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Category: The Economy

  • Prosecutors: Richmond Filing May Lead To ‘Unconscionable’ Delays, Thus Denying ASD’s Rank-And-File Justice

    When Curtis Richmond began filing pleadings in the ASD case, the Surf’s Up forum hailed him a hero. Prosecutors see things a different way.

    A federal judge should not permit Richmond and three others to intervene in the AdSurfDaily forfeiture case because the pleadings “will cause either manifest injustice, unconscionable delay, or both,” federal prosecutors said late yesterday.

    “Movants are but an unhappy few of the many thousands of victims of the fraud schemes
    described in the complaint,” prosecutors said of Richmond and three other men who used Richmond’s pro se litigation blueprint.  “They seek to muscle aside their fellow sufferers, and cannot even pretend to be acting in the best interests of the other [ASD] victims.”

    Prosecutors said the government is establishing a mechanism to provide refunds to ASD victims and that Richmond’s filings essentially create a small, special class of victims and could result in interminable delays for rank-and-file ASD members.

    Absent in the prosecutors’ response to Richmond were direct references to assertions by Richmond and the others that the government had committed crimes. Some ASD members treated Richmond’s assertions as red meat for the masses, using them to feed dissent against the government and build support for ASD President Andy Bowdoin.

    Prosecutors virtually ignored the assertions. Richmond was convicted of contempt of court in 2007 for threatening federal judges. He also was ordered by a federal judge to pay damages and costs to Utah public employees targeted by vexatious legal filings. The employees sued Richmond, a member of a sham Utah “Indian tribe,” under federal racketeering statutes.

    The Four-Corner Offense?

    It is NCAA “March Madness” basketball tournament time in the United States. Sometimes basketball teams try to slow down the game by employing the “four-corner offense,” situating players in a square and simply passing the ball around the square, rather than advancing it toward the basket.

    Prosecutors may be anticipating a four-corner offense from Bowdoin and others to slow down the ASD case. They referenced Bowdoin’s own pro se pleadings in the case, but did not respond to them directly in their response to motions by Richmond and the others.

    It would not be surprising if the government later takes the stand that Bowdoin’s filings are designed to delay justice. Pointedly, prosecutors described Bowdoin as “apparently proceeding pro se,” a possible sign of developments to come.

    For scale, consider that the first filing in one of the Utah cases involving Richmond was entered on Aug. 11, 2004 — four and a half years ago. By Jan. 14, 2009,  the case file had grown to include 321 separate entries, not taking entries that don’t qualify as formal filings into account.

    In January, Bowdoin, acting under advice of paid counsel, submitted to the August forfeiture of tens of millions of dollars seized from him. But Bowdoin now says he has changed his mind about submitting to the forfeiture, even though he also concedes ASD was operating illegally at the time of the seizure — exactly what the government contended all along.

    The ASD case was nearly litigated to conclusion when pro se pleadings began to pour in. In their response to Richmond, prosecutors streamlined their pleadings — addressing Richmond’s filing and three similar ones by other pro se litigants in the same document, rather than producing an individual response to each of the four motions.

    Individual motions might have required to court to act on four more documents, thus slowing down the case even more.

    If history is a guide, though, ASD members should not be surprised if the case slows to a crawl, thus delaying refunds. In the past, Richmond has filed pro se document after pro se document — and then turned to appeals courts for remedies when denied by district courts.

    He even has named judges defendants in his pleadings.

  • BREAKING NEWS: Friedman Warned Guenther About His Behavior Prior To Meeting With ASD Prosecutor, Document Says

    UPDATED 12:10 P.M. EDT (March 20, U.S.A.)

    NOTE: Though not related to the main post below, the government tonight responded to Curtis Richmond’s pro se filing in the ASD case. In the morning, we’ll publish a story on the government’s response to it and similar filings, rather than preparing another breaking-news story tonight. (Now posted here.)

    In essence, the government is arguing that Richmond’s filing and three other filings using the Richmond litigation blueprint will lead to justice being unconscionably delayed for many thousands of ASD victims and could result in manifest injustice for ASD members.

    Prosecutors also are well aware that ASD President Andy Bowdoin also now is filing his own pleadings, referencing them but not responding to them in tonight’s filings. It would not be surprising if the government takes the stand that Bowdoin’s filings are designed to delay justice. Pointedly, the government described Bowdoin as “apparently proceeding pro se,” a possible sign of developments to come.

    Tonight, Bowdoin appeared in a video, offering ASD members what he described as a way to get their money back by joining a new program called “Paperless Access.” Bowdoin appears to have shared ASD’s database with the company. Some ASD members were reacting with anger this evening, accusing Bowdoin of unrivaled, unmitigated gall.

    You can view the video here.

    Here, below, our earlier post . . .

    A document from the Dallas-based Friedman & Feiger law firm paints a picture of an out-of-control client who had to be told how to behave prior to a meeting with the lead prosecutor in the AdSurfDaily case.

    At the same time, the document also may raise questions about lawyer-client confidentiality.

    Although the document was dated Oct. 27, 2008, and addressed to Robert Guenther, the de facto head of the ASD Members Business Association (ASDMBA) Trust, Friedman’s client, it was mixed into a package sent Jack Arons.

    Arons, a Florida man, is being sued by Friedman for libel and slander. He said he received the document in both electronic and physical form from the law firm after being sued March 5.

    The document carries the signature of Friedman. A note at the top of the document says it was intended to be sent by fax to Guenther last October.

    It is unclear if Guenther received it.

    friedmanguentheroct27document

    Guenther and Friedman met with Assistant U.S. Attorney William Cowden the following month, in November 2008. Guenther has said he hoped to persuade Cowden to name Friedman’s firm receiver in the federal Ponzi scheme case against AdSurfDaily Inc.

    Guenther left the meeting without a deal and now is blustering at Cowden on the ASDMBA website.

    Arons said he thinks someone made a mistake.

    “When Larry sent me the court documents that was one of the files that was attached,” Arons said. “I think that he goofed. I also received a copy in the ones that he mailed to me later. So someone in his office screwed up.”

    Guenther was charged March 13 in Arizona with two felony counts of aggravated harassment. The action in Arizona did not stem from Guenther’s management of ASDMBA.

    At one time, Guenther used the ASDMBA website to cross-promote both ASDMBA and mmoguls, a gaming opportunity affiliated with Cheyenne Mountain and Affiliates. Cheyenne Mountain obtained a restraining order against Guenther for workplace harassment.

    He violated the order as many as five times, which led to the March 13 charges, police said.

    Arons has been a critic of both Guenther and Friedman over their handling of ASDMBA matters.

    Why the document was contained in the packages Arons received is unclear.

    In the document, Friedman told Guenther that “you need to stop threatening physical violence and, for that matter, stop threatening people altogether.

    “Making threats over the Internet and across state lines probably violates numerous state and federal laws,” the document advised.

    The document specifically warned Guenther, prior to the meeting with Cowden, that “nothing you send or say to Cowden is protected by the attorney-client privilege or any other privilege or exception.”

    At the same time, it warned Guenther “not to do anything to impede the federal government’s investigation whatsoever with whatever you are doing.”

    “Impeded” is a word Guenther used in a post three days ago at the ASD-Biz Forum, when he meant to say “embedded.”

    “You need to stop saying bad things about people on conference calls, or on the Internet,” the document warned. It specifically advised Guenther to apologize to two ASD members who raised the prospect of suing Guenther.

  • BREAKING NEWS: RICO Summons Reissued To Bowdoin, Busby, Garner; Reader Says Busby Missing For Months

    Attorney Robert Garner
    Attorney Robert Garner

    UPDATED 7:49 P.M. EDT (U.S.A.) ASD President Andy Bowdoin, ASD attorney Robert Garner and Golden Panda Ad Builder President Clarence Busby never responded to a racketering lawsuit filed against them in January and the summons has been reissued.

    No attorney has entered an appearance notice for any of the three men.

    Bank of America also is a defendant in the case, though not a RICO defendant. BOA was accused of aiding and abetting  Bowdoin, Busby and Garner. The bank is being represented by Michael B. Roberts of Reed Smith in Washington, D.C.

    Reed Smith specializes in complex litigation.

    The case was brought by Mike Collins of Savage, Minn.; Frank Greene of Washington, D.C.;  and Natures Discount of Aventura, Fla., all former ASD members. It was filed as a class-action and has been assigned to Judge Rosemary Collyer, the same judge hearing the ASD civil-forfeiture case filed by federal prosecutors in August and a second forfeiture case against ASD assets seized in December.

    Bowdoin, Busby and Robert Garner were accused of conspiring with unnamed parties in organized efforts to defraud.

    The complaint alleged the men were involved in “other” schemes beyond ASD, Golden Panda and LaFuenteDinero, and have “committed or aided and abetted in the commission of countless acts of racketeering activity,” including indictable offenses.

    “The ASD Enterprise provides the RICO Defendants and other unnamed co-conspirators with a system by which to operate fraudulent schemes such as ASD, to hide the fraudulent nature of the schemes, and to profit from such schemes,” the plaintiffs alleged. “Each RICO Defendant agreed to perform services of a kind which facilitated the operation of the ASD Enterprise and facilitated the RICO Defendants and others in the operation of various fraudulent schemes, including ASD.”

    Why the men did not respond to the RICO complaint is unclear. Bowdoin said he fired his attorneys in a civil-forfeiture case filed in August against proceeds linked to ASD. The U.S. Secret Service has seized nearly $100 million in the case, and Bowdoin now is acting as his own attorney.

    Bowdoin has filed several motions in the past few weeks.

    A Blog reader who described himself as having engaged Busby in a real-estate deal said he could not locate Busby for months. The reader added that he finally secured a phone number for Busby, spoke with him briefly yesterday and that Busby hurried him off the phone.

    “We had to go through a long list of people to get a GOOD phone number,” the reader said. “Oddly, we spoke with him just today. Not sure where he is and we didn’t ask. He basicaly told us we had not tried to contact him, would not let us get a word in and was in a hurry.”

    Garner once advertised offshore legal services in an online magazine known as “Escape From America Magazine.”

    Garner identified himself a “[f]ormer General Counsel for  major Miami-based securities firm with Latin and South American  focus,” according to his ad. He listed the URL for his law office in Greensboro, North Carolina, saying he also specialized in “[r]ecoveries from scam.”

    Garner’s North Carolina law license was updated March 14 by the North Carolina State Bar. Garner’s license is active, and he is in good standing with the Bar.

  • BREAKING NEWS: Bob Guenther Charged With Two Felony Counts Of Aggravated Harassment In Arizona

    UPDATED 2:12 P.M. EDT (U.S.A.) Bob Guenther, a mainstay in the AdSurfDaily case and the de facto head of the ASD Members Business Association (ASDMBA) Trust, has been charged with two felony counts of aggravated harassment in Maricopa County, Arizona.

    Mesa, Arizona, police said Guenther repeatedly violated a court injunction for workplace harassment that prohibited him from nuisancing Cheyenne Mountain and Affiliates, an Arizona business.

    Despite the injunction, Guenther continued to contact Cheyenne Mountain in a manner that “harassed or threatened” the company, police said.

    Guenther violated the court order both by email and telephone, police said. An infraction that occurred via telephone was recorded and placed into evidence.

    “[Guenther] is being charged with aggravated harassment because of the multiple violations of the injunction,” police said. The investigator handling the case said in court documents that up to five separate violations of the order occurred and that Guenther “continues to violate this injunction.”

    The case is being prosecuted by the office of Maricopa County Attorney Andrew Thomas. Charges were filed March 13. Guenther is scheduled to make a court appearance April 14.

    Read the criminal complaint for aggravated harassment against Guenther.

    Guenther is the de facto head of ASDMBA, a group funded by members with the expectation that their legal interests would be protected in the AdSurfDaily Ponzi scheme case. Federal prosecutors seized tens of millions of dollars from ASD in August, saying the company was selling unregistered securities and engaging in wire fraud and money-laundering.

    ASDMBA members said Guenther has refused to provide transparent accounting for ASDMBA, instead engaging in profanity, threats and menacing behavior. In recent days, Guenther has claimed that someone was impersonating him on the ASD-Biz forum, a discussion site for ASD and ASDMBA members and people interested in the case.

    Guenther deleted his account at the forum, an act that also deleted his posts. He then established an account under a different user name. Within hours threats and hostile language appeared under his new forum identity.

    Here is a post claimed by Guenther that appeared yesterday at the ASD-Biz Forum (italics added):

    Ill tell you how you move on, you can kiss your ASD money goodbye…

    None of you 10-12 idiots deserve a fricking thing but a butt kicking, certainly not my time

    Arons, Ill see your dumbass in court. You are a piece of work rookie, and when I finish with you, there wont be a place you can hide, and that’s after Friedman..

    This is Bob Guenther, my assistant, Maria will not waste her time again in this pissy room full of wanna-be’s, weak sucks, and overweight nagging women..

    You dont like what I say, do something about it besides talk.. Bunch of weaks sisters.

    The “Arons” to whom Guenther referred was Jack Arons, a Florida man named a defendant in a slander and libel lawsuit filed earlier this month by Dallas-based attorney Larry Friedman.

    Friedman is the attorney for the Trust and was was introduced to ASDMBA members by Guenther. Some ASDMBA members said they had turned to the Texas Bar and the office of Texas Attorney General Greg Abbott to investigate the Trust.

  • DISCUSSION: What Has Shaped Your ASD Thinking?

    Below are two discussion topics. The idea of this thread is to provide some space for readers to explain how their thinking about AdSurfDaily has evolved over time.

    Please leave a comment on one or both topics.

    TOPIC ONE: When you reflect on ASD, what single event or series of events has most influenced your thinking?

    TOPIC TWO: Describe your thoughts when you observed the emergence of AdViewGlobal and came to learn it had very close ties to ASD.

  • NEWS ANALYSIS: The Problem With Guenther’s ‘Secret’ Code Word (And Other Oddities About The AdSurfDaily Case)

    Bob Guenther has told the Mods and members of the ASD-Biz forum that his previous “Bob Guenther” account had been “compromised.” He announced that he had deleted the “Bob Guenther” account and now would embed a secret code word in posts under his new forum identity, so members would know he was the actual author of posts and not a hacker using his identity to post.

    Under the new forum identity “Robert L,” Guenther said he came to the conclusion that someone had hacked his old account after “in depth investigation” revealed “[s]omeone had accessed my account, had my email and my password.”

    Meanwhile, in an unrelated but equally strange development, a poster at the Surf’s Up forum threatened to beat up ASD President Andy Bowdoin for lying to him.

    “[I]f I ever see you face to face I will knock the f— out of you,” the poster said. “I met you and had breakfast with you and you lied to my face on that Sunday in [M]iami . . .”

    Miami was the site of a July 12 ASD rally — a rally attended by federal agents working undercover.

    Bowdoin was 74 at the time federal agents seized tens of millions of dollars from the firm a few weeks after the Miami rally, in the opening days of August. The poster who threatened Bowdoin also appears to be a senior citizen. Earlier discussion in the forum suggests the man lost $52,000 by trusting Bowdoin.

    The Surf’s Up post, which stood for hours, now has been deleted. The man’s wife, who also appeared to be a senior citizen, was pictured alongside him in a loving pose. Some seniors are none too happy with Andy Bowdoin. The threat, however, was excessive.

    No good can come through violence, suggestions of violence or menacing behavior. The man, who said he lives in California, made no threat to travel to Florida to harm Bowdoin.

    The ‘Secret’ Code

    At roughly the same time Guenther was deleting his old account at the ASD-Biz forum and announcing his secret code, he also was sending an email to this Blog. We deem the email menacing and convoluted.

    Guenther is the de facto head of the ASD Members Business Association (ASDMBA) Trust, the subject of some recent posts on this Blog and elsewhere on the Web.

    All of Guenther’s old posts at the ASD-Biz forum were wiped away when he deleted his account, including threatening posts and posts that triumphantly announced a slander and libel lawsuit against Florida resident Jack Arons by Dallas-based attorney Larry Friedman, who is the attorney for the Trust.

    Bob Guenther introduced Larry Friedman during an ASDMBA conference call last year while ASDMBA was solicting funds to protect contributors’ interests in the ASD case. Friedman now blames Arons for stirring the pot online and encouraging people to file complaints about his handling of the Trust’s affairs, claiming Arons is a felon and a menace.

    Links to the slander and libel lawsuit were posted in the ASD-Biz forum under the “Bob Guenther” identity, which now is wiped away. Also wiped away were goonish threats from “Bob Guenther” that Friedman would sue other people.

    Here are two questions an investigator might ask if considering recent developments concerning Guenther:

    • Who could derive a benefit from the claim the “Bob Guenther” identity at the ASD-Biz Forum was compromised by a hacker?
    • Who could derive a benefit by deleting the “Bob Guenther” account and thus deleting the posts associated with it?

    Friedman immediately should fire the Trust as a client and disassociate himself from Bob Guenther. He also should report this matter to law enforcement. These acts are disturbing and too unnatural to ignore.

    Some people said they saved copies of the old posts, anticipating that the account might go missing. Some ASDMBA members said they filed complaints with the Texas Bar and the office of Texas Attorney General Greg Abbott about the manner in which the Trust’s affairs have been handled.

    Secret code? Guenther could post something inflammatory, not include the secret code — and then claim someone else is the author because the post didn’t include the secret code.

    A secret code is proof of nothing. The notion itself strains credulity at a level that cannot be ignored.

    Along those lines, a claim by Guenther that he was at a volleyball tournament in Dallas “about the time” an unauthorized poster was using his old forum account and claiming to be heading to Mexico also is proof of nothing. A poster in Dallas could claim to be posting from Mexico. So could a poster from Arizona, at a location near the border with Mexico. (As noted in a previous post, in January we captured an Arizona IP address of Guenther’s near the Mexico border.)

    Guenther explained that he hadn’t been to Mexico since 2003 and that “[a]nyone that actually knows me, also knows why.” Again, however, the claim proves nothing . Even a person who claims not to have been in Mexico since 2003 could claim to be posting from Mexico — or anywhere.

    Restraint is not a word we associate with Guenther.  His lack of restraint is what is driving one of the stories associated with the federal probe into the business affairs of AdSurfDaily Inc. (ASD).

    Within hours of establishing a new posting identity at the ASD-Biz forum, Guenther was back to threatening people with lawsuits.

    Guenther is the de facto head of the ASD Members Business Association (ASDMBA) Trust. As noted above, ASDMBA was formed with member contributions in the aftermath of the government seizure last summer of tens of millions of dollars from ASD. Federal prosecutors say ASD was selling unregistered securities, operating a Ponzi scheme and engaging in wire fraud and money-laundering.

    ASDMBA’s stated goal was to protect the legal interests of ASD members who contributed to the association. People concerned want to know why that hasn’t happened, despite the fact ASDMBA raised more than the $100,000 said to be needed to pay for the retainer of Larry Friedman.

    In our view, Guenther has a duty to explain precisely to ASDMBA members from whom money was collected how the money was spent. If he chooses not to do so, he should have no expectation that ASDMBA members will stop asking questions.

    Something this basic should not be difficult or painful. In fact, publishing a detailed accounting is the quickest way for Guenther to disarm his critics. Concerned ASDMBA members want sunlight, the best disinfectant. What they’re getting is rudeness, hostility, profanity, tirades, threats and juvenile insults — and now secret codes.

    What they’re not getting is sunlight.

    Friedman should drop the slander and libel lawsuit against  Jack Arons. The filing of the lawsuit was repugnant, especially under these bizarre conditions.

    Arons, on Social Security, is an amateur Web critic with a fly swatter. Friedman met Arons with a Howitzer, suing him in a blitz of paperwork and then trying to force Arons to appear in Dallas for a deposition at Arons’ expense with three days’ notice.

    It was disgraceful, the stuff from which lawyer jokes are born. All of it flowed from ASDMBA’s lack of transparency. If anything, Arons owes Friedman an apology — if even that.

    Friedman has considerable stature in the Dallas legal community — and every right to defend his reputation. This lawsuit doesn’t help. Nor does the behavior of the Trust and its de facto head, Bob Guenther.

    Guenther needs people to believe in him now, and he’s doing very little to give them any reason to.

  • Something Going On At Surf’s Up?

    UPDATED 8:13 P.M. EDT (U.S.A.) An inquiry about AdViewGlobal (AVG) at the Pro-AdSurfDaily Surf’s Up forum has not been answered for hours by the moderator to which it was directed or any Mod.

    The Mods appear either to have been away from the forum for virtually the entire U.S. East Coast business day or simply made the choice not to moderate.

    At the time of this update, more than eight hours have passed since the AVG inquiry was made. Update 6:45 P.M: After nine hours, the post referencing AVG at the Surf’s Up forum was deleted. Here is a screen shot taken prior to the deletion. The shot was reduced in size to fit into this space:

    terralynnavgaccountfundingsmall

    Meanwhile, a post highly critical of ASD President Andy Bowdoin has been permitted to stand. Update: 6:45 P.M: The critical post from “adam” has been deleted, along with a second critical post by another Surf’s Up member. Here is a screen shot of “adam’s” post prior to deletion. It has been reduced in size to fit into this space:

    adam800000small

    Update 7:14 P.M:. As noted above, the post from “adam” critical of Andy Bowdoin has been deleted. Left standing was a post critical of “adam” for being critical of Andy Bowdoin. Here is a screen shot:

    adamidiotclaimsmall

    At the same time, members’ inquiries on a forum some of the Surf’s Up Mods and members set up for AVG are not being answered. Update 8:13 P.M: It appears as though a Mod is answering inquiries now at the AVG forum.

    AVG recently announced a 200 percent, matching-bonus offer. The site has transitioned to what it calls a “private association” that involves figures associated with ASD, including George Harris, Bowdoin’s stepson.

    Why the Mods appear to have been away so long is unclear.

  • AdSurfDaily Promo Cited Ties To Google, Kodak, Pepsi, NBC, USA Today, Starbucks And Other Prominent Advertisers

    Promotional material for AdSurfDaily featured a photograph of Andy Bowdoin and claimed the company had advertising relationships with some of the top brands in the world.

    Meanwhile, the document introduced readers to Golden Panda Ad Builder, referencing it as ASD’s “Chinese Site” and asking readers to specify if they’d like to advertise on the site.

    The document was created on July 6, 2008, in Adobe Illustrator, and was converted to PDF format, according to its “Properties” function.  It is possible that an earlier version of the document was in use before the July 6 version.

    Among the major advertisers referenced were Google, Kodak, Starbucks, Quiznos Sub, Callaway Golf, Macy’s, Toshiba, NBC, Farmers Insurance, USA Today, Priceline.com and more. Individual logos of the companies were pictured.

    A Secret Service Task Force quietly opened a probe into ASD on July 3, 2008. On July 7, just a day after the July 6 promo for ASD was created, an IRS/Secret Service Task member opened a free ASD account. On July 14, an IRS/Secret Service Task force member opened a paid account. A separate Task Force member funded the account by delivering a check to a Bank of America branch office in Orlando, Fla.

    Despite claims ASD was home to famous, paid advertisers, ASD has not provided any documentation in court filings to substantiate the claims.

    Promo for ASD references prominent brands in ASD customer base.
    Promo for ASD references prominent brands in ASD customer base.

    “This new approach to Internet advertising has businesses of all sizes, from small home
    based businesses to large corporations such as Google, Starbucks, Kodak, etc., joining ASD,” the promotion said.

    “Not only are there over 75,000 small businesses advertising with ASD, but now major corporations are as well. Remember, a part of the daily rebate comes from the revenue corporations pay to advertise with ASD. The following are just a few of these companies,” the promotion said, introducing 24 corporate logos from prominent companies.

    The individual logos appeared on Page 10 of the document. Page 11 featured a photo of Andy Bowdoin and what purported to be his business biography, including references to Dale Carnegie and “the notorious Napoleon Hill.”

    A White House tie also was claimed.

    “In fact, AdSurfDaily President and CEO, Andy Bowdoin, was invited to Washington, D.C., in June, 2008, by United States President George Bush and Vice President Dick Cheney to receive the Medal of Distinction, at the White House. This is a very special honor for his service and leadership contributions in business,” the document crowed.

    Prosecutors said claims about Bowdoin’s White House ties were false. The Medal of Distinction is offered by the National Republican Congressional Committee for campaign donations to keep Republican members in Congress. The “medal” signifies a person’s ability to write a check for what amounts to banquet tickets.

    At the same time, the July 6 document references a so-called “Chinese site,” instructing readers to specify if they’d like to advertise on it.

    Members were told to provide a “[s]hort description of where you would like the funds to be placed (English site, Spanish Site, Chinese Site),” and to specify  “which promotion is running.”

    Within days, however, Bowdoin distanced himself from Golden Panda Ad Builder, the so-called Chinese site. During the same time period, it was revealed that Golden Panda Ad Builder president Clarence Busby had been accused of investment fraud in the 1990s by the Securities and Exchange Commission.

    Read the July 6 promo for ASD. To see the “Properties” showing the date in Adobe Reader, click on “File” and select “Properties.”

  • Surf’s Up Mod Releases Andy Bowdoin Letter To Troops; ASD Head Urges Letter-Writing Campaign To Glenn Beck

    Andy Bowdoin.
    Andy Bowdoin.

    First, members of the Pro-AdSurfDaily Surf’s Up forum tried to whip up support for ASD President Andy Bowdoin by sending Kool Aid packets to Bill O’Reilly of Fox News. Now Bowdoin himself, through a Surf’s Up Mod, is urging members to write letters to Glenn Beck, another Fox personality.

    And, taking a page from his own playbook, Bowdoin also has asked members to write to President Obama, the Justice Department and elected officials “to stop this misuse of power.”

    The move comes on the heels of a stunning court motion Bowdoin filed March 11 in which he acknowledged ASD was operating illegally when the government seized tens of millions of dollars from Bowdoin last summer. Bowdoin claimed in the filing that he did not know ASD was operating illegally at the time of the seizure and that the government denied him fair notice and due process.

    In the filing, Bowdoin claims to be a “defendant” in a “quasi-criminal” prosecution. But Bowdoin hasn’t been named a defendant by the government, which sued the money and property for forfeiture, saying it was the proceeds of a criminal enterprise.

    Prosecutors said ASD was engaging in wire fraud, money-laundering and the sale of unregistered securities — all while operating a $100 million Ponzi scheme.

    Bowdoin had not communicated with the membership at large in months. He did not tell members about a second forfeiture complaint that had been filed in December against assets tied to the firm. Nor did Bowdoin tell members that, in January, he had submitted to the forfeiture of the money and property seized last summer.

    In court filings, Bowdoin now says he has changed his mind about submitting to the forfeiture, even though he acknowledged that ASD was operating illegally — exactly what the government contended.

    In his letter to the members, however, Bowdoin did not mention the motion in which he acknowledged ASD was operating illegally.

    His last formal contact with the members was in late fall, a few months after the initial seizure, when Bowdoin tried to sell them VOIP phone service, positioning the $19.95-a-month plan as a gift to the membership. Days before, he told members that Ponzi allegations had been dropped against ASD in Florida, even though Ponzi allegations hadn’t been brought in Florida.

    During the same time period in the fall, ASD’s Breaking News site announced a deal with Praebius Communications, saying ASD expected to pump $200 million into its coffers as a result of the deal. Praebius is a penny-stock company that does not publish financials.

    In early December, an autosurf known as AdViewGlobal (AVG) began to position itself for launch. AVG has close ties to ASD, including George Harris, Bowdoin’s stepson and an AVG trustee; Gary Talbert, a former ASD executive now an executive and trustee for AVG; Chuck Osmin, a former ASD employee now working for AVG; and Nate Boyd, a former ASD compliance officer now listed as the “Protector”  of AVG.

    By December 19, federal prosecutors filed a second forfeiture complaint, saying Bowdoin’s wife, Edna Faye Bowdoin and her son, George Harris, had used proceeds from ASD to retire the $157,216 mortgage on the home Harris shared with his wife, Judy Harris.

    Bowdoin now says that he recently was introduced to a “group” that is giving him legal advice. Bowdoin started filing his own court pleadings in late February, at the same time AVG was introducing members to Pro Advocate Group, which says it can help people practice medicine and law without a license.

    Pro Advocate Group is associated with Karl Dahlstrom. In 1997, Dahlstrom was sentenced to 78 months in federal prison for orchestrating a securities scheme.

    In his letter to ASD members, Bowdoin did not disclose the name of the “group” from which he was receiving advice. Nor did Bowdoin reference or confirm reports that bank accounts belonging to ASD and AVG members recently had been seized.

    He did say he fired his paid attorneys.

    Here is Bowdoin’s letter. We added the italics.

    Hi Folks,

    It’s good to be talking to you once again. My attorneys kept me quiet for months, but after $800,000.00 and no results I fired them all.

    About a month ago, several members introduced me to a group that studied what my attorneys did. The group said that my attorneys had taken the wrong approach.
    The group was very confident that they could help because the government had broken so many laws and had violated our rights as citizens of the United States.

    I have rescinded my decision to release our ownership of all the assets. I filed various motions a few weeks ago, and several more last week, to dismiss our case and to return the assets because of the violations committed by our government.
    We are ready to pursue this all the way to the US Supreme Court.

    A great injustice has been done to 100,000 people, and we need to stand up and fight for our rights. Some agencies of the government have become so powerful that they believe they are above the Constitution. We, as members of ASD, need to help stop this misuse of power. I ask each one of you to write to the Justice Department, to your senators and representatives, to the President, and even to Glen Beck of Fox News. Tell them all what the Justice Department has done to your business.

    We will be filing papers in the next couple of weeks that should really get their attention. Watch for the filings. I will be speaking out on a conference call as soon as the filings are completed. We will notify you of the call. I look forward to talking to you then.

    I appreciate your support in helping us get back what rightfully belongs to the members of ASD.

    Thanks,
    Andy Bowdoin

  • EDITORIAL: No Settlement In Larry Friedman Lawsuit Against Jack Arons; Tensions Escalate As Prominent Dallas Attorney Sues Pro Se Litigant

    Florida resident Jack Arons, sued last week for libel and slander by Dallas attorney Larry Friedman and hit with a blitz of legal documents, said the lawsuit still was on and that settlement talks had broken down.

    Friedman, the lawyer for the ASD Members Business Association (ASDMBA) Trust, describes Arons as a “felon” and a “vigilante” and an Internet “menace.” Arons, on Social Security, readily acknowledges he had encounters with law enforcement as a younger man.

    ASDMBA was formed last summer, in the aftermath of the government seizure of tens of millions of dollars from Florida-based AdSurfDaily amid wire-fraud, money-laundering and Ponzi scheme allegations. Federal prosecutors say ASD was selling unregistered securities while calling itself an “advertising” service.

    Members of ASDMBA said they expected Friedman to file litigation to protect their interests in the ASD case.

    Arons plainly is confused about what to do. At the same time, he is angry. His confusion and anger are understandable. Friedman should have no expectation that he is dealing with a professional litigant who will react by the book.

    Larry Friedman is dealing with a common man who does not have an attorney and who was buried in Friedman’s legal paperwork. At the same time, Jack Arons is being openly threatened in the ASD-Biz forum by a person who purports to be Friedman’s client.

    Friedman already has lost the PR war. The war was lost with the paperwork blitz and the appearance on the forum by Friedman’s purported client.

    Arons said he was unhappy with a document written by an intermediary for Arons’ signature that purportedly would bring the matter to an end. The document was in the form of a retraction. Arons rejected the document. (See the wording of the purported retraction document below.)

    Instead, Arons prepared his own retraction of comments against Friedman and posted it in online forums.

    Arons lives in a manufactured home in Florida. He has been soliciting input from nonexpert forum posters to go up against Friedman. The case was a train wreck from the moment it was filed.

    We again call on Friedman to drop the lawsuit and fire his client, the ASDMBA Trust. If any entity is harming Friedman’s reputation, it is the Trust, whose de facto head is Bob Guenther.

    See a previous post. See another one.

    A poster purporting to be Guenther at the ASD-Biz forum announced the lawsuit against Arons last week — in two separate threads. The headline in the main announcement thread was titled, “Jack Arons Sued, Served and Shut Up, Finally . . .”

    The poster provided links to the lawsuit documents before Arons had been served, called him “Rookie” and threatened others with lawsuits. Later, the poster purporting to be Guenther referenced Arons’ adoptive, 6-year-old daughter in a post, raising security concerns. Arons is the father of a son who was murdered.

    Arons said the matter has been reported to the FBI.

    People are asking questions about the Trust, Guenther and Friedman. Some people said they had complained to the Texas Bar and the office of Texas Attorney General Greg Abbott. Their concern is how ASDMBA is spending money it collected from members. The Trust, Friedman’s client, has not answered questions to the satisfaction of some members.

    Arons is not a member of ASDMBA. Friedman blames him for stirring the pot in Internet forums. It is only natural that Friedman would be concerned about complaints to the Bar and Abbott. Even so, Friedman, a professional, had to know that some ASDMBA members were unhappy and apt to complain.

    That’s why Friedman should fire the Trust, which has not answered questions to the satisfaction of members.

    Arons said he filed a pro se response to the lawsuit.

    Friedman filed a vague complaint against Arons, swearing only to a single paragraph in the 12-page document but emerging with a temporary restraining order against Arons.

    If Friedman is interested in a settlement, he should explain to Arons the precise conduct that damaged him instead of forcing depositions from on high and hitting Arons with an avalanche of legal filings.

    This case is sad, especially since the behavior of Friedman’s client is the driving force behind the concerns of members. Their demand is reasonable: for Guenther to produce straightforward accounting. Instead they have been met with insults, political jibes and menacing forum posts.

    None of those behaviors is consistent with transparency. ASDMBA was formed with the financial contributions of its members. Presenting a line-item accounting should be easy. Tensions have escalated because of the absence of detailed accounting by the Trust, leading to complaints to the Bar and the attorney general.

    As noted above, Arons issued his own retraction to statements he had made online about Friedman. The retraction was published online before Friedman even had accepted it. This is the type of thing that happens when people act without advice of counsel and under extreme pressure.

    And Larry Friedman knows this is the type of thing that happens when people act without counsel. He does not have the duty to act as Arons’ counsel, of course. After all, Friedman is claiming Arons harmed his reputation.

    But Friedman does have a duty to play fair. The blitz he directed at Arons was repugnant.

    The ‘Retraction’ Arons Wouldn’t Sign

    Here, verbatim, is the retraction an intermediary told Arons that Friedman would accept to drop the lawsuit. We have added the italics.

    Date:
    Time:

    I, Jack Arons, (Address, City, State, Zip) am writing this of my own free will on behalf of Larry Friedman of Friedman and Feiger Law Firm.

    Over the last couple months I have been spearheading a campaign against Larry Friedman, due to my belief he, along with his client, willingly defrauded a group of people (the ASDMBA) of tens of thousands of dollars.

    I have been encouraging the members to file a complaint with the Texas Bar against Mr. Friedman for his participation. After further research, and facts that have come to light, it is now my conclusion that Larry Friedman was indeed a victim in this debacle, of his own client! And that he did in fact, to the best of his ability, fulfill and honor his commitment to the ASDMBA members.

    I apologize to Mr. Friedman for the egregious error and for whatever damage I might have caused to his name, his reputation, or his law firm. I further state I will discontinue the promoting of people to call the Texas Bar Association to complain about Mr. Friedman, and ask that those that did call back and say they made the complaint based on misinformation.

    I will discontinue, from this day forward, from writing any posts in forums, or emails, or disseminating information in form, Mr. Friedman or his Law Firm.

    I can be called for verification of this information at: ___(phone)___________

    And once again, I apologize to Mr. Friedman.

    (full name)

    Arons’ Own Retraction

    March 10, 2009

    After consulting with many different people both for and against this problem that I am now faced with and to insure the safety and well being of my family I have decided to (as Bob would say) throw in the towel. I love a good fight and had my family not been dragged into a fight that was not of their making I would have done everything humanly possible to achieve the goal that resulted in a Bully called Bob Guenther from scamming people out of their hard earned money and getting away with it.

    As far as Larry Friedman and his Law Firm is concerned I retract all statements made against them. Although I can not change what course of actions that have taken place concerning my statements I will no longer post anything derogatory concerning him or his firm.

    Each member of the ASDMBA (which I am not) must make their own decisions of what they will do or have done and if they feel that they erred in filing anything against F&F that I might have said to take the appropriate actions to correct that which has been done.

    I do not control the internet although at times like this I wish I did.

    Jack Arons
    10088 Blue Waters Road
    Tallahassee, Florida 32305
    850.421.5791

  • BREAKING NEWS: Bernard Madoff Pleads Guilty; Judge Orders Him Jailed Immediately; Spectators Erupt In Applause

    UPDATED 11:58 A.M. EDT (U.S.A.) Accused Ponzi swindler Bernard Madoff has pleaded guilty to 11 criminal charges and faces up to 150 years in prison.

    CNN is reporting that U.S. District Judge Denny Chin of Manhattan accepted the plea. Chin ordered Madoff to jail immediately. The courtroom, packed with victims, erupted in applause.

    Madoff, 70, will be formally sentenced June 16. Prosecutors now say as much as $65 billion might have been involved in the crime, which continued unrestrained for years.

    Madoff told the judge that he never invested clients’ money, instead depositing it directly into a bank, CNN reported. It was an acknowledgement that Madoff was running a pure Ponzi scheme that sucked away billions of dollars of wealth from individuals, charities, endowments and retirement funds.