Did The Nelk Boys Scam Their Fans? (Case or No Case)

Today Attorney Tom's reviewing a video covering the Nelk Boys Crypto NFT fiasco. Is what the Nelk Boys did a case, or no case? Let's Discuss.
Edited (hastily) by ‪@DirkTheEditor‬
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Source Video from ‪@SpencerCornelia‬ : • Is the Nelk NFT Scam W...
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This content is the property of Attorney Tom, LLC. Anything stated on ANY form of media, either expressly or implied, is not legal advice, nor can Attorney Tom, LLC, Attorney Tom Kherkher or any entity associated with Attorney Tom Kherkher give you legal advice.
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Fair Use: All clips used for fair use commentary, criticism, and educational purposes. See Hosseinzadeh v. Klein, 276 F.Supp.3d 34 (S.D.N.Y. 2017); Equals Three, LLC v. Jukin Media, Inc., 139 F. Supp. 3d 1094 (C.D. Cal. 2015).
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[@iChannelz88]

Crypto and NFTs is the MLM equivalent that men gets sucked into just like women gets sucked into becoming a “girl boss” through MLMs

[@SonicsniperV7]

"We sell you merchandise first that you then sell to others" So it's an MLM with extra steps

[@ZanathKariashi]

@@SonicsniperV7 *MLM but we never actually pay you anything, and you only ever give us more money.

[@Googledybunker]

I, as a juror, could be easily persuaded that no reasonable person would think NFT's should be taken seriously.

[@sandy1653]

Something something fools & money easily parted something something.

[@smalltime0]

The underlying technology is agnostic. It is what people are doing with it that makes it a scam.

[@linuxd]

true. but the reason for securities laws is to protect the unreasonable people from giving all their money to scammers, right? promising riches if you give them your money and then running off with it all

[@charlie4987]

⁠@@linuxdBut if no reasonable person would consider it a security, then…

[@linuxd]

@charlie4987 so you have to have a clear definition of what a security is. And by having those clear definitions, if someone puts it out there that their product does what a security does and the non-reasonable people fall for it, the reasonable people must uphold that standard. Because it doesn't matter what represents the security. if I say stones and sell the stones as securities (securities do provide return on investment) but then I take all the investors money and do nothing about the "project" I would be held accountable by law

[@Daddyoh94]

Thank you Tom for Spamuary!! I'm going to be so sad to see it end

[@KingsOfCardio]

Scamuary

[@boothman9321]

At first, I thought I wanted to BE Attorney Tom. But now, I realize, I want to be WITH Attorney Tom.

[@semesabrown489]

Thank God there is no "IN" in either of those sentences

[@ipodpancakes2874]

@@semesabrown489😋😋😋

[@herzogsbuick]

@@semesabrown489 it's implied

[@SpencerCornelia]

There are so many mentions of "making money" in the discord - with enough evidence entered into court, I think there's a pretty strong argument that it's a security.

[@BeersAndBeatsPDX]

Ah yes, Spencer "I doubled Down And Insulted People Who Called Me Out For Advertising Established Titles" Cornelia.

[@nathanrice7352]

That booze bloat is showing up strong too.

[@darksu6947]

Spencer was in the comment section of that video defending Gary Vee over and over and talking crap to the commenters that said anything about them. Looked real professional 😂

[@hansonlee5847]

Or backing up his FTX buddies by saying that "But Tom Brady and Steph Curry are WoRsE 👁👄👁"

[@robyee3325]

He also back tracked on scammer gambler micki.

[@Whoischrislewis]

He became everything he was out to expose

[@mikeall7012]

Crypto Zoo was unfortunately not the biggest NFT scam of that year. There were much bigger.

[@Aerotides]

Appreciate all the hard work. I've been getting notifications about your uploads again so something must be working. 🎉

[@lostboy8084]

NFT itself is a scam

[@kphaxx]

Ethereum

[@jakecarlson3709]

I don’t quite agree on that. That is like claiming that wire transfers or gift cards are a scam. Are they a vector for some of the most common scams? Yes. Is the underlying technology a scam? No.

[@undisabled1552]

@@jakecarlson3709 a true utility NFT would be incredible given what we've seen the possibilities can be, but unfortunately I think public sentiment has gone so far down the drain that it will never happen unless the technology is just buried underneath and not used as a selling point.

[@solsystem1342]

​@@jakecarlson3709 I mean, they're like collectors items I guess you could say if you wanted to go down that route.... but, at least like at least you clearly legally own a collectors item. Ignoring that though they just don't have value in the way a tulip or some other sort of bubble would. Because like, people could at least like a tulip because it was pretty. NFTs are like not even the images themselves so there's not even that to go on. Tldr: you can technically say they're not a scam but every existing implementation of them has been either a scam, scummy, or actively detrimental to whatever it's attached to

[@schwingedeshaehers]

​@@jakecarlson3709what is the sold/stored item of nft?

[@user60521123]

One of the biggest signs that this was a major scam are the give-aways and discounts on the product. If I’m an investor, I don’t want the product. I want them to go sell that product, and start growing the co. The only benefit any investor with more than 2 brain cells wants are returns.

[@Phillthii]

So glad I never got sucked into the NFT thing. Like come on, who would spend that much on a jpeg... and hope you arent too exhausted yet Tom lol. Been loving Spamuary ❤❤❤.

[@Trapped42]

Do I look like I know what a jpeg is? I just wanna look at a picture of a got dayum HAWT DAWG

[@HauntedOne666]

Spencer make some of the best scam callout content on youtube, i can't believe he doesn't get more views.

[@SonOfNone]

10:50 This is all beginning to look quite pyramid-y shaped .... 🤔

[@sararaven]

0:59 I can already see the rage building in Attorney Tom's face, there's gonna be hell to pay

[@smashleybreaks]

At this point, if you are still getting scammed on NFT's you almost deserve it.

[@mv3380]

This. Why people don't just invest in index funds is beyond me.

[@FluffPuffkotj]

Any one that listened to these guys talking and thought they were business savvy, kinda deserved to be scammed.

[@JustAStump]

I swear NFTs are just MLMs targeted for men... 😂🤣

[@ZMAN_420]

If you're BUYING NFT's now your stupid and if your selling NFT's you're PURE EVIL!

[@seanewing204]

​@mv3380 Like the stock index? Do you mean stocks and bonds? I'm not "financially savvy."

[@tsmith9642]

Im genuinely curious about how many of the high cost nft sales were between sock puppet accounts designed to give a false illusion of value.

[@markfuston2714]

I'm just picturing the CJ meme "Aw shit, here we go again..." but with Attorney Tom's head going down this rabbit hole..hahaha

[@ExplorationRandomDestination]

100% if influencers scam their fans if it will give them more views.

[@michaelelmore1678]

Im know this isn't the reddit, but i was wondering if you'd be able to do follow-ups on some of the videos that you've reacted to

[@filledepieuvre]

Been enjoying spamuary from you ! 🔥🙏

[@CapnCody1622]

I’m gonna go out on a limb here and say yes.

[@PandaMan02]

how do you run out of stock of NFTs? thats like saying Steam ran out of stock of Portal.

[@GamesFromSpace]

They tend to be sets, where each nft is a unique item. They can also be more like steam purchases with an unlimited quantity, but that's less common.

[@ZanathKariashi]

Artificial Digital Scarcity, the whole point of NFTs.

[@the1exnay]

The way he talks about it, sounds like those are stocks. Like, done abit weird, but benefits for shareholders and a portion of the profits, just seems like a new coat of paint on a stock

[@bobbygetsbanned6049]

Let's clarify something, a security has to be fungible, this is an important concept in finance for determining what is or is not a security. NON Fungible Tokens obviously are not securities, because they are non fungible. For the purposes of the Securities Act, which determines what the SEC can regulate, "Investment contracts" count as securities. So the SEC can regulate NFTs as securities if they qualify as investment contracts, but NFTs are NOT securities. NFTs are much more similar to collectables than securities.

[@denvera1g1]

I did not ponzie this coming.

[@PaulSteMarie]

It's hard to imagine a worthless jpg gaining value just because it's listed in a transaction log somewhere. I'm going to go out on a limb here and just categorically state than anyone selling NFTs as an investment is a scammer. Ditto for crypto "currency", which has no, zero, zip underlying value. Federal Reserve notes have value because you can use them to pay back loans from a Federal Reserve Bank, which in turn makes them valuable to banks and governments.

[@absentmindedjwc]

Lol @13:10, dude on twitter with a Bored Ape avatar. Dude apparently just likes getting scammed, lol.

[@Mr-pn2eh]

Yes No evidence is necessary Its time to defame and slander nelk. We will never forget the harm of roobet

[@ZanathKariashi]

The truth isn't defamatory.

[@Mr-pn2eh]

​@@ZanathKariashiok

[@ImperatorClass]

Watching tom _boil_ as he hears more and more about it

[@MrGlotzTV]

NFT is such a low bar of an IQ and greed test.

[@SparklRebel]

I just realized that Tom has that whole Coffeezilla office type background going on!

[@herzogsbuick]

youtube is my jam, and has been for over a decade. but i watch documentaries, engineering videos, howtos, science and history videos. i just looked up the Nelk boys. i'd never heard of them. those were the days.

[@Cannabis_Connoisseur]

My father has been sparying round up for years now working for a small landscaping business. Hes now started to get skin cancer all over his head and face underneath wear his head band sits. Any advice ive hard theres lawsuits involving round up??

[@Apexsilverevo]

5:15 This is where the true benefits were supposed to be. NFT's were supposed to be much more than "just a JPEG" because granted anyone could capture and use the picture, only one person held the actual contract behind the picture. Most people didn't understand what a NFT was (the contract on the blockchain owned solely by 1 person) and not the picture on the internet. It awas meant to be a "key" or something similar that held value offering perks/benefits to the owner not just a picture you could use as your profile picture on twitter. Most folks didn't understand that only 1 person is truly the owner as the contract could only be resolved to 1 person via hash string on the ETH blockchain. The entire situation was completely FUBAR'd because no one understood this fact plus you had shadey characters who took advantage of others and either promised additional benefits then never made good on such promises or never even promised anything and just hopped on the NFT bandwagon to take advantage of the ignorance of the public. I personally agree that they should be held responsible as by definition these were securities/assets which are governed by the SEC (or at least should be).

[@413RC]

Thanks for this video bud. Lets get this rolling

[@JihadMuhammad-uk8ze]

Wow I remember this shit vividly. I used to love Steve

[@greenwarrior33]

Poor Tom. You could tell he feels bad for the holders and it wouldn't surprise me if he wanted to represent them. But I'm sure he is tied up in cryptozoo and more transitional cases that he just can't do it all.

[@michaelwilson7435]

I bought this NFT! Whole interesting thing to have to download one app for crypto, another for NFT, learn what gas fees are, etc. I sold the NFT at the second highest price any ever sold for, took a 103% profit, and have never bought another NFT again. Went into a casino, put it on black, won, and left.

[@michaelwilson7435]

In my experience, it was actually more than $2,300 to purchase. Between having to get new app, the transfer fees that come with that, and then gas fees for the purchase, it was actually like $3,150

[@ryanmarbut1035]

​@@michaelwilson7435 I have never bought an NFT but what is a gas fee? Is that for your car to go pick It up? 😂

[@lylyscuir]

@@ryanmarbut1035Crypto currency operates on a distributed network. Long story short, in order to enter transactions on the network, you need to pay fees to the people supporting the network, just like credit card transactions. However, unlike credit card network fees, these fees can become a substantial portion of the transaction.

[@Lodeous]

​@@ryanmarbut1035 Gas fees are fees you pay to send cryptocurrency to someone else. They go to crypto miners to pay for processing the transaction. A lot of NFTs are built off of the etherium block chain which has notoriously high gas fees.

[@nathey19]

Getting a crypto scam ad on this video is the highest level of irony

[@MrJoosebawkz]

6:55 tbh i dont see the logic for it being a security yet. To me it seems like they advertised _utility_ not returns. idk a lot about sports but i imagine you could resell your season tickets to somebody else. and I dont think season tickets are securities. They basically said “oh if you buy this youll have a ticket/membership to all these cool events/facilities”. So if there’s a scam here it’s the fact you couldn’t use the product as advertised. There’s no “FullSend” gym you can go to using your NFT etc.

[@MrJoosebawkz]

10:39 well nvm 😂

[@dremlar]

@AttorneyTom, how is something like DrDisrespect game not a security then? It's a pay to get in early to get a special NFT for when the game launches. There are more details on it, but by your definition it sounds like that would be classified.

[@kvcavin1]

You should do a pyramid scheme song the way Mike at That Chapter plays the life insurance policy song. I hear that royalty free music and I am triggered by life insurance.

[@cristlejohnson4900]

When Legit nfts were big, you could have traded for money. If they weren't whatever an nft had to be, it would be a scam.

[@mpbirk]

Kyle sounds just like Billy McFarland from Fyre Festival.

[@MrGiXxEr]

Are we not going to address Mark Cuban at 12:25 ? What was his involvement?

[@theterriblegamer1228]

Funny how these people never "get into details". In other words, they have no business strategy. There is no way they haven't already spent all 23 million on themselves.

[@realGBx64]

I never bought into an investment to be able to access gyms or casinos. This sounds more like a membership card than a security.

[@bobstevenson3130]

I subbed to nelk in 2020 when COVID first hit and they were making some genuinely funny content trolling online zoom classes, and then every year after that it seems like they've just fallen off more and more

[@alecgladkov8573]

I think I can smell another lawsuit coming!!!!

[@OffendingTheOffendable]

Who?

[@robyee3325]

Damn Spencer Cornelia looking jacked!

[@autograph415]

i invested in nelk and kmade profits

[@DustinRodriguez1_0]

Can individuals bring a case for securities fraud? Would they have standing? That sounds like something the SEC would have to do... I do imagine the SEC would be interested since these guys aren't a huge business. If I were them, I would try to get one of the Goldman Sachs type things where you just settle, pay some fine that's 1% of the money you made with crime and admit no wrongdoing. GS does that dozens of times a year every year. My guess is, though, these guys aren't rich enough for that kind of special treatment. Maybe if they offer a job to Gary Gensler.

[@MultiPurposeReviewer]

Stuff like this just makes me glad I never got into NFTs.

[@IL_Bgentyl]

Still watching the add before the video: yes they did and will. Don’t forget they run happy dad.

[@robertbennett2796]

I’m still trying to comprehend bitcoin still

[@Vandassar]

To anyone who wants some free advice about how to avoid these kind of scams. If its a project that has anything to do with NFTs or Crypto, just assume its a scam. Done.

[@Vikanuck]

I used to dig Spencer’s videos until he started working out harder, and now he only does his videos wearing flex shirts, and with flexed arms the entire time lol 😄 Before his hands were always just on the table or occasionally making random gestures, but now he’s - always - in flex mode and talking with his hands pushed together to make them ‘ceps pop haha 😂 and I can’t stand when guys do that, because they just want comments on it. And I totally get being proud of having a fit body, but underhandedly doing things like that just for the praise just seems cringey to me 🤷🏻‍♂️… sorry I mean - 💪🫤🫱

[@mj99875]

I heard Forsen, and was like, my man...

[@Frog-gloves]

Majima Goro lookin thumbnail

[@Celsters833]

Snoop dog played that event for free and did as a favor and this was from the mouth of John.

[@textman09]

I got an email that said I was a victim of the Verizon database breach thing whatever the fuck happened

[@Delightful_Aggression]

Tom's got another case!

[@locustsandhoney486]

Is ART a security?

[@charlesmuench2021]

Tax scam actually

[@hijinks21]

It's crypto so scam

[@backtoobasics]

Aa fool and there money soon part ways.. nft sales slogan

[@TheLocomono9]

So a longer tale of incompetence you might like reacting to is the cost of Concordia by the internet historian. Even though it’s outside your jurisdiction

[@RandomAmerican3000]

Why the hell do these guys have followers in the first place?

[@ftwsam2246]

Sounds like the meta card is worthless, a better investment would be a Costco card or a Sam's club card 🤣

[@mapple35]

Do you actually do securities law? you gloss over the definition, ignoring the key aspect is the expectation of profit from others work. How on earth can you claim getting a gym membership for free "sure sounds like an investment?" Its a literal gym/social club. I didnt know my equinox membership is an investment that will pay me...

[@GamesFromSpace]

If the nft serves as an access pass to the service which otherwise has a cost, how could it not have value?

[@mapple35]

@@GamesFromSpace having value is different than being an investment i.e. security and its clear the card had value. people bought it with money im not saying theres no value. in the video this lawyer pretends that the definition of a security is so complicated he doesnt define it. its not complicated and defining it is crucial to decide wether this was sold as an investment or just a membership club. Something is only a security when someone expects to profit from another persons work. Access to a gym is in no way profit. Its ridiculous that this lawyer said that "sounds like a security" when its literally a gym membership.

[@GamesFromSpace]

@@mapple35Access to the gym has value. That access can be transferred, since it's an NFT. If that value can increase, it's an investment. It's not "just access to a membership club", it's a thing which can be sold. Like you said, it's not complicated?

[@mapple35]

@@GamesFromSpace Look into the test that determines if something is a security and then decide again if what you are saying holds. Im not going to have a debate when we are not on the same page. It is clear that the gym aspect doesnt make it a security, even the way you describe, if you know the proper legal test. A Picasso is not a security, neither is a transferable membership club. The real problem i see is with this "lawyer," who didn't even bother to explain to his lay audience how to even evaluate if something is a security.

[@Jason69-]

Yes with their bs NFT that they said would have mad benefits to it lmao😂 they’re a joke once happydad was invented

[@VinceP1974]

A bunch of grifters are going to start up a business conglomerate in a few months. Lol.

[@cruzitoo132]

Who’s buying bored jerky? 😂

[@VinceP1974]

Web3... Web pee

[@jimphubar]

Greeeeeeed.

[@MitchBurns]

I do think you should put more of a disclaimer on this since you do have a bias in this. You are the lead attorney against Logan Paul in cryptozoo, which is a very similar case. If this does go to trial, the two cases could end up getting tied together by case law couldn’t they? I mean odds are your case would finish first and impact the success of this case, not the other way around, but still. You might not be taking on this case, but it’s very likely the lawyer who does will use your work in your case against Logan Paul in their own case.

[@VinceP1974]

A disclaimer for a "bias against scams". Lol. Good one

[@dirtymike5972]

johns a good dude. hes trying to pull through .

[@raviwilson5703]

Do dogs have the right to attack someone who attacks them?

[@Ozzymandius1]

I had a friend ask me what I thought about NFTs. Keep in mind that she a real estate agent, purchased her own house, and always had advice to give financially. After that question though, I released she’s probably in crippling debt and that’s why she’s a miserable person who thinks Trump would save the economy.

[@DarkKnightBruce]

Hey attorney Tom, can you take an arbitration case against a nifty company for me? They have made more than any of the scammers mentioned on Coffeezilla or the other guy. I'll give you half if you prevail. Thanks

[@jestnutz]

Around 2019 they had done a lambo raffle with wizza that the winner was never announced. I remember entering and never seen who won.