AdViewGlobal Ignores Express Public Denial By KINGZ That Business Relationship Existed; Surf Firm Sidesteps Wire Issue
After announcing Monday that it had a deal for members to purchase “advertising” beginning Tuesday through international wire transfers, the AdViewGlobal (AVG) autosurf now says it had no such deal.
Rather, the surf said in a note signed “AVGA Management,” negotiations were “ultimately unsuccessful.” AVG did not explain how a deal described as completed — up to and including instructions and account numbers for customers to use — had suddenly become the casualty of unsuccessful negotiations.
The explanation may not sit well with members — and it may not sit well with KINGZ Capital Management Corp., which expressly denied yesterday that it had any business relationship with AVG and said it believed it was a victim of a fraud attempt.
AVG announced Monday that customers could wire money to The Bank of N. T. Butterfield and Son Ltd. Customers were provided instructions to list KINGZ as the beneficiary and given KINGZ’ account number.
The AVG claim came to the attention of KINGZ President and Chief Executive Officer Michael P. Krywenky, who said yesterday the claim was false and that KINGZ was conducting an investigation.
â€œKINGZ Capital Management Corporation nor any of its affiliates have any relationship with AdViewGlobal,â€ Krywenky said. â€œAlso, I have already confirmed with our bank in Barbados that we are NOT accepting any funds from anyone at, or any clients of, AdViewGlobal.â€
AVG did not address Krywenky’s denial or even tell members about it.
Here is what AVG, which also is known as the AV Global Association or AVGA, told members (italics added):
â€œWire Transfer Option: The wire transfer option in the member back office has been disabled. The negotiations were ultimately unsuccessful. We apologize for any inconvenience this may have caused our members. Please be aware that we have identified multiple options that will better serve our members and AVGA. These new options will be less cumbersome as well as more cost efficient. We expect to announce the additional funding solutions within the next 2 weeks.
“Thanks and have a wonderful weekend.
Krywenky said yesterday that KINGZ believed that a scam of some sort was under way at AVG.
KINGZ , he said, had discussed services with a firm known as Living Legacy One LLC.
Public records show that a corporation by that name was registered in Florida April 18, 2008, and filed an annual report on April 29, 2009. Living Legacy One LLC lists Gerald Castor as its managing member.
AVG, in a March announcement to members concerning the suspension of its bank account, identified Gerald Castor as an employee of its â€œComplianceâ€ department.
U.S. regulators say autosurf companies sell securities but call themselves â€œadvertisingâ€ companies to avoid scrutiny by agencies such as the SEC. In recent months, autosurfs have been highlighting purported â€œoffshoreâ€ locations, and some promoters say the surfs can hide membersâ€™ income from the IRS and â€œshelterâ€ them from the SEC, the FTC and state attorneys general.
Describing himself and KINGZ as astounded by AVG’s claims, Krywenky said yesterday that attorneys for the firm were monitoring the situation.
â€œItâ€™s extremely bizarre,â€ he said.
AVG members are complaining about low rates of return after the company, which purports to be an offshore “advertising’ service, promoted a 200-percent, matching-bonus offer for weeks — even after its bank account had been suspended.
At the “low” rates of return, some AVG members now say they’ll neither earn back the money they spent on advertising by viewing ads nor emerge with a profit through rebates.
Members also have complained about unclear explanations from AVG.