GNI BECOMES THIS YEAR’S ASD: Autosurf/HYIP Pimps Continue To Cheerlead Ponzi Schemes As Bank Failures Pile Up In The United States

A year ago, members of AdViewGlobal and AdSurfDaily asked Sen. Patrick Leahy, chairmain of the Senate Judiciary Committee, to endorse Ponzi schemes and investigate the prosecutors in the ASD case. This year, members of the failed Gold Nugget Invest (GNI) HYIP are doing most of the early season cheerleading for reprehensible "programs," while sabotaging debate in the ranks and continuing to argue there is something noble about fraud schemes. Fifteen U.S. banks failed while GNI members were singing the praises of the HYIP in the opening days of 2010. GNI tanked earlier this month. Thirteen U.S. banks failed while AVG/ASD members were conducting a letter-writing campaign to Leahy in the opening days of 2009.

The new year is starting out like the year that just passed. Banks are failing, unemployment is high, money is not trickling down to small businesses that need capital to expand and create new jobs — and the Ponzi pimps are still putting lipstick on pigs, pushing autosurfs and HYIPs and cheerleading for them even when they fail.

Gold Nugget Invest (GNI) quickly has become this year’s equivalent of last year’s early season favorite, AdSurfDaily (ASD), among the apologists. As was the case a year ago with ASD, the GNI faithful and delusional members of the failed HYIP have emerged to lead the cheers, make the excuses, confuse the issues, sabotage legitimate discussions and set the stage for even more people to lose tremendous sums of money to practiced online schemers.

Web records suggest that at least 57 percent of funds directed at GNI originated in the United States, and there are claims that GNI had 11,000 members. GNI tanked earlier this month, directly on the heels of an HYIP known as “Cash Tanker,” which used images of Jesus Christ in its marketing materials.

Yes, even an HYIP that called itself Cash Tanker and used a revered figure as though he were just another hamburger salesman on TV was able to collect untold sums from investors by relying on HYIP cheerleaders to spread the gospel of robbing Peter to pay Paul.

First, a brief look at the banking environment.

Five U.S. banks failed Friday, bringing the year-to-date total to 15. That’s ahead of last year’s pace. Through Feb. 14, 2009, 13 U.S. banks had failed. Twenty-five failed in all of 2008, and only three failed in 2007.

By the time the banking bloodletting had ended in 2009, a total of 140 banks had failed. With 15 failures already this year, the United States is on pace to record 180 in 2010. The FDIC insurance fund fell into the red last year under the weight of the failures, and the agency is replenishing the fund by requiring banks to prepay fees for insurance.

A Year Ago

Most notable among the Ponzi pimps a year ago at this time were the promoters of ASD and its offshoot, the AdViewGlobal (AVG) autosurf. They hailed AVG as a cure for what ailed the U.S. economy, even though ASD had been implicated in a wire-fraud, money-laundering, securities fraud and Ponzi scheme that resulted in the federal seizure of tens of millions of dollars.

AdViewGlobal, which tanked in June 2009, formally launched a year ago this week. It was pushed by ASD members who positioned AVG as an “offshore” alternative.

Almost a year ago, the Pro-ASD Surf’s Up forum led a campaign to Sen. Patrick Leahy that sought the Senate’s endorsement of Ponzi schemes — it seems incredible, but it’s true — and also sought to have the Senate investigate the prosecutors and agents who were investigating the alleged ASD Ponzi scheme.

Incredibly, last year’s Surf’s Up campaign, which piggybacked off a campaign by ASD mainstay “Professor” Patrick Moriarty, came to the fore during a time in which 13 U.S. banks were failing  in the opening days of the year; the Bernard Madoff Ponzi scheme ($65 billion) was still a fresh news item; the Tom Petters’ Ponzi scheme ($3.65 billion) was in the news; the alleged Allen Stanford Ponzi scheme ($8 billion) was in the news; the alleged Arthur Nadel Ponzi scheme ($350 million/$400 million) was in the news; the alleged Paul Greenwood/Stephen Walsh financial scheme ($553 million) was in the news; and the alleged Nicholas Cosmo Ponzi scheme ($370 million) was in the news. There were others, of course.

At the same time the events cited in the paragraph above were making fresh news, autosurfs and HYIPs also were falling like dominos and taking investors’ money with them. Notable among them were MegaLido, Noobing, Frogress, Daily Profit Pond, Premium Ads Club and Aggero Investment. All of them were pushed by promoters who also were pushing AVG (and had pushed ASD).

Some of the promoters simultaneously tried to sanitize the “industry” through the letter-writing campaign to Leahy, asserting, for example, that the schemes actually were legitimate opportunities and that the government did not understand the technology or the math behind the schemes.

Despite the headlines of spectacular Ponzi fraud in the mainstream press, despite the fact that it was impossible to miss news about Ponzi schemes unless you lived a life of blissful ignorance or had chosen to be willfully blind, despite the fact that sites such as Scam.com and WorldLawDirect and the PP Blog had published tons of information on autosurf and HYIP Ponzi schemes, despite the fact that the U.S. and other governments had published warnings about the frauds and had filed both civil and criminal cases against the fraudsters, despite the fact that no autosurf or HYIP ever has stood the test of time and survived, the schemers closed ranks and continued to shill and shill and shill and shill.

They’re still shilling a year later.

GNI Becomes The New ASD In Opening Days Of 2010

This year’s early season ASD is GNI. Instead of writing letters to Leahy, though, some of the apologists are saying that the HYIP critics and doubters in the GNI ranks should quit complaining and starting donating money to Haiti earthquake relief. As was the case with ASD, all of the cheerleading is occurring blindly. Not a shred of evidence has emerged that anything about GNI was real.

And instead of Madoff, Nadel, Cosmo, Stanford and the other Ponzi notables cited above being the preeminent contextual backdrop a year after the Surf’s Up campaign, figures such these have replaced them: alleged Ponzi schemers Trevor Cook and Christian radio host Pat Kiley ($190 million); proven Ponzi schemer Scott Rothstein ($1.2 billion); proven Ponzi schemer Milton Retana ($62 million/$3.2 million in cash found in back of religious bookstore);  proven Ponzi schemer Gold Quest International (about $29 million; ruled a Ponzi and a pyramid scheme by Canadian authorities); proven Ponzi schemer and former Christian clergyman Brian David Anderson ($4 million, link to Flat Electronic Data Interchange (FEDI), whose operator, Abdul Tawala Ibn Ali Alishtari, also known as “Michael Mixon,” was convicted in September 2009 of financing terror and fleecing investors in the FEDI scheme); alleged Ponzi schemer Arthur Leroy Heffelfinger ($2.02 million, including alleged theft from woman in 90s with dementia): alleged Ponzi schemer Mariana Montes (at least $682,000 in combo Ponzi and fraud case, including alleged theft from 90-year-old widow); proven schemer John Anthony Miller ($15 million, tried to flee United States by using identity of deceased Catholic school classmate); proven schemer Bradley L. Ruderman ($25 million, mostly from family and friends); alleged schemer Edmundo Rubi (operated $24 million “Knights Express” Ponzi scheme earlier in decade, sentenced to prison, emerged from jail with new scheme targeting original customers); proven Ponzi schemer Marcia Sladich ($15 million, scheme targeted churchgoers); alleged Ponzi schemer Steve Salutric (at least $1.8 million, including more than $400,000 from 96-year-old widow with dementia).

There are others, of course, and the names constantly change. What hasn’t changed is that the autosurf and HYIP shills continue to shill and shill and shill, even as one bank after another is failing and one Ponzi schemer after another is making one headline after another.

We can’t think of anything that matches the level of disconnect or demonstrates the same level of greed and wanton criminality — not even Rothstein’s Bugatti and collection of other fine automobiles purchased with Ponzi proceeds.

And not even Cook’s alleged submarine.

About the Author

4 Responses to “GNI BECOMES THIS YEAR’S ASD: Autosurf/HYIP Pimps Continue To Cheerlead Ponzi Schemes As Bank Failures Pile Up In The United States”

  1. Too bad about GNI… I’m up $2,000, but the cash out button is greyed out… Think I will give up on the hyip.

    Take it easy,

    Steve

      (Quote)

  2. Okay this is too much. Just got hold of the latest email from Robert Spearman of GNI.

    ———————————————————————————-
    Welcome to GNI Program,

    Agreement of Non-Disclosure

    Before discussing the specifics, we ask you to refrain from discussing this matter over the internet
    WITH ANYONE, ANYWHERE not withstanding the instructions outlined below.
    If you cannot agree to this condition, you are not permitted to read any further, NO EXCEPTIONS.

    All past threads and posts must and will be deleted, whether initiated by me, Todd, Ingenue, Debbie or any former GNI member.
    We ask this newsletter not be published anywhere.

    That being said, I welcome those of you who have expressed interest, though no guarantees that an offer to participate will be forthcoming, to our vision and pathway to that vision…
    Forex-Profit-Share.com

    Concept

    Forex-Profit-Share.com was born from the needs and wants of the administration,
    principals and former GNI clients to create and maintain a system of income generation,
    emanating from Sure-Bets (Sports Arbitrage) which is totally private; devoid of those troublesome obstacles
    including hackers, enemies or those either unwilling or unable to understand those concepts (and risks)
    inherent to the business environment in which we operate.

    It was never a secret we sought to create a new program capable of implementation towards the ladder part of
    the first quarter (2010). True to our word, we give to you a program that is the culmination of our experience;
    trials and tribulations to be sure, worthy of our total commitment to ensure its success.

    This program, is in no fashion an extension of, or in any manner, a relationship to the former GNI.
    Hence, there will not be any “rolling over” of funds, assets or liabilities from one project to the other.

    We fully expect to have all outstanding issues with GNI resolved during the period between the second half
    of May, until the end of June at the latest.

    Goals of Forex-Profit-Share.com
    Our needs were clearly defined by what worked and what didn’t with GNI. Of significance was:

    1. The ability to operate legally and in full compliance with Regulatory entities that fight Money Laundering, Terrorist and the exploitation of Children.
    2. Devise a project that utilized the skills gained manifesting and embracing the successes while avoiding the shortcomings that resulted in the birth, growth and ultimate demise of GNI.
    3. Create a project that provided returns commensurate (or better) with the risks associated with this kind of venture, not found anywhere else.
    4. Could function utilizing a small but intelligent collection of staff and support; keeping overhead to an absolute minimum; and
    5. The gift, to our “shareholders” of consistent returns; without the fear that at any given moment, the dream they became accustomed to, could be usurped.

    Although these were formidable challenges, we feel we have attained this with Forex-Profit-Share.com

    Investments Plan

    Forex-Profit-Share.com offers 3 investment plans, categorized and separated from each other on the basis of investment limits and risk exposure.
    Locking period is 3 Months business days for each of the investment plans and principal amount is returned to investor at the maturity of the investment.

    An investor can also cancel an active investment and prematurely withdraw the principal amount, however, please note that investment cancellation carries a fee of 30% levied on the principal amount.
    Following table summarizes the features of each of the investment plans offered by us :

    1. Aggresive Fund

    Weekly Profit : 7,5 %
    Period : 3 month
    Amount : $50 – $5000

    2. Conservative Fund

    Weekly Profit : 10,5 %
    Period : 3 month
    Amount : $5000 – $10,000

    3. Fortune Fund

    Weekly Profit : 13,5 %
    Period : 3 month
    Amount : $10,000 – $20,000

    Some things to remember and answers to some questions:

    1. Will Payment Processors be anyway involved with this project?
    Yes. Participants will use Liberty Reserve. We will NOT be utilizing Payment Processors (PP) such as StrictPay
    or SolidtrustPay. The reason being costs and convenience.

    Although one needs to be especially aware when using e-currency (a result of their NO RETURN / NO Chargeback policy),
    they are the most cost effective and convenient for citizens world-wide.

    a. The source of revenue is generated from the successful completion of Sports and other Wagering means.
    While the risk is reduced to successful and timely payment of both ends of wager, it is still considered,
    in many jurisdictions to be “wagering.” We don’t want to jeopardize any funds at any time. We feel the most
    transparent and hassle-free way of doing this is by the utilization of or E-currency providers, DGC and LR.
    Warning: we strongly recommend that all precautions be taken as there are no chargebacks when utilizing these E-Currency providers.

    b. Despite the risks inherent with using E-currencies, we have found it to be the cheapest, easiest and most readily convertible to hard currency; which, cumulatively is in the project’s best interest.

    Getting Started

    If, after reading the introduction, you would like to participate, have agreed to non-disclosure and will fully cooperate with all aspects of the KYC provisions, we direct you now to the following URL:

    http://www.forex-profit-share.com/invest.html

    Note:

    Please read the following rules carefully before participate in this program!
    You agree to be of legal age in your country to partake in this program, and in all the cases your minimal age must be 18 years.
    We are not insured. We are not a licensed bank or a security firm.
    You agree that all information, communications, materials coming from company are unsolicited and must be kept private, confidential and protected from any disclosure.

    Moreover, the information, communications and materials contained herein are not to be regarded as an offer,
    nor a solicitation for share purchase or investments in any jurisdiction which deems non-public offers or solicitations unlawful, nor to any person to whom it will be unlawful to make such offer or solicitation.

    All the data giving by a member to company will be only privately used and not disclosed to any third parties. forex-profit-share.com and/or it’s subsidiaries are not responsible or liable for any loss of data.

    You agree to hold all principals and members harmless of any liability. You are participate at your own risk and you agree that a past performance is not an explicit guarantee for the same future performance.

    You agree that all information, communications and materials you will find here, in this prospectus, or anywhere else you are directed to, are intended to be regarded as an informational and educational matter and not investment advice.

    We reserve the right to change the rules, dividend rates and so forth at any time and at our sole discretion without notice, especially in order to respect the integrity and security of the share holders interests.
    You agree that it is your sole responsibility to review the current terms.

    forex-profit-share.com and/or it’s subsidiaries are not responsible or liable for any damages, losses and costs resulting from any violation of the conditions and terms and/or use of our website by a shareholder.

    You guarantee to forex-profit-share.com and/or it’s subsidiaries that you will not use this site in any illegal way and you agree to respect
    your local, national and international laws.

    We recognize there will be some questions that may arise. Therefore, we have created a ticket-based means of communication for this specific purpose.
    Do NOT utilize email to communicate your concerns or questions. To access this communication vehicle, click on the following link:

    http://www.forex-profit-share.com/support/

    forex-profit-share.com and/or it’s subsidiaries reserves the right to accept or decline any member from participation without explanation.

    If you do not agree with the above disclaimer, please do not go any further.

    With best regards,
    Robert S
    Managing Director
    forex-profit-share.com

      (Quote)

  3. First, Joe, it’s good to see you. Thanks for sharing the info above.

    My instant take is that the “new” GNI resembles the “old” and now-defunct EMG/Finanzas Forex fraud.

    It also looks as though GNI is in with the Arby’s Indians crowd (at least in spirit) with its new loyalty oath and secrecy, etc. I’d say it’s possible that some of the AdViewGlobal players are pulling the strings — or, at a minimum, are the target audience.

    Given the collapse of GNI (and at least three other “popular” HYIPs) coincided with the collapse of the Trevor Cook Ponzi scheme, I’ve speculated that Cook had money in these programs. He was, after all, a gambler, especially of other people’s money.

    Cook also had an odd sort of natural constituency in Minnesota, which seems to have a disproportionate share of folks who buy into these schemes and push them. You’ll recall, of course, that ASD’s Andy Bowdoin had a loud advocacy group in Minnesota.

    I’m just speculating, mind you. But it wouldn’t surprise me if GNI is looking for a cash cow to replace Cook’s lost money, money lost when the Stanford Ponzi scheme collapsed, money lost when the Feds seized ASD’s assets, money lost when the Feds seized EMG’s assets and money lost when AVG went belly up.

    It’s also possible that Spanish, British, Swiss and Cypriot authorities are making some headway into starving these scams.

    The note you quoted from above is just pure insanity. Anyone who puts a plug nickel into this thing deserves to lose it all and then be prosecuted.

    Personally, I believe the Task Force in Florida and the U.S. Attorney in the Southern District of New York are making headway into trying to choke these schemes at the source. The provincial regulators in Canada also appear to be becoming more aggressive.

    “Patriots,” “sovereigns” and conspiracy theorists are in no short supply, though. These HYIPs appeal to the antigovernment crowd and political extremists because they’re positioned to validate fractured thinking. The Internet provides the forum through which criminality not only is celebrated, but rewarded.

    It must be hard for the FBI, Secret Service, U.S. Postal Inspection Service, IRS, SEC and CFTC, among others, to sleep these days. Never in all of my days have I seen such a relentless attack on the U.S. financial infrastructure. It really is ceaseless and, if the purveyors get knocked off the horse, they simply pretend it never happened and conflate a new reality to cover all contingencies.

    There is virtually no way to categorize — let alone even describe — the incongruities.

    Patrick

      (Quote)

  4. admin: My instant take is that the “new” GNI resembles the “old” and now-defunct EMG/Finanzas Forex fraud.

    I think it resembles any HYIP-ponzi that uses “Forex” in the name. Which would be about 60%-80% of them.

    admin: It also looks as though GNI is in with the Arby’s Indians crowd (at least in spirit) with its new loyalty oath and secrecy, etc.

    It’s another ponzi scammers trick. It works two fold: first it give the impression “professionalism” – “only a real company uses Non Disclosure Agreements. Second, it installs an element of fear in the numpties who are daft enough to invest in these schemes. The AdViewGlobal players are definitely the target audience.

    admin: I’m just speculating, mind you. But it wouldn’t surprise me if GNI is looking for a cash cow to replace Cook’s lost money, money lost when the Stanford Ponzi scheme collapsed, money lost when the Feds seized ASD’s assets, money lost when the Feds seized EMG’s assets and money lost when AVG went belly up.

    Summer holidays are only a few months away. This scheme could collapse just in time for a trip somewhere nice. I hear Greece might be cheap this year.

    admin: I believe the Task Force in Florida and the U.S. Attorney in the Southern District of New York are making headway

    It would be nice to think this but I believe real progress will be made when the well known ponzi promoters (Sloan, Russo etc) are held accountable. Also the ponzi payment processors, the ponzi friendly web hosts, and the ponzi promotion forums. And the web hosts of the ponzi friendly forums & payment processors.

    admin: It must be hard for the FBI, Secret Service, U.S. Postal Inspection Service, IRS, SEC and CFTC, among others, to sleep these days. Never in all of my days have I seen such a relentless attack on the U.S. financial infrastructure.

    It’s been this way for some time, at least 5 years, probably more. Hopefully the political will is changing so that these schemes will no longer be tolerated.

      (Quote)

Leave a Reply