URGENT >> BULLETIN >> MOVING: [UPDATED]: Government Says It Has Tied Andy Bowdoin To Failed AdViewGlobal Autosurf; Prosecutors Also Cite AdSurfDaily Patriarch’s ‘OneX’ Sales Pitch, Calling Program A ‘Fraudulent Scheme’
UPDATED 11:40 P.M. EDT (U.S.A.) Federal prosecutors say they’ve tied AdSurfDaily President Andy Bowdoin to the failed AdViewGlobal autosurf and intend to introduce evidence of “uncharged misconduct” at Bowdoin’s trial for the alleged ASD Ponzi scheme.
Meanwhile, prosecutors say “OneX” — a “program” Bowdoin said he was pitching to help pay for his criminal defense in the ASD Ponzi case — is a “fraudulent scheme.”
The OneX organization and its “matrix,” prosecutors said, are more accurately described as a “pyramid” and the purported opportunity “simply re-distributes funds among participants.”
“In this latest venture, Bowdoin has again partnered with Tari Steward and Rayda Roundy, both of whom were involved in the operation of ASD,” prosecutors said.
Prosecutors’ references to AdViewGlobal and OneX are believed to mark the first time the government has acknowledged publicly it was gathering information about the schemes. The government says its probe into Bowdoin continues and that it intends to introduce other evidence of criminal conduct at his September Ponzi trial.
“The government is aware of additional criminal matters lodged against Bowdoin,” prosecutors said.
Precisely what those alleged matters entailed was not immediately clear.
Here (below) are some highlights from an April 17 letter and an April 24 list of exhibits prosecutors filed with the court and sent to Charles A. Murray, Bowdoin’s defense attorney. The letter and exhibits inform Murray about certain matters the government intends to introduce at trial. (Italics and/or bold emphasis added by PP Blog):
- Bowdoin’s history involves at least four instances in which he was charged with securities-related crimes during the 1990s in Alabama. Three indictments were returned in Montgomery County, and one was returned in Wilcox County. There were multiple victims. Bowdoin accepted plea agreements, agreed to testify for the state against at least five defendants and agreed to make restitution to his fleeced investors. (Note: These assertions by the government may be aimed at short-circuiting any claim by Bowdoin that he was ignorant of securities laws when he started ASD. At the same time, the assertions are potentially useful in making a case that Bowdoin was committed to making a living from securities fraud even after agreeing to testify against alleged securities fraudsters.)
- Bowdoin allegedly paid some of the Alabama restitution with proceeds from the ASD Ponzi scheme.
- In one of the Alabama cases, a grand jury accused Bowdoin of not telling investors he was using their money to make “full and/or partial refunds to investors in earlier projects” involving a cell-phone business.
- Bowdoin solicited $600,000 from an Alabama investor, but allegedly did not disclose that his company had been sued four times under a previous name. (Note: Lack of disclosure and a name change also are alleged parts of the ASD scheme.) Moreover, Bowdoin allegedly sold the $600,000 contract despite the fact that neither cell-phone entity had the required license to operate from the Federal Communications Commission.
- Bowdoin was “permanently barred” from engaging in the securities industry in Alabama. (This point leads to questions about whether Bowdoin potentially could face state-level charges for selling ASD in Alabama after his ban in the 1990s.)
- Included in Bowdoin’s history are a bankruptcy filing and string of lawsuits naming him a defendant. (Details of these are unclear, but the government says it expects to produce additional documents in the “near future.”
- Although Bowdoin claimed to have run successful mobile-phone, GPS-tracking and dry-cleaning businesses, “those businesses were not successful and on several occasions were the subject of civil and criminal proceedings.”
- “After the United States Secret Service seized ASD’s bank accounts in August 2008, Bowdoin, Gary Talbert . . . and others began operating another version of ASD over the Internet at adviewglobal.com (‘AVG’).” (Talbert was a former ASD executive, according to court filings.)
- In 2009, AVG “ceased operation when allegations arose that an individual associated with AVG purportedly stole money from AVG.” (Note: A purported theft of $1 million at the purported hands of “Russian” hackers is an alleged element of the ASD case.)
- Bowdoin’s claims about OneX are “inherently deceptive.” Like ASD, OneX “does not generate income by selling a product to consumers outside the system. Instead, it simply re-distributes funds among participants.” (Note: The letter strongly suggests that the government is well-versed on the internal operations of OneX.)
- Bowdoin is targeting former ASD members in his OneX promos and offered “leads” from the ASD database.
One of the exhibits filed by the government is the AVG Terms of Service.