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Autosurfs: It's Not Just About The Math
Tuesday, September 30, 2008

Dear Readers,

Lower in this post, we'll give you a 15-word reason to say no to the autosurf business model as practiced by Ad Surf Daily Inc., the operator of ASD Cash Generator. We've covered the ASD case since Aug. 2, the day after a mysterious note suggesting the company was under investigation by the Feds began to appear on the ASD website.

We hadn't even heard about ASD until July, when it started to become a discussion topic at the Warrior Forum. One of the things we noticed in reviewing those threads is that some ASD supporters also were proponents of cash-gifting programs. They defended both autosurfs and gifting programs with zeal, despite the ready supply of warnings online to avoid such programs.

In the earliest days of the ASD case, we noticed that opportunists stepped in, making the claim that the government's actions in seizing the funds highlighted the need to "diversify" your online business mix. These opportunists were more than happy to recommend other autosurfs. And they also pushed cash-gifting programs.

Their message was not to avoid the programs, but to make sure you were in enough of them so, if one went down, you could minimize your pain with income from another. In other words, participation in a broad spectrum of highly questionable and possibly illegal programs was a sign of business acumen, a goal to which one should aspire.

Under this logic, the U.S. economy could lift itself out of recession if only more people would participate in autosurfs and gifting programs. It is a stunningly misguided mind-set.

Here, now, is the 15-word reason to turn your back on the autosurf model as practiced by ASD Cash Generator:

"Autosurfs are unpatriotic, unsafe, impossible to police, and you can't keep terrorists and criminals out."

It's not really an argument about math, Ponzis and sustainability at the core level. What it's about, at the core level, is doing right by your country -- and that means saying no to businesses that are a magnet for criminals and people with illicit designs.

Your intent could be perfectly honorable -- raising money for a church congregation, for example. But that doesn't mean your autosurfing neighbor isn't planning to purchase weapons or drugs with his profits. Your money could be used to infect cities with drugs and weapons and arm people who'd do harm to your family or friends.

Andy Bowdoin -- and others before him -- demonstrated that tens of millions of dollars could be created in only weeks. For the purposes of this discussion, let's say his intent was perfectly honorable.

Regardless, anybody with the same autosurf script could do the exact same thing -- and then they could run with the money and literally fund small armies or pay people to blow up buildings or poison water supplies. Even now, people bent on destruction could be participating in any of the autosurfs online. They even could be working as teams. They even could be creating feeder autosurfs, exponentially increasing their capacity to do harm.

True: These are most unpleasant thoughts, but we challenge you to incorporate them in your thinking.

We'll close today by challenging Andy Bowdoin to incorporate them into his thinking: Your operation mushroomed virtually overnight, generating tens of millions of dollars, Sir.

You couldn't keep Google scammers, garden-variety hucksters and people who said ASD purchases were FDIC-insured out of your operation, Mr. Bowdoin.

How in the world are you going to keep out a terrorist cell?

Patrick

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posted by Patrick Pretty @ 9:10 AM, , links to this post



Members' Team Claimed ASD Purchases FDIC-Insured
Monday, September 29, 2008

Two days ago we wrote about some of the reasons why federal prosecutors and the U.S. Secret Service acted appropriately in bringing the forfeiture case against Ad Surf Daily Inc.

Today we'll write about another one: out-of-control participants, including participants who made the outrageous claim money directed at ASD was "FDIC Insured up to $100,000."

Yes, you read that correctly. (See screen shot below.)

The FDIC, which has been in the news a lot recently because of 14 U.S. bank failures this year, does not insure ASD purchases against failure by the company. ASD is not a bank.

This plain fact, however, was not enough to dissuade an ASD downline team from making the outrageous claim purchases were insured by the FDIC.

Question: If you're capable of claiming ASD purchases are FDIC-insured and deceiving and misleading people to this extent, what wouldn't you do? We mean, What would be off-limits if you're capable of making this claim?

Due Diligence?

All of the talk about people performing financial "due diligence" on AdSurfDaily before getting involved in the program or recommending appears to be so much hyperbolic hooey.

How is any financial due diligence even possible without verifiable financial data from ASD?

Absent verifiable data, what is possible, of course, is to create the appearance of financial legitimacy by using the language of investments and banking and hyping the program to recruit people.

Yesterday we noted some incongruities about ASD, parts of the picture that do not make sense. One of the key government assertions is that ASD is a securities firm masked as an advertising business -- something that ASD itself denies.

But despite ASD's denial, some of ASD's own members promoted ASD using the language of investments and banking and making preposterous claims, including the outrageous claim that program purchases were FDIC-insured.


Early ASD team ad claiming completed "Due Diligence"; "Extremely Well Capitalized"; "Top Management"; "shelter from FTC and SEC"; "LEGENDARY Parent Company"; "NEW Innovative Business Model"; "FDIC Insured Up To $100,000"; and more.

The screen shot above -- a five-alarm fire if ever there was one -- is from an ad by an early ASD members "team." Only recently was the information taken offline, and a version of it continues to appear on at least two websites. The word "advertising" isn't even mentioned at the top of the ad, the first thing people viewing it would see.

What, precisely, were these members selling if not an investment opportunity? And what, precisely, did the members' "due diligence" consist of?

How, precisely, could the claim that ASD was "extremely well capitalized" be substantiated?

And how about the claim that ASD had "top management?"

ASD Founder and President Andy Bowdoin is a "convicted fraudster" with a string of failed businesses, according to the government.

"Shelter from FTC and SEC" is another claim from the ad. The obvious question is, Shelter from what? What possibly needs to be sheltered when you're making an advertising purchase?

And FDIC insured? Why would anybody make such a preposterous claim for an advertising product?

Along those lines, anybody with an Internet connection can find spreadsheets online in which ASD promoters showed potential earnings, a prospectus of sorts. Members routinely used the language of investing to describe the ASD opportunity.


ASD promoter's "ASD Prospect Sheet," a spreadsheet showing potential earnings.

Want more "investment" language? Take a look at the screen shot below of a video that promoted ASD. Note the word "re-invest." Elsewhere on the web there are investment strategies such as the "80-20 Rule": Take out 20 percent in cash and keep 80 percent in play.

Screen shot of YouTube video promoting ASD.

Indeed, the ASD case raises some very troubling questions.

Coming Tomorrow On The PP Blog . . .

Tuesday, Sept. 30, during morning hours EDT (U.S.A.), we will publish the principal reason why all U.S. citizens and free people everywhere should say no to the autosurf business model.

This reason consists of only 15 words.

posted by Patrick Pretty @ 4:33 PM, , links to this post



Prosecutors Counter ASD 'Proportionality' Argument

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, , links to this post



ASD Says Funds Seizure 'Disproportionate' To Offenses Alleged; Makes Constitutional Challenge

Breaking News . . .

AdSurfDaily Inc. has filed legal papers in U.S. District Court in Washington, D.C., saying the government's seizure of funds was constitutionally excessive . . .

"The Government has thus far been unwilling to agree to a court-monitored compliance plan that would allow ASD to continue doing business while this civil forfeiture litigation proceeds," ASD's lawyers said.

"In other words, the Government believes that all of the seized $53 million should be forfeited and that none of the funds should be returned now, pursuant to a compliance plan with a monitor and oversight measures. Under these circumstances, the Court should consider whether the Government's seizure is constitutionally excessive."

ASD filed the petition "to place the proportionality factor before the Court as a significant consideration in the emergency hearing," scheduled for tomorrow and Tuesday.

The hearing was scheduled to determine whether ASD's seized assets could be unfrozen and the company could return to business under court supervision.

Previously, the government argued that nothing was preventing ASD from going about the business of selling ads and the the seized funds should remain frozen because they might not be available for trial if released before the civil trial was conducted.

Today's arguments by ASD's attorneys assert ASD is entitled to relief, even if that relief is somewhere in the middle.

"The Government suggests that there is no legal basis to support the return of any seized funds and that . . . 983(f) does not authorize an 'immediate release' of property on the grounds that ASD is not a 'legitimate business. . . .

"The relief sought by ASD is not precluded by law," ASD's attorneys continued. "The relief is entirely consistent with law, reason, and due process, as already set forth in ASD's Emergency Motion. . . .

"Moreover, under []983(g), the court is obligated to compare the forfeiture to the 'gravity of the offense' giving rise to the forfeiture," the attorneys said. "The Government's seizure of more than $53 million in ASD's bank accounts is grossly disproportionate to the alleged offense and is therefore violative of the Excessive Fines Clause of the Eighth Amendment to the United States Constitution."

Setting The Stage For Members' Testimony About The Value Of ASD Advertising

In today's court filings, ASD's attorneys argued that the government has made sweeping assertions that the company intends to prove are untrue:

"The Government, for obvious tactical reasons, has broadly alleged that members were not
interested in the advertising benefits of ASD," the attorneys said.

"The Complaint alleges . . . that 'most of the so-called advertisers are not paying ASD for advertising services at all; instead they are paying ASD with the expectation that ASD will provide a full rebate and additional revenue.'

"As explained in ASD's Emergency Motion, the Affidavit and Verified Complaint filed by the
Government in this case is replete with misstatements, omissions, nebulous and conclusory
allegations and baseless hyperbole," the attorneys said.

"More importantly, the Government misrepresents the extent to which members were not interested in the advertising benefits and otherwise overstates the gravity of the alleged offense," the attorneys said.

"The Government hasn't alleged, and certainly cannot prove, that every single dollar of the amount seized is from a member not interested in promoting products or services on the internet," the attorneys continued.

"As we've pointed out, many members benefited from the advertising. We again point the Court to the 1,250 emails mentioned in [ASD expert witness] Mr. Gerry Nehra's declaration attached to ASD's Emergency Motion illustrating the bona fide nature of the business. To date, ASD has received more than 3,500 supportive e-mails from its members."

In conclusion, the attorneys asked Judge Rosemary Collyer to declare the full seizure excessive and to free up funds on Constitutional grounds.

"As established by Mr. Nehra's declaration and is will be further demonstrated at the hearing, ASD is a legitimate internet adverting company, and not an illegal Ponzi scheme. Thus, the Government's seizure and forfeiture demand -- of the full $53 million -- is grossly disproportionate to the alleged offense.

"The Court cannot permit this," the attorneys concluded. "Instead, it should order the return of a portion of the seized funds in an amount sufficient to eliminate the disproportionality."

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posted by Patrick Pretty @ 10:20 AM, , links to this post



Editorial: ASD Prosecutors, Secret Service Acted Appropriately
Saturday, September 27, 2008

The government can and does make mistakes, but bringing the AdSurfDaily case was not one of them. The case now is in federal court -- precisely where it needs to be.

No number of vexatious complaints by ASD members to the Inspector General for the Justice Department or members of Congress can make the troubling questions and incongruities of this case go away.

Today we'll write about only a few of the many legitimate concerns raised by this case, a case that includes the government seizure of tens of millions of dollars and the freezing of multiple Bank of America accounts amid concerns the accounts were being used to launder money and sustain three illegitimate "autosurfing" businesses: ASD, LaFuenteDinero ("The Fountain of Money"), and Golden Panda Ad Builder.

No person should take the seizure of property lightly. But the U.S. Secret Service and federal prosecutors have acted appropriately in seizing these highly questionable assets and bringing this matter before the courts.

Here's an allegation from the government's Aug. 5 forfeiture complaint (emphasis added):

"A[n] [IRS-Secret Service Task Force member] also learned that earlier in July 2008, a bank other than [Bank of America (BOA)] closed the last account that was controlled by Bowdoin or family members after that bank determined, and explained to them, that an investigation by the bank determined that Bowdoin appeared to be operating a Ponzi scheme. Bowdoin indicated that he purchased, or was seeking to purchase, a home in another country."

Here are the key assertions about this specific allegation:

Here are some obvious questions: What was the precise name on the non-BOA account? Why did it exist? How much money was in the account? Why did the bank become suspicious? Why was the account described as the "last" account?" Why would Bowdoin say he was buying a house outside the country?

The government's assertions outlined above have not yet been proven, of course.

But if the allegations are true, it means that, from the moment the non-BOA bank advised Bowdoin "earlier in July" of the account closure amid Ponzi concerns, Bowdoin would have known that the BOA accounts also were at supreme risk of closure or seizure. The BOA accounts weren't frozen until Aug. 1.

In other words, Bowdoin soon might have no place to deposit incoming money, putting the enterprise in danger of collapse, and making it necessary to wire large amounts of money offshore before he lost control of the accounts.

Sometime during the last two weeks of July, ASD moved "several million" dollars from BOA into Canada, according to the complaint. Members have speculated that this was because Bowdoin simply was adding a convenient, new means of paying them and receiving payment.

The "convenience" argument is plausible, given a note on the ASD website that Solid Trust Pay, a Canadian payment processor, was becoming the preferred method of sending and receiving money.

But that doesn't explain the non-BOA bank's alleged Ponzi concerns or the assertion Bowdoin was seeking to buy a house outside the United States. It is equally plausible that Bowdoin wanted to get the money outside the United States because he feared ASD was about to have its BOA accounts closed or seized.

The Incongruities

Bowdoin and ASD allegedly collected tens of millions of dollars in July. ASD allegedly even used "volunteers" to help gather cashier checks and money orders from customers standing in line at company rallies to pay for "advertising" purchases. Prosecutors believe that ASD actually is an unregistered securities business masked as an advertising firm.

Let's stop here for a second: What kind of company engaged in private business uses volunteers to collect money? Were these volunteers bonded? Would a professional company use volunteers to collect millions of dollars? Would a professional company use unbonded volunteers with this much money on the line? Was the company itself bonded?

Incoming members, as a whole, were handing over millions of dollars. This is not to suggest the volunteers were dishonest; our presumption is that they simply wanted to help. But why were volunteers even needed?

Now, let's pause to think about the incongruities, the parts of the picture that do not make sense. People standing in line by the hundreds to hand over money to pay for "advertising" is incongruous enough. But volunteers collecting money for a multimillion-dollar company that describes itself as a professional advertising firm? These things are supremely incongruous.

Business just isn't done this way.

More Questions

Let's go back to the allegation that the non-BOA bank closed a Bowdoin account "earlier in July," citing Ponzi fears.

What does "earlier in July" mean? The answer to this question could be important.

If "earlier in July" means earlier than July 19, the date of the Chicago ASD rally, or earlier than July 12, the date of the Miami rally, it means Bowdoin was collecting huge sums of money with one bank account already closed amid allegations of a Ponzi scheme.

If this account was closed prior to the rallies, did Bowdoin tell customers or did he let them hand over money without saying anything? Would you have turned over money if you'd known a bank had closed a Bowdoin account, citing Ponzi fears?

And even if the alleged account closure took place after the July 19 Chicago rally, it was clear that Bowdoin knew trouble already was brewing. At the July 12 Miami rally, Bowdoin talked about the Securities and Exchange Commission (SEC), blaming bad publicity the company was getting on jealous MLMers and people who were "slandering" him.

Bowdoin, in fact, said a $750,000 legal fund had been established. If ASD had $750,000 to devote to a legal fund, why was it using volunteers to collect cashier checks and money orders?

It appears as though Bowdoin himself could have prevented customers a lot of grief by simply not taking any money from them while this firestorm was brewing and until these matters were settled.

Now let's go to the Secret Service News Release. There is a very interesting line in that news release, a quote from Michael Merritt, assistant director of investigations (emphasis added):

"Cooperation among investigators, including the private sector partners who brought this case to our attention, allows us to combine not only our resources, but also our expertise in order to more effectively address evolving criminal methods, such as these online schemes," Merritt said.

Note his use of the phrase "private sector partners who brought this case to our attention."

Who are "private sector partners" of the Secret Service? Could it be the bank that closed the Bowdoin account "earlier in July," citing Ponzi concerns? Could it be BOA? Could it be both banks?

It is the duty of the Secret Service to protect the banking system from pollution -- and it appears as though at least one bank -- and perhaps two -- were worried that Bowdoin was using them to warehouse proceeds from an illegal enterprise and dutifully reported their concerns.

If Bowdoin knew "earlier in July" that a bank closed an account amid Ponzi concerns, why was ASD still collecting money from customers while this matter was unresolved?

Why were deposits allegedly backing up at ASD? Well, it's possible there simply were too many checks for ASD's staff to record. But it's also possible that Bowdoin didn't want to deposit the checks in volume because he believed his BOA accounts might be on the verge of being closed or seized.

This case is in federal court, exactly where it needs to be.

posted by Patrick Pretty @ 10:14 AM, , links to this post



Prosecutors Withdraw ASD Subpoenas, Citing Bowdoin And Fernandez Decision To Invoke 5th Amendment
Thursday, September 25, 2008

Breaking News . . .

Prosecutors have advised Judge Rosemary Collyer that they will withdraw subpoenas issued to ASD President Andy Bowdoin and CEO Juan Fernandez because both Bowdoin and Fernandez have advised the court they will invoke their 5th Amendment right to remain silent if called to the witness stand to testify at next week's scheduled evidentiary hearing.

"Yesterday, in a motion to quash filed on behalf of "THOMAS A. BOWDOIN, JR. ('Andy
Bowdoin') and JUAN FERNANDEZ, by counsel[,], the Akerman Senterfitt law firm indicated that it represents these individuals in their individual capacities, too, and that as their attorneys it was for the first time informing this Court, and the government, that both individuals 'would be asserting their Constitutional right not to testify if compelled to appear at the hearing,'" prosecutors said.

"Based on this new information, which now is a matter of record, the government hereby informs counsel for these individuals, and this Court, that the subpoenas are withdrawn."

This is an interesting legal and political situation for Bowdoin and ASD members because Bowdoin himself asked for the evidentiary hearing. The hearing itself is a civil proceeding to determine if ASD's cash assets seized by the government could be unfrozen. The prosecution didn't object, and the judge scheduled it.

Because Bowdoin is the apparent target of a criminal investigation, his attorneys have advised the court he will not testify at the evidentiary hearing. Neither will Fernandez.

Elsewhere, however, some ASD members said they planned to testify at the evidentiary hearing. It is unclear if they have been subpoenaed, simply will appear to testify if called or if they'll even be called.

Also unclear is whether ASD members who said they'd testify have obtained private counsel to advise them on the risks of testifying at a civil proceeding with a parallel criminal investigation under way. Bowdoin himself has been advised by counsel not to do that.

Will ASD members be willing to take a risk Bowdoin himself is not willing to take?

The government believes that ASD's seized money is the proceeds of an illegal enterprise. Under this theory -- and with a parallel criminal probe -- it could be risky for ASD members to take the stand, applying Bowdoin's own rationale for invoking the 5th Amendment.

Prosecutors aren't apt to toss snowballs at witnesses in a case that alleges wire fraud and money-laundering. Earlier this week, Golden Panda Ad Builder -- whose assets also were seized -- withdrew its claims to the seized funds, submitted to the forfeiture and closed up shop, referring more than 19,000 customers to the Department of Justice.

Meanwhile, the court has issued notice that the evidentiary hearing has been moved to a different courtroom:

"The 2-day Motion Hearing set to commence on 9/30/2008 at 9:30 AM, will be held in the Ceremonial Courtroom (Courtroom 20, sixth floor) of the Prettyman Building before Judge Rosemary M. Collyer. Please make note of the location change. (cdw)"

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posted by Patrick Pretty @ 11:08 AM, , links to this post



ASD Files Emergency Motion To Quash Subpoenas
Wednesday, September 24, 2008

Breaking News . . .

If a federal judge does not quash a subpoena, Andy Bowdoin will take the 5th Amendment if called to the witness stand next week in the AdSurfDaily evidentiary hearing.

ASD has gone to court, filing an emergency motion to quash subpoenas against Bowdoin and Juan Fernandez, CEO of Ad Surf Daily.

ASD's attorneys argue in court papers that the subpoenas, which command the presence of Bowdoin and Fernandez at an evidentiary hearing in Washington D.C., were served improperly.

Michael Fayad and Jonathan Goodman, ASD's attorneys, assert in the emergency motion that the subpoenas "are fatally flawed and unenforceable as a matter of law. In fact, as demonstrated below, the subpoenas were improperly served on claimant's counsel and are beyond the court's subpoena power as set forth in Fed. R. Civ. P. 45. Consequently, this Court is obligated to quash the Subpoena."

As first reported Sept. 20 on this Blog, Andy Bowdoin may have good reason to assert his 5th Amendment right against self-incrimination at the evidentiary hearing because of a possible criminal investigation.

ASD's attorneys conceded that Bowdoin would take the 5th if Judge Rosemary Collyer enforces the subpeona. So would Juan Fernandez (emphasis added):

"Moreover, it would be futile to enforce the subpoenas, regardless of their invalidity, because Movants would be asserting their Constitutional right to not testify if compelled to appear at the hearing," ASD's attorneys said.

"Movants' motivation is clear: they have been threatened with criminal prosecution. In fact, in an August 12, 2008 conference call, the AUSA specifically and unequivocally advised that Mr. Bowdoin "would" be indicted and that "other" executives were targets. The AUSA advised that criminal prosecution was a certainty."

ASD's attorneys said they had argued for two days with prosecutors over the validity of the subpoenas, but that the government didn't budge, necessitating the emergency motion.

The attorneys' argument is technical in nature, with case-law citations and a minority court opinion that they said applies to the U.S. District Court for Washington, D.C. The argument deals with factors such as time, distance, expense and short notice.

Meanwhile, given the government's threats to charge Bowdoin and Fernandez with crimes, the attorneys said, their clients' appearance in Washington would be a "waste of time."

"The Government has unequivocally advised Movant Bowdoin that he "will" be indicted and has threatened Movant Fernandez with criminal prosecution as a target," the attorneys said. "Setting aside the issue of whether these comments are inappropriate, the consequences are not difficult to imagine: Movants will need to assert their Constitutional rights if forced to appear at the D.C. hearing."

Numerous ASD members have said on forums that they planned to attend the evidentiary hearing next week. What they will see, if Judge Collyer doesn't rule in ASD's favor in this emergency motion, is Bowdoin and Fernandez being summoned to the witness stand and taking the 5th.

This has the potential to create a political problem for Bowdoin. More than 3,500 ASD customers have supplied testimonials on his behalf. It is possible that his support could dwindle if he is seen as a person who has something to hide.

His attorneys point on in the court filings that "Movants' intent to assert the Fifth Amendment should not be construed as a litmus test of guilt. Movants have not committed any criminal activity and the AdSurfDaily business plan is not an illegal Ponzi scheme, as we intend to show at the evidentiary hearing scheduled for September 30 and October 1."

This dramatic confrontation has been setting itself up for two weeks or more. ASD asked for an evidentiary hearing in August. On Sept. 10, prosecutors said they would would not oppose a hearing, saying Bowdoin and Golden Panda Ad Builder President Clarence Busby should be called to the stand, along with Gerald Nehra, an expert witness for ASD.

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posted by Patrick Pretty @ 6:16 PM, , links to this post



Did Busby Deal Cement The Ponzi?

Did Andy Bowdoin and AdSurfDaily pay any money to Golden Panda Ad Builder for advertising and possible cash-outs? If so, how much?

If ASD was a Golden Panda customer, the money it paid for advertising -- for all intents and purposes -- is gone. It was forfeited to the U.S. government yesterday with the cooperation of Golden Panda President Clarence Busby, who withdrew Golden Panda's claim to all seized funds and blamed the company's entry into the autosurf world on lies and bad advice from ASD.

Golden Panda died yesterday. There will be no more syrupy posts from Clarence Busby, no more wishing confused and cash-strapped members a pleasant day, no more urging calm during the storm, no more telling them how much they'll love the site improvements after the government goes away, no more parables.

All funds paid by advertisers to Golden Panda were forfeited. If ASD had a large balance at Golden Panda and was relying on Golden Panda for rebates, it could help the government prove ASD is insolvent, ironically because it was participating Golden Panda, a company it inspired. Because Golden Panda's funds were forfeited, any ASD funds in the mix are unavailable for ASD member cash-outs.

Autosurfs traditionally have invested in other autosurfs, counting on cash-outs to create a profit stream to sustain the operation. The operators of the CEP Ponzi scheme had money in 26 separate autosurfs or high-risk ventures.

There is reason to believe ASD spent money on Golden Panda. Without citing a figure, the government said this in its Aug 5 forfeiture complaint (emphasis added):

"The [IRS-Secret Service Task Force] investigation shows the majority of the funds deposited into these Golden Panda accounts originated from ASD's accounts at BOA."

Under the government's original theory, ASD provided seed capital for Golden Panda. Busby later denied that in court filings. Regardless, the government says it traced money from ASD to Golden Panda and has not backed off that claim.

Did ASD take the Golden Panda autosurf gamble and lose big-time? What a monumentally ironic loss it would be.

No money is safe in autosurfs. Golden Panda forfeited all of its assets to the government yesterday, leaving 19,804 customers in the lurch.

Golden Panda referred customers to the Department of Justice website.

All Golden Panda members who entrusted money to the firm got bad news today. If Andy Bowdoin, ASD and LaFuenteDinero were Golden Panda members, they perhaps got the worst news of all.

Occam's Razor

Occam's Razor is a principle of logic that essentially holds that the simplest explanation that accommodates all the facts is usually the best.

Here is an example of how it can be applied: Just prior to going to bed you look outside and notice snow in the yard. When you awaken, you again look outside and notice the snow is gone.

The simplest explanation that accommodates all the facts is that it warmed up overnight and the snow melted while you were sleeping.

A more complicated -- though theoretically possible -- explanation is that a space ship landed in your yard overnight and that heat from the alien craft melted the snow.

The reason we mention this is because a core group of ASD supporters continues to insist that what happened to certain company deposits cannot be explained simply and, therefore, a spaceship must have landed in the yard.

This theory, which apparently was sparked by radio-show comments two days ago from a person who sells fake academic degrees online, explaining they are gag gifts, is that there is a "Possible Grand Theft - Tampering Conspiracy between Law Enforcement Agency's."

Occam's Razor, Folks. Occam's Razor.

posted by Patrick Pretty @ 9:03 AM, , links to this post



Judge Orders Forfeiture of Golden Panda Funds
Tuesday, September 23, 2008

Breaking News . . .

U.S. District Court Judge Rosemary Collyer has granted Golden Panda's motion to dismiss its claims to money seized by the government.

This means Golden Panda has given up any claims to the funds and that the money has been forfeited to the U.S. government.

This is from Judge Collyer's order:

"Upon consideration of Claimants Golden Panda Ad Builder's and Clarence Busby, Jr.'s [24] Consent Motion to Dismiss Golden Panda Claims, it is hereby ORDERED that the [24] Consent Motion to Dismiss Golden Panda Claims is GRANTED."

"It is further ORDERED that the Verified Claims of Claimants Golden Panda Ad Builder and Clarence Busby, Jr. are DISMISSED."

Busby's attorneys yesterday also asked the court to render moot a previous Golden Panda motion to sever its part of the case and move it to U.S. District Court for the Northern District of Georgia, and to conduct an evidentiary hearing to determine if Golden Panda was entitled to have seized funds unfrozen so it could conduct business.

Judge Collyer gave Golden Panda what it asked for today, and the company effectively is out of business.

"It is further ORDERED that Claimants' [17] Motion for Severance or Transfer is DENIED as moot; and [18] Claimants' Emergency Motion for Release of Property Pending Forfeiture, and for Evidentiary Hearing, is DENIED as moot. Signed by Judge Rosemary M. Collyer on 9/23/08. (lcrmc1)"

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posted by Patrick Pretty @ 3:21 PM, , links to this post



Busby, Golden Panda Make Deal With Prosecutors To Cease Operations, Cooperate In ASD Investigation And Drop Claims To Forfeited Money
Monday, September 22, 2008

BLOG UPDATE 10:02 PM EDT (USA):

Dear Readers,

The quoted information in the post below is from Document 24 in the ASD civil-forfeiture case. The document was filed today by attorneys for Clarence Busby. The reason we mention this is because the authenticity of the information has been challenged on a Pro-ASD forum.

We DO NOT publish information from court filings unless we have the documents in our possession. We obtained the document from the federal court system hours ago and reviewed it prior to publishing it.

Patrick

Here is the Breaking News post from earlier today . . .

BREAKING NEWS . . .

Golden Panda Ad Builder has made a deal with prosecutors to dissolve the company, not come back online except to serve as a point of reference for the ASD case and cooperate with prosecutors.

The quoted passages below are from Golden Panda's attorneys and were filed today in U.S. District Court In Washington, D.C. (emphasis added).

"Golden Panda Ad Builder and Clarence Busby, Jr., claimants in the above-referenced case ("Claimants"), by counsel and with the consent of the United States, hereby submit this motion to dismiss the Claimants' claims to all funds seized by the United States.

"Claimants understand that dismissal of their claim may result in forfeiture to the United States of all funds previously claimed by Golden Panda and Clarence Busby, Jr.

"Claimants also have agreed to provide to the United States additional funds and uncashed checks, all of which constitute proceeds derived from Golden Panda's eight days of operation. In addition to its voluntary forfeiture of the foregoing funds to the United States, Golden Panda has authorized its attorneys to dissolve the Golden Panda corporation, thereby causing Golden Panda to cease its existence as a legal entity. Moreover, having discontinued its operations upon receipt of notice that the United States had seized Golden Panda's funds, Golden Panda now has made that cessation permanent."

Clarence Busby Will Cooperate With Prosecutors

Clarence Busby, through his attorneys, said today in court filings that he will cooperate with the government.

"Golden Panda has agreed to facilitate the United States' effort to identify the persons who provided funds to Golden Panda, and to that end, Golden Panda will post on its web site a notice to the public that will describe these events as well as the salient facts that led to its decision to cease operations," Busby's attorneys said.

"As to that latter point, Golden Panda will explain that while Golden Panda sought independent legal advice immediately before commencing business and was the very day before the seizure order receiving that advice as to the limits of the law, it theretofore operated on the understanding from Ad Surf Daily's representatives that the Ad Surf Daily business, upon which Golden Panda was modeled, operated lawfully in every respect and, so, believed it so.

"Nonetheless, now apprised by its separate counsel of the legal limits, and of the position of the United States, Golden Panda has no interest whatsoever in continuing its operations and has every interest in aiding the United States in restoring funds paid by third parties to Golden Panda.

"Golden Panda further consents to denial of each of its pending motions as moot.

"Accordingly, with the consent of the United States, Golden Panda respectfully requests that the Court dismiss or strike Claimants' claims for the seized properties."

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posted by Patrick Pretty @ 3:41 PM, , links to this post



Analysis: Will Andy Bowdoin Invoke The 5th Amendment?
Saturday, September 20, 2008

Will AdSurfDaily President Andy Bowdoin invoke his 5th Amendment right to remain silent if called to testify at an evidentiary hearing? That's a question some members will be asking in the days leading up to the hearing.

Bowdoin may be trapped between two worlds: the world of civil law, and the world of criminal law.

The forfeiture case in which Judge Rosemary Collyer will make a decision on ASD's emergency motion to return $93.5 million seized by the government is a civil proceeding. But Bowdoin is a possible target of a criminal probe. A Grand Jury subpoena has been issued, which put Bowdoin on notice that the Feds might be interested in sending him to jail.

In the CEP Ponzi scheme case, at least three participants invoked their 5th Amendment rights in a civil proceeding because they feared a possible criminal indictment.

Given the nature of the ASD case and parallels to the CEP case, it is possible Bowdoin will invoke his 5th Amendment right to remain silent if called to testify. The question then will become whether members will think he has something to hide and whether his support will evaporate.

If Bowdoin does take the 5th, it is possible that some of the more than 3,500 members who submitted testimonials on his behalf in the earliest days of the case will feel used and withdraw their support.

Golden Panda President Clarence Busby might be in the same legal box, but it's possible he'll have an incentive to testify (see below). Busby has created distance between Bowdoin and himself in court filings. Unlike Bowdoin, he has not fanned the flames of insurrection against prosecutors and has seemed concerned about building rapport with the government.

These things may signal Busby is willing to play ball with prosecutors.

The Advertising Vs. Securities Puzzle

Whether Bowdoin exercises his 5th Amendment right or not, he already has said some things that are potentially helpful to prosecutors. For one, he told ASD members in a conference call that he earned $54,000 in advertising rebates in his own rotator.

This, of course, begs this question: Did Bowdoin use his own money, or did he buy ads in his own rotator using money from ASD members, thus using other people's money to enrich himself?

This question is fair, and it's one members deserve to have answered because of the nature of the allegations. Prosecutors said ASD might have co-mingled funds, which means Bowdoin could have used members' money to pay for his own advertising in ASD's rotator (or simply created credits for himself out of thin air with the reliance member fees would generate the profits), which begs even more questions:

How did Bowdoin pay for his own ASD advertising? Did Bowdoin's family members also advertise pages in ASD's rotator? If so, did they fund their purchases with their own money? What businesses were they advertising? Were they even aware that they had pages in the rotator? Where did their profits go?

These questions, too, are fair because prosecutors alleged that a bank other than Bank of America closed a Bowdoin-connected account a short time prior to the government's seizure of the funds in the BOA accounts. The bank told prosecutors that an internal investigation concluded that the money in the account might have been part of a Ponzi scheme.

Whose money was it? How did it get there? How much was there? Why did the bank become suspicious?

Bowdoin made the comment about his personal profits in ASD's rotator after prosecutors accused him of placing an ad for a failed, dissolved business in the rotator.

This is important because it gives credibility to prosectors' theory that ASD was a securities business, not an advertising business.

An IRS-Secret Service Undercover Task Force agent placed a MySpace page in ASD's rotator and qualified for rebates. Along those lines, some people have told agents they didn't care about the advertising side of things and were just using ASD for the rebates. Prosecutors are arguing that Bowdoin's use of a failed, dissolved business in the rotator undermines his own claim that ASD was an advertising business, not a securities business.

What did Bowdoin prove by advertising a failed, dissolved business in ASD's rotator? Prosecutors are apt to say that, if a failed, dissolved business can earn money through ASD, then ASD is a securities business, not an advertising firm.

Another thing that potentially undermines the claim that ASD was an advertising business is the appearance of Facebook pages in ASD's rotator. Some ASD members said the Facebook pages were placed there by Facebook itself because it wanted to take advantage of ASD's exciting advertising opportunity.

No evidence has surfaced that Facebook was an ASD advertiser. At this point, its looks as though the Facebook pages were rotated by ASD members who didn't have products to advertise and wanted to take advantage of the rebates -- another pebble on the pile that ASD was a securities business, not an advertising service.

Reverse-Engineering A Ponzi

Bowdoin also told members that ASD had placed $500,000 on deposit in Antigua because the Bank of Antigua required that amount to begin processing credit-card orders for ASD. Bowdoin made the comment after prosecutors noted more than $1 million was in the Antigua bank and the money was held in an account under a different name.

This is important because it demonstrates that Bowdoin had sole decision-making authority and could use it at any time and for any reason to move large sums of cash around the world. The $500,000 in Antigua was $500,000 not available for member cash-outs, something that gives prosecutors' Ponzi allegations credibility.

Bowdoin also used large sums of cash to acquire real estate, which is not a liquid asset. All of the money used to acquire the real estate was money not available for member cash-outs. The same is true of the salaries paid ASD employees. All money paid to employees was money not available to ASD members for cash-outs.

Bowdoin also might have tremendous exposure if ASD had money in other autosurfs -- LaFuenteDinero and Golden Panda Ad Builder, for example. Any dollars in those autosurfs were dollars not available for ASD members' cash-outs, yet another condition that could help the government make the case that ASD was insolvent. In the CEP Ponzi scheme case, the operators had money in 26 separate autosurfs or high-risk programs.

This is why prosecutors' assertions that ASD did not have significant revenue streams other than member fees are important. Prosecutors have painted the picture that ASD was a seat-of-the pants financial operation. A single financial move by Bowdoin could have put ASD in a state of insolvency because there was inadequate revenue to offset liabilities and Bowdoin had sole authority to to anything he wanted at any point in time. Prosecutors said ASD was insolvent on the date (Aug. 5) that its assets were formally seized.

Some ASD members have argued that ASD's Terms of Service provide blanket cover for Bowdoin. Prosecutors, however, argued that the Terms were structured to avoid regulatory scrutiny and liability to members if a Ponzi was revealed.

The Numbers Game

The insolvency issue is potentially critical, and a forensic accountant very well could conclude that ASD was insolvent after examining the books and ASD's business practices.

Gerald Nehra, an expert witness for ASD who declared the company was not a Ponzi scheme, appears not to have examined ASD's books, according to court filings. At this point, it's not clear if ASD even had an auditor and followed Generally Accepted Accounting Principles.

Nehra rendered his opinion by reviewing:


Nehra also arrived at his opinion by interviewing:


In the past, solvency has been an issue in autosurf prosecutions and the government has forced autosurfs into receivership. In the CEP case, for instance, the receiver was a forensic accountant who demonstrated insolvency, forced CEP into bankruptcy and persuaded a judge it was more likely than not CEP was a Ponzi scheme. The judge in the case ordered the biggest promoters to return all profits to the bankruptcy estate. In the CEP case, the receiver filed more than 80 successful lawsuits against top promoters. Some of the participants were forced to sell their homes to comply with the requirement to return the profits.

Considering The Possibilities

Judge Collyer said in court filings that she will listen to testimony "in the interests of justice" and take what she hears "under advisement." This simply means she wants to make sure ASD receives fair treatment and will take some time to think before making a decision on how to proceed.

Regardless of what Judge Collyer decides, this case never has been about prosecutorial misconduct.

Andy Bowdoin was charged previously for scamming investors and actually was sentenced to prison. The sentence was suspended. He paid more than $90,000 in restitution.

Clarence Busby, who just happened to be drawn to Bowdoin and the Bowdoin business model, has had his own past issues with law enforcement over matters pertaining to securities and was ordered by a federal judge to stay on the straight and narrow.

What Will Busby Do?

Busby is a big wildcard and might actually have an incentive to take the stand: He has made it plain in court filings that he is distancing himself from Bowdoin.

Will Busby play ball with prosecutors? He was ordered a decade ago by a federal judge not to break securities laws, and he now finds himself part of a case in which prosecutors say ASD is an unregistered securities business masquerading as an advertising service. They could make the same argument against Golden Panda -- and it's an argument with teeth: Basically, if it looks like a security and people treat it like a security, it's a security.

Ever notice on forums that some ASD members scold other members for using the word "investment" when describing money directed at ASD? Every single scolding can be construed by the government as consciousness of guilt, a tiny confessional.

One ASD member contacted by the IRS-Secret Service Undercover Task Force even warned the agent never to use the word "investing." Here is her exact quote from the forfeiture complaint: "Don't call it investing, you know what I mean, we can get in trouble if we say that, we have to be careful."

Such is the wink-nod nature of autosurfs. The government has seen it all before. Investigators see it as a cover story, and the forfeiture complaint alleged that Bowdoin had unnamed "co-conspirators."

Busby is potentially vulnerable because he already has received a big break from the government: He was ordered to pay a $15,000 disgorgement penalty a decade ago for his role in an alleged securities scheme, but the government waived the penalty. Not only is Busby at the center of another possible securities storm, he was officially warned by a federal judge to keep on the straight and narrow.

Now he finds himself needing a second break from the government.

Meanwhile, Busby's daugther, Dawn Stowers, also is part of the litigation. Clarence Busby has every incentive in the world to cooperate with prosecutors.

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posted by Patrick Pretty @ 1:09 PM, , links to this post



ASD Hearing Scheduled
Friday, September 19, 2008

BREAKING NEWS . . .

The ASD hearing has been scheduled for Tuesday, Sept. 30, and Wednesday, Oct. 1, in U.S. District Court in Washington, DC.

Here is the docket notice.

"NOTICE of Hearing: A two-day Motion Hearing in re [7] is set to commence on 9/30/2008 at 9:30 AM in Courtroom 2, main building, 2nd floor, before Judge Rosemary M. Collyer. (cdw)"

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posted by Patrick Pretty @ 1:28 PM, , links to this post



Judge Grants ASD Evidentiary Hearing
Thursday, September 18, 2008

BREAKING NEWS . . .

A federal judge has issued an order than grants AdSurfDaily Inc. an evidentiary hearing.

Judge Rosemary Collyer issued the order today.

Here is the docket text:

"Upon consideration of the request by Claimants AdSurfDaily, Inc. ("ASD") and Thomas A. Bowdoin for an evidentiary hearing to challenge the Government's opposition to the pre-trial release of seized funds, see Dkt. # 7, as well as the Government's non-opposition to the request for an evidentiary hearing, see Dkt. # 19, the Court finds that it is in the interests of justice to grant the Claimants' request for an evidentiary hearing.

"Accordingly, it is hereby ORDERED that ASD's and Thomas A. Bowdoin's motion for an evidentiary hearing is GRANTED. It is further ORDERED that, pursuant to 18 U.S.C. ยง 983(f)(5), the scheduling of an evidentiary hearing regarding the pre-trial release of seized funds establishes good cause for extending the time for the Court to render a decision on the Claimants' emergency motion for return of seized funds through the date of completion of the evidentiary hearing, at which time the Court shall determine whether further extension is necessary while the Court takes the motions under advisement.

"It is hereby ORDERED that the Deputy Clerk of the Court is directed to schedule an evidentiary hearing on the Claimants' emergency motion. Signed by Judge Rosemary M. Collyer on 09/18/08.

More . . .

posted by Patrick Pretty @ 4:36 PM, , links to this post



Bowdoin's ASD Days Could End Under Attorneys' Proposal
Tuesday, September 16, 2008

BREAKING NEWS . . .

The man who bought the world ASD Cash Generator would end his day-to-day involvement with the company under certain stipulations in a proposal his attorneys presented a federal judge today.

"Unless otherwise agreed to by [a court appointed Monitor], Andy Bowdoin will not be an employee, officer or director of the Company," Bowdoin's attorneys said in court filings today. "He will act as a consultant to the Company on terms acceptable to the Monitor and will agree to follow the Code of Conduct developed as part of the Future Business Operations Plan."

ASD, which is at the center of a firestorm amid Ponzi scheme, money-laundering and wire-fraud allegations that resulted in the seizure of nearly $100 million and other noncash assets, would agree to court oversight and to change certain business practices.

Prosecutors haven't responded to today's pleadings, and U.S. District Court Judge Rosemary Collyer hasn't approved the proposal.

Today's filing appears to be a concession that ASD made serious mistakes in the manner in which it conducted business.

Included in the proposal is a suggestion that ASD lacked proper auditing controls and cannot properly account for all of the money that flowed into the firm prior to the government's Aug. 5 formal seizure (emphasis added):

"The Company will engage an independent accounting firm to assist the Company in determining its current financial position and results of operations for periods before August 1, 2008," ASD's attorneys said. "This financial assessment will include a determination of member balances, including aggregate cash purchases by members of ad-packages prior to the shutdown and aggregate cash-outs paid to such members prior to the shutdown. The requisite financial statements will be prepared and presented to the Monitor and the Court before the Court is asked to consider and approval the Future Business Operations Plan."

Here are highlights of the proposal:

1. A monitor acceptable to the Court (the "Monitor") will be appointed to oversee the Company's implementation of, and compliance with, the Plan.

2. The Plan will govern the operations of the Company's business during an interim period in which the Company will develop a Future Business Operations Plan, as more particularly described below. The Future Business Operations Plan will be developed by the Company under the oversight of the Monitor and, once completed, will be presented to the Court for approval.

3. Upon Court approval of this Plan:

A. The Company's business assets (including its computer equipment and the two vehicles that were seized) will be returned to the Company pursuant to a plan agreed to with the Government. Such plan will provide that the data on such computer equipment shall continue to be available to the Government upon request.

B. All of the funds that were seized by the Government will be returned to the Company.

(1) All but $2 million of those funds will be placed in restricted Company accounts at one or more banks reasonably acceptable to the Government. The Company funds currently held in Antigua will be repatriated to the US and will be held subject to this provision.

Further, the Company funds currently being held with Solid Trust Pay in Canada will be held subject to this provision.

(2) None of the funds in restricted Company accounts will be available for use by the Company, and all such restricted funds will only be used in the manner and subject to the approvals provided for in the Plan. The restricted funds will be held in interest-bearing accounts.

(3) The up to $2 million available for use in the Company's operations will be expended pursuant to a budget established by the Company and approved by the Monitor. No funds will be expended outside the terms of the budget approved by the Monitor without the consent of the Monitor.

C. As part of the approval of the Plan, the Court will order that the Government not re-seize Company funds that are being held pursuant to and in conformity with this Plan.

4. In connection with the development of the Future Business Operations Plan, the Company will take the following steps:

A. The Company will engage an independent accounting firm to assist the Company in determining its current financial position and results of operations for periods before August 1, 2008. This financial assessment will include a determination of member balances, including aggregate cash purchases by members of ad-packages prior to the shutdown and aggregate cash-outs paid to such members prior to the shutdown. The requisite financial statements will be prepared and presented to the Monitor and the Court before the Court is asked to consider and approval the Future Business Operations Plan.

B. The Company will organize a Members Steering Committee that will represent the interest of the Company's members in this process. The Members Steering Committee will be an active participant in the development of the Future Business Operations Plan. Efforts will be made to include on the Members Steering Committee representatives of all different classes of members, so that the committee is truly representative.

The selection of members to serve on the Members Steering Committee will be subject to the Monitor's approval.

C. The Future Business Operations Plan will include the following:

(1) It will describe with specificity the terms of service and business model to be followed by the Company in the future, including any changes from the business model operated by the Company prior to the Government's seizure of the Company's assets. It will also include a detailed plan for the back-office operation of the Company (customer service, computer infrastructure, facilities, etc.) and a detailed operating budget.

(2) It will describe the management infrastructure that will operate the Company in the future:

(a) The Board of Directors and officers of the Company will be persons who are acceptable to the Monitor. It will also include a strong Code of Conduct that will apply to the Company's operations.

(b) Unless otherwise agreed to by the Monitor, Andy Bowdoin will not be an employee, officer or director of the Company. He will act as a consultant to the Company on terms acceptable to the Monitor and will agree to follow the Code of Conduct developed as part of the Future Business Operations Plan.

(3) It will include a robust compliance plan to ensure that members understand and are following the terms of service.

(4) It will include a Cash-Out Plan for those members who wish to cash out and not continue as members of the Company.

D. The Members Steering Committee and the Monitor will have active involvement in the development of the Future Business Operations Plan.

5. The Future Operations Business Plan will not be implemented without approval of the Court. If approved, members that elect to continue doing business with the Company will be obligated to re-subscribe to the new terms of service.

6. During the interim period while the Future Business Operations Plan is being developed, the Company will provide the Monitor and the Court will interim financial statements showing its receipts and disbursements, on such timetable as is requested by the Monitor and the Court but in all cases on no less than a monthly basis.

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posted by Patrick Pretty @ 8:13 PM, , links to this post



Golden Panda Asks For 3-Week Delay
Monday, September 15, 2008

BREAKING NEWS . . .

Golden Panda Ad Builder has just asked U.S. District Court Judge Rosemary Collyer for three additional weeks to respond to motions filed by the government in the Ad Surf Daily case.

Earlier this month Golden Panda asked the court to unfreeze Golden Panda money seized by the government in the ASD case. The government responded by opposing Golden Panda's motion to release the funds, and now Golden Panda says it needs more time to respond to the government's motion to block release of the funds.

Golden Panda's attorneys say the government has consented to the request to give Golden Panda until Oct. 8 to respond.

It appears as though Golden Panda is cooperating in the ASD probe.

ASD President Clarence Busby would have an incentive to cooperate. A decade ago a federal judge ordered Busby never to break securities laws, and the government has taken the stance that firms such as ASD are unregistered securities businesses that call themselves advertising services.

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posted by Patrick Pretty @ 4:35 PM, , links to this post



ASD, LaFuenteDinero Popular In Dallas

Ad Surf Daily appears to have been very popular in Dallas-Fort Worth.

Meanwhile, ASD's companion site, LaFuenteDinero, was even more popular in the Dallas-Fort Worth Metroplex.

Data published by whois.domaintools.com suggest 5.8 percent of ASD's U.S. traffic originated in Dallas-Fort Worth, making the Dallas-Fort Worth Metroplex the largest single source of ASD's domestic traffic.

At the same time, 9.1 percent of LaFuenteDinero's traffic originated in Dallas-Fort Worth, making the Metroplex its largest single source of traffic by far.

When the data was recorded was not immediately clear. There are references online dating back at least to July that ASD had a large audience share in Dallas-Fort Worth.

ASD and LafuenteDinero have been offline for several days. Nameserver information on the ASD site appears to have been changed by its registrar to reflect that spam and abuse complaints were filed against the Andy Bowdoin firm.

The Dallas-Fort Worth Metroplex is the fourth-largest population center in the United States, but it easily sent more traffic to ASD than the larger metropolitan centers of New York, Los Angeles and Chicago.

By comparison, Los Angeles provided 4 percent of ASD's U.S. traffic, New York City provided 3 percent and Chicago provided 2.6 percent. For every two visitors Dallas-Fort Worth sent to ASD, Chicago sent less than one, according to the data.

Why ASD and LaFuenteDinero recorded such a high percentage of visitors from Dallas-Fort Worth isn't clear.

Notably, however, a move is under way to hire a Dallas-based law firm to handle ASD members' interests, and the ASD Members Business Association is soliciting donations to pay the firm's required $100,000 retainer.

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posted by Patrick Pretty @ 10:15 AM, , links to this post



ASD: Sites Down, Rants Against Prosecutors Continue
Saturday, September 13, 2008

Sites Down

The ASD Cash Generator and lafuentedinero websites have been down for two days now. Nameserver changes have been made to the ASD site, and these indicate that the site was shut down by the registrar for spam and abuse. Data in the lafuentedinero nameserver info fields do not contain a marker for spam and abuse, although the site will not load.

There is no explanation for the sites being down at the AdSurfDaily breaking news site -- or even a mention about the sites being down.

Put The Prosecutor In A 'Rack'

A "rack" is a torture device, apparently one that is well-suited for abusing prosecutors, according to one ASD member. We read one forum post from a member who suggested the prosecutor be placed in a "rack" and ASD members could draw "straws" to see who got to turn the wheel.

We assume it was a sick joke. In any event, it was a play on words of the middle name of one of the prosecutors. It appears as though such toxic language was welcomed. No one spoke out against it.

Yep. Some of these folks think they're going to elicit public support by calling prosecutors names and suggesting they should be made to feel pain.

Let's Get AARP On Our Side

There also is discussion on the same Pro-ASD forum of turning to AARP for support -- not to warn senior citizens about potential scams, but to get AARP to advocate for ASD's point of view.

At least one talk-radio host has scolded ASD members gently for blanketing him with drivel. Even so, some ASD members haven't taken the clue. They're still planning to send packets of Kool-Aid to Bill O'Reilly of Fox News. As noted previously, some ASD members have adopted the phrase "Kool-Aid drinker" as a symbol of ASD unity.

Let's Get God On Our Side

Someone left a "prayer" at the joyluckclub ASD news site. Here is a brief passage from it:

"God is on our side! If God be for us, who in the world can be against us!
"This prayer touches on every area in the spiritual realm. It must be prayed fervently (or from the heart), not just read. As you pray this prayer, think about the audacity of satan trying to come in and take what is yours! . . .

" . . . Heavenly Father, we overthrow the plans of troublemakers, scorners, scoffers, mockers, persecutors, and character assassins! Expose satanic representatives and grant unto us divine strategies and tactics to identify, resist and overcome plots and plans established for our demise!

  • Draw out your spear and stop them in their way! . . .
  • Let them fall by their own counsels! . . .
  • Let the angel of the Lord persecute them!
  • Let their way be through dark and slippery places, with the angel of the Lord pursuing and afflicting them! . . .
  • Let them be turned back and confounded who plan our hurt!
  • Let destruction come to them suddenly!
  • Let them fall to their own destruction!
  • Let destruction come upon them unaware!

posted by Patrick Pretty @ 1:15 PM, , links to this post



Golden Panda: Gov't Asks For More Time
Friday, September 12, 2008

The government has just filed a motion in U.S. District Court in the District of Columbia for more time to respond to Golden Panda Ad Builder's request to sever the case and transfer its part to U.S. District Court in Georgia.

Prosecutors said Golden Panda's attorneys have consented to the request, which would extend the government's deadline to Oct. 3.

"Plaintiff needs additional time to discuss/review information from claimants that may render the Motion to Sever and Transfer unnecessary or moot," the government said in today's filing.

Golden Panda President Clarence Busby's attorneys are believed to have met with prosecutors today -- the second such meeting since the case against Ad Surf Daily Inc. was filed in early August. Busby has said Golden Panda is separate and distinct from ASD.

Busby appears to be cooperating with investigators and distancing himself from ASD President Andy Bowdoin.

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posted by Patrick Pretty @ 6:36 PM, , links to this post



ASD Cash Generator: No Change In Website

We reported last night that the ASD Cash Generator website, which previously had a note about the investigation, was down entirely. That continues to be the case this morning.

ASD's nameservers now say:

NS1.SUSPENDED-FOR.SPAM-AND-ABUSE.COM
NS2.SUSPENDED-FOR.SPAM-AND-ABUSE.COM

lafuentedinero also is down, although its nameservers do not have the same
"suspended for spam and abuse" messages.

Golden Panda Ad Builder is back online this morning, though not open for business. Golden Panda was offline last night, at the same time ASD Cash Generator and lafuentedinero were offline.

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posted by Patrick Pretty @ 9:50 AM, , links to this post



Criminal Prosecutor Joins Gov't v. ASD Team
Thursday, September 11, 2008

BLOG UPDATE 9:41 PM EDT (USA):

Directly below we report that the ASD Cash Generator website and two others are offline. The ASD nameservers now say this:

NS1.SUSPENDED-FOR.SPAM-AND-ABUSE.COM
NS2.SUSPENDED-FOR.SPAM-AND-ABUSE.COM

This appears to be GoDaddy registrar code to disable the domain for abuse.

See Spamhaus info.

The Golden Panda Ad Builder and lafuentedinero domains also aren't working, although there is no indication so far that nameserver info has been switched.

BLOG UPDATE 9:21 PM EDT (USA)

This post is to note that the ASD Cash Generator website and the Golden Panda Ad Builder website appear to be offline. Also offline is the lafuentedinero website.

Why these sites are offline is unclear. All three sites are throwing an error message.

Breaking news from earlier today is below . . .

Breaking News . . .

The government has just entered an appearance notice for Assistant U.S. Attorney Vasu B. Muthyala in the civil-forfeiture case against the assets of Ad Surf Daily and Golden Panda Ad Builder.

Mr. Muthyala handles criminal prosecutions for the government and is well-versed in securities issues. He formerly was employed by the Securities and Exchange Commission and was involved in the successful prosecution of The Haven Equity Co.

Haven Equity, based in Ohio, was a Ponzi scheme in which the principals traded on religion and collected about $20 million from investors, including church pastors. The Ontario (Canada) Securities Commission froze some of the assets in the case.

Many of the investors in the scheme were members of the Church of the Open Door in Elyria, Ohio. Ohio officials issued a public statement, alerting residents to scams that play on people's religious beliefs.

Muthyala's appearance comes on the heels of reports that a grand jury will convene to consider criminal charges against ASD. It also follows by a day news that the government would not object to an evidentiary hearing in the ASD civil-forfeiture case in which ASD President Andy Bowdoin and Golden Panda Ad Builder President Clarence Busby would appear on the witness stand to explain why the business model used by the firms is not a Ponzi scheme.

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posted by Patrick Pretty @ 3:11 PM, , links to this post



Memo To Bill O'Reilly: Don't Drink The ASD Kool-Aid

We'll begin with a serious note to Bill O'Reilly of Fox News: Don't drink the Kool-Aid you're about to receive.

The Ad Surf Daily case has become a black comedy, one that includes elements of drama and tragedy. We have tried for weeks to take the point of view of ASD members seriously, even though we believe the government has acted properly. We have provided space to report on court filings by Andy Bowdoin and Clarence Busby, and we have quoted extensively from these filings.

In the past several days, however, it has become obvious that some ASD members are out of control. Enter O'Reilly, the soon-to-be recipient of Kool-Aid packets. The goal of this exercise is to get O'Reilly, who has two master's degrees, including an MPA from the John F. Kennedy School of Government at Harvard, to take them seriously.

Kool-Aid is a brand of Kraft Food Co. The term "Kool-Aid drinker" is derisive, and is something Kraft wishes never had become part of the popular culture. It frequently is associated with people who refuse to engage in critical thought and is closely associated with Jim Jones and the mass suicide (by flavored drink) at Jonestown, Guyana, in 1978.

More than 900 people died at Jonestown.

U.S. Rep. Leo Ryan, D-Calif., was murdered by the Jonestown cultists. He posthumously received the Congressional Gold Medal -- a real medal (see below) -- for giving his life to his country.

Three journalists covering Ryan's Jonestown visit also were killed. So was a defecting cult member. Nine people were wounded.

Some online forums have referred to ASD members as "Kool-Aid drinkers" -- and now the members have adopted this term of derision as a symbol of unity.

Friends, it is impossible to take seriously any group that adopts "Kool-Aid drinker" as a symbol of unity. If these folks make the news, it will not be because they've struck a chord with the media; it'll be because they've offered themselves up as fools.

Why should any media outlet take them seriously now?

And it's not as though the Kool-Aid play was the first strange incident associated with this group. Two days ago, for example, we reported that one pro-ASD website was using words spoken by former U.S. Rep. Jim Traficant (D-Ohio) as a clarion call to action.

Traficant is in federal prison. He was convicted of racketeering. The ASD forfeiture case includes the language of racketeering, something that apparently hasn't caught the attention of some ASD members.

Here are some of the things ASD members -- members who now proudly call themselves "Kool-Aid drinkers" -- are doing:

Don't drink the Kool-Aid, Bill.

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posted by Patrick Pretty @