Friday, December 30, 2016

Arcade City Fraud: The Anti-Uber Populism that Fueled a Million Dollar Fraud

Arcade City is synonymous with the fraud of Christopher David (Christopher Pille). I met Chris when I volunteered for the Ron Paul Christmas Vacation for Ron Paul's 2008 presidential run. I was a volunteer and he was coordinating the Dubuque area, where many Purdue and IU students were assigned. I saw him again at CPAC living large. He had a girl on each arm and I wondered how he did it. I found out
Back when he was Christopher Pille

If you are an investor like Richard Ver, or a participant in the ethereum coin buy, and you are angry at the name change from "Arcade City" the "The Swarm," you and your money were rightfully separated (your investment might have some worth someday if you don't empower Chris to steal on your behalf.... 'but this time for real guys, I'll pay you back if you just let me have the big vat of money I've been seeking this last year'). One of the most shameful examples of how the bitcoin community has failed itself and has succumb loose wallet strings that come with the huge capital gains in the value of bitcoin is the GTEC awards in Berlin. Arcade City won first place which includes 20,000 Euros. Arcade City relies on really bad journalism from local media outlets and the overly positive journalism of Joel Valenzuela who constantly calls the impotent startup an "Uber Killer."

Christopher David wants to be a big spender. He takes the concept of OPM (other people's money) to the extreme. He took Ivan Chen O'Neill's money when Ivan funded a broke campaign in the spirit of wanting to continue the Ron Paul revolution. O'Neill's theory is that Chris rides the coattails of movements that he can barely articulate the rationale of. From O'Neill:

Before moving out to California, Chris was working with the non -profit, Young Americans for Liberty. Proving to be decent at organizing volunteers through online forums, Chris convinced the organization to fly him out to California to start another chapter. When he got to California, he failed to perform for YAL, citing other projects he wanted to pursue. He was then let go of from YAL. Jeff Frazee, then executive director of YAL would go on to say Christopher Pille was plagued with an “ambition that surpassed his abilities”

 Indeed, when I went to New Hampshire to gather signatures I had a hard time getting the entire concept of Arcade City out of him. He had very little interest in getting signatures. He had a friend from Oregon helping to organize who did most of it. Chris flew in a female counterpart of himself who claimed to be a journalist for the Daily Beast to help gather signatures. I personally gathered hundreds, Chris' friend organized the gathering of hundreds, and the female he flew in claimed to have called in afavor and gathered the required thousands needed for Independent ballot access. She tried to lecture us lowly signature gatherers about her relative worth compared to us and "if we believed in market value I would be getting all the money." Clearly, lying assholes deserve all the money.

When journalist chic was flown in to "help" in the signature gathering effort she demanded privacy in a conference room where she set up her bullshit operation to get more signatures by election day. Chris had managed to get his hands deep in the wallet of a local millionaire (he told me 15k, but other people report the dude paid as much as 25k for the signatures). I used my personal vehicle to drive him place to place in New Hampshire. Any attempts at striking up conversation were thwarted as he was working on Arcade City or something else (I was momentarily intrigued about him being legit). Everyone he had hired to help him out seemed to have devastating personal problems that required him to tow a car or pay for this or that. He paid, too (but not for signatures). Losing more and more money as he went. He wanted to make his friends happy who were closest to him but also to have absolute control of the money. When I was done with my signature gathering he owed me about $300.00 for the signatures alone but also claimed that he would compensate me for driving him around. I was paid $100.00. I told him a couldn't accept that, I had to leave with more. He held strong. Of the 15,000 dollars he could barely compensate me $100.00 after I drove him everywhere and gathered more signatures than everyone else. About a month later I was paid more from an Arcade City PayPal account. His friend from Oregon was also shorted tremendously before flying back home.

All of this is before I read Ivan's blogs or knew about him defrauding YAL for a free trip to California (along with funds, I'm sure, to pay for his housing). Ivan O'Neill does an even greater service to investors who must have their heads in the sand in order to still invest in Arcade City. He warns people over an over again, often taking a huge amount of flak from idiots who want to believe because they are blinded by anti-Uber populism.

Over the past year I've seen Arcade City morph from being a fucking joke with a basic app that did nothing into a fucking joke that won a prize with zero proof of concept, gained funding from an idiot investor, and somehow gaining the trust of Ethereum programmers who helped facilitate a coin sale to fund Arcade City by upward of $500,000 (Fact Check).

Anti-Uber Populism

Christopher David was pro-Uber before he was anti-Uber. The notoriety he gained from being charged with a wiretapping felony (under a law that was meant to protect citizens from the spying NSA) attracted the sympathy of Kentucky Senator Rand Paul, who is very outspoken against NSA spying and who is also pro-free market. When I saw the following video it finally clicked in my head that Christopher David and Christopher Pille were one and the same. I looked him up and asked him what he was up to. He invited me to come up and gather signatures with him. Honestly, it was a lot of fun and I wouldn't trade the experience for more money or anything like that, but that doesn't change the fact that he is a fraudster and people should be warned.

There are countless anti-Uber videos online. A lot of them are by angry drivers who declare that they won't drive for Uber unless they are surging (exactly what Uber uses surges for...). Arcade City proposes itself as a "disruptor." The word "disruption" is loved by libertarians with an economic tilt. It is a throwback to Joseph Schumpeter's business cycle theory of "creative destruction." One system replaces another, one piece of creation destroys another. Netflix and Redbox killed Blockbuster, for example.

Christopher David is no "disruptor." Neither are the programmers dumb enough to be inspired or believe in anything he does after reviewing the history of this project. The idea behind Arcade City is that it will run itself. There is no need for human intervention once it is up and running. It should be a self-propagating business. It will run with smart contracts that cannot be fooled or manipulated by a third-party (this is the complexity of the project that he absolutely could not explain to me).

When Chris had the chance to purchase insurance for the driver's of Austin he balked at the expense. Buying insurance won't help with the hotel rooms, globe-trotting, or all the blow that goes up those huge nostrils. Even for rides that were run through the app, insurance was out of the question. Instead, he declared that everyone should set up their own businesses.

Don't get me wrong, I support the idea of operating at odds with the law. What I don't support is confusing people who clearly have no clue what they are doing into getting their vehicle impounded or putting them in a financial mess on the way to the big $500,000 dollar money grab (that you were hoping would be upwards of $10 million). Shame on ethereum programmers who facilitated the sale, but good job on setting up the 7 key, 5 sig wallet.

Christopher loves hiring people on the spot. More than one time I've heard him utter the words "you're hired" when I was in New Hampshire and he was talking to various people he just met. He promised people positions within the company, for their travel to be "comped," and a number of other monetary promises he had a hard time fulfilling. The people who were actually part of the city council are more likely to have either skill with ethereum or were in the right place at the right time for his arbitrary and random decision making. Chris also loved to demean people as "his employee" or "staffer." When he stole money from O'Neill, he kept calling him "an angry former staffer" when he was questioned. As if he were the shit and a former employee was mad at him.

Chris faked a resignation. It seemed like he resigned from his CEO position but it was all in the spirit of getting more investor money or building confidence in the ethereum sale but it turns out he never left. It was more fraud.

Everyone close to Christopher David knows he is a fraud. The entire "City Council" turned on him because of his money grabbing (in his own words):

As the former ‘Arcade City Council’ prepares to use the remaining ~$570,000 from the Arcade City token sale to launch a new (competing) project (“Swarm City”) completely separate from Arcade City, I believe it’s important to inform the public how the situation has evolved to this point.
This fucker has the audacity to use the word "transparency" as a trigger to make the blind idiots who follow him. He wants to be compensated for the "intellectual property" currently in posession of Arcade City, Inc.

All seven members of the Council agreed in my “resignation” proposal to the following: “We will separately negotiate the transfer of intellectual property of Arcade City, Inc. to an entity selected by the Council.” I have received no offers or communication to begin any such negotiations. Certainly my ongoing fiduciary duties to Arcade City, Inc. prohibit me from transferring its assets to another entity for nothing in return.
 There is no intellectual property worth compensating Christopher David nor idiot investors over. Arcade City is done. It was a fraud. It will continue to be a fraud until people stop giving this asshole money.

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