The Kardashian Kard Ruined My Life
July 23, 2023
PART 1:
My name is Nancy Torosian Butler and I reside in Fresno, CA. I have been silenced by the threat of legal action if I dared to reveal the underlying facts of the Kardashian Prepaid Debit Card Program. However, I have nothing to lose and want the citizens of this nation to understand what actually occurred.
There is a quote, "A man's reputation is the opinion people have of him; his character is what he really is." This resonates deeply with me as my reputation was destroyed. Although I know the truth of my character, I want all of you to come to know me and understand how very important morals and ethics are to me.
In 2008, my husband and I were introduced to a proprietary prepaid debit card program with innovative and cutting-edge technology. Once I studied the card program features, I literally could not sleep at night. All I could think about was the limitless opportunities for this technology in the marketplace that could provide assistance to U.S. consumers.
One must remember that the 2008 financial crisis began with cheap credit and lax lending standards that fueled a housing bubble. When the bubble burst, the banks were left holding trillions of dollars of worthless investments in subprime mortgages. Not since 1929 had the financial community witnessed twelve months like it. Lehman Brothers went bankrupt. Merrill Lynch, AIG, Freddie Mac, Fannie Mae, HBOS, Royal Bank of Scotland, and others all came very close to filing bankruptcy as well and had to be rescued. The recession that followed cost many U.S. citizens their jobs, their life savings, their vehicles, and their homes.
People were struggling. Banks were charging $35.00 non-sufficient fund (NSF) fees and assessing multiple fees to an account in a twenty-four-hour period. This was an unmanageable financial burden, which caused consumers to close their own account or the banks ejected them out of the banking system altogether. And once reported to ChexSystems, it could take over five years to qualify for a bank account again!
Prepaid debit cards were the answer. One could only spend the funds loaded onto the card. There were no NSF fees. People could even have their payroll loaded onto the card.
My husband and I were licensed to create prepaid debit card programs and worked with a Program Manager. We applied for an ISO (Independent Sales Organization) with the financial institution (University National Bank, now known as Sunrise Banks) and paid the required application fee of several thousand dollars.
I learned that Kim Kardashian was going to make an appearance at The Edge, a new nightclub that was opening in Fresno, CA in June 2009. I prepared a prepaid debit card proposal explaining the rich features of the card program and paid the $100.00 entry fee. Once inside, there were at least a hundred people immediately crowded around the stage where Kim was seated. I kept saying excuse me, excuse me, and made my way up to the front of the line and the security guard ushered me past the velvet ropes and I walked directly up to Kim Kardashian. I explained that I had a business proposal for her and discussed the concept with her briefly. I then asked Robert Shapiro, seated next to her, to please take possession of the proposal and make sure it was given to Kris Jenner. I was extremely excited that I was able to make contact with Kim Kardashian.
In the following weeks, I reached out to the Kardashians’ celebrity branding and marketing office located in Los Angeles to follow up on the presentation. After several weeks, I was invited to Kris Jenner’s Calabasas home office to discuss the prepaid debit card program. I was accompanied by an associate and my attorney. We were able to highlight the program features and actually show Kris how the transfer of funds from one card to another via cell phone functioned. We had presented her with a monthly card program fee of $4.95. Kris Jenner said that would not work and stated that she wanted each daughter (Kourtney, Kim, and Khloe) to each receive $1.00 per month, which would increase the monthly fee to $7.95 per month. Although we knew $7.95 per month was still a reasonable amount (especially taking the card program’s features into account), we stated that we would have to clear the increased fee with the technology platform and the financial institution. I also presented the concept of forming a 501c3 in order to share a portion of the program profits with their preferred charity. Kris Jenner stated that she did not want to share any of the profits, as they had already been very generous to charities and also donated their clothing as well. After review by the technology platform and the financial institution, we received authorization to move forward with the revised monthly fee of $7.95.
In the following months, there were numerous items to complete such as the Kardashian Celebrity Agreement, securing investors, building the website, securing the photo for the debit card, ordering the card plastic, finalizing all program fees, ordering all the marketing materials, securing a launch venue, making all the travel/hotel arrangements for the launch in New York, arranging the travel and security for the Kardashian Sisters, etc. The list was long.
Once the Celebrity Agreement was fully executed, I scheduled a date to drive to Los Angeles to pick up the agreement and pay the initial $37,500.00. The day before I was to drive to Los Angeles, my husband was informed that he was terminated. He had managed and worked for a significant beer distributorship here in Fresno. It had been his entire focus, identity, and life for fifteen years. He learned that he was terminated because he had discussed a personal business endeavor with a new vendor during business hours. The vendor had asked my husband what I did for a living and he shared that I was preparing to launch the Kardashian Prepaid Debit Card Program. He asked to meet with me because he was potentially interested in investing in the project. We had not seen any harm in meeting with him, since he had requested the meeting.
Just months before, my husband had opted to purchase his company vehicle, since the company had decided to no longer provide vehicles to top management. We then received a demand letter from his employer for payment in full. So we had no other choice but to send the company a Cashier’s Check for the entire remaining balance.
The owner of the technology platform insisted that we travel to Santa Monica to meet with an advertising/marketing agency, because he said the Kardashian Prepaid Debit Card Program was going to be so enormous that it would require professionals. We advised that we had already been in discussions with a local promoter ourselves and that I had also been introduced to the Kardashian team in Los Angeles and New York.
Upon arrival in Santa Monica, we initially discussed marketing strategies and then a new ‘bundling’ pricing structure was introduced to us. We were told that the technology platform and University National Bank wanted us to ‘consider’ an annual fee of $99.95. We were stunned, almost speechless, and responded that we had initially been approved for a monthly fee of $4.95, which had then been revised to $7.95 monthly. We were then told that the $99.95 annual fee would include the issuance of the card plastic, which would make the monthly fee slightly less than $7.95. Prior to our departure, I made it very clear that we wanted the Kardashian Prepaid Debit Card Program to be inclusive, not exclusive. In other words, we wanted the product to be affordable for all. We rejected the suggestion of an annual fee.
Shortly thereafter, the owner of the technology platform informed us that his chosen marketing agency in Santa Monica was not an option, it was mandatory. He instructed us to wire $25,000.00 to him or he would not allow the card program to move forward. We later learned that he had a personal relationship with the marketing representative. We requested numerous times, but never received, even a description of the scope of work that would be performed for our $25,000.00 payment.
Then, we were informed that the ‘bundling’ pricing structure was not an option either. We were informed that the technology platform and University National Bank were moving forward with the annual card fee of $99.95. And what would the reason for that be? They simply did not want consumers to purchase a Kardashian Prepaid Debit Card and not load it or use it regularly. They wanted income. They were greedy. Again, we never, ever saw any of this coming. We were first approved for a monthly fee of $4.95, which was revised to $7.95. In absolute desperation, I floated the idea of also offering a six-month fee option. After much discussion over time, they finally agreed that both a six-month and twelve-month pricing option could be offered. We, and our investors, were so highly financially invested at this point, we had no choice but to move forward.
To be clear, it was not the amount of the monthly fee, it was the perception that the card was exclusive and expensive. And, most consumers could afford to purchase the card for $9.95 and pay a monthly fee of $7.95. Many people could not afford to pay a lump sum of $59.95 or $99.95. In my opinion, that was just common sense!
The launch event was held at Pacha NYC in New York on November 9, 2010. I have emails with Kris Jenner and an executed contract by Kris Jenner that outlined the expectations of Kourtney, Kim, and Khloe. They were to be present at the event for three hours, 8:00 – 11:00 p.m. The day of the event, I started receiving emails from their marketing team stating that the Kardashian Sisters could not possibly stay the full three hours. Kourtney could not be out that late, as she needed to get back to her hotel to take care of her child. Oddly during that time period, all over the Internet, one could see how Kourtney and her husband had been seen at restaurants until 2:00 in the morning. I was less than pleased. We had numerous commitments for this very important launch event. I emailed Kris Jenner and also spoke to her. I told Kris there was something called babysitters and that she should arrange for one.
Upon their arrival, there was a red carpet. Numerous representatives from significant news agencies and celebrities were in attendance, it was exciting for us! The Kardashian Sisters were escorted to the VIP suite, which had a large window that overlooked the DJ and dance floor. Initially, they all appeared in the window and greeted the guests below. Khloe was the most interactive of the three. Then, they essentially retreated and only got up out of their seats to greet various guests. Their New York representative was beyond rude and condescending. Every time I wanted a photograph taken with our investors and other program dignitaries, she said no, no photos. Some of the New York Housewives were in attendance and asked to meet the Kardashian Sisters. Again, their representative said no, that she didn't want them in the suite. I attempted to explain to her that this was my event, and my contract. Then, after only forty-five minutes, they got up and left the VIP suite. I assumed they were leaving briefly to use the restroom, and then I was informed that they had left the venue in the two black SUV’s I was paying for and drove away. I started calling Kris Jenner and their New York representative and blasted them for breaching their executed contract.
Then they returned. It was uncomfortable. They had zero desire to be there and had zero intention of fulfilling their responsibilities regarding the launch of a new product. I had also ordered and paid for beautiful presentation floral bouquets to present to Kourtney, Kim, and Khloe for the launch of this new and exciting card program. Their representative asked me what I thought they were going to do with them, "sit there and hold them?" The bouquets were left behind and another $350.00 was wasted. They appreciated nothing.
This program was not a new lipstick, or a new fingernail polish, or an array of new shoes, but a very SERIOUS financial product that was not a joke! We were disgusted. Then, they left the venue again. The media was all over it and could not wait to post what had occurred. It was an embarrassment. This behavior is representative of how the privileged and entitled act.
There is much more to come as I have the time to write. This will become pretty scandalous and will include other corrupt and high profile individuals. All the evidence will be uploaded as well.
July 30, 2023
PART TWO:
November 10, 2010, the day after the launch of the Kardashian Prepaid Debit Card Program, there were numerous articles written about the event and the prepaid debt card. There were the typical detractors about another prepaid debit card being released into the marketplace, and those that focused almost exclusively on the fee schedule, and other articles about how the Kardashian Sisters had acted at the launch event. They were highly criticized for leaving the event after only forty-five minutes. I had personally delivered a check to the Kardashian Sisters’ hotel for their hair and makeup fee. Kim had initially wanted me to fly her preferred stylist from Florida into New York, which I refused to do. The initial quote provided for their hair and makeup was $12,000, which was negotiated down to $7,000. So, we paid several thousand dollars for them to leave the event after only forty-five minutes, and then after some encouragement, returned for another thirty to forty-five minutes. The Kardashian Sisters were solely responsible for their irresponsible behavior and for creating a very negative view of the launch.
With regard to the fee schedule, I have already mentioned how the technology platform and University National Bank had forced a 6-month and 12-month fee, which included the cost of the card plastic. We were never in agreement. We only wanted one monthly fee offering of $7.95. Unless one is involved with card programs, one would not understand how many entities are required for a card program to function:
ISO Marketer Nancy and William C. Butler
Technology Platform Jim McLeod, Mobe, Inc.
Financial Institution University National Bank
Processor TransCard
Payment System MasterCard
Printer of Card Plastic EFT Source, Inc.
Celebrity Branding Kourtney, Kim, and Khloe Kardashian
Each entity was in business to make money, so the program fees had to be split many ways. The fees that were quoted were not set by us, they were set by the technology platform and the financial institution. They in turn had to compensate the other entities as well. There is a hard cost to issue the card plastic (we had to order and pay for 15,000 cards prior to the program launch). We had initially been told we could order 5,000 cards, then we were told we had to order 20,000 cards, and we finally settled on 15,000 cards. With every fee stated, there is a cost to deliver each service, whether it is a canceled account requesting a check for the account balance, or to pay a bill online, or to expedite a card delivery, etc. With regard to the $1.50 fee for a Service Center live operator, we were told cardholders were not going to be charged, they merely placed that fee on the schedule in order to discourage cardholders from placing numerous calls to the Service Center. With a celebrity branded card, there was going to be an enormous volume and the cost of live operators is very expensive and is another hard cost that fluctuates. We asked numerous times to have that fee removed from the schedule, but they refused. With regard to international charges, such as an ATM withdrawal or decline or Point-of-Sale (POS) decline, these were called ‘pass through’ fees. In other words, that was the actual cost of the service and was not eligible to be split amongst the entities. And as a side note, understand that the typical cardholder of a prepaid debit card would not likely be traveling internationally, which really made those fees a moot point. I personally have never even been to Hawaii, or traveled internationally, and I am considered to be a ‘banked’ individual, unlike an unbanked or underbanked individual.
The account-to-account transfer fee was $1.00, and even that fee was criticized. The program was so new, no one truly understood the technologically rich features. Once funds were loaded onto the prepaid debit card, a transfer could be made card-to-card. Each time there was an expenditure, via a cell phone instant text message, the cardholder would be informed of the amount of the expenditure, where it occurred, and the card balance. No traditional banks had this technology. I used to have to dial an 800 number, enter my account number, and wait to be told my balance. Then I could listen to a list of five transactions at a time.
Cardholders, using their cell phone or computer, could turn their prepaid debit card ‘on’ and ‘off.’ They could turn their card on for only one transaction or leave it on. No one could access the funds if the card was turned off. I always kept my card off, and one would be surprised to learn how many times my phone beeped alerting me to the fact that someone had attempted to access my funds. My money was safe!
And, how many times did I receive a phone call from my daughter telling me she needed money for something. I would have to leave home or work, drive to an ATM, and then meet her at a prearranged location to give her the cash. Can you imagine we used to have to do that when it was only a $1.00 fee to transfer funds instantly from the comfort of your home or office?
An example I fondly recall is when my son was supposed to be at home. My cell phone beeped, and I was informed that a transaction had just occurred at a convenience store, the amount of the purchase, and the remaining balance on the card. I immediately called my son and asked him what he was doing and what he had just purchased for $9.58 (he was still standing inside the store). It was absolutely amazing, and I deeply regret how consumers did not have the opportunity to benefit from this incredible cutting-edge technology.
On November 10, 2010, I was walking down 5th Avenue when a colleague called to tell me the Service Center had gone down due to the amount of calls received about the Kardashian Prepaid Debit Card. Everyone wanted to know exactly how to obtain the card. I literally went down to my knees and then sat down on the sidewalk. I was so overwhelmed and grateful that the program was going to be an enormous success! Then, I started to receive phone calls myself from Canada, New Zealand, Japan, etc. I had no idea how they had gotten my phone number. They all wanted to know how to obtain the Kardashian Prepaid Debit Card and I had to explain to them that it was at that time only available within the United States. We had, however, already been in preliminary discussions about taking the program international as well.
Prior to the launch in New York, we had subscribed to a service that provided analytic reports. Leading up to the launch date of November 9th, there were 1 to 60 visitors to our website. By November 12th, the analytics report logged over 90,000 visitors to our website to view the details of the program and/or purchase the card. That was a total of 3 days. The report also listed the cities and states the calls were generated from.
On November 11, 2010, Veteran’s Day, Kim Kardashian was scheduled to appear on The Jay Leno Show to talk about the launch of the Kardashian Prepaid Debit Card Program. Mocked up prepaid cards for Kim and Jay Leno, as well as a large format card, were sent directly to The Jay Leno Show by Jim McLeod with the technology platform. We were very excited to have this national media opportunity. Then I received a frantic call from my colleague stating that David Reiling, CEO of University National Bank, and MasterCard representatives wanted to schedule a conference call to discuss the negative media surrounding the launch and Kim Kardashian’s appearance on The Jay Leno Show. It was a very difficult conference call, as I was offered up as a scapegoat for anything negative that occurred. I was told that no one was aware of the Jay Leno Show appearance, and I was held responsible for all negative media articles. I absolutely was not responsible for negative media, as I certainly had no control over what others stated in print or when they used the term MasterCard. This was a MasterCard prepaid debit card, therefore, the term MasterCard was used. We never stated that the event was a ‘MasterCard’ event as some reporters stated, it was our event. And, I also explained that it was Jim McLeod who personally arranged for the cards that he sent directly to The Jay Leno Show. Although Jim McLeod was on the call, he was completely silent until someone asked if he was still on the call. Only then did he state that he could accept ‘partial’ blame and I was then instructed to reach out to the Jay Leno Show by David Reiling to have the Kim Kardashian segment pulled. I responded that I would try to contact the show, but that I could not guarantee anything, as Kim Kardashian was scheduled to appear that night. David Reiling told me “I had my orders.”
I was also told during that call that University National Bank, in concert with MasterCard, had hired an expert PR firm to mitigate any misstatements by the media. As of that date, they advised that they were placing a ‘gag order’ on me, and that they would be responsible for all communications with the Kardashians and other involved parties. They also stated that they would be preparing language that would be placed as a pop up on our website. Who knew that a ‘gag order’ could be placed on an individual who created and owned the Kardashian Prepaid Debit Card Program, who had invested their entire life savings in the venture, by a financial institution and a card network? Prior to that call, it had always been my understanding that only a judge could issue such an order.
Immediately after that conference call, I called my colleague who had arranged the conference call. I was extremely upset and told her that I needed to immediately recount in writing what had been stated during that call. She responded that there was no reason to do that, that she would simply email me the RECORDED conversation. She said that by entering the call, each participant was made aware of and agreed to the call being recorded. I have that recording placed on my desktop should anyone wish to challenge what I have stated.
And, with regard to Kim Kardashian’s appearance on The Jay Leno Show, it was a huge success, and all parties expressed their delight on how well it went.
In response to the negative media articles regarding the fee schedule, the technology platform and University National Bank agreed to offer new card program pricing for the holiday season. The special holiday pricing was going to be $29.95, which would include the cost of the card plastic and the monthly maintenance fees for three months. I have various emails dated mid-November 2010 confirming that I was literally begging for the new pricing to be approved and placed on the website immediately.
Again, please understand this. There were very few reporters that actually got it right. If one compared the Kardashian Prepaid Debit Card Program fees to other prepaid debit cards in the marketplace, the Kardashian card was “in the ballpark with many other prepaid debit cards.” This statement was made by Dan Kadlec (Moneywatch). He went on to state that Consumers Union had reviewed the terms and conditions of nineteen prepaid debit cards and found the following:
- 12 had an activation fee of up to $39.95
- 16 had a monthly fee up to $9.95
- 19 charged a fee to withdraw cash from an ATM
- 18 charged a fee to check the balance at an ATM
I have much more to share. My next post will be very revealing and anticipated to be quite controversial.
Thank you so very much for following along with me. It is very much appreciated!
