Category: Writing And Branding

  • EDITORIAL: The Real Meaning Of ‘Treason’

    Stewart David Nozette was arrested by the FBI yesterday for attempted espionage. Though Nozette was not formally charged with the Constitutional crime of treason — the only crime specifically described in the Constitution — the crime of espionage is viewed by the public as an act of treason against the United States because selling secrets can be viewed as a form of “levying War” against the country or giving “Aid and Comfort” to an enemy.

    Officials said Nozette accepted $11,000 in cash — with the inference more would follow — and used manila envelopes to pack up secrets. He asked for payment and delivered the secrets to, of all places, a U.S. Post Office.

    Nozette wanted his payments to be kept below $10,000 to keep the prying eyes of government away, prosecutors said. In the first two transactions, Nozette allegedly sold out his country for the price of a used car.

    Nozette thought he had been recruited by the Mossad, Israel’s spy agency. In reality, he had been targeted in an FBI sting because the government had gotten the idea he just might be willing to sell out the United States to a foreign government or entity for a fee. Prosecutors said he had left the United States in January with two computer thumb drives. Inspectors could not find the drives when he returned.

    The government of Israel was not involved in wrongdoing, authorities said.

    A thumb drive was left at the Post Office in September by Nozette, when he thought he was doing business with the Mossad, prosecutors said.

    Prosecutors from the U.S. Attorney’s office led by Acting U.S. Attorney Channing Phillips in the District of Columbia are assisting in the case, which will be heard in U.S. District Court for the District of Columbia. The same court is the venue from which the the civil-forfeiture case against tens of millions of dollars seized from AdSurfDaily Inc. in an international Ponzi scheme probe is being prosecuted.

    The Nozette case demonstrates that grave matters of national security come to the attention of prosecutors in Phillips’ office and judges in the district. Sometimes the matters include elements of international intrigue, as the Nozette case again demonstrates.

    Judge Rosemary Collyer, the judge in the ASD case, presided over an extremely complex case involving former U.S. Secretary of State Henry Kissinger, once National Security Adviser to President Richard M. Nixon. The case dated back to the early 1970s and involved the complicated issue of “sovereign immunity.”

    How complex were the legal issues in the case? Collyer’s own words provide a glimpse:

    “This lawsuit challenges covert actions allegedly directed by high-level United States officials in connection with an attempted coup in Chile in 1970 designed to prevent the election of Dr. Salvadore Allende as Chile’s first Socialist President,” Collyer wrote in 2004.

    “General René Schneider, then Commander-in-Chief of the Chilean Army, opposed military intervention in the electoral process,” she continued. “As a result, the United States allegedly plotted with Chilean nationals to neutralize him. General Schneider was shot during a failed kidnap[p]ing attempt on October 22, 1970, and died from his wounds a few days later. Two of General Schneider’s children and his Personal Representative, suing on behalf of his estate, seek to hold the United States and Henry A. Kissinger, former Assistant for National Security Affairs to President Richard M. Nixon, responsible for the General’s death.”

    In a ruling dismissing the case, Collyer said Kissinger could not be held responsible for the death, even if the assertions against Kissinger and the U.S. government were true.

    “The plaintiffs’ claims present a non-justiciable political question on foreign policy
    decisions undertaken by the Executive Branch in 1970,” Collyer said. “[T]he Court finds that Dr. Kissinger was properly certified as acting within the scope of his employment vis-a-vis the relevant events. The United States will be substituted for him as the sole defendant. With this substitution, the amended complaint is barred by the doctrine of sovereign immunity.”

    Whether or not one agrees with the ruling, one must agree that Collyer was tasked with the responsibility to reduce extremely complex issues of both law and U.S. foreign policy to their essence — and view them in the framework of Constitutionality. No critic interested in fair or logical debate would dismiss her as an intellectual lightweight.

    Words Mean Things

    The reason for this column is to point out a couple of things: First, that the responsibility of federal prosecutors is to advocate in the interests of the people of the United States. Some of the same people criticizing the ASD prosecutors in excessive fashion — and even extreme fashion — perhaps will be less vocal or not vocal at all in their criticism of Phillips’ office for its role in the prosecution of Nozette.

    It is, after all, an espionage prosecution, and the American public does not take kindly to acts that speak of treason, whether it’s the treason spelled out in the Constitution or the treason inferred from the act of selling government secrets for a fee.

    And this brings us to the use of extreme language by some supporters of ASD — language directed at both the prosecution and Judge Collyer.

    Collyer, a sitting federal judge appointed by a President of the United States and confirmed by the U.S. Senate — and a federal judge who presides over issues of national security and the affairs of state, as the Nixon/Kissinger case demonstrates — was described by an ASD member as “brain dead or taking a payoff” if she ruled against ASD.

    No such comment can be viewed as reasonable.

    Other examples of extreme language directed at Collyer can be found in this court filing by ASD mainstay Curtis Richmond. The filing uses words such as “treason” and phrases such as “Willfully Violated Her Judicial Oath” thus being “Guilty of Perjury of Oath, a Felony.”

    Richmond asserted that Collyer perhaps was guilty of as many as 60 felonies.

    No such language can be viewed as reasonable.

    Prosecutors haven’t fared much better. Dozens of pro se litigants using a pro se template practically screamed their assertions that prosecutors had “failed” to do this and “failed” to do that on matters pertaining to the production of “EVIDENCE” and “WITNESSES” and “VICTIMS” and that the ASD “action was based solely on the OPINIONS of the U. S. Government agents.”

    How reasonable is it to scream in court filings?  The judicial process is designed deliberately to ensure decorum precisely to guarantee that no side gets shouted down and that issues are decided in an atmosphere of dignity.

    Moreover, the record of the ASD case plainly shows that the prosecutors have produced evidence, prior even to introducing evidence at the evidentiary hearing last fall. Eight government exhibits of evidence were included in the August 2008 filing of the complaint. It’s all in the public record — and was in the public record long before the pro se litigants shouted that no “EVIDENCE”  had been produced.

    With respect to the screamed claim that the government relied exclusively on the “OPINIONS” of its agents, the record also plainly shows that even the ASD side agrees with some of those opinions. Here are just two purported “opinions” that both the ASD side and the government side agree on:

    • That ASD advertised that rebates “will” be paid until members received back 125 percent of their “advertising” spend.
    • That the government seized the money from Andy Bowdoin and that the money belonged to Andy Bowdoin, not ASD members.

    Bowdoin officially has held that position since August 2008, just days after the seizure. It is a theme in his court filings. Recently, though, he told ASD members in a conference call that the seized money belonged to them. The claim put him at odds with his own arguments in court, which the prosecution now claims is evidence of his willingness to lie to members he claims to be serving, while also lying to a federal judge.

    With respect to the shouted claim by the pro se litigants that the government “has failed” to produce any “VICTIMS” or “WITNESSES,” the claim is disingenuous to its core. A trial date has not even been scheduled in the case. The evidentiary hearing was exactly that — a hearing, not a trial. The hearing was held at ASD’s request. Collyer granted it in “the interests of justice.” Prosecutors were not required to try their case at the hearing. Nor were they duty-bound to produce their witnesses. It was ASD’s hearing.

    Nozette’s arrest yesterday quickly became an international story. The story will play out in some of the same venues the ASD case is playing out. It will be argued by highly skilled, highly trained prosecutors.  A highly skilled, highly trained federal judge appointed by the President of the United States and approved by the U.S. Senate will preside over the proceeding “in the interests of justice” for all parties, including Nozette.

    There will no reckless claims of judicial treason or of violating a judicial oath or of operating a “Kangaroo Court” — as has been the claim in the ASD case, against both Judge Collyer and her supervising judge, Royce Lamberth.

    The Nozette case is, after all, an espionage case, one in which the public outside the courtroom will discuss the real meaning of the word treason — something some of the ASD supporters should have been doing all along.

    The ASD case is, was and always has been about national security. If you doubt it, ask yourself if you really know who your autosurfing neighbor is — and then ask yourself if you can guarantee that all ASD members were pure as the driven snow and not interested at all in using a vehicle provided by Andy Bowdoin for criminal purposes.

  • Florida Man Who Created 260 eBay Accounts Convicted In Elaborate Scam That Bilked $717,000 From Customers

    The spread of online commerce has been accompanied by a spread of elaborate frauds — some of which have gathered tens of millions of dollars.

    Accompanying the fraud have been stares of disbelief. Not all of the stares have been directed at the fraudsters themselves. Indeed, thousands and thousands of people globally at any point in time simply refuse to believe they’ve been scammed — perhaps owing to embarrassment.

    Some of them point the finger of blame at law-enforcement agencies that take actions against the cyberspace scammers.

    Online fraud can be particularly elaborate. It often takes advantage of brand names people trust. In the alleged AdSurfDaily Ponzi scheme in Florida, for example, prosecutors say Google’s name was used by ASD promoters as a means of instilling trust in customers.

    Names of other famous companies also were used by ASD promoters — names such as Kodak, Starbucks, Quiznos Sub, Callaway Golf, Macy’s, Toshiba, NBC, Farmers Insurance, USA Today, Priceline.com and more.

    Today comes word that a Florida man has been convicted in a scheme carried out on eBay, one of the most famous websites and brands in the world.

    Nilton Rossoni, 50, of Hallandale Beach, Fla., faces up to 20 years in prison.

    How elaborate was the scheme?

    Prosecutors said Rossoni created “more than 260 different eBay accounts” using aliases “or the real names and address of unsuspecting individuals.”

    Rossoni gathered money for more than 5,500 items but never shipped them. He netted $717,000 over time, prosecutors said. Rossoni averaged about $130 per fraudulent sale.

    Here is a breakdown of some of the listings:

    • Textbooks.
    • Computer flash drives.
    • Rotisserie grills.
    • Tools.
    • Sporting equipment.
    • DVD collections.
    • Airline tickets.
    • Saddles.
    • Saddlebags.
    • Designer luggage.
    • Appliances.
    • Metal detectors.

    “When the auction ended, the winning bidders were notified to send payment to the defendant at a private mail box,” prosecutors said today.

    “Customers of eBay sent payment to the defendant at 59 different private mailboxes opened in names of multiple aliases during the course of the scheme,” they continued. “Once the defendant received payment from the eBay auction winner, the funds were deposited in bank accounts under the control of the defendant, but in the name of a nominee entity or person.”

  • EDITORIAL: An Odd Week For America

    Last week was an odd one for millions of Americans. President Obama was announced the winner of the Nobel Peace Prize, and no one really knew what to do.

    The Peace Prize is the big one, the Nobel people remember for generations. But Obama has been in office only months, and the Nobel committee more than hinted he’d been named the Peace Prize recipient because of idealistic speeches, not because he’d been able to implement his ideas.

    Obama seemed almost embarrassed by the prized accolade. It instantly created a political problem for him. Opponents were quick to seize on the point he had been in office only nine months and has had trouble implementing his domestic plans, let alone his grander vision for the world.

    It was easy — and arguably even justified, given the names of recent Peace Prize recipients and the committee’s inclination to politicize the award — to view any world figure who opposed the policies of former President George W. Bush as worthy of the Prize.

    Bash Bush. Get a Nobel.

    Even people who support Obama were baffled by the selection. The award is too serious, of course, to spark a ticker-tape parade to honor the recipient. But Obama’s allies in the Congress and in the voting pool were not able even to puff out their chests in a convincing way. It was hard to call the award a win for America, no matter how one views the President.

    And this brings us to this week’s issue of Time magazine, which features one of the most thought-provoking columns we have ever read. Before we describe what the column is about, perhaps we should take a moment to explain why we’ve spent some time today to write about politics when this Blog normally writes about crime.

    It’s because the Time magazine column challenges people to think and to question their views — something we try to do around here. No, we’re not Time. We’re a small Blog in an ocean of Blogs. Even so, we try to provide readers with some brain fodder and always are pleased when they respond with posts that help us shape our thinking, even if their posts don’t help us change our mind about the issues we write about.

    The Time column by David Von Drehle poses a question we never before had contemplated:

    Should the Nobel Peace Prize be awarded to nuclear weapons?

    Von Drehle says yes — and he makes a thought-provoking argument. Noodle it if you have the chance.

    http://www.time.com/time/nation/article/0,8599,1929553,00.html?xid=rss-fullnation-yahoo

  • BREAKING NEWS: Two Dead, Two Listed In Critical Condition, 21 Taken To Hospitals; Troubling Medical Situation Develops At New-Age Retreat In Arizona

    Sweat dome: Photo courtesy of Yavapai County sheriff’s office.
    Sweat dome: Photo courtesy of Yavapai County sheriff’s office.

    UPDATED 7:15 P.M. EDT (U.S.A.) Homicide detectives are investigating a disturbing situation in Arizona in which two people have died and others developed severe medical symptoms after engaging in a group sauna at the Angel Valley Retreat in Sedona.

    Angel Valley promotes “a unique energetic environment to support your journey of self-discovery, healing and realization of your True Self.” The retreat is near the ranch of Sen. John McCain.

    Dwight D’Evelyn, a spokesman for the Yavapai County sheriff’s office, said 64 people were inside a structure known as a “sweat dome” when some of the participants became ill.

    The event was hosted by James Ray, D’Evelyn said.

    James Ray is an author who has appeared on Oprah and Larry King Live, among other programs. Ray was inside the sweat dome when participants were sickened and was interviewed last evening by authorities.

    Ray’s company, James Ray International, provides a release of liability for events that reads in part:

    “I am fully aware and understand that I will be given the opportunity by the Company to
    participate in physical, emotional and other activities during the Event, some of which
    may take place outdoors and/or require the participants to be isolated from one another
    and/or include very loud music.

    “I am fully aware that I may suffer physical, emotional, financial or other injury during any of the Activities and there is and can be no assurance or guarantee regarding my health or safety in connection with my participation in the Activities.”

    Ray’s company expressed condolences today “to those who lost friends and family” and a prayer for “a speedy recovery for those who took ill,” the Associated Press is reporting.

    Few additional details have emerged. At least 21 people were taken to hospitals after being inside the crudely constructed, sauna-like sweat dome at the facility. At least two people have died and three more are reported to be in critical condition.

    Investigators are treating the area as a crime scene, although authorities have not said whether they believe a crime had occurred. The incident began to unfold yesterday and was treated as a hazardous-materials situation.

    Three people were in cardiac arrest when medical crews arrived, according to early reports.

    Fox News initially slugged the story URGENT, and a local ABC affiliate is reporting that the Yavapai County sheriff’s office is in the process of obtaining search warrants.

    D’Evelyn said the agency would hold a news conference tomorrow.

    “Some attendees told detectives they paid up to $9000.00 for their stay and participation in the program” Ray hosted, D’Evelyn said, in a sheriff’s office statement.

    See early coverage at abc15.com.

    See early Fox News coverage.

  • A STUDY IN CONTRAST: Arnold Palmer’s Congressional Gold Medal Vs. Andy Bowdoin’s Congressional Medal Of Distinction

    Arnold Palmer: From Wikipedia
    Arnold Palmer: From Wikipedia

    Tomorrow President Obama will present the Congressional Gold Medal to American icon Arnold Palmer.

    The AP wire carried the story today. By coincidence, the Orlando Sentinel simultaneously was reporting that a two-year-old girl was rushed to Arnold Palmer Hospital for Children, after she was found submerged and unresponsive in a swimming pool.

    Simultaneously Florida Today was reporting that a 13-year-old boy was airlifted to Arnold Palmer Hospital for Children, after he had been struck by an SUV.

    Arnold Palmer won dozens and dozens of golf tournaments; he represented the United States in international competition. He is an extraordinarily accomplished businessman.

    And today two children have the opportunity to live because Arnold Palmer helped build a specialty pediatric hospital in Florida. The hospital is supported by the Arnold Palmer Medical Center Foundation, an organization that also supports the Winnie Palmer Hospital for Women & Babies.

    All of this — and so many more acts of human goodness and decency — hails from a man admired internationally for fair play and the exemplary manner in which he has carried himself. People stand when he enters a room. They don’t have to; they just do. Indeed, they view Arnold Palmer, now 80, as that rarest of things: a man who genuinely makes the world a better place.

    He rewards them involuntarily with his humility, and it only makes them admire him more. Arnold Palmer reminds them of the way things ought to be.

    The first Congressional Gold Medal was awarded to Gen. George Washington in 1776. Other recipients include John Paul Jones; Maj. Gen. Andrew Jackson; Maj. Gen. Ulysses S. Grant; The Wright Brothers; Thomas Edison; Charles Lindbergh; George M. Cohan; Irving Berlin; Robert Frost; Bob Hope; Douglas MacArthur, General of the Army, Walt Disney; Sir Winston Churchill; Roberto Clemente; Robert F. Kennedy; The American Red Cross; Simon Wiesenthal; Danny Thomas; President Harry S. Truman, Gen. Colin Powell; Mother Teresa; Rosa Parks; Mary Lasker; President Nelson Mandela; Pope John Paul II; President Ronald Reagan and First Lady Nancy Reagan; Prime Minister Tony Blair; Dr. Martin Luther King Jr. and Coretta Scott King; Neil Armstrong; Edwin E. “Buzz” Aldrin Jr.; Michael Collins; John Glenn; Elie Wiesel; and other remarkable human beings.

    It literally takes an Act of Congress for the medal to be awarded. The legislation that resulted in Arnold Palmer’s award was known as “The Arnold Palmer Gold Medal Act.” The President must sign the legislation.

    Now, compare the Congressional Gold Medal to the Congressional Medal of Distinction, as touted by Andy Bowdoin and members of AdSurfDaily.

    No act of Congress is required for the Medal of Distinction. What’s required is a check to a campaign committee that provisions tickets to a political function. The Medal of Distinction is not an award from the White House or, really, even Congress. It is an award from the National Republican Congressional Committee for being a party loyalist.

    It’s good that loyalty is rewarded with a symbol. But it is not good that the Congressional Medal of Distinction gets paraded around as though it represents valor or unique business acumen or exceptional personal achievement.

    Outtakes

    Here are two outtakes from the final paragraphs of letters to others who received the Medal of Distinction in 2006, two years before Bowdoin and ASD made a huge fuss about the award. Note the remarkable similarity in the closing paragraphs: (Emphasis added to titles.)

    1.) “Commenting on [Name Deleted] selection, Congressman Reynolds said, “[Name Deleted] has served as an Honorary Chairman of the Business Advisory Council and has provided much needed support. This award could not have gone to a more deserving candidate.”

    2.) “Commenting on [Name Deleted] selection, Congressman Reynolds said, “[Name Deleted] has served as an Honorary Chairman of the Physicians’ Advisory Board and has provided much needed support. This award could not have gone to a more deserving candidate.”

    Now, here are two outtakes from the opening paragraphs:

    1.) “NRCC Chairman Tom Reynolds and the National Republican Congressional Committee (NRCC) announced today that [Name Deleted] has been chosen as a 2006 Congressional Medal of Distinction winner.”

    2.) NRCC Chairman Tom Reynolds and the National Republican Congressional Committee (NRCC) announced today that [Name Deleted] has been chosen as a 2006 Congressional Medal of Distinction winner.

    The opening paragraphs are identical, except for the names of the individuals. The names simply were plugged in from a template. The second and third paragraphs of the four- paragraph letter also are identical, except for where a name was inserted.

    In 2008, the year Bowdoin was awarded the medal, it also was awarded to a city councilman from a small town in Ohio. The councilman, however, had resigned his position, owing to his arrest on cocaine and marijuana charges. A judge placed him on probation, and he was permitted to attend the function in Washington as long as he checked in with his probation officer.

    “There are a number of people in each state who receive this award for their continued support for the Republican Party and the NRCC,” the red-faced committee told the Washington Post in June 2008.

    Two months later, the committee was embarrassed again with the seizure of tens of millions of dollars from Bowdoin’s bank accounts, amid wire-fraud, money-laundering and Ponzi scheme allegations.

    (Both major political parties in the United States sponsor banquets, including star-studded ones, along with functions at which the President appears. It would be unfair to say the Republican Party has cornered the fund-raising market. Democrats are at least equally good at selling tickets to functions and raising funds, and also have been embarrassed by the actions of fund-raisers and attendees.)

    Bowdoin took his medal with him during the summer — prior to the seizure — to show it off. ASD members trumpeted it far and wide as a special award from the President of the United States for Bowdoin’s lifetime of business achievement. It helped ASD generate business, and witnesses told the Secret Service that they were impressed by the medal and considered it when evaluating the ASD program, according to court documents.

    About six months prior to the banquet, Bowdoin shared these words of wisdom with a silent partner in ASD, “[I]f we change the site and the marketing plan before [the regulators] attack, everyone will be safe,” federal prosecutors said.

    It was boiler-room talk. ASD later introduced a fraudulent “Legality Statement” to sanitize the opportunity, prosecutors said.

    Prior to the seizure, Bowdoin gifted 100,000 ASD ad-packs to a charity, passing the cost of funding the ad-packs and their accompanying rebates to ASD’s rank-and-file membership.

    Bowdoin, prosecutors said, also gifted favored individuals into the program, and even paid an employee to surf for his son, so the son could qualify for rebates paid for by ASD’s rank-and-file. Multiple thefts by other individuals were reported to Bowdoin, but he never filed a police report.

    One of the purported thefts involved $1 million. “Russian” hackers, he said.

    “Neither Mr. Bowdoin, nor any other operator of ASD, ever alerted authorities to criminal activity targeted at ASD. ASD did not want any law enforcement scrutiny,” prosecutors said.

    Illegal proceeds from ASD were used to retire multiple mortgages, including mortgages linked to Bowdoin and family members, prosecutors said.

    There never has been a greater need for the Arnold Palmers of the world and what they symbolize, and Congressional dignitaries and the President of the United States will stand for Mr. Palmer tomorrow.

    You’ve come a long way from Latrobe, Mr. Palmer, and the American people have been been proud to watch you soar within the surly bonds of earth.

    A high flight indeed.

  • EDITORIAL: Google, The White House And Miss America

    Andy Bowdoin, whom federal prosecutors said appropriated the brand of the institution of the Presidency of the United States to make more Ponzi sales, now has turned to the wholesome brand of the Miss America Organization to sanitize the Ponzi business.

    Members of Bowdoin’s autosurf company, AdSurfDaily, also appropriated the brand of Google, claiming the surf firm had a special agreement with the search-engine giant. It proved to be a click-fraud attempt.

    Bowdoin, who suggests he was indicted under seal in May for wire fraud, posted a recording online two days ago in which he shares his version of the inspirational story of “Cheryl Blackwood,” whom he identified as Miss America 1980.

    Bowdoin, 74, positioned himself as a fighter with the perseverance of “Cheryl Blackwood,” whom Bowdoin said suffered one disappointment after another in her five-year quest to become Miss America — before finally winning the crown in 1980.

    The message: Miss America never gave up, and neither will Andy Bowdoin.

    We’ve placed a call to the Miss America Organization seeking comment on Bowdoin’s comments in the recording. We’re also seeking to determine if Bowdoin was confusing “Cheryl Blackwood” with Cheryl Prewitt, the 1980 Miss America title-holder. The organization did not immediately return the call.

    Here are a few lines from the inspirational story of Cheryl Prewitt, as told on the Miss America website. 

    “A horrifying automobile accident, a scarred face, a body cast and a wheelchair did not add up to disaster for this little girl. When Cheryl Prewitt was only a young girl of eleven, this accident forced her to decide whether to trust God or just give up and accept the prognosis . . . Doctors promised that she would be scarred, they claimed that she would not walk again, they insisted that bearing children would be impossible for her . . . they were wrong.”

    Here are a few lines from Bowdoin’s version:  

    “ASD did not have a victim until the government stepped in and crushed the company. And I’ve spent over a million dollars on legal fees to get your money back and to stay out of prison.

    “And  it reminds me of this person back in Mississippi: Cheryl Blackwood. She was Miss America 1980.

    “When she was five years old, a milkman told her that some day she was going to be Miss America. And she said that planted a seed in her mind. And she entered her first pageant when she was 18; it was a Miss America preliminary: Miss Choctaw County in Mississippi. She lost.”

    Bowdoin went on to relate how “Cheryl Blackwood” lost again and again, but did not adandon her quest. She finally won the Miss America title in her fifth attempt.

    We find the story as told on the Miss America website — Prewitt’s recovery from a horrifying automobile accident — much more inspirational than the Bowdoin version, an old coach’s  chestnut that focused on recovering from the disappointment of losing and returning  to do battle another day.

    Andy Bowdoin apparently wants ASD members to believe all battles are equally noble.

    Cheryl Prewitt was trying to walk again; Bowdoin just wants to climb back on the saddle so he can continue to run a Ponzi scheme.

    Prosecutors now say Bowdoin is trying to lie his way back into a civil-forfeiture case in which he surrendered his claims to tens of millions of dollars seized last year in an international wire-fraud and money-laundering investigation.

    Bowdoin also has been named a defendant in a racketeering lawsuit filed by members of his Florida-based company. Meanwhile, he has been sued by Florida Attorney General Bill McCollum for operating a massive Pyramid scheme.

    In the 1990s, Bowdoin was both sued and arrested in Alabama for fleecing customers in a securities scheme. He pleaded guilty to felonies and was ordered to make restitution. In August 2008, Bowdoin sent a check for $100 to his Alabama victims. A month prior, in July 2008, he provided the funds to purchase a $50,000 Lincoln for himself and his wife.

    The Miss America Organization is famous for inspirational stories and its beauty pageant, of course. It also is the world’s largest provider of scholarship assistance to young women. The organization says it distributed $45 million in cash and scholarship assistance last year.

    And now Andy Bowdoin is using the organization’s name — and apparently the name of the 1980 title-holder — to inspire his shipwrecked legions to persevere, to remember what “Cheryl Blackwood” would do, and to paint a picture that the U.S. government is evil for stopping a Ponzi scheme in its tracks.

    No Miss America would approve of that message.

  • Noobing-Connected Firm Discussed In Senate Hearing

    Jon Leibowitz, FTC chairman
    Jon Leibowitz, FTC chairman

    The head of the Federal Trade Commission told a Senate panel yesterday that a firm associated with the Noobing autosurf embarked on a scheme to sell a $59 book and then used a telemarketing company to upsell customers to an expensive program that fraudulently sold “guaranteed” government grants from economic-stimulus funds.

    “Just last week, some of the defendants allegedly responsible for the ‘Grant Writers Institute’ [GWI] grant scam agreed to a preliminary injunction halting their operation pending final resolution of the matter by the court,” FTC Chairman Jon Leibowitz told the Senate Committee on Homeland Security and Governmental Affairs.

    Noobing, which pitched itself to deaf consumers and was promoted by members of AdSurfDaily (ASD), went offline in the aftermath of the FTC lawsuit against Affiliate Strategies Inc., GWI and related companies.

    “The complaint charged that GWI falsely claimed that consumers were eligible for grants as part of the recently announced economic stimulus package,” Leibowitz told the panel. “For example, consumers who called GWI in response to a mass-mailed postcard heard a recording that said, ‘If you’ve been reading the papers you know that recently our government released $700 billion into the private sector. What you probably don’t know is that there is another $300 billion that must be given away this year to people just like you.’ The recording continued, ‘And if you’re one of the lucky few who knows how to find and apply for these grants, you will receive a check for $25,000 or more, and we guarantee it . . . If you don’t get a check for $25,000 or more, you pay nothing.”

    Sen. Joseph Leiberman, chairman,
    Sen. Joseph Lieberman, chairman, Senate Committee on Homeland Security and Governmental Affairs.

    Sen. Joe Lieberman, ID-Conn., presided over the hearing, which was titled “Follow the Money: An Update on Stimulus Spending, Transparency, and Fraud Prevention.”

    Leibowitz updated Lieberman’s panel on efforts by “[c]on artists [who] have sought to exploit the American Recovery and Reinvestment Act of 2009,” according to his testimony.

    He noted that some fraudsters had used images of “President Obama and Vice President Biden to add legitimacy to their misrepresentations.”

    In a forfeiture case against ASD, a Florida company accused of operating an international Ponzi scheme from a former flower shop in a small town, federal prosecutors said promoters of the scheme falsely claimed that ASD President Andy Bowdoin had received an award for a business achievement from President George W. Bush.

    Rather than let the wire-fraud, money-laundering and securities investigation proceed until all the facts of ASD’s business practices were known, some ASD members embarked on a letter-writing campaign to the Senate and asked members of Congress to investigate the prosecutors, not the alleged schemers.

    Others filed court motions that accused a federal judge and the prosecutors of crimes.

    See Reuters story on the Senate hearing.

  • BREAKING NEWS: AdVentures4U, New Darling Of Surf World, Says It Was Threatened; Note Says Cashouts Will Be Suspended Soon And Members Will Have To Make Do With Their ‘Advertising’ Purchases; Ponzi Forums In Uproar

    UPDATED 11:57 A.M. EDT (U.S.A.) There are widespread reports this morning that AdVentures4U (ADV4U), the new darling of the autosurf world, is suspending “revenue sharing” and that its owner was threatened.

    The reports come on the heels of various reports that the surf slashed payout rates and poured money into a gold-buying business known as TradingGold4Cash. ADV4U purportedly had more than 60,000 members and positioned itself as a “marketer’s dream.”

    These remarks were sent members today and were attributed to Steve Smith, the purported owner of AdVentures4U.

    Smith purportedly acknowledged that he put his family in danger by starting an autosurf.

    “We have been threatened and my family is more important to me than most will know,”  Smith purportedly said. “We Never (sic) ever said the revenue share was a set % and in order to move other income forward I made a decision that put my family in danger and I will not tolerate that.”

    “99% of the members understood where we were going but the small % that I am scared of I just cannot risk because we really are who we said we are and we really did intend to move us into the future,” Smith purportedly said. “We will not be answering scary support or answering the phone anymore until we have completed the cashout requests.”

    Smith purportedly urged members not to contact offshore payment processors to file complaints, saying any suspension of offshore accounts would result in members getting lower refunds.

    “We cannot control the Members so please give us to Aug 4th (sic?) to process all payments because if members complain to the payment proccessors (sic) and they Freeze our accounts we will not be liable for any of the cashouts and the Revenue Share monies will held by the payment processors and we will not have control and they will only pay a portion of the monies back to the members,” Smith purportedly said.

    It was not immediately clear why the message cited the Aug. 4 date — a date in the past.

    AdVentures4U purportedly conducted business with a Hotmail address. The gold site purportedly is a subsidiary.

    The ADV4U website appears still to be functional, although an audio message that once started up upon the loading of the page appears to have been disabled.

  • BREAKING NEWS: Did AdViewGlobal Cancel Florida Registration By Fax From Hotel In Uruguay?

    UPDATED 7:53 P.M. EDT (U.S.A.) AdViewGlobal (AVG), which also is known as the AV Global Association (AVGA), registered the association name as a fictitious entity in Florida in April, canceled and re-registered it in May — and canceled the registration again July 21 in a transaction that involved a hotel fax machine in Montevideo, Uruguay, according to records.

    AVGA’s name initially was registered by Gary Talbert April 21 and used the same address AdSurfDaily used — 13 S. Calhoun Street, Quincy, Fla. — according to documents on file in Florida. Federal prosecutors said last year that the S. Calhoun address was bogus.

    Talbert, once an ASD executive and later the chief executive officer of AVG before resigning in March, was listed as the owner in the April filing, which was dated a month after AVG had announced Talbert’s resignation.

    AdViewGlobal claimed to have no ties to AdSurfDaily, but this document lists ASD's address in Quincy, Fla., as AVG's address.
    AdViewGlobal claimed to have no ties to AdSurfDaily, but this document lists ASD's address in Quincy, Fla., as AVG's address.

    It was not immediately clear why the filing occurred in April and included Talbert’s name after he had resigned a month earlier, but Talbert’s name and purported signature appear in the document. The surf announced a shift to an association structure in February, one day after AdSurfDaily President Andy Bowdoin signed the first of his pro se pleadings in the ASD forfeiture case and two days after reports circulated that the U.S. Secret Service had seized the bank accounts of some individual ASD members.

    On May 29, the surf reregistered the name, this time listing Judy Harris as the owner and using the address of the Harris home in Tallahassee as its address. The reregistration occurred two days prior to the issuance of a news release by AVG through PR Newswire that used a Tallahassee dateline.

    AVG sent a follow-up email announcing its news release to members on the same day. The email hotlinked to servers at Forbes Magazine and other publishers, pulling the publishers’ logos off their servers and creating the impression that the companies had endorsed AVG. The email purported to have originated in Uruguay.

    By June 25, a little more than three weeks after the issuance of the June 1 news release, AVG announced it was suspending cashouts.

    Federal prosecutors said in December that the mortgage on the Harris home had been paid off in June 2008 with more than $157,000 in illegal proceeds from AdSurfDaily Inc., a Florida company accused last year in a forfeiture complaint of wire fraud, money-laundering and operating a Ponzi scheme.

    The name of the Montevideo hotel appears at the top of the faxed document, as do the fax number and international dialing identifier. The document suggests the fax might have been sent to another company in the United States before being forwarded to the Florida Department of State — or the opposite, faxed from the United States to Uruguay.

    The timing of the registration cancellation coincides with an unconfirmed report that AVG had fired employees in Uruguay on July 20.

    Members later said that Bowdoin was the silent head of AVG.

    In early February, after AVG’s graphics were seen Jan. 31 in an ASD-controlled webroom that showed AVG’s street address as the same S. Calhoun address ASD used, AVG explained the appearance of the graphic was an “operational coincidence.”

    Regardless, AVG used the address in April in filings in Florida.

  • SOURCE: Andy Bowdoin Was Head Of AdViewGlobal; Secret Service Seized Computer Used By Insider; Money Missing From Firm; Arizona Authorities Involved; Surf Immersed In Sea Of Uncertainty As Patriarch Deflects Blame

    EDITOR’S NOTE: Information in this story was gleaned Tuesday and Wednesday from a source who spoke to the PatrickPretty.com Blog on the condition of anonymity. We interviewed the source Wednesday. The source said a large group of individuals once loyal to Andy Bowdoin no longer could stand in his corner. “We got mixed up in ASD and feel horrible about it,” the source said.

    UPDATED 10:22 A.M. EDT (U.S.A.) Andy Bowdoin was the recognized head of AdViewGlobal among a core group of insiders and dispatched his stepson, George Harris, to Switzerland to establish bank accounts, according to information provided the PatrickPretty.com Blog.

    In an email that circulated among ASD members — some of whom were described as sickened by Bowdoin’s gall — Bowdoin denied that Swiss accounts ever were opened. He acknowledged, though, that both George and Judy Harris trekked to Switzerland, accompanied by another individual.

    His concession has led to questions about whether Bowdoin was telling the truth that no Swiss accounts were opened. The U.S. government is engaged in an active campaign to pierce Swiss banking secrecy and has scored landmark wins in recent months that have resulted in indictments against Americans who were using the banks to evade income taxes.

    Meanwhile, the U.S. Secret Service has seized at least one computer used by an AVG insider and the Phoenix Police Department is investigating a purported theft of $2.7 million from AVG, according to the email.

    “There is no doubt in my mind whatsoever” that remarks attributed to Bowdoin in the email were authored by Bowdoin, the source said.

    Bowdoin told a person who questioned his business judgment that Harris was unable to open Swiss accounts because “the banks said they did not like accounts with a lot of out going transactions,” according to the email.

    A person who participated in AVG took Bowdoin to task for laissez-faire management, a lack of follow-up controls and various business blunders — one of which purportedly was a deal assembled in November 2008 to acquire the Phoenix-based EWalletPlus payment processor for $75,000.

    (NOTE: Even after reviewing the email, we could not determine who actually owns eWalletPlus. At least three companies or individuals have claimed to own the web-based payment processor, which is offline. The website now resolves to a parked page and appears to be for sale on sedo.com.)

    Bowdoin performed virtually no due diligence before acquiring eWalletPlus, according to the email, but explained “[a] lot of business is conducted without ever meeting the owner because there are so many ways to perform due deligence [sic] in this high tech world.”

    The purported deal, according to the email, involved a purchase contract and occurred the same month a federal judge ruled that ASD had not demonstrated it was a legal enterprise and not a Ponzi scheme at a Sept. 30-Oct. 1 evidentiary hearing ASD specifically requested.

    Bowdoin’s purported actions lead to questions about whether he was prepared to remain in the illegal autosurf business no matter what a federal judge said. At the same time, the email leads to questions about why a group of AVG insiders ever would follow Bowdoin from ASD to the new company with serious legal business still on the table.

    “It doesn’t make sense,” the source said. “These guys got greedy and thought by running things offshore,” they were . . . “[untouchable.]”

    Plans to develop AVG were discussed at a private meeting on a cruise ship among 13 people, the source said.

    Problems developed when AVG was unable to gain or maintain control over bank accounts — including one at First Caribbean Bank — needed to operate the business. One of the issues was who had signature authority over accounts, according to the email.

    AVG blindly paid $20,000 to a formerly trusted person to set up a legal structure and bank account in Costa Rica — and George and Judy Harris “went down” to Costa Rica to get the lay of the legal landscape and review the corporate documentation, according to Bowdoin’s remarks in the email.

    While in Costa Rica, George Harris was advised by a local attorney that the fee for setting up a corporation was only $1,200, which led to questions about whether the formerly trusted party had skimmed $18,800 in the purported $20,000 deal.

    “[S]omeone made a lot of profit,” Bowdoin said, according to the email.

    In any event, the bank account in Costa Rica was needed as a conduit to forward funds to Uruguay, according to Bowdoin, citing a claim made by the formerly trusted party.

    No money made its way into the account in Costa Rica, even though the formerly trusted party was supposed to place $2.2 million in the account for later transfer to Uruguay, according to the email.

    Bowdoin appointed Judy Harris an AVG trustee in a bid to get control of the money, according to the email.

    “Yes, I asked Judy to be trustee to see if we could over come the money that had been stolen,” Bowdoin said, according to the email. “But when people started cashing out excessively it was soon apparant (sic) that it could not be overcome without some changes in page impressions. If the money had not been stolen all of the cash out requests could of been paid and there would of been plenty of operating capital. Hopefully some of the members will be able to come up with a solution.”

    Infighting developed over whether AVG would be operated from the United States or Uruguay. Bowdoin groused that labor was less costly in Uruguay, but an AVG insider insisted the company operate from inside the United States, according to the email.

    “I never had all of these problems with ASD,” Bowdoin said, according to the email. “It is evident now that I should of been more hands on in management.”

    Bowdoin’s behavior cannot be reconciled, said the source, who acknowledged embarrassment for having participated in ASD after his instincts told him something was wrong.

    At an ASD rally in Florida last year, the source said, he observed a man holding a briefcase. The man explained that the briefcase was “full of cashiers checks for $50,000 apiece,” the source said.

    Later, members of his downline group shared reports that “people with piles and piles of cash” had attended ASD rallies.

    “I don’t believe [Andy Bowdoin] for a second,” the source said. “He lost all credibility in our camp after firing his attorneys — and [filing] all those [pro se] motions.”

    By the time the government seized Bowdoin’s assets last summer, the source said, a family member had lost tens of thousands of dollars consisting of an initial outlay and unredeemed paper profits that ASD displayed in the family member’s back office.

  • Readers Digest To Declare Bankruptcy

    UPDATED 9:24 A.M. EDT (U.S.A.) “Life in These United States” now means that staid Reader’s Digest, hamstrung by debt during a recession and competing in an era unfriendly to print publications, will declare bankruptcy.

    The news comes on the heels of an announcement Friday by the FDIC that five more U.S. banks had failed, bringing the unofficial year-to-date total to 77. Only three banks failed in 2007.

    One of Friday’s failed banks — Dwelling House Savings & Loan — told the Pittsburgh Business Times that fraudulent automated transactions had drained $3 million (more than 21 percent of deposits) from the small institution. The bank had been warned after an inspection by regulators in 2004 to tighten its anti-money laundering practices in the era of cyber crime.

    Reader’s Digest said its filing will come in the form of a Chapter 11 pre-pack and that a majority of senior lenders already had approved the plan. Reader’s Digest said it elected not to make a $27 million interest payment due yesterday, but will emerge from the filing swiftly, having pared its debt from $2.2 billion to $550 million with the cooperation of lenders.

    “This agreement in principle with our lenders follows months of intensive strategic review of our balance-sheet issues to financially strengthen the company,” said Mary Berner, president and chief executive officer of the Reader’s Digest Association.

    After the company emerges from protection, it will be owned by senior lenders.

    Reader’s Digest now joins a long list of print publishers battered by circulation and advertising declines as the public’s appetite shifts from turning pages to clicking on a mouse for news and entertainment.

    Most Americans — and readers from all parts of the world — are familiar with the Reader’s Digest approach of condensing features and publishing staples such as “Life in These United States,” “All in a Day’s Work,” “Humor in Uniform,” “Quotable Quotes” and “Laughter Is The Best Medicine.”

    The company recently slashed payroll by 8 percent, but ad pages and circulation continued to decline even as the magazine was reducing costs.

    Despite the recession and unprecedented financial challenges, no prominent media brands and print titles have ventured into autosurf waters to boost revenues to save themselves or avoid a trip to bankruptcy court.

    Even though self-styled “professionals” who run surf sites insist is it possible to generate tens of millions of dollars of legitimate “advertising” sales practically overnight by installing a surf script and promising “advertisers” they’ll receive back all of their money and emerge with a profit by clicking on “ads,” legitimate companies won’t involve themselves in such schemes.

    Media companies with famous brands and enviable web traffic could crush amateur competitors by installing surf scripts and showcasing awards they’ve received from advertising and journalism societies — and even produce a roster of Pulitzer winners to woo prospects — but have chosen not to do so.

    It’s because business ethics actually exist — and it’s because they aren’t willing to lie to readers and advertisers or involve them in wink-nod ventures and Ponzi schemes.

    Not even to save themselves or to avoid a date with a bankruptcy judge.

    Federal prosecutors seized more than $65 million from Florida-based AdSurfDaily last year, a self-described professional advertising company operated by Andy Bowdoin.

    Prosecutors said ASD was engaging in wire fraud and money-laundering while operating a massive Ponzi scheme. Virtual Money Inc., a company that once provided debit cards for ASD, has been indicted on charges of helping a Colombian drug operation launder money in Medellin.

    The news means that some ASD members were using the same cards Colombian drug lords allegedly were using to launder money at ATMs in Medellin.