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  • PRONOUN MYSTERY: ‘We Plan To Go After Akerman [Senterfitt] Next,’ AdSurfDaily Member Writes; No Immediate Comment From Law Firm That Represented Andy Bowdoin

    Andy Bowdoin

    UPDATED 3:59 P.M. EDT (U.S.A.) An email attributed to an AdSurfDaily member claims “We are now playing offense” and “We plan to go after Akerman Senifit (sic) next.”

    Why the pronoun “we” was used was not immediately clear. Also unclear is why Akerman Senterfitt has been identified as a prospective target of litigation and what, precisely, constituted “offense” on the part of the unidentified “we.”

    Akerman Senterfitt is the Florida-based law firm that represented ASD President Andy Bowdoin in the immediate aftermath of the August 2008 federal seizure of tens of millions of dollars from Bowdoin’s personal bank accounts by the U.S. Secret Service. The initial forfeiture case — and a subsequent forfeiture case brought by federal prosecutors in December 2008 — were filed as civil actions. ASD lost the cases in U.S. District Court for the District of Columbia and in the U.S. Court of Appeals — long after Akerman Senterfitt withdrew as counsel to Bowdoin and ASD.

    Charles A. Murray was Bowdoin’s counsel of record when final orders of forfeiture were issued against proceeds seized from Bowdoin and when both appeals were decided against Bowdoin, who once claimed as a pro se litigant that he’d been denied “fair notice” of illegal conduct.

    The email, which was attributed to ASD member Todd Disner, did not explain who comprised “we.” Nor did it explain how and why an apparent group of ASD members intended to “go after” the firm, Florida’s largest and one of America’s largest.

    Akerman Senterfitt appears only to have represented Bowdoin and former ASD Chief Executive Officer Juan Fernandez in the August 2008 civil case. There is no record of the firm filing an appearance notice for individual ASD members on the docket of the case, giving rise to questions about how individual ASD members ever could succeed in a bid to sue a law firm that never represented them. In the earliest days of the litigation, some ASD members compared the legal skills of the firm in its representation of Bowdoin and ASD to those of “Perry Mason” — while at once describing a government attorney as a bumbling, hapless “Gomer Pyle.”

    After a key court ruling went against Bowdoin and ASD in November 2008, some ASD members backed away from their earlier “Perry Mason” boast and blamed Akerman Senterfitt for Bowdoin’s legal troubles. The record of the case, however, shows that the government used ASD’s own words against it at an evidentiary hearing conducted in the fall of 2008 at Bowdoin’s request.

    A voicemail message left by the PP Blog for comment at Akerman Senterfitt in Miami was not immediately returned. Bowdoin fired the firm without notice in 2009, according to court records.

    On Jan. 13, 2009, with Akerman Senterfitt as counsel, Bowdoin submitted to the August 2008 forfeiture “with prejudice” and “consent[ed] to the forfeiture of the properties.” More than a month later — on Feb. 27, 2009 — Bowdoin filed a pro se pleading styled “NOTICE of Rescission and Withdrawal of Release of Claims to Seized Property and Consent to Forfeiture.”

    In April 2009, Akerman Senterfitt advised U.S. District Justice Rosemary Collyer that Bowdoin and ASD “have decided to represent themselves without consulting their counsel.

    “By way of example only,” the firm advised Collyer, “Mr. Bowdoin has recently filed, on a pro se basis, a series of motions. Mr. Bowdoin filed these motions without consulting with counsel and without bothering to advise counsel that he would be submitting motions on his own. Under these circumstances, the Akerman Senterfitt Law Firm cannot render effective assistance of counsel.”

    The firm, which was still Bowdoin’s counsel of record when he began to file freelance motions, asked for leave to withdraw from the case, explaining that its representation had become “unreasonably difficult.”

    Collyer released Akerman Senterfitt from the case on April 15, 2009.

    By the close of April 2009 — in response to one of several pro se pleadings by Bowdoin — prosecutors advised Collyer that he had signed a proffer letter in the case and acknowledged that the government’s material allegations were all true.

    Bowdoin himself later acknowledged that he had met with prosecutors over a period of at least four days in December 2008 and January 2009 and had provided information against his interests.

    Neither Bowdoin nor the government has said whether Bowdoin had provided information against the interests of others. Bowdoin claimed in September 2009 that he had been “hoodwinked” into releasing his claims and cooperating with prosecutors by Steven Dobson, a criminal attorney recommended by Akerman Senterfitt.

    The U.S. Court of Appeals for the District of Columbia Circuit unanimously rejected Bowdoin’s hoodwinking claim in March 2011.

    There was no basis “to conclude that appellants were somehow tricked into releasing their claims,” the panel ruled. “Despite Bowdoin’s protests to the contrary, his own affidavit shows that he understood well that he was receiving no promise in return for relinquishing his claims.”

    In his own court filings, Bowdoin acknowledged that his decision to withdraw his claims to $65.8 million seized by the Secret Service was made because of a “possibility” that he could avoid a jail term.

    These are among the phrases to which Bowdoin swore on Sept. 15, 2009:

    • Dobson represented to me that I could possibly avoid prison or get a reduced sentence if I agreed to disclose details concerning ASD and releasing the assets.
    • I also signed a document stating that I would release my claims in the abovecaptioned civil in rem forfeiture proceeding, again thinking that necessary for a possible avoidance of a prison term.
    • I did all of this on the understanding that by cooperating I could possibly avoid a prison sentence.
    • I agreed not to exercise my rights in the civil forfeiture proceeding, anticipating from representations made by Dobson that this could possibly keep me out of prison.
    • Dobson lead [sic] me to believe that if I cooperated there was a possibility that I would not be incarcerated or imprisoned.
    • I believed that my cooperation would still result in a criminal sentence that could possibly not include imprisonment or incarceration.
    • I slowly came to understand what I understood from Dobson not to be the case: that my agreement to cooperate provided me no benefit in the criminal matter except the possibility of a reduced sentence if the judge desired which would still be a life sentence.

    New Email Circulating Among ASD Members

    Here, verbatim, is a new email circulating among ASD members. The email was attributed to Todd Disner. Disner, like Bowdoin, is among dozens of litigants who filed pro se pleadings in the civil portion of the case. (Italics added.)

    Hi folks,

    I talked to Andy the other day. He was in Atlanta airport coming home from his hearing in Washington .
    He said the government gave his attorney 10 discs full of files .
    The judge gave his attorney only 90 days to review all the documents .
    This was not fair but this is what the judge determined .

    But what was really interesting was when he told me that the
    prosecution was very proud of 11,000 affidavits they received from us through Rust
    Incorporated. .

    They “think” that they have evidence that now ASD was an investment.

    Of course we knew that that was a trap to get unsuspecting and desperate
    people to sign just about anything in an effort to get their money back .
    (My question is where of the other 107,000 people who did NOT sign the
    affidavit?)

    I’m sure that Andy’s attorney will speak to the coercive nature used to created that questionable evidence. To me it appears more and more that our
    government is operating with malice in this case. I think that will be apparent
    to any jury.

    Andy’s attorney is filing a motion to REDO the affidavit, This is a powerful attempt to get our money back by asking the court to make the government issue a “reasonable” form; one that does not make us perjure ourselves in an effort to recover what is rightfully OURS.

    Remember when we enrolled in ASD, we signed the “Term and Conditions” explicitly stating the ASD was NOT AN INVESTMENT. The existing form make liars out of us, one way or the other.

    Andy was in good spirits and very confident about his case .
    Dwight helped him get money back from his second attorney .
    This is a story in itself. Its shows the way Andy has been treated
    by his previous attorneys.

    We plan to go after Akerman Senifit next. (Andy’s first attorneys)

    It is a tragedy how the government must stoop to such tactics in
    order to prove their case against Andy and ASD.

    We are now playing “offense” and will see what happens.

    Keep your spirits up and try to help the cause.

    Best Regards,

    Todd Disner
    [Phone number deleted by PP Blog]

    Rust Consulting Inc. is the government-approved claims processor for victims of the alleged ASD fraud. ASD members who certify themselves crime victims through a process known as remission may be eligible to receive compensation through seized proceeds. The government announced nearly three years ago that it was establishing a restitution program.

    Some ASD members have described the remissions program as a government plot. Meanwhile, two ASD figures — Kenneth Wayne Leaming and Christian Oesch — sought to sue the government last year for the spectacular sum of more than $29 TRILLION.

    Disner started a drive earlier this year to raise money to help him and onetime attorney Dwight Schweitzer file a pro se lawsuit against the government.

    In recent weeks, other ASD members have started a fundraising drive for Bowdoin, who was arrested on ASD-related criminal charges in December 2010.

    There have been at least four efforts by subgroups of ASD members to raise money to litigate against the government since August 2008. Some ASD members who provided funding have contributed multiple times, becoming members of subgroups within subgroups that issued appeals for cash.

    A defunct organization known as ASD Members International (ASDMI) purported in October 2008 to be a Missouri nonprofit whose aim was to litigate against the government even if it was proceeding lawfully and perhaps have prosecutors and investigators charged with crimes.

    Separately, a group known as the ASD Members Business Association (ASDMBA) claimed it had gathered more than $100,000 to challenge the forfeiture and speed the return of seized funds. ASDMBA’s de facto head was Bob Guenther, a convicted felon.

    ASDMBA members complained that Guenther provided no transparent accounting after soliciting funds.

    Disner’s apparent group of ASD members is known informally as “ASD Justice,” the title of a Blog. No accounting has been released of the sums it collected. A plan by Disner and Schweitzer to sue the government in Florida’s federal courts appears to have stalled.

    Bowdoin’s apparent group is calling itself “Andy’s Fundraising Army.” It has missed two launch dates this month, but now says it will launch tomorrow. The group has positioned Bowdoin as “David,” with the government cast as a lawless “Goliath.”

  • Washington State Man Sentenced To 25 Years In ‘Foreclosure Relief’ Scam; Judge Calls Jeff McGrue ‘Heartless’; FBI Says He Issued Nonexistent ‘Bonded Promissory Notes’ Purportedly Drawn On U.S. Treasury To Fleece Lenders And People ‘At The End Of Their Rope’

    Photo source: FBI

    A Washington state man who ran a foreclosure-rescue scam by telling victims he could save their homes gathered more than $1 million from people “at the end of their rope” and tried to bilk lenders out of at least $55 million, federal prosecutors and the FBI said.

    Jeff McGrue, 51, of Tacoma, targeted California borrowers. He has been sentenced to 25 years in federal prison.

    U.S. District Judge Otis D. Wright III called McGrue “heartless” when ordering the sentence, prosecutors said.

    Documents in the case suggest McGrue fashioned a purported remedy for distressed homeowners that mixed redemption fraud with standard hucksterism. As is typical in foreclosure-rescue schemes, McGrue got paid up front, and his customers lost everything.

    Redemption fraud normally is associated with tax fraud and efforts to gain illegal tax refunds, often for spectacular sums. Under the crackpot redemption theory, the U.S. government maintains secret accounts for individual citizens that can be tapped to retire tax debt and other forms of debt.

    In his scam, McGrue appears to have borrowed from the redemption theory and applied its bizarre conjecture to mortgage debt relief.

    Through a company known as Gateway International, McGrue and “others falsely told homeowners that, if they paid an enrollment fee and monthly rent and signed over title of their homes to Gateway, McGrue would use ‘bonded promissory notes purportedly drawn on a U.S. Treasury Department account to pay off their mortgages, thereby stopping foreclosure proceedings,” the FBI said.

    “The homeowners were falsely told that lenders were legally required to accept the notes, that they would be able to buy their homes back from Gateway International at a discount, and that they would receive up to $25,000, even if they chose not to re-purchase their houses,” the agency said.

    But McGrue “did not own any bonds and did not have a U.S. Treasury Department account,” the FBI said. “Nor could he have the type of account described to homeowners because the Treasury Department does not maintain accounts that can be used to make payments to third parties.”

    More than 250 customers enrolled in the McGrue plan, but he “did not save a single home,” prosecutors in the Central District of California said.

    Real-estate agents who did not do their homework but nevertheless were eager to earn commissions helped popularize the foreclosure-relief scheme, according to the government.

    Strange, foreclosure-related events are occurring across the United States. In the Atlanta area, for example, so-called “sovereign citizens” have been moving into foreclosed homes and issuing fake quit-claim deeds designed in theory to undermine lenders’ interests in properties.

     

  • PICTURE STORY: 2008 PDF Promo For ASD Claimed Google, Pepsi, Starbucks, Quiznos And Other Famous Companies Were ASD Advertisers: Is Cropped Image In Promo From Same Original Of Bowdoin That Appears On ‘Andy’s Army’ Fundraising Site?

    Do a purported fundraising site for accused Ponzi schemer Andy Bowdoin and a 2008 promo for AdSurfDaily that claimed famous companies had hopped aboard the ASD train have anything in common?

    The fundraising site, which has missed two advertised launch dates this month, uses this photo of Bowdoin:

    The 2008 promo for ASD, which appeared in PDF format, uses this cropped photo:

    Here is a screenshot from the PDF that features the cropped photo of Bowdoin.

    Background shadows and images in both the photo on the fundraising site and in the 2008 PDF suggest the images came from the same original or were taken from the same staged scene.

    Among the claims in the 2008 PDF were that famous companies such as Google, Kodak, Starbucks, Quiznos Sub, Callaway Golf, Macy’s, Toshiba, NBC, Farmers Insurance, USA Today, Priceline.com and others were ASD advertisers.

    No evidence has surfaced that any of the companies were ASD advertisers.

    Bowdoin took the 5th Amendment at a 2008 evidentiary hearing he requested. ASD did not call any of the companies whose logos were featured in the PDF promo to the witness stand. Among the claims in the promo was this one:

    “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 logos of 24 famous companies appeared below the claim.

    Bowdoin was indicted last year on federal charges of wire fraud, securities fraud and selling unregistered securities.

    See story that ran on the PP Blog on March 15, 2009.

    Here is a link to the full PDF:

  • Recidivist Huckster, 63, Found Guilty In $30 Million Ponzi Scheme Based In Colorado; Philip R. Lochmiller Sr. Wiped Out Investors After Earlier Serving 3 Years In California Prison For Securities Fraud

    UPDATED 8:57 P.M. EDT (U.S.A.) Philip R. Lochmiller Sr., 63, has been found guilty of money-laundering, mail fraud and conspiracy in federal court in Colorado.

    The jury returned the verdict in three hours, after a 10-day trial, the office of U.S. Attorney John Walsh of the District of Colorado said.

    Lochmiller spent three years in a California state prison for a securities swindle in the 1980s, according to records. The California scheme involved about $5 million. Two decades later, a new Lochmiller real-estate scheme evolved in Colorado, involving about $30 million, prosecutors said.

    A final restitution sum has not been calculated. Lochmiller potentially faces decades in federal prison.

    The “verdict is a victory for the over 400 victims in this case, many of whom are from the Grand Junction area,” Walsh said.

    Lochmiller was associated with firms known as Valley Mortgage Inc. and Valley Investments. Investors were promised returns of up to 18 percent, prosecutors said.

     

  • BULLETIN: Las Vegas Man, 70, Arrested In Alleged Ponzi Scheme Targeting Fellow Senior Citizens; Hans P. Seibt Booked Into Clark County Jail; State Charges Him With 25 Counts Of Securities Fraud, 6 Counts Of Theft

    BULLETIN: The Ponzi cavalcade involving senior citizens continues . . .

    Nevada state authorities have arrested Hans P. Seibt of Las Vegas on Ponzi charges. He specifically was charged under state law with 25 counts of securities fraud and six counts of theft, amid allegations he targeted senior citizens.

    At 70, Seibt himself is a senior citizen. He was booked into the Clark County Jail, and is being held without bail.

    Seibt is expected to make a court appearance Monday, according to Clark County records.

    “Targeting senior citizens is particularly egregious,” said Nevada Attorney General Catherine Cortez Masto.

    The office of Nevada Secretary of State Ross Miller described Seibt’s alleged crimes as a real-estate Ponzi swindle affecting investors in Nevada and “several other states.”

    “So-called interest payments or distributions that are paid to some investors aren’t a guarantee that an investment is legitimate,” Miller said. “That’s the whole basis for a Ponzi scheme. Potential investors just can’t be careful enough, especially in the current economic environment.”

    Investors were promised returns of between 10 percent and 12 percent, but Seibt duped them, investigators said.

    “Seibt successfully solicited investments of $10,000 or more from his victims, offering them trust deeds, joint venture agreements, and subscription agreements, all of which were supposedly secured by parcels of land Seibt was holding in Nye County,” investigators said.

    But the value of the land was “grossly exaggerated in order to support Seibt’s claims to his victims,” investigators said.

    And Seibt also didn’t purchase the land as advertised. Instead, he “used the money to pay off other investors and for personal use,” investigators said.

    Seibt did business as HSLV Development Corp., and Clark and Nye County Development Corp., investigators said.

  • BULLETIN: Church Pastor Accused Of Running Forex Ponzi And Fraud Scheme Ordered To Pay More Than $2 Million; Jeremiah C. Yancy Promised Monthly Returns Of 40 Percent And Told Customers His Firm Managed Funds For ‘Orphanages,’ Judge Says

    BULLETIN: A federal judge in Texas has ordered the former pastor of an Idaho church and his firm to pay more than $2 million in restitution and penalties in a Forex Ponzi scheme that affected 64 customers, including church members allegedly targeted in the preacher’s scam.

    The order, which was entered by consent, applies to Jeremiah C. Yancy, who now resides in Atoka, Okla. Yancy also is known as Jeremiah C. Glaub. He ran a Texas-based firm known as Longbranch Group International LLC. The order also applies to the firm.

    U.S. District Judge Vanessa Gilmore of the Southern District of Texas issued the order.

    Yancy and Longbranch told Forex customers they managed money for churches and orphanages. Customers were told they could expect monthly returns of between 20 percent and 40 percent, and were shown bogus trading results and account statements, the CFTC said.

    The agency charged Yancy and the firm in August 2010. Yancy and Longbranch neither admitted nor denied the allegations.

  • Senior Who Swindled Seniors In $18 Million Ponzi Scheme Sentenced To 108 Months In Federal Prison; Case Sends Message To ‘Con Artists,’ Top Federal Prosecutor Says

    Louis J. Borstelmann, a California senior citizen who swindled “elderly and retired” investors in Oregon and elsewhere in an $18 million Ponzi scheme, has been sentenced in Oregon to 108 months in federal prison, prosecutors said.

    Borstelmann is 69. Most of his victims resided in the area of Florence, Ore., although others hailed from Hawaii, Montana and Texas, the office of U.S. Attorney Dwight C. Holton of the District or Oregon said.

    “Borstelmann wreaked havoc on his victims — mostly older folks — stealing their retirement funds, their homes, even the nest eggs they’d set aside for their grandkids’ education,” said Holton. “We can’t get all the money back, but at least we can achieve some measure of justice — and let other con artists know that we will hold them accountable and send them to prison.”

    Not only did the victims suffer financial abuse, they also suffered emotional abuse, the region’s top IRS investigator said.

    “Hopefully, this prosecution provides them with some peace of mind in knowing that their suffering did not fall on deaf ears,” said Marcus Williams, special agent in charge of IRS Criminal Investigation for the Pacific Northwest.

    He was backed by a top FBI agent.

    “Borstelmann stole more than money from these vulnerable victims — he stole their hopes for the future,” said Alan J. Peters, acting special agent in charge of the FBI in Oregon. “These families worked their whole lives to be able to put their kids through college and have a safe, comfortable retirement. Now that is gone.”

    Borstelmann  ran a real-estate Ponzi through a California company known as Sunburst Associates Inc., prosecutors said.

  • FEDS: Texas Man Who Attacked U.S. Marshal With Razor Blade In Courthouse Later Attacked Federal Prosecutor In Courtroom; Jose Garcia Jr. To Spend 28 Years In Prison

    A Texas man who pleaded guilty to charges of attempting to kill a deputy U.S. Marshal with a razor blade later assaulted a federal prosecutor, authorities said.

    In May 2009, Jose Garcia Jr. was being led into a federal courtroom in McAllen to face allegations that he had violated the conditions of his probation. As he was being escorted, Garcia attacked the marshal with a razor blade and caused “serious bodily injury,” the office of U.S. Attorney John M. Bales of the Eastern District of Texas said.

    Garcia, 33, of Mercedes, pleaded guilty to attempted murder of the marshal in December 2009. Sentence court was conducted in Houston in March 2010.

    During the proceeding, Garcia became agitated because a federal judge had denied his bid to change his plea, authorities said.

    At that point, Garcia “charged” a federal prosecutor, “causing the prosecutor to fall backwards against the railing of the jury box and breaking the prosecutor’s fingers in the process,” Bales’ office said.

    Garcia was sentenced later on the same day to 20 years in federal prison for the murderous assault against the marshal.

    Four months later — in July 2010 — Garcia was charged with attacking the federal prosecutor in a federal courtroom.  He was found guilty by a jury in January 2011, and was sentenced earlier this week to eight more years in federal prison.

    The sentences will be served consecutively, meaning Garcia will be behind bars for nearly three decades.

  • Bowdoin’s Purported Fundraising ‘Army’ Misses ‘Revised’ Launch Date; Site Now Advertises ‘Final Revised Launch Date’ Of July 26

    A website that says it is raising “required” defense funds for accused Ponzi schemer Andy Bowdoin of AdSurfDaily now has missed its second launch date and claims it is working on a third.

    Dubbed “Andy’s Fundraising Army,” the site first advertised a launch date of “on or before” July 15. It then advertised a “revised” launch date of July 20 (yesterday).

    The site now is advertising a “Final Revised Launch Date” of July 26.

    “As of today, July 20th, the launching of the Official Website for Andy’s Fundraising Army is almost here, as the Website is now fully completed except for one last important system is being finalized that correctly takes your donations Online (via credit and debit cards) and gets these funds safely transferred into the Attorney Trust Account,” the site says.

    In May 2008 — while addressing a crowd at an ASD company “rally” in Las Vegas — Bowdoin defined himself as a “money magnet” and thanked God for making him one.

    Among his claims from the stage was that the letter “e” in the words “success” and “failure” stood for “energy” (and also “effort”).

    “And if you take it and focus it, it’s gonna turn your financial area in your life into dollars and cents,” Bowdoin said from the Vegas stage.

    Bowdoin’s purported “army” says the accused swindler soon will release a new video as part of a bid to raise “the Legal Defense Fund minimum requirement of $500,000.”

    In December, Bowdoin, 76, was indicted on charges of wire fraud, securities fraud and selling unregistered securities. Federal prosecutors in the District of Columbia said he disguised a securities business as an “advertising” service and conducted a multifaceted, international Ponzi scheme that gathered at least $110 million.

    A purported “preview” site that gives visitors a glimpse at what the actual fundraising site will look like on July 26 claims the government is guilty of “Wrong Doing” and “SUPRESSION OF ALL ASD MEMBERS.”

    If the purported fundraising site does launch on July 26, the launch will occur just two days short of the third anniversary of a significant date in ASD history.

    On July 28, 2008, a Bowdoin shell company known as Bowdoin/Harris Enterprises purchased a 2009 Lincoln MKS for $48,244.03. The money for the car came from ASD Ponzi proceeds, according to federal prosecutors.

    The state of Florida later dissolved Bowdoin/Harris. It also dissolved ASD.

    Bowdoin/Harris became a corporation on June 5, 2008 — just days after the conclusion of the May 31 Las Vegas rally, according to records.

  • URGENT >> BULLETIN >> MOVING: Pat Kiley, Jason Bo-Alan Beckman, Gerald Durand Indicted In Trevor Cook Ponzi

    URGENT >> BULLETIN >> MOVING: UPDATED 7:02 P.M. EDT (U.S.A.) Former radio host Pat Kiley and two others have been indicted criminally in the $194 million Trevor Cook Ponzi scheme, federal prosecutors in Minnesota said this afternoon.

    The others are Jason Bo-Alan Beckman, 41, and Gerald Joseph Durand, 60. Kiley is 73.  He formerly hosted the “Follow The Money” radio program.

    All three defendants were charged with wire fraud, mail fraud, conspiracy and money-laundering. Kiley and Beckman previously had been charged civilly, but the Cook case took a dramatic turn with the filing of criminal charges. Cook already is serving a 25-year term in federal prison.

    Read the indictment.

  • KABOOM! 16 Arrested In Alleged DDoS Attack Against PayPal; FBI Executes 35 Search Warrants ‘Throughout The United States’ In Cybercrime Probes

    EDITOR’S NOTE: Having experienced DDoS attacks that crippled our ability to publish and inform readers, researchers and victims of Ponzi schemes, pyramid schemes and other forms of fraud about investigations, arrests and court cases, the PP Blog is not sympathetic to the points of view of the attackers and their apologists.

    Readers and researchers have come to rely on the PP Blog as an important information source. Victims and persons affected by various schemes visit the Blog daily, as do financial institutions performing research on potential trouble spots and law-enforcement agencies at the local, regional, national and international levels.

    The PP Blog, whose monthly costs have increased more than tenfold owing to sustained DDoS attacks beginning last fall, frequently writes about the incongruities that often accompany Ponzi and other fraud schemes. Hackers, DDoSers and cyber bullies use the same type of illogical and incongruous “explanations” to rationalize their particular brand of crime.

    DDoS attacks, cyber intrusions and cyber bullying chill speech and threaten domestic and international security, thus putting both commerce and the free marketplace of ideas at risk. Period.

    It is simply untrue that hackers, cyber bullies and DDoSers are the modern-day equivalent of freedom fighters. Simply put, they are anarchists who do not respect private and public property, rules of decorum, the rights of sovereign nations and the rights of people living free or yearning to live free. Nor do they respect the rights of merchants, information purveyors and their customers, clients and readers to have access to the marketplace of commerce and ideas.

    Many of the attackers and cyber bullies, though, would have you believe the opposite — that they’re serving a higher good by bringing down a server, by harassing people and companies on the Internet and even cackling about it, by subjecting their targets to economic and potentially even physical danger, by forcing their will on individuals and entities with whom they have political or philosophical disagreements.

    Here, now, the story of yesterday’s arrests . . .

    The FBI arrested 16 individuals and executed more than 35 search warrants “throughout the United States” yesterday in a coordinated response to cyber attacks, including last year’s DDos attack on PayPal and intrusion attacks on AT&T and on InfraGard in Tampa Bay.

    InfraGard is an FBI-led, public-private partnership that shares information on terrorism, intelligence, criminal and security matters.

    Separately, authorities in Europe rounded up five more individuals for alleged cyber crimes.

    Although some of the alleged attackers apparently see themselves as advocates for a free exchange of ideas and modern avengers for societal injustices, the U.S. Department of Justice described them as free-wheeling marauders who attacked two famous companies and the FBI-led public-private partnership.

    After WikiLeaks “released a large amount of classified U.S. State Department cables on its website” last year, members of the Anonymous hacking group retaliated by executing a “coordinated”  DDoS attack on PayPal, which had blocked WikiLeaks’ ability to collect donations for a Terms of Service violation, U.S. officials said.

    Anonymous, according to the Justice Department, even had a name for its PayPal assault: “Operation Avenge Assange.” Beyond that, WikiLeaks itself declared that PayPal was trying “to economically strangle WikiLeaks,” the Justice Department said.

    Julian Assange, who is under investigation in Sweden for alleged sexual assaults, is the founder of WikiLeaks. He has denied wrongdoing.

    In bringing the attacks, members of Anonymous compromised the ability of legitimate PayPal users to access the PayPay website, the Justice Department said. Fourteen people were charged in a federal indictment brought in San Jose, Calif., that alleges a conspiracy to damage protected computers at PayPal.

    Named in the San Jose indictment were Christopher Wayne Cooper, 23, aka “Anthrophobic”; Joshua John Covelli, 26, aka “Absolem” and “Toxic”; Keith Wilson Downey, 26; Mercedes Renee Haefer, 20, aka “No” and “MMMM”; Donald Husband, 29, aka “Ananon”; Vincent Charles Kershaw, 27, aka “Trivette,” “Triv” and “Reaper”; Ethan Miles, 33; James C. Murphy, 36; Drew Alan Phillips, 26, aka “Drew010”; Jeffrey Puglisi, 28, aka “Jeffer,” “Jefferp” and “Ji”; Daniel Sullivan, 22; Tracy Ann Valenzuela, 42; and Christopher Quang Vo, 22.

    One individual’s name was withheld by the court, the agency said. The reason was unclear.

    Charged in the Middle District of Florida in the alleged InfraGard attack was Scott Matthew Arciszewski, 21. The Justice Department described him as a hacker who uploaded files without authorization and provided instructions “on how to exploit the Tampa InfraGard website.”

    Meanwhile, in a complaint in federal court in New Jersey, Lance Moore, 21, of Las Cruces, N.M., was charged with stealing information from AT&T and posting it on a public file-sharing site.

    The Metropolitan Police Service in the United Kingdom also made a cyber-crime arrest yesterday, and the Dutch National Police Agency made four arrests, the Justice Department said.