Prosecutors Counter ASD 'Proportionality' Argument
Monday, September 29, 2008
Breaking News . . .
Federal prosecutors have responded to an ASD motion earlier today that asks Judge Rosemary Collyer to weigh the Constitutionality of the government's actions in seizing funds from ASD on the grounds the actions were disproportionate to the offenses alleged.
" . . . an excessive fines analysis is not just premature -- it is irrelevant," prosecutors said.
"The United States asserts that the defendant property in this case is forfeitable as proceeds of
criminal activity . . .
"The excessive fines analysis does not apply to forfeiture of criminal proceeds," prosecutors said.
Prosecutors asked Judge Collyer to deny ASD's motion.
Today's motion by ASD's attorneys was a bid to improve the company's chances of having some assets unfrozen. The government, however, believes that the assets are the proceeds of a criminal enterprise and asserts that the money would not be available at trial if the court grants ASD's emergency motion to release the funds.
ASD is involvent, prosecutors said earlier, arguing that ASD's own business model and insider dealing created the problem and releasing funds only would magnify it.
Here is part of what prosecutors said in previous court filings:
" . . . Bowdoin recently told his followers that ASD was not a Ponzi because the seized funds were more than adequate to cover the cash-out balances of all the members -- with millions to spare," prosecutors said.
"The other story, which he tells this Court, is that litigation lasting even three months will bankrupt ASD (despite its supposed cash surplus) . . .
"In truth, ASD was insolvent before the funds at issue here were seized," prosecutors continued.
"According to its own records, ASD sold ad packages worth approximately $39 million during the Miami rally, worth over $29 million from the Tampa convention, and worth over $27 million from the Chicago rally," prosecutors said.
"Even without including ad 'sales' that occurred over the Internet and the bonuses offered to rally participants, ASD would need assets of more than $118 million to pay these individuals their 125% return. As many of ASD's followers know, including those individuals with special side agreements, Bowdoin actually promised to return even greater percentages to many of those who agreed to join his flock and promote his get-rich-quick scheme."
posted by Patrick Pretty @ 2:48 PM,
