Complaint Review: William Muldowney

On Apr 11, 2012, at 9:19 PM, Beth **** wrote:

In 2009 I bought a microcurrent unit from another fraudulent company called Lulum. The unit was not working - I knew it was not what was demonstrated- I called Bill Muldowney from www.microcurrentsystems.com to ask him, "how do you know if the microcurrent is working" - he said to send it to him and he would test it and be able to tell me if it was working- if not he could fix it. He then called me and told me that he tested it and it wasn't microcurrent - it was a fraud. He researched the factory that it came from - they had notes showing that is was made from car parts - it was marked "made in USA" even though it wasn't.

It was clearly not a microcurrent unit. He then called me back and told me he had orchestrated a meeting in Florida and wanted me to be there. A meeting with other beauty people in top spa's and we were going to brainstorm about a top of line microcurrent unit. I flew to Boca Raton with my daughter Serena.  Bill had several people at this meeting - he had brought a Beautiful Image unit - one of the most marketed units in the industry- supposedly for me to take and test - research. (He later made me ship it back to him)

We met his assistant Sammy and other important players. Elena, Frank, Jim, Isabel, and Andrew and Frank.(another one) This whole meeting was for my benefit - to "sell me" on the idea that he is wonderful and "rich" and he didn't need money - he was going to do this "for me" to help my children who suffer from EDS. He told me that he loved me- loved my excitement and enthusiasm- my honesty and work ethic! He said he would never do anything to harm us - he wanted to do this so that the microcurrent could help my children-it is a cure for connective tissue disease.

He was going to make it his life purpose to learn everything he could about EDS and how we could use microcurrent to promote collagen/elastin growth for these children. He said he would come up with $150k to initiate the research and development of this unit- He called me the same night I flew home from Boca and told me that if I could come up with "just$10,000" he would build the unit for me and put my name on the patent for this and the shoe inserts.

He would make me the World Distributor of the unit - he would help me get leads by the thousands  from his biggest website www.microcurrentsystems.com that gets 3 million hits a week. I told him at this point that I had no cash/money to give him - but I could contribute my knowledge of the industry. I then spent the next few weeks trying to see what kind of money I could come up with.

I had a friend, Kay that had the money and wanted to be in on with me. so she wire transferred the money to me and I wire transferred it to Bill's wife account. At this point he was calling me several times a day - talking to me for hours sometimes. Telling me all the research he found and how he wanted this company to run. Mostly he talked and I listened. He talked about himself and all the knowledge he has - walking google - said he was Donny Bonaduccis godfather - tried to impress me with the many many contacts that he has.

He had me meet him and Sammy  in Philly (Mar 2010) where we were suppose to sign some agreements, agree how to move forward and meet with a top doctor - diabetes specialist- Dr Kessler that wanted to be a part of the microcurrent technology. I  flew there after wire transferring $10k to his wife's account (he said that way he could keep it out of his tax account...??) In Philadelphia he never had me meet with the doctor - said the doctor met with him one morning at 6am - but he showed me several websites and explained to me who his was...

he has a charity called Shamrock - that he supposedly gives $.50 of every dollar he makes to them to help children with cancer - I believe this too is a fraud - a front that he has created to make himself look fabulous. He showed me telemedicine  technology that he supposedly came up with this Dr Woodrow Kessler and son Dr Rex Kessler. He also brought some samples of a microcurrent device that he wanted me to come up with a marketing plan for - made by someone that wanted out of the business Bill bought all 500 units from him.

Hand held unit to cure incontinence. He has Video Security Group Inc. that is/was in the top fortune 500 - he showed me websites and articles on the internet where he is worth  $9m. He says that he works with the Boca Raton police to do special work with his security cameras. He told me then that he needed another $60,000- I told him I didn't have it. There was no way I could come up with the money for him. He told me he would help me get a loan from the bank -

that it would be fine and it would paid off in the first year of doing business - this machine was going to be the top of the line around the world - not just America. Sammy was going to fly out of Philly that day to go  live in Spain and be a the head of distribution there. Working under me, I would "get my beak wet on every unit sold in the world!"  He supposedly had contacts and branches all set up over there with virtual offices that Bill had arranged.

After coming home from Philly I discussed with my husband and he said absolutely not - no borrowing - no getting into debt over it - if he wants to maintain partial ownership in the company and we don't put the money in fine. Talking to Bill, he said No he doesn't want or need the money for himself - he just wants me to be invested so that I work as hard if not harder than he to make the company successful. I met with a client of mine and she said that she would come up with some money and be my partner.

I told her I wanted us both to meet with Bill in Boca and let her make up her own mind. We then flew there and met with him. Tammy  loved him. They hit it off immediately and Bill told her all the same stories he had told me- about his successes. He told her that she would need to come up with $40,000. I told him I didn't have any more money to come up with - I didn't have anything to sell or remortgage etc. He said it would be OK if Tammy could come up with her part for now - we would use what we had and I would have to invest money later after we started making money.

He told me not to tell Tammy that I didnt put in the same amount of money because she would want to take over the company. I agreed. My partner, Tammy Robinson then wire transferred him money-again to his wife's account - he was trying to have her "transfer money in small increments that wouldn't draw the attention of the Feds "(due to drug transactions??? or something)

During our meetings with him, he brought in others that wanted to be a part of the new machines (- we didn't know at the time, but he told them too that they would be the US distributors for the Phoenix.) He was always trying to alienate us from each other, telling me that Tammy was trying to take over the business - talking to him about drawing up legal documents that would push me out if I didnt perform. He told her things too about how I wasnt following up on leads and wasnt selling.

She and I talked and kept the truth in the light so he couldnt come between us - but I found that he was doing this with everyone - Frank the website builder and Arash. Clients that he had sold units to - behind my back- he told me not to talk to them because they were trying rip us off - (Maggie from Lulum - he was running a scam with her and continued to warn me against talking to her or giving her any information. He even told me that she intercepted a shipment of our units from DHL - and stole the technology. Which I guess never happened.)

Tammy and I flew out to meet Bill again - trying to keep him on task and focused- Tammy also had another person meet us there- Jackie Champouix, she was going to be our office person. She too met with Bill and heard all his promises and agreements. We spent 5 days there in Boca Raton where Bill put us up in a hotel (the Bridge) I brought my kids with too - he wanted to measure their pain with a machine he has (which he didnt do)

He knew that bringing my kids into it was the big hook for me - Pero  was a man with software knowledge that was going to write software for our units to take credit cards etc. he wined an dined us all for days. Frank Dix, is the man that is building the websites for Bill. I believe he may be in on the scheme with him - but not sure. He would not talk to directly to me or Tammy. He always had Bill answer our questions and deal with us.

Elaina Moreno was the other person - she owns Beauty2 and has had talk shows with Bill to talk about the Phoenix - she is the girlfriend of a very wealthy friend of Bills - Frank, he didnt want to mess with him Jim Johnson from MicroZ technology - was there - he makes small mc units with socks/gloves and has a medical approval for sales. He wanted Jim to participate financially - but Im not sure if he did in the end.

Promising that we would launch in June and we should get our LLc companies ready and checking accounts with ability to credit cards online etc. Told us to take wire transfers only - no credit cards no checks - too much loss. He said to for 3 companies our of Delaware because of tax benefits and law s that protect the sellers. Again he told us this is going to the most advanced system on the planet! He wants to sell it for 20K and have add ons we went over the add on equipment with him, wraps, pads, bras, qtips, different wands, high frequency, lotions, etc.

He said he had a contact at Dupont that would be putting together a line of lotions for us to use with the units. We could then form our own skin care line. Tammy and I came back home and proceeded to set things up. Bill would send "leads" to me from his website- all those that he decided were interested in a beauty unit would come to me via emails. (I still have these) When I would follow up, I didn't know what to tell them because we didn't have a unit ready yet. I told him that I refused to sell a unit that I haven't used and don't know about.

I have to have a unit and know what I am selling. He wanted me to take money from them up front with the promise to send a unit to them when they are made - we would offer them a good deal to order early! I told him NO - He would call them and sell them units he had supposedly used for his research - SmartGirl, Beautiful Image, etc. Some units he "sold" were supposedly his medical units - but when I asked for information on those units he would never give it to me.

He supposedly has socks and shoes with microcurrent - he has numerous websites and emails and phone numbers. But when we would try to sell them, again, he had no product. He was developing a shoe insert with microcurrent and wanted to put it in my name. He showed me a website where he would get funding and put it in my name (because he already had too many)

He sent me the patent rough draft - which I still have- that he was suppose to have turned in Jan 2010.  He told me, in January 2011 that he finally got the funding ($5m) and would be working exclusively on that. He would be leaving the country and going to Ireland. (Where he served in prison by the way - found on the internet?- he loves to brag about a story where he was taking arms into Maze prison disguised as a priest!)

Anyway, now we're in May 2010-months later while he was "developing" the new Phoenix - he would call me but inconsistently, the calls became more sporadic and short. Normally he would go on and on about all the things he was involved in (including a major renovation of his kitchen/house) He started saying he was sick and couldn't talk. It was Bartletts disease of the throat and he had to have treatments at the VA hospital ( oh yes, an ex-marine with tons of stories of his heroism) so it excused him not talking to me or Tammy.

He would not answer emails either and I knew he was online (I had his Facebook account) but still no word from him. Then one day I got a call from Lynette Morgan. She "bought a Phoenix from Bill and Troy" and was told that I could train her how to use it. I asked who Troy was - he is the World distributor for the Phoenix. REALLY?? I went to Bills website - sure enough when you click on the distributor it goes to www.beautifullbody.com and it's Troy Standish. I called him and he wanted to know who I was - Bill had told him about me, but not that I was a distributor.

I called Bill and asked him what the heck was going on and he made up a huge story about how his best friend Rob Branson ripped him off - this Troy is his son in law and they tried to take over the company while he was in the hospital sick and dying. So he was no long talking to them - no longer going to do business with them and he wanted me to trust him- we're still on track to launch as soon as he feels a little better.

He needs another $5k to set up the website and search engines that go with the site. He walked me through the software and what it would normally cost to do a major search engine like he was setting up. Brian is the name of the man that I was paying (thru Bill) He wanted $7200 flat fee for access to lic/fees to have all the search engines forevermore.

I told him I didnt have the money - we hadnt sold any units yet. Im further in debt than ever because we were suppose to be selling by now . I called Arash to ask what he thought - he said he thought Bill was being honest. So I paid Bill another $5,000.00. Bill also decided that we needed to add Spanish to the unit to get that large market - it would really separate us from the rest of the units.

He still hasnt shipped any units to us/me. I ask and he says they are almost ready. He wants me to work on the video for training (??I dont have a unit to video??) And translate the manual as best I can with pictures. I told him I had already done the manual and sent it to him in an email a long time ago - but still dont know what the unit looks like.

Then the following week he calls with an urgent sales lead. The persons name was Monica Barr and she had a website for her company www.beautysys.com and she was flying into Tulsa to meet with clients and wanted to buy 3 units from me (sight unseen, no manual or stats - nothing!) I tried to call her but the phone went to a generic voice mail. She would email me, but not call - I thought this was very fishy- she said she lost her charge cord and couldn't call me. All week? She couldn't find a land line?

I asked her numerous times to call - but she only emailed. Bill was furious with us (Tammy and I) he says he talked to her and she definitely wanted 3 to 4 units and would prepare a cashiers check and hand deliver to me. But his brother now had the units and he was on his way to sell them up in Philly (????) so my cost on the units now went up from the original agreed upon wholesale/distributor price too! Bill says that he'll front us part of the money - wire transfer $9,000 for 3 units immediately to him (before noon that day) and he would make sure the units got to this woman in Tulsa.

I told him no - I hadn't even spoken to her, the website doesn't exist and I thought it a con. He got furious again and said I was paranoid. he then changed all deals- we were going to have to warehouse the units ourselves- he wasn't going to hold them and ship them anymore. I told him that would be fine, but we would need time to work out the details. I was not trusting him to ship the units at this point. I told Tammy, I don't want to take peoples money and then have no units to ship. We need to get control of that.

He then called one day and changed again - he was going to have me deal with a man named Don- lifelong friend who he sold part of the company to. The cost will now elevated to cover Don's costs. Don bought over 100 units from Bill and was going to run the distribution because Bill felt that everyone was trying to take advantage of him. He hired Kody Marketing to do the marketing now and if we needed a unit we were going to have use my special id# to order them. SO Bill - I am no longer the distributor of the Phoenix.

You've sold the company and changed all the rules and I'm suppose to be OK with this????? "I don't care if you are or aren't. You blew you're chances when you didn't take the deal I offered with Beautysys." He told me then that he would be traveling and wouldn't be reachable- he was going to Tampa and Orlando and then Pennsylvania to sell property he didn't know he had. He said that he was getting out of the beauty world - con artists! He is going to focus on medical only. He said he had some great news and would call me back tomorrow -

He was liquidating everything. He told us that he was selling property, warehouses full of "stuff" that his brother was going to sell for him, his Hummer - he had repainted and sold -etc. Liquidating. His wife and kids had moved up to St Augustine and he sent me email with pictures of them on the ranch that he supposedly now owns. So - after that he refused to send any leads to me/us - he was not returning emails/phone calls either. He contacted me in November 2010 and told me to ship back a unit he had sent to me and he would make upgrades to it for me to test again - wanted to add programming and gloves.

I knew he was lying. He had me send everything he had ever sent back to him - then he sent me an email acting like I had deceived him and told me to lose his number. He told Willa at the factory that I was not to do business with her/them. I then got a call from Lynette Morgan and she said that Troy was a wonderful man and Bill had an elaborate scheme and she was worried about me. Asked if I had my Phoenix yet- I told her I had just received it Dec 17th- didn't know if it worked or not yet. She gave me Troys number and encouraged me to call him - the story sounded the same as to what Bill did to him too.

I called Troy and sure enough even the Monica Barr situation was the same - he was given the same lead (more units sold) woman's name was Helen but the phone number was the same! She didn't exist and the sale took place. His father in law Robbie Branson was Bill's "good friend" for years and he never thought Bill was this kind of guy - never dreamt that he would have such an elaborate plan. Troy and Rob are willing to tell their story to you. They too have no contract in place from Bill - just a "gentlemen's word" Arash Mousafa is another person that scammed by Bill - for some of this same deal. Arash was suppose to have the websites that "would make him money without lifting a finger."

He lost about $25k I believe Then there is Debra White-Cholak and her partner Andrew that were told they could be US distributors - I have no idea how much money they lost. Isabel - another person at the meetings was told she could be the distributor - she lost no money because she wanted things in writing and knew that something was up. she ended up with a lot of the equipment (he was still trying to con her) Then there is Maggie Laws - she was the right hand person that worked for Lulum - Bill always said that he wanted the leads from Lulum -

he opened a website called www.lulumripoff.com which he had me purchase! But he put his info on it hoping to get peoples names so he could sue Al Mitrani the owner and developer of the Lulum supposedly. I found out later, it was so that he could get leads to sell the Phoenix to them. He had not intention of filing a suit. But Maggie is involved somehow too - I found out from another source that he was told that I bought 90 units from Bill and that she could trust him -

he was suppose to supply Phoenix units to doctors that had previously bought a Lulum and didn't get one - I don't know the whole scheme there, but I do know that she lost over $70k to Bill. She lost her home in Arizona and has moved to Enid Oklahoma. Al Mitrani was supposedly trying to get Bill to build a Lulum unit - he supplied Bill with the drawing and stats to build the units - but Bill said he wasn't going to build one because it could "hurt" people.

I believe he is currently conning a woman name Ellie Kocheck- she worked for a Dr Charles Mcwilliams - who has a unit on the market called Jade - Bill started trouble between them - and then Ellie called him and asked if he could build the hi frequency unit if she introduced him to the doctor that invented it - one of the last times I spoke to Bill, he was traveling in a car on his way to meet with them Ellie and the doctor.

So Tammy and I have lost approximately $65,000.00 not including travel and such. I dont know exactly what Tammy has paid to Bill so I dont want to limit it to that amount. He never made the unit we planned on - the unit we gave him money to build He just pulled a unit prebuilt off a factory line that he bought for less than $600.00 and is trying to say it is his design. He paid extra to put the Phoenix logo on it - but that is a one time fee of $500. So the R&D money and time wasted for nothing. He didnt do anything and we never received our units. (((phone number redacted)))

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