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.

“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.”

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):

“Wire 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.

“AVGA Management”

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 “Compliance” department.

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.

Describing himself and KINGZ as astounded by AVG’s claims, Krywenky said yesterday that attorneys for the firm were monitoring the situation.

“It’s extremely bizarre,” 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.

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6 Responses to “AdViewGlobal Ignores Express Public Denial By KINGZ That Business Relationship Existed; Surf Firm Sidesteps Wire Issue”

  1. And to think that on Tuesday or Wednesday they were attributing the higher “vip’s” to the increase of sales via wiring money,
    while there really had been no new sales via wiring money. Just more made up sales figures since the troops were getting restless seeing such low returns. How do those that were in ASD continue on with all this and then continue to try and get more newbies suckered in? At least I get my laughs for the day!

  2. The lengths the promoters and management of AVGA will go to avoid telling their members the truth is quite incredible. What is even more incredible is the relative lack of protest by the members at this “change of plan” which has followed the announcement of the new banking arrangements on a few days ago. A few mild questions appear to have been asked on the AVGA forum, but nothing serious (although we dont know if posts have fallen under the censor’s axe).

    In the wake of the problems left by ASD for the existing AVGA members – either loss of ASD money, or the risk of clawbacks – it makes one wonder what planet these people are living on.

  3. I had posed the question yesterday if anyone had wired money and if it had been posted yet. No response, as expected especially since no one could wire money. 24 had replied that the daily limit was $250,000.00. Wonder what the next couple “options” will be?

    They are also running into problems of not getting their matches posted correctly. My, oh my.

  4. Now this is truly interesting. I thought AVGA’s management team was proudly touting how they had all the bugs of ASD worked out, they had learned their lessons as to why ASD failed, they had this great management team and backers who knew how to run a successful company, would generate all this wealth for their members, and would be the premier online advertising company ever.

    Yet they can’t even get a banking solution that works. Sure sounds like they worked out all the bugs to me, how about you?

    I did see a post on the Surf’s Up forum by someone, don’t remember their name now, that asked the question what would they say if AVGA imploded on its own, and not stopped by the evil government. I think one person replied it wouldn’t be a problem as the rebates weren’t guaranteed. Uncle Andy taught them well.

  5. […] never acknowledged the denial. Instead, the surf issued an announcement signed “AVGA Management” that the wire deal it just had described as completed had failed […]

  6. […] You’ll see a story about the announcement of AVG’s purported new, offshore wire facility here. You’ll find a related story here. […]