Fraud Alert! Cliff Ganschow, Liveone Inc., Terra Worldwide, John Ganschow, Tim Ganschow


This blog was created to warn people of Cliff Ganschow and his sons Tim and John Ganschow and encourage people to significant research into their past before considering any business or investment relationship with them.  Number investors have accused the Ganschows of fraud and theft.  In the past several years, the Ganschow gang has created numerous shell companies in which they have sold shares and membership interests.  In the end the companies were dissolved, investors’ funds were gone, and creditors and service providers were owed money.  Where did the monies go?  Most of the time, right into the Ganschows’ pockets or to pay off unrelated “debt” (ponzi scheme). Recently, the Ganschows have created numerous fake websites to try to hide their despicable actions from their targets.

Until recently, Cliff Ganschow, Tim Ganschow and Joe Kruszynski were officers of Terra Worldwide.  According to Terra Worldwide’s website, the company was attempting to manage investments in farmland. There are now two separate lawsuits against Terra for alleged non-payment for services the company received.  This has been a common occurrence among Ganschow companies. Agristar Global Networks, where Cliff and Tim were senior executives and founders, has been sued by several service providers, investors and landlords for nonpayment.  How is it not stealing to hire a temporary staffing firms, which provided services when Cliff did not have funds to pay them in the first place? Investors in Terra should verify that none of their funds were in fact directed into LiveOne Group now called LiveOne Inc.  It is possible that LiveOne now maintains an office in the same office as Terra Worldwide was in.  Investors in Terra should make sure that their funds weren’t being used to pay rent for LiveOne. Former Agristar investors should look into whether any of their funds were used to develop LiveOne Inc.’s business or intellectual property.  There could be justifiable claims for fraudulent conveyances.

Prospective investors would be advised to conduct significant due diligence on Cliff Ganschow, Tim Ganschow and John Ganschow, as well as the numerous failed companies they have been involved in.  Here is some background information that is publicly available or available from former investors and employees:

Until recently, Cliff was listed as management of Terra Worldwide on Terra Worldwide’s website. (terraworldwide.com).  PRIOR TO TERRA, CLIFF WAS CHAIRMAN AND FOUNDER OF AGRISTAR GLOBAL NETWORKS-A COMPANY THAT LOST MILLIONS OF DOLLARS OF INVESTORS’ CAPITAL.  CLIFF HAS PREVIOUSLY CLAIMED TO BE CHAIRMAN OF AGINTELLIGENCE.  THIS MAY OR MAY NOT BE A REAL COMPANY.  THIS BLOG HAS BEEN UNABLE TO VERIFY THAT THIS COMPANY EXISTS.  IT IS POSSIBLE THAT IT IS MERELY A D.B.A. COMPANY.  CLIFF WAS ALSO CHAIRMAN OF MEXICO HOME CAPITAL LTD AND MEXICO HOME CORPORATION.  INVESTORS HAVE LOST OVER A MILLION DOLLARS IN THESE COMPANIES AS WELL. NUMEROUS PAST INVESTORS IN THE MEXICO HOME COMPANIES HAVE ACCUSED CLIFF OF FRAUD-SOME HE PAID OFF, SOME HE DIDN’T. JOHN GANSCHOW WAS CEO OF THE MEXICO HOME COMPANIES WORKING VERY CLOSELY WITH HIS FATHER, WHILE SON, TIM, WAS A VICE PRESIDENT AT AGRISTAR.

CLIFF, WHO IS NOW IN HIS 70′S, HAS A MULTI-DECADE LONG CAREER OF NUMEROUS JUDGMENTS AND LAWSUITS AGAINST HIM IN COOK COUNTY, ILLINOIS, MCHENRY COUNTY, ILLINOIS, DENVER, COLORADO, MINNEAPOLIS, MINNESOTA, FULTON COUNTY, GA, MARYLAND AND  TIJUANA, MEXICO.  TO LEARN MORE ABOUT CLIFF’S NUMEROUS JUDGMENTS, ONE SHOULD GO TO THE MCHENRY, COUNTY, IL, RECORDER OF DEEDS WEBSITE AND DO A FREE WEB SEARCH ON CLIFF GANSCHOW- http://68.21.116.68/freewebsearch/default.aspx.   ONE DOESN’T NEED TO PUT IN A DATE RANGE.  BY DOING THAT ONE WILL SEE A  35 YEAR CAREER OF JUDGMENTS AND LEGAL PROBLEMS.  FOR COOK COUNTY, IL, GO TO http://www.cookcountyclerkofcourt.org/ AND CLICK ON THE ONLINE CASE INFO ON THE LEFT OF THE PAGE AND THEN DO A DOCKET SEARCH ON CLIFF.

Cliff was also accused of criminal misdemeanors for not paying wages.  The records are can be found in a search of McHenry County Court records.

Cliff and John Ganschow have been accused of fraud by numerous investors, including Michael Baggett, who accused Cliff of fraud and fraudulent inducement in Fulton County Court in Atlanta, GA.

MEXICO HOME

IN 2006, CLIFF AND HIS SON JOHN SOLD AN INVESTMENT TO INVESTORS CALLED MEXICO HOME CAPITAL PARTNERS FUND I LLC.  THE INVESTORS PURCHASED MEMBERSHIP INTERESTS IN THE LLC, RUN BY CLIFF AND JOHN,  THAT WAS SUPPOSED TO INVEST IN TWO SEPARATE HOUSING PROJECTS IN MEXICO.  THE INVESTORS’ MONEY DISAPPEARED.  WHEN SOME OF THE INVESTORS’ CAPITAL WAS DISCOVERED IN CLIFF’S PERSONAL BANK ACCOUNT, THE INVESTORS IMMEDIATELY CONFRONTED CLIFF WHO TURNED OVER A PROMISSORY NOTE, WHICH THEY HAD NEVER SEEN BEFORE, CLAIMING THAT THERE WAS AN AGREEMENT FOR HIM TO ACCESS THE FUNDS. THE INVESTORS CONSIDERED HIS ACTIONS EMBEZZLEMENT. CLIFF SIPHONED THE FUNDS INTO HIS OWN ACCOUNT WITHOUT THE PERMISSION OR KNOWLEDGE OF THE INVESTORS AND IN VIOLATION OF THE BYLAWS OF THE LLC.  CLIFF NEVER RETURNED ANY OF THE FUNDS HE EMBEZZLED NOR HAS HE PROVIDED ANY ACCOUNTING OF THE INVESTMENT OR TOLD THE INVESTORS WHAT HE DID WITH THE EMBEZZLED FUNDS. OF COURSE CLIFF DEFAULTED ON THE NOTE, AND SO THE INVESTORS CURRENTLY HAVE OVER A MILLION DOLLARS IN  JUDGMENTS (INCLUDING INTEREST AND FEES) AGAINST CLIFF (AND HIS SON JOHN).  THE INVESTORS ARE PREPARING TO PURSUE CLIFF GANSCHOW IN COURT FOR CRIMINAL CONTEMPT IF THEY ARE SUCCESSFUL, CLIFF GANSCHOW COULD FACE UP TO SIX MONTHS IN PRISON. THEY HAVE ALSO ACCUSED CLIFF GANSCHOW OF BEING A CONMAN AND LIAR IN COURT FOR MISAPPROPIATING HUNDREDS OF THOUSANDS OF DOLLARS THAT WERE SUBJECT TO A LIEN POST THEIR JUDGMENT AGAINST HIM. CLIFF WAS ALSO HELD IN CIVIL CONTEMPT OF COURT FOR REPEATEDLY IGNORING ORDERS OF THE COURT.  THE LAWSUITS AGAINST THE GANSCHOWS CAN BE FOUND IN COOK COUNTY, IL.-  2006-L-003020  and 2007-L-004757.  CLIFF AND JOHN  WERE ACCUSED OF FRAUD BY TWO OTHER INVESTORS WHO PURCHASED STOCK IN MEXICO HOME CAPITAL LTD. THEY ACCUSED CLIFF AND JOHN OF FRAUDULENTLY INDUCING THEM TO INVEST AND MISAPPROPIATING THE INVESTED FUNDS TO PAY OFF UNDISCLOSED AND PERSONAL DEBT.

Cliff Ganschow could go to prison if he is found guilty of tax evasion. Despite being paid over $400,000 in salary from Agristar in the last several years, Cliff has not paid a dime in federal taxes.

This blog also encourages anyone who invested in Agristar Global Networks LTD, run by Cliff, Tim Ganschow and Joe Kruszynski, in the last four years to investigate what happened to their investment in Agristar.  The Ganschows may have sold investments in Agristar while Agristar was insolvent, only to immediately pay out the money to Cliff.   Investors may have been misled about the financial condition and sold worthless securites at an inflated value, or misled about how their investment was used.  There could be justifiable claims for securities fraud as well as fraudulent transfers as Agristar could have been paying out tens of thousands of dollars to Tim Ganschow while the company was insolvent.

This blog also encourages anyone that prepaid for services with Agristar but never received the services for satellite broadband to read a comment posted to this blog by clicking on the comments tag at the bottom of this blog alleging possible consumer fraud by Cliff and Tim Ganschow and Joe Kruszynski. IT IS ALLEGED THAT CLIFF, HIS SON TIM, AND JOE KRUSZYNSKI WERE COLLECTING PREPAID SUBSCRIPTIONS FOR INTERNET SERVICE AND THEN NOT DELIVERING THE SERVICE OR REFUNDING THE MONEY.  AGRISTAR WAS ESSENTIALLY INSOLVENT WHILE THE GANSCHOWS AND KRUSZYNSKI WERE COLLECTING CUSTOMERS FUNDS. TIM GANSCHOW RECEIVED SIGNIFICANT PAYMENTS FROM CUSTOMER FUNDS WHILE AGRISTAR WAS INSOLVENT.

Any prospective investor or business partner should verify any claim or representation made by Cliff, his sons, John and Tim, or by Terra Worldwide, Wakame Global, or Liveone Inc.  Cliff Ganschow has been accused of overstating the value of supposed assets so as to induce people to invest in shell companies set up by the Ganschows.  They should do a complete investigation into anything the Ganschows claim as “proprietary”.  Tim Ganschow’s new company, LiveOne Group, where he is a principal, claims to have “a proprietary interactive platform featuring a unique social-engagement applications.” Investors should also be careful about C-corporations set up by the Ganschows.  In the past the Ganschows have issued themselves millions of shares in the companies they control, substantially diluting the investors, while paying very little if anything for their shares. Any investor in any shell company set up by the Ganschows should demand to review the bank statements of Agristar Global Networks to see how the Ganschows handled the cash of that company.

It now seems that John and Tim might be claiming to be principals of a company called Wakame Global.  We are surprised that the company is not called Wack-A-Mole Global.  Just like the game the Ganschows keep popping up with new companies every time one of their shell companies dissolves along with investors’ monies.

This blog hope to raise awareness of Cliff, and his sons Tim and John. (SEE COOK COUNTY, IL, FULTON COUNTY, GA. SEE ALSO MCHENRY COUNTY, IL, RECORDER OF DEEDS).

Any emails received by this blog and posted have not been independently verified by this blog and should be independently verified by any reader of this blog. Any emails posted can be accessed by clicking on the comment link at the bottom of this blog.  The emails paint a disturbing picture of the Ganschows.

 


 

This entry was posted in Cliff Ganschow, Fraud accusations, John Ganschow, Terra Worldwide LLC. Bookmark the permalink.

13 Responses to Fraud Alert! Cliff Ganschow, Liveone Inc., Terra Worldwide, John Ganschow, Tim Ganschow

  1. Concerned Customer says:

    Many Agristar satellite customers were left without service or ripped off because they prepaid for their services with Hughes and Starband. The Illinois Attorney General’s office is investigating on behalf of those that got ripped off for prepaying their annual contracts. If anyone out there reading this lost money to Agristar, contact the Illinois Attorney General’s office and they will direct you on what to do to file a claim. Phone # is 800-386-5438 or google Illinois Attorney General consumer fraud.

    Also, if you look up court records for Maryland, you’ll see that HughesNet won a huge settlement against Cliff Ganschow and Ron Hofer last year for over 4 million dollars. Just search for Maryland Judiciary in google and search for Ganschow. Here’s a piece of the court judgement online. So far it looks like Hughes hasn’t been able to collect it:
    JUDGMENT ENTERED AND RECORDED ON THE JUDGMENT INDEX ON 06/04/2010 IS HEREBY AMENDED AS FOLLOWS: JUDGMENT EXTENDED ON PROOF IN OPEN COURT AND JUDGMENT ENTERED AND RECORDED ON THE JUDGMENT INDEX IN FAVOR OF THE PLAINTIFF, HUGHES NETWORK SYSTEMS, LLC AND AGAINST THE DEFENDANTS, RONALD HOFER AND CLIFF GANSCHOW, JOINTLY AND SEVERALLY, IN THE PRINCIPAL AMOUNT OF TWO MILLION ONE HUNDRED FIFTY-FIVE THOUSAND AND TWENTY-THREE DOLLARS ($2,155,023.00) , PLUS PRE-JUDGMENT INTEREST IN THE AMOUNT OF TEN THOUSAND NINE HUNDRED EIGHTY-ONE DOLLARS AND FORTY-FOUR CENTS ($10,981.44) , FOR A TOTAL JUDGMENT AMOUNT OF TWO MILLION ONE HUNDRED SIXTY-SIX THOUSAND FOUR DOLLARS AND FORTY-FOUR CENTS ($2,166,004.44).

    • admin says:

      Concerned Customer:

      If what you say is true about Agristar pre-selling subscriptions and then not delivering the service, the Illinois AG should definitely be notified, especially in light of the fact that it is possible that Cliff Ganschow, Tim Ganschow, and Agristar CFO, Joe Kruszynski, were pulling out hundreds of thousands of dollars out of Agristar in “salary” and “loans”. Add to the fact that the Ganschows might have also been selling stock in the insolvent Agristar to individual investors at criminal valuations as well and I don’t see why the Illinois AG doesn’t investigate them under the RICO Act.

  2. Concerned Customer says:

    I don’t get how they can get away with not paying taxes. Anyone else would get thrown in jail. If you look up their executive profiles at Agristar by googling the “wayback machine” you’ll see their old website. Under executive profiles there are some of the same people listed as are listed at Terra Worldwide. Tim Ganschow’s profile makes it sound like Agristar was something other than a satellite Internet provider to rural farmers.

  3. Helper says:

    The issue at hand is there is nothing to go after other than criminal charges.
    Until many get together and pass all of this information on to legal authorities who can piece the puzzle together into a clear picture of what Cliff truly does as a living, nothing much will come of it.
    Look at all the lawsuits, even when they win, they get nothing because Cliff doesn’t have money or assets.
    I spoke with one lawyer who told me that after spending x number of time searching for assets, that they would soon close the case because many others are in line and no one is finding money. Yet, there is money, there always is because the scams never stop.

    Cliff knows what he’s doing, he has been doing it for a very long time and now he’s training two sons to follow in his crummy footsteps.
    Anyone who has come across him as a partner or as a service provider can attest to the following.

    He uses temporary agencies like people smoke cigarettes. He builds up the bills then leaves them hanging. Look in St.Paul and in Chicago for a long trail of such cases.

    He buys services with the usual up front fees but slowly lets the bill build up. He is master of not getting cut off with promises of investment funds coming in, ’30 to 90 days’ being his favorite lie. When the bill gets very large, he taunts the company with threats of his business being hurt if they cut him off, therefore never being able to pay the bill and does this until the company eventually smartens up. Some aren’t so smart and have allowed very large bills to accumulate.

    If someone dug, they would also find a very long trail of office supply hardware, and other items never returned or paid for.

    Both Tim and Cliff are masters of engaging people, making them spend countless hours and money working on proposals and plans. After many meetings, they are left hanging but guess what, Cliff and Tim now have new ideas and even documentation. They take this to the next consulting company and waste their time. Eventually, they have enough information to sound professional on what ever topic they are tackling and feed this to potential investors who in turn believe these are wonderful opportunities.

    Finally, one more thing that is a Cliff trademark is that of promising bonus payments down the road. Perhaps small payments now and then to keep the person thinking that more is coming but when money does come, by then much is owed. Cliff then claims that expected didn’t materialize but a settlement, usually dime on dollar is all that can be offered. People take him up on it because the amounts owed are usually so large that even the settlement sounds worthwhile.
    You can ask anyone who has been owed money by Cliff including most ex CEO or other high level officers of the company.

    These people are experts at this. The only way to stop them is through criminal charges if enough people pool their information together. Perhaps this blog might be that start. I can tell you that a few have been trying and continue to.

  4. Insider says:

    I was an employee of agristar for a while. Even after my short stint, the whole thing was so bizzare that I stayed in touch with others who had come into contact with the company and exchanged information.

    It may be interesting to note, in the ten years Cliff and Tim ran Agristar, they bragged to consulting firms, potential investors, etc, of having hundreds of thousands of customers. In TEN years, they peaked at less than 3000 customers.

    Cliff and Tim love to brag of how big and successful their ventures have been yet do not know how to run the simplest of businesses. They do however know how to get money, services, products, and how to put it all into their own pockets. Cliff likes to take the brunt of the blame but Tim is very involved in day to day operations along with (mis)managing employees, wasting time on the dumbest things.

    Everyone who came into contact with this company on the inside, questioned what was going on. Countless ideas and suggestions were brought to management and owners on how to improve sales, support, multiply the customer base but no one ever cared.
    Instead, their focus was always huge multi-million dollar, pie in the sky projects they had zero money to pay for yet engaged countless companies and people in order to take their ideas and claim being cutting edge. They barely understand technology yet claim to be technology forerunners.

    They would be reeling in money this day had they run Agristar in any normal manner but instead only used it as a front. The potential was there to turn it into a huge money making operation, but they never cared to listen to anyone. Something which frustrated employees to no end.

    I hope more people decide to share and that someone, somewhere in law enforcement finds this blog and finally puts these people where they belong.

  5. Michael Baggett says:

    My money was a loan to Mexico Homes. It was supposed to be a short term loan for 60 days. I don’t need to tell anyone that has done business with the Ganschows that the payback has never came. I was lied to so many times over the years that I turned it over to attorneys in Atlanta and Chicago. They also were not able to get anything.These guys are good con-men and scam artist.I don’t know who posted this but thank you. I am going to do everything I can in may power to see that the truth gets out about these guys. I have all of my doc. from the time this whole thing started an will see they get to the right people.

    • admin says:

      It is interesting to note that this blog has recently received some emails from people, possibly the Ganschows themselves, using fake email addresses. One such recent email came from an individual named Randy Johnson. If Mr. Johnson would like to write in again this blog will promptly respond to his email.

  6. Bonny Headding says:

    I am one of those Agristar customers who prepaid for satellite service in January 2010. I never received the equipment or the service. After corresponding multiple times with Agristar and never getting the refund they promised, I filed a complaint with the Illinois Attorney General’s office in September 2010. I checked on the status of my complaint several times and was told by the attorney general’s office that it still being looked into. Today, July 24, 2012, I called the attorney general’s office again and was told they have closed the complaint. So contacting the Illinois AG didn’t help. Glad this blog was created so others will know.

    • admin says:

      I’m sorry to hear that. That news is sickening. This blog will continue to press the AG and IRS to go after the Ganschows.

  7. admin says:

    Stating facts is perfectly legal. The outpour from former investors, employees, and service providers, who have dealt with the Ganschows, has been overwhelming as this site has collected information. The information collect will be turned over to federal investigators as well as the IRS very soon. It is very possible that the Ganschows go to prison when all is said and done.

  8. admin says:

    Thanks. We have heard that Cliff is in bad shape healthwise-he is now in his late 70′s. His sons started a new company called liveonegroup.com. Another scam no doubt.

  9. admin says:

    Please direct your questions/comments via email. Thanks,

    Administrator

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>