Day: March 13, 2009

  • Surf’s Up Mod Releases Andy Bowdoin Letter To Troops; ASD Head Urges Letter-Writing Campaign To Glenn Beck

    Andy Bowdoin.
    Andy Bowdoin.

    First, members of the Pro-AdSurfDaily Surf’s Up forum tried to whip up support for ASD President Andy Bowdoin by sending Kool Aid packets to Bill O’Reilly of Fox News. Now Bowdoin himself, through a Surf’s Up Mod, is urging members to write letters to Glenn Beck, another Fox personality.

    And, taking a page from his own playbook, Bowdoin also has asked members to write to President Obama, the Justice Department and elected officials “to stop this misuse of power.”

    The move comes on the heels of a stunning court motion Bowdoin filed March 11 in which he acknowledged ASD was operating illegally when the government seized tens of millions of dollars from Bowdoin last summer. Bowdoin claimed in the filing that he did not know ASD was operating illegally at the time of the seizure and that the government denied him fair notice and due process.

    In the filing, Bowdoin claims to be a “defendant” in a “quasi-criminal” prosecution. But Bowdoin hasn’t been named a defendant by the government, which sued the money and property for forfeiture, saying it was the proceeds of a criminal enterprise.

    Prosecutors said ASD was engaging in wire fraud, money-laundering and the sale of unregistered securities — all while operating a $100 million Ponzi scheme.

    Bowdoin had not communicated with the membership at large in months. He did not tell members about a second forfeiture complaint that had been filed in December against assets tied to the firm. Nor did Bowdoin tell members that, in January, he had submitted to the forfeiture of the money and property seized last summer.

    In court filings, Bowdoin now says he has changed his mind about submitting to the forfeiture, even though he acknowledged that ASD was operating illegally — exactly what the government contended.

    In his letter to the members, however, Bowdoin did not mention the motion in which he acknowledged ASD was operating illegally.

    His last formal contact with the members was in late fall, a few months after the initial seizure, when Bowdoin tried to sell them VOIP phone service, positioning the $19.95-a-month plan as a gift to the membership. Days before, he told members that Ponzi allegations had been dropped against ASD in Florida, even though Ponzi allegations hadn’t been brought in Florida.

    During the same time period in the fall, ASD’s Breaking News site announced a deal with Praebius Communications, saying ASD expected to pump $200 million into its coffers as a result of the deal. Praebius is a penny-stock company that does not publish financials.

    In early December, an autosurf known as AdViewGlobal (AVG) began to position itself for launch. AVG has close ties to ASD, including George Harris, Bowdoin’s stepson and an AVG trustee; Gary Talbert, a former ASD executive now an executive and trustee for AVG; Chuck Osmin, a former ASD employee now working for AVG; and Nate Boyd, a former ASD compliance officer now listed as the “Protector”  of AVG.

    By December 19, federal prosecutors filed a second forfeiture complaint, saying Bowdoin’s wife, Edna Faye Bowdoin and her son, George Harris, had used proceeds from ASD to retire the $157,216 mortgage on the home Harris shared with his wife, Judy Harris.

    Bowdoin now says that he recently was introduced to a “group” that is giving him legal advice. Bowdoin started filing his own court pleadings in late February, at the same time AVG was introducing members to Pro Advocate Group, which says it can help people practice medicine and law without a license.

    Pro Advocate Group is associated with Karl Dahlstrom. In 1997, Dahlstrom was sentenced to 78 months in federal prison for orchestrating a securities scheme.

    In his letter to ASD members, Bowdoin did not disclose the name of the “group” from which he was receiving advice. Nor did Bowdoin reference or confirm reports that bank accounts belonging to ASD and AVG members recently had been seized.

    He did say he fired his paid attorneys.

    Here is Bowdoin’s letter. We added the italics.

    Hi Folks,

    It’s good to be talking to you once again. My attorneys kept me quiet for months, but after $800,000.00 and no results I fired them all.

    About a month ago, several members introduced me to a group that studied what my attorneys did. The group said that my attorneys had taken the wrong approach.
    The group was very confident that they could help because the government had broken so many laws and had violated our rights as citizens of the United States.

    I have rescinded my decision to release our ownership of all the assets. I filed various motions a few weeks ago, and several more last week, to dismiss our case and to return the assets because of the violations committed by our government.
    We are ready to pursue this all the way to the US Supreme Court.

    A great injustice has been done to 100,000 people, and we need to stand up and fight for our rights. Some agencies of the government have become so powerful that they believe they are above the Constitution. We, as members of ASD, need to help stop this misuse of power. I ask each one of you to write to the Justice Department, to your senators and representatives, to the President, and even to Glen Beck of Fox News. Tell them all what the Justice Department has done to your business.

    We will be filing papers in the next couple of weeks that should really get their attention. Watch for the filings. I will be speaking out on a conference call as soon as the filings are completed. We will notify you of the call. I look forward to talking to you then.

    I appreciate your support in helping us get back what rightfully belongs to the members of ASD.

    Thanks,
    Andy Bowdoin

  • EDITORIAL: No Settlement In Larry Friedman Lawsuit Against Jack Arons; Tensions Escalate As Prominent Dallas Attorney Sues Pro Se Litigant

    Florida resident Jack Arons, sued last week for libel and slander by Dallas attorney Larry Friedman and hit with a blitz of legal documents, said the lawsuit still was on and that settlement talks had broken down.

    Friedman, the lawyer for the ASD Members Business Association (ASDMBA) Trust, describes Arons as a “felon” and a “vigilante” and an Internet “menace.” Arons, on Social Security, readily acknowledges he had encounters with law enforcement as a younger man.

    ASDMBA was formed last summer, in the aftermath of the government seizure of tens of millions of dollars from Florida-based AdSurfDaily amid wire-fraud, money-laundering and Ponzi scheme allegations. Federal prosecutors say ASD was selling unregistered securities while calling itself an “advertising” service.

    Members of ASDMBA said they expected Friedman to file litigation to protect their interests in the ASD case.

    Arons plainly is confused about what to do. At the same time, he is angry. His confusion and anger are understandable. Friedman should have no expectation that he is dealing with a professional litigant who will react by the book.

    Larry Friedman is dealing with a common man who does not have an attorney and who was buried in Friedman’s legal paperwork. At the same time, Jack Arons is being openly threatened in the ASD-Biz forum by a person who purports to be Friedman’s client.

    Friedman already has lost the PR war. The war was lost with the paperwork blitz and the appearance on the forum by Friedman’s purported client.

    Arons said he was unhappy with a document written by an intermediary for Arons’ signature that purportedly would bring the matter to an end. The document was in the form of a retraction. Arons rejected the document. (See the wording of the purported retraction document below.)

    Instead, Arons prepared his own retraction of comments against Friedman and posted it in online forums.

    Arons lives in a manufactured home in Florida. He has been soliciting input from nonexpert forum posters to go up against Friedman. The case was a train wreck from the moment it was filed.

    We again call on Friedman to drop the lawsuit and fire his client, the ASDMBA Trust. If any entity is harming Friedman’s reputation, it is the Trust, whose de facto head is Bob Guenther.

    See a previous post. See another one.

    A poster purporting to be Guenther at the ASD-Biz forum announced the lawsuit against Arons last week — in two separate threads. The headline in the main announcement thread was titled, “Jack Arons Sued, Served and Shut Up, Finally . . .”

    The poster provided links to the lawsuit documents before Arons had been served, called him “Rookie” and threatened others with lawsuits. Later, the poster purporting to be Guenther referenced Arons’ adoptive, 6-year-old daughter in a post, raising security concerns. Arons is the father of a son who was murdered.

    Arons said the matter has been reported to the FBI.

    People are asking questions about the Trust, Guenther and Friedman. Some people said they had complained to the Texas Bar and the office of Texas Attorney General Greg Abbott. Their concern is how ASDMBA is spending money it collected from members. The Trust, Friedman’s client, has not answered questions to the satisfaction of some members.

    Arons is not a member of ASDMBA. Friedman blames him for stirring the pot in Internet forums. It is only natural that Friedman would be concerned about complaints to the Bar and Abbott. Even so, Friedman, a professional, had to know that some ASDMBA members were unhappy and apt to complain.

    That’s why Friedman should fire the Trust, which has not answered questions to the satisfaction of members.

    Arons said he filed a pro se response to the lawsuit.

    Friedman filed a vague complaint against Arons, swearing only to a single paragraph in the 12-page document but emerging with a temporary restraining order against Arons.

    If Friedman is interested in a settlement, he should explain to Arons the precise conduct that damaged him instead of forcing depositions from on high and hitting Arons with an avalanche of legal filings.

    This case is sad, especially since the behavior of Friedman’s client is the driving force behind the concerns of members. Their demand is reasonable: for Guenther to produce straightforward accounting. Instead they have been met with insults, political jibes and menacing forum posts.

    None of those behaviors is consistent with transparency. ASDMBA was formed with the financial contributions of its members. Presenting a line-item accounting should be easy. Tensions have escalated because of the absence of detailed accounting by the Trust, leading to complaints to the Bar and the attorney general.

    As noted above, Arons issued his own retraction to statements he had made online about Friedman. The retraction was published online before Friedman even had accepted it. This is the type of thing that happens when people act without advice of counsel and under extreme pressure.

    And Larry Friedman knows this is the type of thing that happens when people act without counsel. He does not have the duty to act as Arons’ counsel, of course. After all, Friedman is claiming Arons harmed his reputation.

    But Friedman does have a duty to play fair. The blitz he directed at Arons was repugnant.

    The ‘Retraction’ Arons Wouldn’t Sign

    Here, verbatim, is the retraction an intermediary told Arons that Friedman would accept to drop the lawsuit. We have added the italics.

    Date:
    Time:

    I, Jack Arons, (Address, City, State, Zip) am writing this of my own free will on behalf of Larry Friedman of Friedman and Feiger Law Firm.

    Over the last couple months I have been spearheading a campaign against Larry Friedman, due to my belief he, along with his client, willingly defrauded a group of people (the ASDMBA) of tens of thousands of dollars.

    I have been encouraging the members to file a complaint with the Texas Bar against Mr. Friedman for his participation. After further research, and facts that have come to light, it is now my conclusion that Larry Friedman was indeed a victim in this debacle, of his own client! And that he did in fact, to the best of his ability, fulfill and honor his commitment to the ASDMBA members.

    I apologize to Mr. Friedman for the egregious error and for whatever damage I might have caused to his name, his reputation, or his law firm. I further state I will discontinue the promoting of people to call the Texas Bar Association to complain about Mr. Friedman, and ask that those that did call back and say they made the complaint based on misinformation.

    I will discontinue, from this day forward, from writing any posts in forums, or emails, or disseminating information in form, Mr. Friedman or his Law Firm.

    I can be called for verification of this information at: ___(phone)___________

    And once again, I apologize to Mr. Friedman.

    (full name)

    Arons’ Own Retraction

    March 10, 2009

    After consulting with many different people both for and against this problem that I am now faced with and to insure the safety and well being of my family I have decided to (as Bob would say) throw in the towel. I love a good fight and had my family not been dragged into a fight that was not of their making I would have done everything humanly possible to achieve the goal that resulted in a Bully called Bob Guenther from scamming people out of their hard earned money and getting away with it.

    As far as Larry Friedman and his Law Firm is concerned I retract all statements made against them. Although I can not change what course of actions that have taken place concerning my statements I will no longer post anything derogatory concerning him or his firm.

    Each member of the ASDMBA (which I am not) must make their own decisions of what they will do or have done and if they feel that they erred in filing anything against F&F that I might have said to take the appropriate actions to correct that which has been done.

    I do not control the internet although at times like this I wish I did.

    Jack Arons
    10088 Blue Waters Road
    Tallahassee, Florida 32305
    850.421.5791