ASD Had Tie To Firm That Operated Ponzi Scheme
Friday, October 3, 2008
ASD Cash Generator permitted customers to make purchases with CEP Trust, the failed payment processor owned by the operators of the CEP Ponzi scheme.
Web archives and documents show that ASD accepted CEP Trust as a payment method in June 2007. CEP and CEP Trust were smashed by the Securities and Exchange Commission less than a month later. The firm was placed in receivership and later was forced into bankruptcy. The receiver in the case filed dozens of lawsuits against CEP's top promoters, and a bankruptcy judge ordered the participants to repay their earnings to the bankruptcy estate.
The judge ruled CEP a Ponzi scheme in May 2008.
Magnified section of ASD Cash Generator's Terms Of Service as it appeared in June 2007, a month prior to the federal shutdown of CEP.CEP began operating in "approximately November 2005," the SEC said in its complaint. A forensic accountant later determined that CEP had invested in at least 26 autosurf or other high-risk programs, losing more than $26,000 in the process.
CEP made a number of false statements to investors, including the claim it was compliant with SEC regulations, the SEC said.
The extent of ASD's ties to CEP is unclear. Archived information suggests the ASD Cash Generator site -- which has been throwing a server error for at least three weeks -- was in in its infancy when it accepted CEP Trust as a payment method.
Labels: ASD and CEP Ponzi cases, ASD and CEP Trust
posted by Patrick Pretty @ 12:31 AM,
