat my call to suspend trading on Universal Currency forthwith. I repeat my claim that this is a SERIOUS SITUATION and not a joke, not a play at politics and that I have no personal agenda (other than to be seen to be the one getting the facts out there).
In my next post I resume normal transmission and dive into the power structures and politics of IRTA and detail more of my reasons for my recommendation to suspend the Executive Director, open up the books and more.
The Barter Series
Make your good reading pleasure even easier:
View an index of all articles in The Barter Series, sorted by Date or by Key Subject.