P2P / Pathway 2 Prosperity,
Admin Nick Smirnow

Long-Term Internet Ponzi Scheme

Internet investment seekers and speculators looked upon the program Pathway 2 Prosperity (P2P) in 2008 with excitement and optimism.

Pathway 2 Prosperity is an internet based "investment" program founded by Nicholas (Nick) Smirnow in early 2007. Operating out of Ontario, Canada, Nick Smirnow promised his investors incredible rates of return through his own private, vague series of investment tactics. P2P's administrative assistants included Chris Balsdon, and an individual named Gary, also known as "PVR."

Many P2P investors repeatedly bragged about their profit on popular HYIP / Autosurf forum communities and blogs. Although no concrete evidence of any legitimate investment vehicle being utilized by P2P has ever been released by Nick or his staff, P2P participants continued to vouch for Nick and the program's credibility during the first two quarters of 2008.

How does 160% ROI in 60 days sound?

Pathway-2-Prosperity offered 4 basic investment plans to its members:

7 Day Plan - 1.5% daily for a 10.5% total ROI (return on investment)
15 Day Plan - 1.75% daily for a 26.25% total ROI
30 Day Plan - 2% daily for a 60% total ROI
60 Day Plan - 2.67% daily for a 160.2% total ROI

The 60 day plan quickly became the most popular option among Pathway-2-Prosperity members. During 07-08, several long-term P2P members continued to reinvest in the 60 day plan hoping to build their investment accounts to massive numbers.

However, as the Summer of 2008 began to draw to a close, anxiety and frustration replaced the voices of the ecstatic P2P participants. Nick's glorious program bringing excitement and wealth to its "investors" began to take a nasty turn.

From Prosperity to Poverty

Pathway-2-Prosperity participants who were able to enjoy quick payouts and compounding bonuses from their "investment" accounts were soon burdened by an increasing waiting period for cash-out requests. As of late 2008, horror stories began to surface across internet boards. Although Nick was apparently paying "select" people within his organization, other members had been waiting months for their cash-out to process without any sign of progress.

Standard P2P "investors" have not received their cash-outs into their payment processor accounts since August, 2008. As the year 2009 rounded the corner, many P2P participants began to voice their disgust with Nick's failure to complete payments and overall lack of communication. Popular faith based statements of "I trust Nick and know he will catch up with payments" have been replaced by angry questions and disgusted comments directed at P2P administration.

Furious testimonies have filled internet communities. One person pleaded with Nick Smirnow and asked him to only return his initial investment of $40,000, even though he had been waiting for his principle plus profits since April of 2008! Several P2P investors have demanded that Nick step forward and take responsibility for the situation instead of merely hiding for the past several months. Even some participants have publicly stated that they have already written the P2P program and their investments off as money lost to a massive scam.

Rumors of Pathway-2-Prosperity's Investments

A few P2P members mentioned on HYIP discussion forums that Nick Smirnow was supposedly investing in casinos and other assets. One member even stated that Nick had previously claimed that Sir Richard Branson, owner of the "Virgin" brand, had previously served as his mentor. However, over 12 months have passed since these claims were posted and not even a shred of proof has been displayed to the inquiring communities.

Several P2P members have suggested that Nick Smirnow was investing in other sophisticated internet based HYIPs (High yield investment programs). Unfortunately, if Nick was merely "investing" in other HYIP programs that also invested in additional HYIPs, Nick's program simply rested upon the shoulder of other ponzi schemes. The inevitable result of a program that depends on ponzi schemes is a collapse.

The Red Flags Point Down to "Ponzi Town"

All ponzi schemes meet an unfortunate end in which 1.) either the U.S. Government shuts the illegal scam down and confiscates all assets or 2.) The Administrator / CEO stops payment and runs with the remaining money in the pot. Unfortunately, all signs point toward Pathway-2-Prosperity existing as a long-term ponzi scheme in its final stages.

The growth rate of new investments and new members was strictly derived from emotional, faith based decisions of P2P's membership; NOT from Nick's demonstration of a valid series of investment plans. Nick Smirnow and his administrative assistants have never made a single effort to prove legitimate sources of investments that could sustain Pathway-2-Prosperity's high returns.

The abnormally high rates of return, community secrecy, and shady behavior of Nick Smirnow and Pathway-2-Prosperity administration originally raised enough red flags to suspect that P2P operated through a ponzi scheme mold. Now that payments to the P2P community have essentially ceased, and Nick has mysteriously vanished without a full explanation, the future looks grim for all "investors." The current circumstances suggest that Nick has abandoned his program and members and has fled with all remaining assets.

P2P Staff and Assistants

Chris Balsdon, and also known as "Chris007," and Gary, aka "PVR," assisted the administration and regulation of Nick's Pathway-2-Prosperity forums. Chris resigned from his position of authority during mid-February of 2009.

Other administrative assistants and P2P forum moderators were connected with Bob Krimm and his illegal ponzi scheme network in 2006 known as TriStar Media. They include the following aliases:

Wise Owl, Taplyne, Diamondz, danimail02, Cinnamon hearts, jerr1513, HNV, pjlar, Terri, and LaBella.

Rumors state that the ex-administration and moderation members listed above claim they had no "secret" information about Nick Smirnow's operations. They hold that Nick's recent behavior is as much a disappointment to them as it is to all other members who feel cheated by Nick.

What happened to Nick Smirnow?

Nick Smirnow is still missing in action and thousands of P2P members are still wondering what will become of their investments and promised earnings. A recent forum rumor states that Nick is in the process of researching the legalities behind his program, and if he discovers that Pathway-2-Prosperity's "investment" system violates U.S. law, all current U.S. members will be banned from the program.

The Canadian based "investment program" is in clear violation of the Securities and Exchange Act of 1933, which requires all foreign companies and firms to register with the SEC before accepting U.S. citizen's investments. Therefore, if the forum rumor is true, Nick may be using this excuse to terminate the majority of his membership and keep the remaining money from his ponzi scheme for himself.

Regardless of Nick's plans and intentions, current members that are fortunate enough to receive refunds in the next several weeks (or months) should immediately cease participation in the P2P program. The red flags indicating a ponzi scheme and unstable program are far too numerous.