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opsec1While following the dispute over Deric L’s actions, I decided to visit his twitter account and look over his profile. In his profile I noticed a link to his paypal account that he uses to process transactions and for another purpose I was not aware of.

opsec2When I clicked on that link, I was directed to his paypal account with the usual information that is requested when paying for goods or services on line. At the bottom left hand corner of the Paypal page is yet another hyperlink. This is labeled Project Knightsec which is the Op he headed when involved with the Big Red rape case in Steubenville, Ohio.

opsec3It is when one clicks on that link that something odd happens. Rather than going to the website of Deric’s computer business, the link directs you to an error page that tells you that the Knightsec website no longer exists.

Now this is something of a problem since there is a mixed message as to what the payments are for. I noticed that there is clearly a “donation” option on the Paypal page and not one thing is mentioned about this being a donation site, but rather is supposed to be a payment processing site for a business.

If Paypal is not aware of this discrepancy, they should be.

501c3Paypal has strict rules regarding the seeking of donations. One of those requirements is that the account holder must have a 501c designation from the IRS.

From what I understand, Deric is operating a for profit business.

As a businessman, Deric should have known that this would confuse his customers and may also complicate his corporate filings when it comes to tax matters. He is not a 501c but rather is an LLC which is a  for profit organization. The latter means that he must pay his taxes IN ADVANCE and file estimated earnings quarterly. His tax liability also comes at the first of the taxable year and not April 15th as those who are employees are obligated to do so.

In addition, as an LLC, he has to file articles of incorporation with whatever state his business is registered in. The information must include ALL officers and owners of the corporation and there are also other mandatory filings that a LLC is required to complete.


I have watched how Deric has operated his business and I do not feel he is doing so properly. Deric may not be aware of how to properly operate a business. He certainly should NOT have filed as an LLC. There are more appropriate papers to file that does not require the designation as an LLC yet would offer the same legal protections that a LLC offers. This is a common mistake with young business professionals and it is a mistake that can have dire consequences if not corrected.

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