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  • UPDATE: Vana Blue Website Still Offline; No Pinksheet Stock Activity For Seven Trading Days Amid Maze Of Claims

    Not a single share of Vana Blue’s penny stock has traded hands since July 30, a period of seven full trading days, according to Yahoo Finance. In news releases, Vana Blue identified itself as the owner of eWalletPlus, a payment processor later linked to the AdViewGlobal (AVG) autosurf.

    Vana Blue, which used mailing services in Phoenix and Las Vegas as its address, is a registered corporation in Nevada. Its website now resolves to a server that beams ads from GoDaddy.com, but until recently resolved to a server from which the company told its story.

    The company has claimed to own a company that variously has been described as TMS Corp. and TMS Association, which purportedly developed eWalletPlus. In January, Vana Blue also claimed to own a company that variously has been described as Karveck Corp. or Karveck International, a purported advertising and media company.

    In February, Vana Blue reported that Karveck had posted $1.8 million in revenue in January — the month AVG was in prelaunch.

    Among other things, Vana Blue also had said it signed an agreement with a company known as Native Express Inc. “to develop oil and gas resources” in Utah. Vana Blue also has said it had an agreement with a firm in Jamaica known as Internet Mobile & Caribbean Network Ltd. to “facilitate the sales of the Compass Pre Paid debit card throughout Jamaica and the Caribbean.”

    Meanwhile, Vana Blue also has said it had an agreement with a company known as Net Auction Plus, an eBay alternative, “to provide online, affordable, and flexible payment services.” The NetAuctionPlus.com domain name is registered to Michael Austin and uses the same Phoenix mail-service address as Vana Blue.

    The NetAuctionPlus.com domain throws a server error. Austin’s name was mentioned in an announcement last week by AVG that it had reported a theft of $2.7 million to unspecified law enforcement agencies. AVG, which purports to be headquartered in Uruguay, did not explain when the alleged theft occurred and did not provide details.

    Austin’s name also has been associated with eWalletPlus, but is only one of several names associated with the payment processor and money-services business. AVG promoters have claimed that eWalletPlus was AVG’s in-house payment processor. At one time, the eWalletPlus domain resolved to the same server in Panama that hosted AVG, but the domain now resolves to a parked page and appears to be offered for sale on sedo.com.

    In a purported public filing dated March 31, Vana Blue identified its officers as Donald Rex Gay, Leonard Capelli and Michael Reis, saying it owned TMS Corp and Karveck International.

    Only days later, a man associated with both the AdSurfDaily and AVG autosurfs — Gary Talbert — registered an entity known as TMS Corp. USA LLC, according to records. Talbert’s U.S. registrations occurred within days of a March 20 announcement by AVG that he had resigned as its chief executive officer and a March 23 announcement that AVG’s bank account had been suspended because too many members had wired transactions in excess of $9,500.

    TMS Corp. USA LLC is registered in Nevada, and lists Gary D. Talbert of 2601 E Thomas Rd, Ste 220-A Phoenix, AZ 85016, as its manager. A company by the same name also is listed as a foreign LLC in Arizona, with Gary D. Talbert of 13. S. Calhoun Street, P.O. Box 109, Quincy, FL 32351, as its manager.

    The S. Calhoun Street building address is the same address AdSurfDaily Inc. used.

    In a forfeiture complaint against ASD last year that alleged wire fraud, money-laundering, the sale of unregistered securities and a Ponzi scheme, federal prosecutors said the building address was bogus.

    One of the officers of Vana Blue is named a defendant in a counterclaim by the U.S. government that alleges more than $252,000 in federal income tax is unpaid. The same individual — Donald Rex Gay — is listed in Louisiana records as a person who has been involved in a number of businesses.

    Gay denied in pro se court filings that he owed the taxes.

    Records in Illinois note that Michael Reis, also listed by Vana Blue as an officer, was ordered in 2000 to cease and desist from the practice of public accounting without a license.

  • AdGateWorld Joins AVG, BAS In No-Pay Surf Lineup

    Members of AdGateWorld (AGW) are complaining today that the surf is not paying rebates. AGW now joins AdViewGlobal (AVG) and BizAdSplash (BAS) in the nonpaying lineup.

    All three surfs launched in the aftermath of the seizure of tens of millions of dollars last year from Florida-based AdSurfDaily Inc., amid allegations of wire fraud, money-laundering, engaging in the sale of unregistered securities and operating a Ponzi scheme. The surfs quickly became known as ASD clones, with promoters that touted offshore locations as a safety buffer between participants and U.S.-based regulators and law-enforcement agencies.

    At one point, the acronym ASD appeared in the Terms of Service on the AGW website.

    In recent weeks, AGW said it had new owners in the Middle East. Those reports could not be confirmed.

    Members today, however, said that AGW announced yesterday it had no money to pay rebates this week.

    The surf did announce that it would provide members a new splash page to create interest in the program, members said. The idea was to create an “AdGateWorld awareness campaign.”

    AGW recently took bonuses away from members, members said. Yesterday’s announcement was simply signed “AdGateworld.”

  • DEVELOPING STORY: Sheriff’s Department, Deputy, County Attorney Sued For Not Accepting Bids In Gold And Silver At Foreclosure Sale In Pennsylvania

    EDITOR’S NOTE: We previously have reported that some members of AdSurfDaily Inc. and AdViewGlobal are part of a subculture that views the Federal Reserve and banking in general as illicit operations. Some members, for example, have been involved in the credit-repair industry and have been parties in lawsuits against the government and/or individual banks and bankers. Part of the Utah “Indian” litigation grew out of banking lawsuits, for instance. We also have reported on a case in which a member sued a bank to reverse a mortgage foreclosure, filing a bond purportedly consisting of “twenty one dollars in silver coinage.”

    Some of the elements in the story below will sound familiar to readers who have been following the ASD case. The plaintiffs in the case cited below said their bids to purchase properties with gold and silver at a Sheriff’s sale in Pennsylvania were rejected, and they now seek more than $1 million in damages against public officials.

    A county solicitor, sheriff’s department and deputy have been sued in federal court in the Eastern District of Pennsylvania amid allegations they defamed three bidders at a sheriff’s sale who wanted to pay for properties with gold and silver.

    Meanwhile, the wives of two of the plaintiffs have joined the lawsuit, saying stress caused by libelous remarks by the county have or will cause them “to lose the companionship, consortium, society and services” of their husbands.

    One of the husbands/co-plaintiffs — Michael Proetto — “requries psychiatric care,” according to the lawsuit.

    Victor Balletta, another husband/co-plaintiff, “purchased firearms for protection,” according to the lawsuit.

    Michael Reis is another co-plaintiff in the case.

    Named defendants were Karl Longenbach, solicitor of Northhampton County — although Longenbach’s name was not specifically referenced in the complaint caption; Christopher Spadoni, the assistant county solicitor; the Northhampton County Sheriff’s office; and Dave Ruberry, a deputy sheriff whom the plaintiffs said presided over the October 2008 Sheriff’s Sale.

    The county has denied wrongdoing.

    Balletta, Proetto and Reis said they attended a Sheriff’s sale in Easton, Pa., on Oct. 10, after registering and advising the county “they had gold and silver currency that they wished to bid,” according to the lawsuit.

    The plaintiffs “bid successfully on approximately nine (9) properties,” they said in the lawsuit, but Ruberry “ignored Plaintiffs’ bids, instead accepting other bids predicated on credit. In contrast, Plaintiff’s were prepared to pay their entire bid at the sale, with gold and silver.”

    Proetto brought his gold and silver in a “bulging sandwich bag,” according to The Morning Call of Allentown.

    Bids were refused, according to the plaintiffs. They seek damages of more than $1 million for alleged civil-rights violations and other violations.

    Balletta, Proetto and Reis claimed the defendants made libelous remarks about them, falsely linking them to anarchist groups, extremist groups and “paper terrorism.”

    The Morning Call, which was not named a defendant, “printed the defamatory statements made by the Deputy and Solicitor,” the plaintiffs said.

    Subsequently, the plaintiffs were “threatened; approached by extreme/radical groups mentioned in the Article; have lost business opportunities; have had their [families endangered]; Proetto  requries psychiatric care; and Balletta purchased firearms for protection,” the plaintiffs said in the lawsuit.

    Read the lawsuit.

  • And The Ponzis Will Die As One . . .

    Dear Readers,

    Two days ago we received a note from a woman who identified herself as a member of AdViewGlobal (AVG). The note was intended for publication, but we declined to publish it.

    The woman described herself as angry about developments at the surf. We would have published the note, except for one thing: The woman included two URLs, along with an appeal for readers to click on PTC  ads on her website.

    So, in one breath, she was condemning AVG. In the next, she was encouraging people to engage in click fraud so she could earn a fee. There was virtually no editorial content on the site.

    Bids to commit click fraud were an element of the ASD case, of course. Despite all that has happened, some people continue to show annoyance that their favorite surf or surfs aren’t paying, and yet try to line their own pockets with fraudulent fees.

    Screent shot of pitch last year for ASD members to commit click fraud.
    Reduced screen shot of pitch last year for ASD members to commit click fraud.

    It’s hard to imagine that anyone actually joined AVG, given the events at ASD. But it’s even harder to imagine that a person bitter about suspended AVG payouts then would arrive at the conclusion that she could make up for lost money by taking money out of the pockets of PTC advertisers.

    And, speaking of the word “imagine,” we offer this — with our apologies to the late John Lennon.

    Imagine there’s no Surfing
    It’s easy if you try
    No Ponzi below you
    Nothing above you to deny
    Imagine all the Surfers
    Saying no to pay to play

    Imagine there’s no Cashouts
    It isn’t hard to do
    Nothing to shill or ply for
    And no soiled commissions too
    Imagine all the Surfers
    Saying no to clicking for a fee

    You may say that he’s a schemer
    But he’s not the only one
    He hopes someday you’ll join him
    And the Ponzis will be as one

    Imagine no rebate schemes
    I wonder if you can
    No appeals to greed or hunger
    A brotherhood of anti-scam
    Imagine all the Surfers
    Respecting the nobility of the working man

    You may say that he’s a schemer
    But he’s not the only one
    He knows now you won’t join him
    And the Ponzis will die as one

  • UPDATE: Noobing Surf Site Offline As FTC Fraud Case Against Affiliate Strategies Inc. Proceeds; Receiver Appointed And Expected To File Preliminary Report Soon

    A receiver has been appointed in the case against Affiliate Strategies Inc. (ASI) and Brett Blackman, ASI’s president, chief executive officer and founding partner. Noobing, a surfing site, is in the ASI fold, but has not been named a defendant.

    Regardless, the Noobing site is offline. A federal judge has granted a freeze of ASI’s assets. Noobing, based in Kansas, launched in the aftermath of the seizure of tens of millions of dollars from Florida-based AdSurfDaily Inc. last year and was promoted by some ASD members.

    YouTube videos and other records show that the site was targeted at people with hearing impairments.

    Late last month, the Federal Trade Commision sued ASI; Blackman; Landmark Publishing Group (d/b/a G.F. Institute and Grant Funding Institute); Grant Writers Institute LLC; Answer Customers LLC; Apex Holdings International LLC; Jordan Sevy, individually and as a manager of Landmark Publishing Group; James Rulison, individually and as president of Answer Customers LLC; Real Estate Buyers Financial Network LLC (d/b/a Grant Writers Research Network); Martin Nossov, individually and as a manager and member of Real Estate Buyers Financial Network LLC; and Alicia Nossov, individually and as a manager and member of Real Estate Buyers Financial Network LLC.

    Joining the FTC in the lawsuit were the attorneys general of Kansas, Minnesota and North Carolina. The case also appears in federal court dockets in Virginia and Utah.

    A preliminary report by Larry Cook, the court-appointed receiver, was due today. It is possible that the filing will be delayed until Aug. 20, because attorneys for the defendants asked for a delay.

    U.S. District Judge Julie A. Robinson issued a temporary restraining order (TRO) and asset freeze July 24. Based on filings by the defendants, Robinson granted a delay from Aug. 12 until Sept. 1 to conduct a hearing on the TRO. But Robinson denied a motion by the defendants to stay discovery in the case.

    Among other things, the defendants advised the court that they wished “to retain separate counsel for themselves” and noted they needed time to “sort out their financial affairs” and to determine how to pay for separate counsel, Robinson noted.

    And, Robinson noted, “[T]he defendants seek time to attempt to conduct settlement negotiations.”

    The FTC said the defendants were involved in a scheme that promised “guaranteed” grants of $25,000 from economic-stimulus funds provided by the government.

    Kansas Attorney General Steve Six said the alleged scheme was deplorable and that investigators intended to carve back any ill-gotten gains.

    “During this time of economic uncertainty, grant scams are taking advantage of people’s hope for financial assistance and scamming them out of hard earned money,” Six said. “There is no such thing as a guaranteed grant. But to consumers in financial trouble, the chance for extra income can unfortunately be a huge draw.”

    “Scammers like these are using the bad economy to try to get rich at your expense,” Six said. “Beware of anyone who promises to help you win a grant if you pay them first.”

    Blackman, 25, “began trading stocks and bonds at the age of 15,” according to ASI’s website. He also “is involved with numerous civic groups including Business Fellowship International (BFI), Young Life, and Campus Crusades. He also serves on the board of Where Are The Christian Men (WATCM).”

  • BREAKING NEWS: Judge Grants Bowdoin Request For More Time, As AdSurfDaily Negotiates With Prosecutors

    A federal judge has granted Andy Bowdoin more time to respond to an order to show cause.

    Judge Rosemary Collyer said Bowdoin and AdSurfDaily Inc. could have until Aug. 28 to show cause why its motion to reverse Bowdoin’s decision to forfeit tens of millions of dollars to the government should not be denied.

    The original deadline was Aug. 7. Bowdoin is the president of ASD. Prosecutors seized at least $65 million from Bowdoin bank accounts last year, records show.

    “It is hereby ORDERED that Claimants shall file a response to . . . [the] Order to Show Cause no later than August 28, 2009,” Collyer wrote in a minute order late this afternoon.

    ASD revealed in court filings yesterday that it had entered into negotiations with federal prosecutors.

    Charles A. Murray, Bowdoin’s attorney, advised Collyer yesterday that the negotiations “could result in an agreement resolving the matters in dispute either in part or whole.”

    A firm with a close family, membership and promotional ties to ASD — AdViewGlobal (AVG) — announced this morning that it had filed a theft report with state and federal authorities, saying $2.7 million had been embezzled from the firm.

    AVG identified two suspects, saying they once were affiliated with the eWalletPlus payment processor.

    In other news, the government announced it had perfected the forfeiture of more than $14 million from Golden Panda Ad Builder, another firm associated with ASD. Prosecutors said they intended to implement a restitution program for members who certified under oath that they were victims of a crime.

  • DID SURF FIRM JUST MAKE HISTORY? AdViewGlobal Says It Filed State, Federal Complaints About $2.7 Million Theft; Surf Wants New CFO, Compliance Officer, Department Managers; Asks Members To Keep Surfing

    UPDATED 12:03 P.M. EDT (U.S.A.) One day after AdSurfDaily Inc. revealed in court filings that it was negotiating with federal prosecutors, the AdViewGlobal (AVG) autosurf announced it had been the victim of a $2.7 million theft.

    AVG, which purports to be headquartered in Uruguay, said it reported the theft to state and federal authorities. If confirmed, it may mark the first time in history that a surf filed such a report. Autosurfs frequently are associated with Ponzi schemes and the sale of unregistered securities.

    “Legal complaints have been filed in both cases and are currently being pursued by law enforcement authorities at both the state and federal levels,” AVG said in an announcement to members.

    It was not immediately clear if the surf was conceding it was headquartered in the United States, rather than Uruguay. The surf did not identify the agencies to which it had reported the alleged theft.

    AVG identified two suspects, saying they once were affiliated with the eWalletPlus payment processor. Some members had been clamoring for the surf to name suspects.

    “We’ve been reluctant to share this information with you, because we were under the impression that the money would be returned within a fairly brief period of time. In the past 24 hours, however, we’ve learned that it could take 6 months to a year to get the money back to us,” AVG said.

    AVG did not say how it got the impression that the money would be returned in “a fairly brief period of time.” Nor did it reveal how it learned it could take up to a year to recover the money or that the funds even were recoverable.

    Federal prosecutors said in December that ASD President Andy Bowdoin never reported a $1 million theft at the purported hands of “Russian” hackers. The allegation is contained in a Dec. 19 forfeiture complaint that names George and Judy Harris as beneficiaries of illegal conduct by ASD.

    Today is the one-year anniversary of the formal seizure of tens of millions of dollars from ASD by the U.S. Secret Service.

    George Harris is Andy Bowdoin’s stepson; Judy Harris is the wife of George Harris. AVG announced last month that George and Judy Harris owned AVG. Since that time, a Pinksheet stock known as Vana Blue (VBLU.PK), which says it owns Karveck International and the associated eWalletPlus payment processor, has clouded the issue of what individual or company actually owns AVG.

    In today’s announcement, AVG did not say if George or Judy Harris — or another management employee — contacted authorities to report the alleged theft.

    AVG did say it was seeking a new chief financial officer, compliance officer and department heads for public relations, customer service and new projects. The surf did not say whether it had fired employees who held those jobs previously.

    “We’re undergoing a complete overhaul of all management positions and procedural systems,” AVG said. The surf added that it was recruiting from within and that applicants are required “to sign a confidentiality agreement that will be strictly enforced.”

    The surf did not say whether the successful candidates would be required to move to Uruguay.

    AVG, which announced June 25 that it was suspending member cashouts and making an 80/20 program mandatory if and when payouts resume, said today that it was “evaluating the extent to which the inflated page impressions amassed by some members created artificial cash balances.”

    Members said AVG’s frequent use of 200-percent, matching bonus programs for both recruits and sponsors — coupled with an in-house, member-to-member cash button — led to some downline groups and individuals owning millions of page impressions and creating untenable liabilities for the surf.

    How AVG intends to deal with the liabilities it created through unchecked bonuses and purported abuse of the cash button is not clear. By suspending payouts June 25, the surf exercised its version of a “rebates aren’t guaranteed” clause.

    Some members said they will not surf until cashouts resume because each advertisement AVG displays erodes profitability for individual members.

    “We sincerely hope that you’ll continue to support us . . . and keep on surfing! AVG said today.

    See July 23 story.

    See July 27 story.

  • EDITORIAL: The End Of Wink-Nod

    One year ago today, the U.S. Secret Service arrived in the small town of Quincy, Fla., and changed history. By executing a search warrant at the headquarters of AdSurfDaily Inc. — and going about their business in very public fashion — agents sent the message that the so-called autosurf “industry” no longer had a safe haven anywhere on U.S. soil.

    In all of 2008, the Secret Service issued exactly six national news releases. One of them dealt with AdSurfDaily. Given the special nature of the work the Secret Service performs and the extreme competence of the men and women who serve their country in this unique fashion — and the fact that ASD merited a news release — well, connect the dots.

    The wink-nod days are over for the surfs.

    Promoter? “Industry” expert? “Team” organizer? Good luck. You’re going to have to work twice as hard for your ill-gotten gains (with the prospect of getting busted always in play), and your forum spiel and YouTube videos are becoming less and less effective. They make you look like a person who will do anything — up to and including pretending the Secret Service never visited Quincy — to pocket a commission.

    Agents exposed the “industry” for exactly what it is: a poison field laced with land mines and trip wires and occupied by schemers and liars and criminals and money-launderers.

  • BREAKING NEWS: Federal Judge Denies Curtis Richmond’s Disqualification Motion In ASD Case; Motions To Set Aside Forfeiture By Three Other Pro Se Litigants Also Denied

    UPDATED 3:40 P.M. EDT (U.S.A.) A federal judge said she will not recuse herself from the AdSurfDaily forfeiture case and has denied a motion by Curtis Richmond to disqualify herself. Meanwhile, the judge also denied motions by other pro se litigants in the ASD case.

    Richmond filed the motion to disqualify Judge Rosemary Collyer, claiming the judge had displayed “extreme bias.” But Collyer denied the motion this afternoon in a Memorandum Opinion. Richmond is associated with a sham Utah “Indian” tribe and has a history of filing 11th-hour motions to force judges to recuse themselves from cases.

    “Mr. Richmond is not a party entitled to seek disqualification,” Collyer said. “Mr. Richmond further contends that he can seek this Court’s recusal under Rule 63 of the Utah Rules of Civil Procedure, erroneously referring to the Utah Rule as a federal rule. The Utah Rules of Civil Procedure do not apply in this Court. Even if Mr. Richmond had attempted to proceed under the applicable federal statute governing disqualification, 28 U.S.C. § 455, he would be barred from proceeding because he is not a party to this case.”

    Collyer also denied a motion by Richmond to unseat the judge that accused her of treason, declaring the matter moot.

    Other pro se litigants whose motions were denied today include Christian Oesch, Jeffrey Robinson and Joan Hughes.

    “Movants here are not the first to attempt to intervene in this case and seek its dismissal,” Collyer said. “The Court addressed previous motions to intervene in a July 16, 2009, Memorandum Opinion, wherein it found that the motions to intervene must be denied because the movants did not have a cognizable interest in the defendant properties, and therefore did not have standing to contest this forfeiture action.”

    “The movants here are in the same position,” Collyer said. “Since these movants are ineligible to intervene and seek dismissal, they are not parties to the case and their motions to set aside forfeiture will also be denied.”

    Collyer denied seven pro se motions to intervene July 16.

  • BREAKING NEWS: Andy Bowdoin Negotiating With Federal Prosecutors In AdSurfDaily Inc. Forfeiture Case

    UPDATED 1:23 P.M. EDT (U.S.A.) AdSurfDaily President Andy Bowdoin — through his attorney — is negotiating with federal prosecutors.

    Charles A. Murray, Bowdoin’s attorney, has advised U.S. District Judge Rosemary Collyer that the negotiations “could result in an agreement resolving the matters in dispute either in part or whole.”

    Prosecutors have consented to Bowdoin being granted a delay until Aug. 28 to respond to an order to show cause why motions he filed to reverse a previous decision he made to cede tens of millions of dollars seized last year should not be denied. Bowdoin’s response was due Aug. 7 by court order.

    Collyer has not ruled on the consent motion to delay the response to Aug. 28.

    Murray’s motion today was filed on behalf of Bowdoin and AdSurfDaily Inc. The motion did not reference Bowdoin/Harris Enterprises, another corporate entity for which Murray entered a notice of appearance in April.

    Why Murray did not list Bowdoin/Harris Enterprises in today’s motion is unclear.

    Members of the Bowdoin/Harris family — including Bowdoin’s stepson George Harris — have been identified as the owners of the AdViewGlobal autosurf, which suspended cashouts June 25 and later disabled its forum.

  • BizAdSplash Site Relaunch Delayed; Clarence Busby Does Not Explain Why, But Says ‘Instant Money’ Available Soon

    Although BizAdSplash (BAS) said last week that its new website would be up and running yesterday, the launch did not come off as advertised.

    A video featuring BAS “chief consultant” Clarence Busby appeared on the old site today, but Busby did not explain the delay in launching the new site. The video opened with Busby watching what he described as the new site in a computer monitor, as piano music played in the background.

    Busby then greeted viewers with a Mister Rogers-like “Hello there,” and proceeded to explain that exciting BAS developments were in the offing.

    Clarence Busby turns to address video viewers. The content visible in the computer monitor purportedly is the new BizAdSplash website.
    Clarence Busby turns to address video viewers. The content visible in the computer monitor purportedly is the new BizAdSplash website.

    By the middle of August, he promised, the company would show members how to make “instant money, very, very quickly.”

    Busby, who ceded more than $14 million to the U.S. government in a forfeiture case last year involving Golden Panda Ad Builder, his previous company, and AdSurfDaily Inc., implored customers to continue to believe in BAS. Busby did not mention Golden Panda or ASD. Nor did he mention his run-in with securities regulators who accused him in the 1990s of pushing three prime-bank schemes by promising returns of up to 10,000 percent.

    “None of the investors earned the exorbitant returns promised by Busby, the SEC said in May 1998, after U.S. District Judge Thomas W. Thrash ordered Busby not to break securities laws.

    “I’m not going to let anybody have a loss” in BAS, Busby said in today’s video. He claimed BAS already had paid out “over $2 million,” but did not say how much the surf firm had collected from customers since its launch early this year.

    “We need you to believe in us,” Busby said. “You’ll see why we’re excited. You’ll see why it’s important to hang on.”