PRICELESS: AdViewGlobal Announces Wire Deal With Offshore Bank On Day White House And Treasury Department Announce Plan To Crackdown On Offshore Tax Havens

obamaUPDATED 12:43 P.M. EDT (May 7, U.S.A.) As often is the case in the tin-eared autosurf world, the timing was impeccable: On the day the Obama administration announced a crackdown on U.S. corporations and citizens who use offshore tax havens to hide income, autosurf company AdViewGlobal (AVG) announced it had a deal with an offshore bank to accept member deposits for the purchase of “advertising.”

U.S. regulators say autosurf companies sell securities but call themselves “advertising” companies to avoid scrutiny by agencies such as the SEC. In recent months, autosurfs have been highlighting purported “offshore” locations, and some promoters say the surfs can hide members’ income from the IRS and “shelter” them from the SEC, the FTC and state attorneys general.

“I’m asking Congress to pass some commonsense measures,” Obama said at 11:37 a.m. (EDT) yesterday.  “One of these measures would let the IRS know how much income Americans are generating in overseas accounts by requiring overseas banks to provide 1099s for their American clients, just like Americans have to do for their bank accounts here in this country. If financial institutions won’t cooperate with us, we will assume that they are sheltering money in tax havens, and act accordingly.”

At 5:54 p.m. yesterday, a member of an AVG forum operated by some of the Mods and members of the Pro-AdSurfDaily Surf’s Up forum announced that AVG members now could wire money from the United States to The Bank of N. T. Butterfield and Son Ltd.

Butterfield has locations in Bermuda, the Bahamas, Barbados and the Cayman Islands, among other places.

Obama specifically referenced the Cayman Islands in his remarks announcing the crackdown.

“On the campaign, I used to talk about the outrage of a building in the Cayman Islands that had over 12,000 businesses — businesses claim this building as their headquarters,” Obama said.  “And I’ve said before, either this is the largest building in the world or the largest tax scam in the world.”

Under a headline titled “BREAKING NEWS Fund your Advertising,” AVG members were told this (italics added):

“AV GLOBAL ASSOCIATION is pleased to announce

“Beginning Tuesday May 5, you will be able to purchase more advertising.

“There will be a form that you can access to arrange for your purchase.

“Specific information will be required in order to process your payment.

“You will need to provide your Name; A Number; email address used for your AVGA Account; phone number; and address.

“Wire transfers: These instruments usually clear within two business days. Although there are fees charged by your bank and our bank also assesses fees (usually our bank will charge $15) your account is credited immediately upon receipt and your advertising program begins immediately. Your purchase will be adjusted by the fees.

Review:

All funds must be accompanied by the correct identifying information:

* Name

* AVGA id number

* email address

*mailing address

*and phone number

Without this information your money will be returned to you through the originating bank.

Remember: The form will appear on the Website by Tuesday before midnight. If there is a change, you will be notified.

Please print the form and complete it so that your bank [h]as all of the pertinent information.

Transfer information:

The Bank of N. T. Butterfield and Son, LTD.

Via

J. P. Morgan Chase Bank

Bldg. F. Floor 8

4 Chase Metrotech Center

New York, NY,

USA, 11245

Swift # [Deleted by this Blog]

Account # [Deleted by this Blog]

Beneficiary: KINGZ Capital Management Corporation

Account # [Deleted by this Blog]

Reference: YOUR NAME & YOUR I.D.# & YOUR EMAIL ADDRESS

UPDATE:  KINGZ Capital Management Corp. has issued a strong denial of AVG’s claims. Michael P. Krywenky, president and chief executive officer of KINGZ, said on May 7 that the firm had no business tie to AVG and had launched an investigation into the claims.

“KINGZ Capital Management Corporation nor any of its affiliates have any relationship with AdViewGlobal,” Krywenky said. “Also, I have already confirmed with our bank in Barbados that we are NOT accepting any funds from anyone at, or any clients of, AdViewGlobal.”

See this post.

AVG has close ties to AdSurfDaily (ASD), whose assets were seized in August after a joint investigation by the U.S. Secret Service and the IRS was opened in July. Federal prosecutors said ASD was engaging in wire fraud and  money-laundering while selling unregistered securities and operating a Ponzi scheme from Florida.

Prosecutors alleged that ASD President Andy Bowdoin, who was arrested on felony securities charges in Alabama in the 1990s and pleaded guilty, claimed falsely that he had received a special award last year for business acumen from President Bush.

Now AVG appears to be courting trouble from the new occupant of the White House — after the Secret Service specifically refuted Bowdoin’s Bush claims.

George Harris, an AVG trustee, is the stepson of ASD’s Bowdoin. A Tallahassee home and a car owned by Harris and his wife were seized in December, after prosecutors filed a second forfeiture complaint against assets tied to ASD. The complaint alleged massive internal fraud at ASD, citing a litany of personal purchases made with corporate funds and a claim that $1 million had been stolen from the firm by “Russian” hackers.

No police report was filed.

AVG purports to be headquartered in Uruguay. Its servers resolve to Panama. Gary Talbert, AVG’s chief executive officer and a former ASD executive, resigned suddenly on March 20

On March 23, AVG announced that its bank account had been suspended, blaming the suspension on members who sent too many wire transactions in excess of $9,500. No AVG executive or employee signed the suspension announcement. It was signed “The AVG Management Team.”

Problems with an Arizona-based, money-service business known as eWalletPlus followed. Servers for eWalletPlus now resolve to Panama, and the company claims now to be headquartered in Uruguay.

AVG, which had been promoting a 200-percent, matching bonus offer — an offer that caused one promoter to exclaim that $5,000 turned into $15,000 “instantly!” — said it was working to rectify its banking problem.

Its solution was announced yesterday: Wiring money to an offshore bank.

Promoters made AVG’s purported offshore location a big selling point since its inception a few months after the seizure of ASD’s assets.

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14 Responses to “PRICELESS: AdViewGlobal Announces Wire Deal With Offshore Bank On Day White House And Treasury Department Announce Plan To Crackdown On Offshore Tax Havens”

  1. anybody hear how the cruise went this past weekend for the AVG “off shorer” ?

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  2. Mark kreiling: anybody hear how the cruisewent this past weekend for the AVG “off shorer” ?

    Just View It! The Cruise Was Great!

    * Posted by Terralynn~ModSquad on May 5, 2009 at 12:04pm

    Hi Everyone,

    The cruise was great. Everyone had a blast. We had about 150 people there from AVGA.

    The New Edited version of the DVD is really good and will be an excellent tool for all of us. You guys are going to love it! There will be a link set up this afternoon so we can all go in and start ordering them.

    The prices will be posted in the Breaking New by tomorrow.

    We didn’t get to see the new website while we were on the boat because the maintenance crew cut the ships internet line while we were there – soooooo… we will all see it at the same time. Hopefully by the end of this week sometime.

    The main speaker gave us all some excellent tips on how to manage our money and I hope we will be able to pass some of his info on to everyone.

    Kathy Roberton will tell us all more on Thursday’s call and we will post his contact info in case anyone wants to order the course. It is well worth it!

    We had another speaker scheduled but he bailed out on us at the last minute because he was afraid of the Swine Flu.

    There were people there from all around the world and the excitement for AVGA is really high.

    Kathy, Rex, Patrick & Judy took a ton of pictures and they are going to post them soon for all to see.

    The new slogan for AVGA is ~ Just View It!

    All in all a good time had by all – More later and thanks so much,
    T.

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  3. “cut the ship’s internet line” ? My God these people are rubes of the highest, (or lowest?) order.

    Save those cruise snaps though. The State Attorney General will be most thankful.

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  4. I was hoping for 150 AVGA’s and on or two feds taking good notes!!!

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  5. Amazing that no-one had a Wi-Fi connection on the ship. But the maintenance crew cutting the Internet line has to be one of the all-time classic excuses I have heard. I am still laughing at it. It made my day. Guess it has replaced the dog ate my homework excuse.

    But things are not so rosy in AVGA land. Seems the members are not happy with their rate of return, and are upset they may not get all their money back from their purchase of ad views, let alone a profit. Guess they forgot they were buying advertising not making an investment.

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  6. Lynndel Edgington Seems the members are not happy with their rate of return, and are upset they may not get all their money back from their purchase of ad views, let alone a profit.Guess they forgot they were buying advertising not making an investment.

    Yeah, well according to xavier’s logic that would make it all perfectly legit and legal and xavier should know you know, he attends law school.

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  7. If any disgruntled AVG member would like to see the cruise pics put to good use please click on my name above (Pistol) and post them there along with any other relevant material, names etc.

    Thankyou.

    PistolKnight

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  8. It certainly makes one wonder what tales AVGA have told Butterfields and Morgan Chase in order to obtain banking facilities with them!

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  9. The President was mistaken, and as he acknowledged, clearly in campaign mode when he equated the existence of 12,000 financial services businesses in the Cayman Islands to some sort of tax scam. Most large U.S. corporations are incorporated in the state of Delaware, but don’t have offices there either. The same is true in the Cayman Islands.

    Cayman Islands Financial Services Association, which represents the financial servics industry in the Caymans, fully supports amending the tax reporting legislation to provide fully proactive reporting to the U.S. that mirrors the structure with all 27 European Union jurisdictions under the EU Savings Directive.

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