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  • UNACCEPTABLE: ‘Hopefully One Day He Will Pick The Wrong Target And . . . Someone Will Take A Shotgun To Him,’ Internet Marketer Says About ‘Salty Droid’ Author

    DISCLOSURE: I was a volunteer Moderator at the Warrior Forum (WF) between December 2007 and July 2008. I learned what is best — and worst — about Internet Marketing at the WF. Just as my Mod days were coming to an end, the AdSurfDaily Ponzi scheme case was coming to the fore — and Internet Marketers raced to the forum to “defend” the business.

    UPDATED 11:13 P.M. EDT (U.S.A.) The author of The Salty Droid, a Blog that unapologetically skewers highly questionable Internet Marketing practices and some of the trade’s most visible figures, was made the subject of a death wish Aug. 17 by a poster at the Warrior Forum (WF).

    “Hopefully one day he will pick the wrong target and that someone will take a shotgun to him,” wrote Robert Puddy, a well-known marketer. The post was in response to a poster who apparently committed the high crime of making a favorable comment about The Salty Droid.

    The PP Blog, which itself has been the subject of threats by Internet Marketers, strongly condemns the event at the WF, the actions of Puddy and attempts to chill by force of threat reporters and Bloggers who write about IM-related issues.

    Suggesting a human being should be executed by shotgun for his critical point of view about Internet Marketing is thuggery. That Puddy, who provides Internet Marketing training and is regarded an expert, even could suggest that death was an appropriate penalty for a Blogger who opines that some Internet Marketers engage in anticompetitive and racketeering-like marketing practices is a matter for great introspection.

    So much for having a sense of the moment — or any PR savvy at all.

    A number of Internet Marketers have been implicated in racketeering schemes or found themselves squaring off against racketeering indictments or lawsuits in recent months. Andy Bowdoin of Florida-based AdSurfDaily, for instance, was sued by his own customers for racketeering. One of Bowdoin’s attorneys also was sued for racketeering in the same case, which was placed on hold until the federal Ponzi case against ASD plays out. At least one ASD member was successfully sued for racketeering in Utah for participating in a scheme to place bogus judgments for astronomical amounts against  public officials.

    The ASD member — Curtis Richmond — sat as an “arbitrator” on a bogus panel set up by a bogus “Indian” tribe and signed a bogus “award” for more than $300,000 against a Family Services worker. Not to be outdone, Richmond claimed the federal judge hearing the Utah case owed him $30 million.

    Richmond later claimed the federal judge overseeing the ASD case was guilty of “TREASON.” Dozens of Internet Marketers attempted to intervene in the case, filing pleadings from a kit. The pleadings, including one that claimed the government was guilty of interference with commerce for seizing the proceeds of an alleged crime, were downright bizarre.

    Now, Puddy, an Internet Marketer, opines that death is the answer for what he apparently believes should be the entire industry’s problem with The Salty Droid — as though monolithic thinking is the only option and that any person who believed the author could be right about anything should be shouted down and ridiculed.

    Adopting an ad hominem approach, Puddy, the marketing trainer and expert, called The Salty Droid fan an “idiot” — apparently for suggesting the author even could frame a point worth pondering over.  He then called the Salty Droid author a “disgusting little worm,” opining that the author uses “innuendo and false info to slag off other people.” He did not provide any example or any support material to back up his claim The Salty Droid dispensed innuendo and false info. Puddy concluded his comment with the shotgun remark, later denying he was angry when posting it.

    In a later comment, Puddy claimed he knew of two “people who [received] physical threats of violence [because] of the lies on that blog.

    “In one case,” Puddy claimed, “the [person’s] family was also included in the threat.”

    The Salty Droid (SD) author, who was made aware of Puddy’s remarks when contacted by the PP Blog for comment, said he was not surprised that violence had become part of the discussion.

    “I don’t doubt that the scammers also receive threats from the same type of persons that are threatening me,” SD said. “People can react in scary ways when they find out they’ve been the victim of the long con.”

    Puddy’s incendiary comment was posted Aug. 17 and escaped deletion on the WF for days. The comment finally disappeared either late Saturday or early Sunday. How and why it disappeared were not explained. Comments left by the PP Blog and other posters who challenged Puddy also disappeared.

    The PP Blog, which retained its Warrior Forum membership after giving up a volunteer moderator’s job in July 2008, challenged Puddy on his shotgun comment Saturday. The Blog was not alone in challenging the inflammatory remarks. Indeed, other WF members — including long-standing members — also challenged Puddy. Three WF members thanked the PP Blog in the forum for challenging Puddy’s assertion that The Salty Droid author should have a date with death by shotgun blast.

    At least three WF posters asked Puddy to retract his remarks.

    “I stand by my comments,” Puddy said, suggesting that WF members and others who disagreed with him are “brain dead.”

    By coincidence, “brain dead” was the exact same phrase members of ASD used to describe the federal judge presiding over the Ponzi litigation brought by the U.S. Secret Service in August 2008. The word choice did not go over well in the ASD case, either. Nor did Internet Marketers’ explanation that the case against ASD by the Secret Service and federal prosecutors was the work of “Satan” and the equivalent of the 9/11 terrorist attacks on the United States.

    Saturday,  indeed, was another a dark day for Internet Marketing, which already has a miserable reputation for scamming, turning a blind eye to scammers, advocating on behalf of scammers and closing ranks when one of its own is challenged by prosecutors or web critics.

    Although some Internet Marketers — including members of the Warrior Forum — speak out routinely against scams and shady or illegal marketing practices, they often are derided as jealous “haters,” whiners, malcontents and people who cannot stand “success.”

    SD told the PP Blog that he routinely has been subjected to threats.

    “That happens to me all the time,” SD said.  “They threaten with me with all sorts of horrible atrocities . . . in public and in private. They also talk amongst themselves about the possibility of my death with fondness . . . and regularly . . . this in rooms that contain crazily loyal sycophants/cult followers.”

    That the “conversation” at the WF “so quickly deteriorated to that level says pretty much everything you need to know about this ‘industry,’” the SD said.

    Read a recent post titled “The Internet Marketing Syndicate” on The Salty Droid

  • COMING SOON: Author Of The ‘Salty Droid’ Blog Responds To Menacing Comment Made By Internet Marketer; ‘Shotgun’ Remark On Warrior Forum Seen As ‘Dangerous And Violent’

    Many of our readers know that the PP Blog has been subjected to threats, menacing behavior and cyberstalking. Later tonight, we’ll publish an editorial on a highly disturbing incident that occurred last week at the Warrior Forum (WF).

    The Salty Droid, a Blog that unapologetically skewers highly questionable Internet Marketing practices and some of the trade’s most visible figures, was made the subject of a death wish Aug. 17 at the WF.  The PP Blog strongly condemns the event at the WF, the actions of the Internet Marketer who made the incendiary comment and attempts to chill by force of threat reporters and Bloggers who cover IM-related issues.

    Suggesting a critic should be killed with a shotgun to silence his voice  is thuggery — plain and simple. It should not be tolerated. Period.

    Our editorial will include comments from The Salty Droid author.

    “They threaten with me with all sorts of horrible atrocities,” he said about some Internet marketers, observing that the trade has “crazily loyal sycophants/cult followers.”

  • KABOOM! Feds Release Info On ‘Alpha Trade Group’ Forex Scheme With Ties To Mexico, Panama; Records Suggest Scheme Was Collapsing Even Prior To Promos On TalkGold, MoneyMakerGroup Forums

    Yet another HYIP scheme pushed on the TalkGold and MoneyMakerGroup forums has been outlined by federal prosecutors — this time in Florida.

    The name of the scheme was Alpha Trade Group (ATG), and web records show that the scheme was pitched on TalkGold and MoneyMakerGroup beginning on Oct. 7, 2009. Court records, meanwhile, show that ATG already was under investigation by the U.S. Department of Homeland Security when the first posts to promote the scheme appeared on the forums.

    Just days earlier, on Sept. 25, 2009, a U.S. bank closed an account prosecutors later linked to the scheme, according to court records. Taken together, the court and web records strongly suggest that the ATG investment “opportunity” first was advertised on MoneyMakerGroup and TalkGold when the scheme already was in a state of collapse because one of its key money conduits had been blocked.

    This screen shot shows the first post about Alpha Trade Group appeared at the MoneyMakerGroup Ponzi forum on Oct. 7, 2009 — days after a U.S. bank already had closed an account linked to the scheme amid fears it was being used to launder money.
    This screen shot, taken from Paragraph 23 of a federal affidavit in the ATG Ponzi case, shows that a U.S. bank closed an account later linked to the scheme at least 12 days prior to the ATG promo on the MoneyMakerGroup forum. Court records show the scheme already was under investigation by federal authorities before the sales posts were made on the MoneyMakerGroup and TalkGold forums.

    It is possible that the scheme was in a state of collapse even earlier than September 2009. Court records show that at least one bank account tied to the business was closed on June 18, 2009 — nearly four months prior to the first posts promoting the scheme on MoneyMakerGroup and TalkGold.

    One MoneyMakerGroup poster — apparently angry that the program was being advertised in public — scolded the poster who started the thread.

    “Please take down your posts,” the scolder wrote. “ATG asked all of the members not to advertise. Otherwise your account with the company will be closed. Go to recent e-mails from the company. This is serious. Please comply.”

    The post scolding the advertiser appeared on Oct. 29, more than three weeks after the original sales pitch appeared on the forum and more than a month after federal agents began their probe into ATG.

    By Feb. 22, 2010, federal prosecutors and Immigration and Customs Enforcement (ICE), a division of the U.S. Department of Homeland Security, were in federal court in Orlando filing a forfeiture complaint.

    The Feds sought the seizure of $316,418.50 in a bank account linked to the scheme, according to court records. The forfeiture complaint alleged a Forex Ponzi scheme, and prosecutors linked the fraud to ATG, a Florida company known as Online Market Solutions and at least four individuals: Jose Cecilio Martinez Beltran, Francisco Amaury Suero Matos, Yehodiz Padua Valentin and Welinton Bautista Castillo.

    Unnamed “others” also were referenced in the complaint.

    “Investment opportunities offered by Alpha Trade Group promised participants unusually high monetary returns on investments and for referring other persons to the programs,” prosecutors said, in a statement to victims. “In reality, the investment opportunity was little more than ‘Ponzi’ or ‘Pyramid’ scheme, in which if participants actually received funds, those funds were generated by investments made by other Alpha Trade Group investors.”

    A federal judge ordered the money forfeited on July 26, according to court records.

    The case was brought by the office of U.S. Attorney A. Brian Albritton of the Middle District of Florida. Albritton’s office is handing a number of highly complex financial-fraud schemes.

    Websites such as TalkGold, MoneyMakerGroup, ASAMonitor and MyCashForums have promoted one fraud scheme after another. TalkGold, MoneyMakerGroup and ASAMonitor are specifically referenced in court documents filed in the Pathway To Prosperity (P2P) fraud scheme.

    P2P’s Nicholas Smirnow was charged in May by the U.S. Postal Inspection Service and federal prosecutors in Southern District of Illinois with operating a massive HYIP Ponzi scheme that affected investors across the world.

    MoneyMakerGroup also is referenced in court filings by the SEC in the alleged Legisi Ponzi scheme.

    Earlier this month, the U.S. Department of Justice announced that the U.S. Secret Service had helped bring about the arrest in France of an alleged international thief in part by monitoring criminal forums.

    Vladislav Anatolievich Horohorin, 27, was arrested by French authorities in Nice. Court filings show that the Secret Service used undercover agents and “undercover communications” to develop the case.

    Federal records show that ATG purported to be registered in Panama and was using “various corporations and fictitious names registered in Florida” to pull off the scheme.

    Among the names used was “Orsa Investment Group LLC,” according to an affidavit filed in the case. The scheme began in April 2009, according to court filings.

    An ICE agent said in an affidavit that the Internet and “business opportunity meetings” in Central Florida were used to promote the scheme.

    Read the ATG forfeiture complaint, which paints a picture of a commission-based, multilevel-marketing (MLM)  scheme within a Forex fraud scheme — and other schemes within schemes.

  • BREAKING NEWS: Another Spectacular Ponzi Scheme Alleged In Florida; OLINT Operator David A. Smith Charged In Caribbean Forex Caper; Extradition To United States Expected

    BULLETIN: A citizen of Jamaica has been charged by U.S. prosecutors in Orlando with operating a Forex Ponzi scheme alleged to have gathered more than $200 million from more than 6,000 investors.

    David A. Smith had help from unindicted co-conspirators in Florida, prosecutors charged. The office of U.S. Attorney A. Brian Albritton of the Middle District of Florida is handling the prosecution, which seeks the forfeiture of $128 million, a sum of $40,103.90 from a wire transaction that occurred in 2006,  a home in Windermere, Fla., precious gemstones, precious metals and jewelry.

    The conspiracy was carried out in Seminole County, Fla., and was designed to channel money from the scheme into U.S. banks, prosecutors said.

    Residents of Orange County were affected by the scheme, prosecutors said. They noted that the unindicted co-conspirators were affiliated with a Florida company known as JIJ Investments. Prosecutors did not name the unindicted co-conspirators, describing them as “Directors” of JIJ.

    In 2005, Smith formed a Jamaican firm known as Overseas Locket International Corp. (OLINT), prosecutors said. In 2006, he started another firm known as OLINT TCI Corp. Ltd. in the Turks and Caicos Islands.

    Both firms were described as “private investment clubs,” prosecutors said.

    Smith also was the majority owner in a Lake Mary, Fla., firm known as I-Trade FX LLC, prosecutors said.

    Although investors were told their money would be used for Forex trading, Smith was accused of “failing to invest their funds in Forex trading as he had promised.” He also caused fraudulent account statements to be sent to investors over the Internet, prosecutors said.

    Meanwhile, prosecutors accused Smith, who also is in deep trouble in the Caribbean, of transferring “millions of dollars” from investors to his personal accounts “to finance a lavish and expensive life-style” for himself and others.

    Smith, prosecutors said, created a “broad infrastructure” to create the appearance OLINT was engaged in legitimate Forex trading when it was not.

    He has been charged with wire fraud, money-laundering and conspiracy, and is not expected to fight extradition to the United States.

    Albritton’s office is involved in the investigation of a number of highly complex Ponzi and fraud schemes, including the Beau Diamond Forex Ponzi scheme, the Traders International Returns Network (TIRN) case and the alleged Evolution Marketing Group/FinanzasForex fraud case.

    TIRN operator David Merrick pleaded guilty in May to money laundering and conspiracy to commit wire fraud and securities fraud in the TIRN Ponzi scheme.

    In the Evolution Marketing Group/FinanzasForex case, prosecutors said investigators had tied some of the money collected in the alleged scheme to the international narcotics trade. Court filings in the case paint a picture of an incredibly elaborate maze of companies and bank accounts set up to confuse both investors and law enforcement. At least 59 bank accounts, 294 bars of gold and nine luxury vehicles have been seized in the case. One of the cars was a 2008 Lamborghini Murcielago valued at more than $430,000.

  • BULLETIN: Church Pastor Was Running Forex Ponzi Scheme, CFTC Says; Agency Gets Emergency Asset Freeze Against Jeremiah C. Yancy

    A church pastor targeted congregants in a Forex Ponzi scheme in which he misappropriated at least $462,000, the CFTC said.

    The pastor, Jeremiah C. Yancy, previously had been implicated by Idaho regulators in a real-estate swindle and scheme to sell unregistered securities that resulted in ruinous losses for investors, according to records.

    Yancy also is known as Jeremiah Christian Yancy, Jeremiah C. Yancey, Jeremiah C. Glaub, Jeremy Christian Glaub and Jeremiah Christian Glaub, regulators said. The Idaho real-estate scheme was centered around the city of Nampa in the Boise and Meridian region, according to records.

    When the real-estate fraud scheme was collapsing, Yancy turned to a Forex fraud scheme, according to the Idaho Securities Bureau.

    In the CFTC case, Yancy and a company known as Longbranch Group International LLC were charged with operating a Forex Ponzi scheme that targeted at least 64 people, including church members.

    “Yancy and Longbranch told prospective customers that they managed forex trading for non-profit organizations, including churches and orphanages,” CFTC said.

    Clients were recruited through “fund-raising entities,” telephone conference calls set up by the entities and email pitches, the CFTC said.

    Customers were promised “monthly returns of 20 to 40 percent from forex trading” and given false account statements, the CFTC said. Some customers allegedly were told their principal would be guaranteed.

    “Yancy and Longbranch allegedly sent prospective customers account statements from demonstration forex trading accounts showing high returns from accounts purportedly containing up to $10 million traded by the defendants,” the CFTC said. “Defendants, however, did not inform customers that these forex accounts were demonstration and/or test accounts and did not represent actual customer account trading.”

    The CFTC case was filed in federal court in Houston. Yancy’s last-known address was in Atoka, Okla., the CFTC said.

    Read the CFTC complaint, which also alleges that Yancy was unlicensed and that his clients were not qualified investors.

    Read the Idaho complaint from 2009, which was decided against Yancy earlier this year by default. Idaho regulators alleged that Yancy often spoke to church-connected groups and told attendees that he had risen above a difficult childhood to become a successful family man and businessman.

    Yancy was ordered to pay $600,000 in restitution and more than $450,000 in penalties in the Idaho case.

    “When the real estate investments failed, Yancy solicited friends, fellow church members and previous investors to invest with him in a foreign currency program,” Idaho investigators said in February. “Yancy was not properly registered to engage in foreign currency trading as required by the Idaho Commodity Code. Idaho investors who participated in Yancy’s foreign currency trading program have not received a return of their investment or any profit.

  • ‘In God We Trust’ Securities Huckster Found Guilty In $17 Million Swindle; Byron Keith Brown Had ‘Fleet’ Of Luxury Cars; Feds Call Business ‘Tangled Financial Web Of Lies’

    A Virginia man who traded on religious sentiments and the motto printed on U.S. currency to fleece investors in a $17 million Ponzi and securities swindle potentially faces decades in prison after being found guilty in Maryland of wire-fraud and money-laundering charges.

    Byron Keith Brown bought at least 16 luxury or high-performance cars with investors’ money, including brands such as Lamborghini and Rolls-Royce, prosecutors said.

    Brown, 32, of Vienna, operated In God We Trust Financial Services (IGT) and used his websites to ask prospects to turn over $1 million at a time, prosecutors said. He formerly lived in Ellicott City, Md.

    A veteran IRS investigator said the case demonstrated that a huckster could create the appearance of success to mask “a tangled financial web of lies.”

    “Ponzi schemes can thrive for a time on false claims about how the money is being invested and where the returns are coming from,” said Rebecca Sparkman, special agent in charge of the IRS Criminal Investigations Unit in the District of Columbia field office

    “[B]ut that time is gone and as this verdict shows it is time for those responsible to face judgment,” Sparkman said.

    Brown, prosecutors said, filed bankruptcy in 1999 — but soon emerged with a tale of fabulous success that painted him as the head of an international firm that specialized in catering to wealthy investors from offices in Washington, D.C., Wilmington, Del., New York, and London, England.

    It was all an illusion, prosecutors said.

    “[H]e had rented a mailbox or services at a virtual office that provided telephone answering services and mail forwarding services to clients,” prosecutors said.

    And Brown “used computer software to create an illusion that the investor was logging into a banking website and viewing account information when in fact, the account numbers were made up,” prosecutors said.

    U.S. Attorney Rod J. Rosenstein said the government, to date, has seized 16 high-end cars linked to Brown.

    “Byron Brown used the Internet to make it appear as if he were running an investment management business for wealthy investors, when in fact he was stealing millions of dollars from investors and using it to buy a fleet of luxury cars,” Rosenstein said.

    Included in Brown’s investor-funded haul were a 2004 Bentley, a 2005 Rolls-Royce Phantom, a 1936 Auburn Speedster, a 2007 BMW, a 1997 Jaguar, a 2006 Aston Martin, a 2007 Lamborghini, a 2008 Maserati, two Mercedes and a 2002 Ferrari, prosecutors said.

    “In addition to sentencing criminals to prison, our goal is to seize any assets purchased with criminal proceeds,” Rosenstein said.

    Brown was not licensed as a broker, dealer or investment adviser in Maryland, Virginia or the District of Columbia. The scheme operated between 2003 and 2009.

    America was dependent on the horse and buggy when the motto “IN GOD WE TRUST” became part of the national consciousness.

    The motto first appeared on the 1864 two-cent coin, the U.S. Department of the Treasury notes on its website. Abraham Lincoln was President at the time, and the United States was engaged in the Civil War against the breakaway South.

    On Nov 13, 1861, the Rev. M. R. Watkinson, Minister of the Gospel from Ridleyville, Pa., wrote to Treasury Secretary Salmon P. Chase, observing that “the Almighty God” should be recognized in some form on U.S. coins.

    Chase acted almost instantly to make it happen, according to the Treasury Department, which had received many similar “appeals from devout persons throughout the country,” the Treasury Department notes.

    Watkinson reasoned a nation that did not acknowledge God one day might be regarded a nation of heathens, according to his letter to Chase.

    “From my hearth I have felt our national shame in disowning God as not the least of our present national disasters,” Watkinson wrote to Chase nearly 150 years ago.

    In a letter dated Nov. 20, 1861 — a week after the date on Watkinson’s letter — Chase instructed James Pollock, director of the Mint at Philadelphia, to prepare a motto for U.S. coinage.

    Here is how the letter read, according to the Treasury Department.

    Dear Sir: No nation can be strong except in the strength of God, or safe except in His defense. The trust of our people in God should be declared on our national coins.

    You will cause a device to be prepared without unnecessary delay with a motto expressing in the fewest and tersest words possible this national recognition.

    The words “IN GOD WE TRUST” became the official U.S. motto by an Act of Congress in 1956, when Dwight Eisenhower was President. The words officially were added to paper currency, beginning in 1957.

    Brown operated at least three companies that used the “In God We Trust” theme, prosecutors said. Experts say scammers frequently use appeals to faith and patriotism to steal from investors or line them up to be fleeced in fraud schemes.

    Visit the Treasury Department website to read about the history of “IN GOD WE TRUST” on U.S. coins and currency.

  • DELAWARE: Woman Bilked In Investment Scam Later Bilked In ‘Investment Recovery Scam,’ AG Biden Says; Patrick A. Wiley Indicted On Racketeering, Securities-Fraud Charges

    EDITOR’S NOTE: The indictment in Delaware against Patrick A. Wiley of Detroit illustrates the dangers of entrusting money to a person who claims he can help you recover money lost in a securities swindle. It also illustrates that a person who claims he can help you recover money lost to a securities swindle — and then strings you along — can be charged with serious crimes.

    A Detroit man has been indicted for racketeering in Delaware amid allegations he swindled at least $276,000 from a woman in an “investment recovery scam,” prosecutors said.

    Patrick A. Wiley, 42, also was charged with securities fraud, selling unregistered securities and theft, Delaware Attorney General Beau Biden said. The prosecution was brought by Biden’s Securities Unit.

    All in all, the victim in the case lost more than $300,000, including $45,000 in the original swindle.

    Wiley’s investment-recovery scam grew out of an earlier fraud scheme in which the victim was persuaded by another man to invest in a “joint trading venture” that purportedly involved “several wealthy persons in London, England” and would fetch a return of $10 million on an outlay of $50,000 in only months, Biden’s office said.

    “With deep sympathies for her loss, we remind all Delawareans that any deal that sounds too good to be true, probably is,” Biden said.

    The victim was recruited into the investment scheme in early 2005 by Darren Dobson, 45, of Charlotte, N.C., Biden’s office said. After a state probe, Dobson was indicted in Delaware earlier this year on charges of securities fraud, selling unregistered securities and transacting business as an unregistered agent.

    Investigators said the victim sent $45,000 to a Tampa company known as VFG Management
    LLC based on Dobson’s claim “that a $50,000 investment would yield a return of $10 million by June 2005.”

    VFG Management was “the entity through which the London partners were supposedly operating the joint trading venture,” Biden’s office said.

    When no returns materialized, the victim contacted Wiley based on her belief he had been an investor in the same scam, authorities said.

    “Wiley claimed he had information regarding the principals involved and that he would pursue them to obtain the victim’s promised investment return,” Biden’s office said. “On numerous occasions between October 2005 and November 2007, Wiley solicited funds from the victim to defray the cost of his efforts, including trips that he was supposedly taking abroad for meetings with the London trading partners and their attorney. During that time period, the victim wired more than $276,000 to Wiley on sixty-one separate occasions. The victim never received the promised investment return or the investment principal.”

    Biden described the alleged scam as a “con game.”

    “We are particularly disturbed by crimes that use trust and confidence as a means to an
    illegitimate end,” Biden said. “The victim in this case has lost over $300,000 in a con game.”

  • Son Says AdSurfDaily’s Andy Bowdoin Used Religion To Fleece Masses And Disgraced Family Name; Huckster’s Scheming Dates Back To 1960s, Another Family Member Says; ‘He Has A Criminal Mind’

    Andy Bowdoin

    Growing up a child of Andy Bowdoin and advancing through adolescence and adulthood was hard because of Bowdoin’s habitual scheming, according to Scott Bowdoin, Andy Bowdoin’s son.

    “He uses religion — always,” Scott Bowdoin, 42, said flatly of his 75-year-old father, noting he had not spoken to Andy Bowdoin in about 15 years because the elder Bowdoin had ripped off his own mother, Scott’s late grandmother, in a credit-card scheme.

    The elder Bowdoin left his own mother “with nothing,” Scott Bowdoin asserted. “The electricity was about to get cut off, the water was about to get cut off. He is a man with no conscience.”

    Scott Bowdoin made the remarks about his father in an interview with the PP Blog this morning. The younger Bowdoin said his father had disgraced the family name — and that it was high time the public in general and AdSurfDaily members in particular knew that Andy Bowdoin did not enjoy the uniform support of his family as the ASD Ponzi case winds its way through the courts.

    There was a long-ago scheme involving telephone calling cards, Scott Bowdoin said.

    And there was an “air-conditioning scam” in Florida, he added, saying his father traded on faith.

    “He’d go around and evangelize,” Scott Bowdoin said. “That was a scam. He did something with cell-phone towers. That was a scam.”

    Andy Bowdoin has been married five times, Scott Bowdoin said, adding that Andy Bowdoin’s financial scheming devastated Scott’s grandmother late in her life.

    “He drained my grandmother,” Scott said.

    Separately, an Andy Bowdoin family member who spoke to the PP Blog on the condition of anonymity said Bowdoin “has been doing this since the 1960s.

    “I always knew he was a con man,” the family member said. “I just didn’t know he could do it at this level.”

    The “level,” according to federal prosecutors and the U.S. Secret Service, exceeds $80 million and may approach $100 million when a final accounting is done. Records show that agents seized more than $65.8 million from 10 Andy Bowdoin bank accounts, including one that contained more than $31 million and another that contained more than $23 million.

    In total, about $80 million was officially listed as forfeited in the case. Andy Bowdoin has appealed the forfeitures, which were ordered by U.S. District Judge Rosemary Collyer. An attempt last year by Bowdoin to force Collyer to withdraw as the presiding judge failed.

    Prosecutors claimed in court filings that ASD was a massive international Ponzi scheme masked as an “advertising” business.

    “I was a little surprised because I didn’t know he could pull off a scam that big,” Scott Bowdoin said. “But, by God, he did it.”

    After the elder Bowdoin scammed his own mother in the 1990s, Scott Bowdoin said, “I told him you are dead to me.” Andy Bowdoin later was implicated in a securities swindle in Alabama. Records show he was making restitution to the Alabama victims even as he was operating ASD in 2008.

    “I pity you when you have to face the Lord when you die,” Scott Bowdoin said he told his father after he had fleeced Scott’s grandmother.

    In July 2008, years after the Alabama swindle and while ASD was gathering tens of millions of dollars per month, ASD money was used to purchase a Lincoln automobile for nearly $50,000, according to court records. At the time, Bowdoin still owed the Alabama victims about $45,000.

    Even more ASD money — more than $1 million — went to acquire real estate, a Honda automobile, an Acura automobile, jet skis, a Cabana boat, marine equipment and haul trailers, according to records. A shell company linked to Andy Bowdoin’s company began to make the purchases in June 2008, less than two weeks after an ASD “rally” in Las Vegas.

    While in Las Vegas, Andy Bowdoin urged members to imagine themselves getting large checks from ASD and thanked God for making him a “money magnet,” according to records.

    Scott Bowdoin described his father as a “classic con artist.”

    “He is a very, very, very smart man,” Scott Bowdoin said. “He knows exactly what he is doing. He uses religion — always.”

    And Scott Bowdoin lamented his father’s appeals in the forfeiture case against his assets.

    “I don’t understand why this man is not sitting in prison,” Scott Bowdoin said. “He pulled off the ultimate [con] this time.”

    Scott said his father left when he was 14 and that father and son had been estranged for years.

    Asked what he would do if his father suddenly materialized in the same room with him, Scott said that Andy Bowdoin “won’t come around me.

    “I’d probably punch him in the face,” Scott said.

    Asked if he had any advice for ASD members, Scott said, “Don’t believe a word he says. He’s a great actor. He is a good bullshitter. He could sell a screen door to a submarine captain.”

    Calling his dad a “charmer,” Scott said he was aware that some ASD members continued to cling to hope that his father came as the “Christian” depicted in sales pitches and motivational talks.  After the company was raided in August 2008, Bowdoin asked his followers to trust in God, saying the government action against his autosurfing company was the work of “Satan.”

    “These people who feel sorry for him thinking he is a good Christian — they have blinders on,” Scott Bowdoin said. “He has hurt more people than just [members of] AdSurfDaily. I can guarantee it.”

    Andy Bowdoin wasted his talents chasing schemes, Scott Bowdoin maintained.

    “If he had gone the right way, he could have been a Donald Trump,” Scott contended. “[But] he wanted to start at the top, not at the bottom.”

    Meanwhile, the other Bowdoin family member interviewed by the PP Blog said that he believed Andy was “a sociopath.”

    “I know that whatever he puts his efforts in to is [designed to] con people out of as much money as he can,” the other family member said. “Andy is a sociopath. There aren’t many sociopaths, but he is one.”

    Both family members said they were not participants in ASD and learned about the alleged scheme on the Internet.

    The family member who spoke on the condition of anonymity explained he had done so in an effort to maintain as much privacy as he could as a sea of allegations swirled around Andy Bowdoin.

    “The man is a genius,” he said of Andy Bowdoin, “but he has a criminal mind. Anyone involved with his companies — they’d be sucked into a Ponzi. To me, he is a sociopath; he will drag other people down. People need to be [careful]. A good con has a little bit of truth to it.”

    Andy Bowdoin, said the family member, has lived a “sad” life.

    “It’s sad because he could have used his talent for good,” the family member said. “I don’t hate the man, but I pity him.”

    When he thinks about Andy Bowdoin, the family member said, he thinks about Bowdoin’s father.

    “Andy Bowdoin’s father was a good man,” the family member said.

  • BULLETIN: FTC Charges Central Coast Nutraceuticals In Acai-Berry Fraud Case That Alleges Overbilling And ‘Fake Endorsements’ From Oprah, Rachel Ray

    This website was part of a $30 million acai-berry scam that offered purported "free trials," overbilled customers repeatedly and fraudulently traded on the names of Oprah Winfrey, Rachel Ray and other celebrities and well-known brands, the FTC alleged.

    UPDATED 4:56 P.M. EDT (U.S.A.) Calling the operations of Arizona-based Central Coast Nutraceuticals Inc. (CCN) and affiliated companies a “$30 million” scam in 2009 alone, the Federal Trade Commission has obtained a court-ordered asset freeze in an acai-berry fraud case.

    Charged along with CCN were Graham D. Gibson, Michael A. McKenzy and four companies that shared the same Phoenix street address : iLife Health and Wellness LLC; Simply Naturals LLC; Health and Beauty Solutions LLC; and Fit for Life LLC.

    The FTC’s case file includes statements from Oprah Winfrey’s Harpo Inc. and author and TV personality Rachel Ray that they never endorsed acai-berry products as the alleged scammers claimed and that their intellectual property was being abused.

    The FTC’s action may send shockwaves across Internet Marketing slime pits, which routinely trade on celebrity names to sanitize “business opportunities” that imply famous people and entities endorse offers that appear online.

    At the same time, the FTC action may have a chilling effect on online hucksters who make misleading or unproven claims that their products cure anything from cancer to obesity.

    A big part of the scheme centered on bogus “free trial” offers and corrupt billing practices in which “numerous unauthorized charges” were made to customers’ credit-cards and debit cards, the FTC alleged.

    Another part of the scheme centered on false claims that using a product known as AcaiPure “could lead to rapid and substantial weight loss,” the FTC charged.

    “Too many ‘free’ offers come with strings attached,” said David Vladeck, director of the FTC’s Bureau of Consumer Protection. “In this case, the defendants promised buyers a ‘risk free’ trial and then illegally billed their credit cards again and again — and again.”

    Vladeck said the FTC estimated “that about a million people have fallen victim to this scam,” with the scheme spreading in part owing to the fraudsters’ use of “fake endorsements” from Winfrey and Ray.

    “Ms. Oprah Winfrey has never endorsed or approved AcaiPure,” said Douglas J. Pattison, chief executive officer of Harpo Inc.

    In fact, Pattison said in court filings, Winfrey “has never endorsed any acai berry supplement or acai berry related product by name” and “has never approved or agreed to have her image or name used in conjunction with the sale and marketing of any acai berry related product.”

    Winfrey sued more than 40 companies for trademark infringement last year, amid claims scammers were using her image and brand to fleece the public.

    For her part, Ray said in court filings that she, too, had been victimized by Internet Marketers who used her image and brand to pull off fraud schemes.

    “I did not approve or agree to the use of my name or my image on this website. . . . I have never used, endorsed or approved AcaiPure. I am not associated with nor do I endorse or approve any acai berry product, company or online solicitation of such products, including AcaiPure,” Ray said.

    In another move that may cause great unease in the part of the Internet Marketing landscape that entitles itself to divine testimonials and plant the seed that famous people endorse their fraudulent offers, the FTC included photos of the websites and shared a video that allegedly made fraudulent claims.

    Visit the FTC website to view the video.

  • BREAKING NEWS: Andy Bowdoin’s Son Comments On Father’s Ponzi Case; ‘He Is A Man With No Conscience; He Has Been Doing This All His Life’

    Andy Bowdoin

    The PP Blog conducted an interview this morning with Scott Bowdoin, a son of AdSurfDaily President Andy Bowdoin. Scott Bowdoin stressed that he did not approve of his father’s conduct or support Andy Bowdoin in any way.

    In August 2008, the U.S. Secret Service alleged that Andy Bowdoin was at the helm of a massive international Ponzi scheme disguised as an advertising business.

    Scott Bowdoin said he consented to the interview to make it clear that his father does not enjoy the widespread support of his family.

    “This is a man who ruined our name,” Scott Bowdoin said of his father.

    “He is a man with no conscience; he has been doing this all his life,” Scott Bowdoin said.

    The PP Blog will publish a lengthier story based on the interview later today.

  • UPDATE: Robert Hodgins Still Wanted By Interpol; Co-Defendant In Narcotics Probe With Link To AdSurfDaily Case Sentenced To Prison; Colombian Drug Business Used Same Debit Card As ASD

    Robert Hodgins of Dallas-based Virtual Money Inc. is wanted by Interpol in an international money-laundering case that allegedly involves proceeds from the sale of narcotics. Virtual Money Inc.'s name is referenced in the AdSurfDaily autosurf Ponzi scheme case brought by the U.S. Secret Service and the PhoenixSurf autosurf Ponzi scheme case brought by the Securities and Exchange Commission. The case against VM and Hodgins was brought by the U.S. Drug Enforcement Administration and the IRS. PHOTO SOURCE: Interpol.

    A Colombian national implicated in an international conspiracy to launder drug money has been sentenced to 45 months in prison, federal prosecutors announced.

    Meanwhile, another figure in the alleged scheme — Robert Hodgins, the operator of Dallas-based Virtual Money Inc. (VM) — remains at large, prosecutors said. Hodgins is wanted by Interpol on a warrant issued by a federal judge in Connecticut.

    Hodgins is Canadian by birth and lived in the Oklahoma City area of the United States, according to records.

    VM’s name is referenced in the forfeiture allegations in the AdSurfDaily autosurf Ponzi scheme case brought by the U.S. Secret Service in the District of Columbia in August 2008. It also is referenced in the PhoenixSurf Ponzi prosecution brought by the SEC in Los Angeles in July 2007.

    Juan Merlano Salazar, 36, of Medellin, Colombia, was sentenced to 45 months Aug. 9 by U.S. District Judge Mark R. Kravitz of the District of Connecticut. Salazar is among five defendants convicted so far in the money-laundering case, which allegedly involved the use of debit cards provided by VM to launder drug proceeds at ATMs in Colombia, according to court filings.

    Hodgins also is alleged to have accepted $100,000 to launder drug proceeds in the Dominican Republic.

    The Colombian narco business used “stored value cards” to enable drug proceeds to be withdrawn from banks in Medellin as Colombian pesos, prosecutors said.

    Medellin was home base to the late drug lord Pablo Escobar.

    In August 2009, the PP Blog reported that VM’s name appeared in advertising materials for ASD in 2007. Records suggest that Hodgins or a VM designate attended an ASD function in Orlando in November 2006, about a month after ASD began its rollout.

    This 2007 ad for ASD promoted the VM debit card.

    Some ASD members have said they observed large sums of cash and briefcases full of cashiers’ checks at ASD “rallies” in U.S. cities in the spring and summer of 2008, which led to questions about whether ASD was laundering money for a drug cartel and international criminals.

    If the allegations against VM and Hodgins are true, it means the company that provided the debit cards ASD used was in the business of laundering money for at least one international narco business.

    On Aug. 1, 2008, the U.S. Secret Service seized more than $80 million in the ASD case. The money allegedly was tied to at least three autosurfs: ASD, GoldenPandaAdBuilder and LaFuenteDinero.

    ASD, which had operated under at least one other name and perhaps as many as three or more, claimed in 2007 that one of the reasons it could not make payments to members was that $1 million had been stolen by “Russian” hackers.

    Prosecutors said ASD never filed a police report — not even to report the theft of a huge sum of money. ASD instead relaunched as ASD Cash Generator. By the summer of 2008, it was gathering tens of millions of dollars per week.

    One bank account in the name of ASD President Andy Bowdoin seized by the Secret Service contained more than $31 million, according to court filings. Another account in Bowdoin’s name contained more than $23 million. Bowdoin was referenced as the “Sole Proprietor” of the accounts.

    All in all, the Secret Service seized more than $65.8 million from 10 Bowdoin bank accounts, and more than $14 million from at least five bank accounts linked to Golden Panda, according to records.