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  • DEVELOPING STORY: AdViewGlobal ‘Compliance’ Employee Sued Twice Last Year For Noncompliance With Federal Law

    A Florida man identified as a “Compliance” employee of the AdViewGlobal (AVG) autosurf was sued twice last year for not complying with federal laws in a business he owns.

    Gerald Castor and his company, 1st Credit Solutions LLC of Bradenton, Fla., settled one of the cases last month. The lawsuit was brought in June 2008 by an employee who accused Castor of federal labor-law violations, alleging that workers were not paid wages at “time and one-half” for work in excess of 40 hours per week.

    In a joint dismissal motion April 6 by the plaintiff and the defendants, the parties said the plaintiff had received “payment in full for all of her claims, including claims for overtime, liquidated damages and attorney’s fees and costs.”

    The payment amount and the date of the payment were not disclosed. Mediation for the case had been set for June and was canceled. A judge did not review the settlement because the plaintiff acknowledged it was not a result of a compromise and that “all” of her claims had been met.

    A second labor-law complaint against Castor and 1st Credit Solutions filed by a different employee was dismissed by a federal judge in March when the plaintiff did not follow up on the claim.

    On March 23, AVG announced in a statement signed “The AVG Management Team” that its bank account had been suspended because too many members had wired transactions in excess of $9,500.

    In a March 25 announcement under Castor’s name as a member of AVG’s “Compliance” department, the surf reported its banking problem was on the way to being “rectified” without explaining how the company intended to fix the problem.

    Regardless, the company used a three-exclamation point headline — “AVGA Breaking News: Thanks and Good News!!!” — to report sales were brisk despite the problem.

    “Tuesday member purchases continued to be good thanks to those purchases made with cash balances,” Castor’s announcement said.  “We appreciate your continued cooperation and purchases through cash balances through the end of the week.”

    The company then cited unspecified banking regulations, claiming changes in the regulations limited online purchases to $2,500.

    Castor owns another Florida company — Living Legacy One LLC. Court records show that a process-server in the lawsuit against 1st Credit Solutions initially had trouble serving Castor, but eventually located him at the Bradenton building that serves as headquarters for both 1st Credit Solutions and Living Legacy One LLC.

    On May 4, AVG announced its banking problems had ended as a result of a deal that would enable customers to wire money to an offshore bank to pay for AVG “advertising” purchases. Three days later, however, one of the companies AVG named as a facilitator of the transfers issued a public denial that it had any business relationship with AVG.

    The company, KINGZ Capital Management Corp., said it had discussed business matters with Living Legacy One — but not AVG — and that it believed it had been targeted in a scam. AVG did not inform members about the denial. Rather, the surf said the sudden absence of a wire facility it had just announced came as a result of “negotiations” that had failed.

    See an October 2008 court record from a federal lawsuit against Castor and 1st Credit Solutions in which a process-server reported initial trouble locating Castor, but later found him at the building that serves as headquarters for 1st Credit Solutions and Living Legacy One LLC, according to records in Florida.

    See our March 25 story in which AVG, which purports to be headquartered in Uruguay, identifies Gerald Castor as a member of the “Compliance” department.

    See April 6 stipulated dismissal of lawsuit against Castor and 1st Credit Solutions in which the plaintiff acknowledged she had received payment in full on her claims on an unspecified date.

    See the annual reports of both 1st Credit Solutions and Living Legacy One LLC that were filed with the Florida Department of State by Castor on the same day — April 29, 2009.

    See May 5 report on AVG’s May 4 announcement that it had a deal by which customers could pay for “advertising” purchases by wiring money to an offshore bank. The surf announced the deal on the same day the Obama administration announced it was cracking down on offshore fraud.

    See May 7 report in which KINGZ Capital Management, a company AVG announced was involved in wire transactions for AVG “advertising” purchases, denied it had any business relationship with AVG. KINGZ said it believed it had been targeted in a scam, noting it had discussed business with Living Legacy One, not AVG.

    KINGZ said it acted immediately to ensure no money would get to AVG via wire transfer.

  • Amid Wire Flap, AdViewGlobal Pitches Mind-Boggling, 250 Percent Match; Members Question Surf’s Management Practices

    Signs of the apocalypse? Some members of the AdViewGlobal autosurf are openly fretting that the company’s behavior could be a signal that all is not well.

    But one AVG loyalist insists things are just fine and that AVG’s problems are being caused by the “greed” of people who know that the surf poses “a threat to their income stream.”

    AdSurfDaily made a similar claim last summer, just prior to the federal seizure of its assets.

    Just this morning, an AVG forum operated by some of the Mods and members of the Pro-AdSurfDaily Surf’s Up forum went on a delete-fest, nuking posts in which members purportedly shared information AVG deemed private.

    Wire Flap

    On May 4, AVG, which also is known as AVGA, announced it had a deal with an offshore bank to accept member deposits for the purchase of “advertising.”

    Three days later, one of the companies AVG said was facilitating the transfers to The Bank of N.T. Butterfield and Son Ltd., issued a public denial that it had any business relationship with AVG and said it believed it had been targeted in a scam.

    AVG did not inform members of the denial by KINGZ Capital Management Corp., instead explaining the sudden removal of a wire facility it had just announced was a result of failed negotiations.

    KINGZ, however, said it had never discussed business with AVG, but had discussed business with a Florida company known as Living Legacy One LLC. Living Legacy One lists its managing member as Gerald Castor, whom AVG once identified as a member of its “Compliance” department.

    The implication of KINGZ’ claim was that AVG tried to create a backdoor route to funnel money to AVG through Living Legacy One. KINGZ said it acted immediately to prevent AVG from receiving any money via wire through its systems.

    “Nothing has ever been accepted from [AVG], nothing has been — and nothing will be,” said Michael P. Krywenky, president and chief executive officer of KINGZ. “We are very shocked, and we’re appalled [by the AVG claims].”

    AVG’s claims were “extremely bizarre,” Krywenky said, adding that the company had started an investigation and was consulting with its attorneys.

    New, Matching Bonus Program

    Last night, AVG announced that it was offering an astonishing, 250-percent, matching- bonus program. The program also provides a mind-boggling, 200-percent match for sponsors. Under the math of the program, a member who paid AVG $1,000 would be credited with a purchase (and the earning power) of $2,500, and the member’s sponsor would be credited with a purchase (and the earning power) of $2,000.

    Although the company said the program was implemented to celebrate the upcoming launch of a new website, some AVG members now are openly questioning whether the firm is having cash-flow problems and is trying to raise money quickly to forestall a disaster.

    AVG’s move came on the heels of reports that it paid out higher-than-normal paper profits over the weekend, a possible indication that it was trying to paint a picture that all was well so members would be more inclined to throw money at the surf when the new, matching-bonus program was announced.

    The surf simultaneously is promoting an “80/20” program. Such programs are designed to minimize cash outflows and keep money in the system.

    An explanation of the company’s behavior left at this Blog yesterday by a member named “Chris” sounded very much like defenses for AdSurfDaily that populated websites last summer.

    Here is part of what what Chris said:

    “We do have outside revenue and therefore we do not need to use members money to pay for the incentives,” Chris said.

    “Kingz Corp stopped all realtionships (sic) with us because they were being threatened with bad publicity if they continued. Now this cannot be proven and I know that is what your (sic) going to say, but their (sic) are those who do not like our advertising model and they want to see us shut down.

    “The reason they want us shut down is because of greed!” Chris said. “They know we are a threat to their income stream and they don’t like it.”

    People who questioned AVG management were hurting the company, Chris said.

    “The truth is ASD was doing very well before they were shut down and now we are doing well and you can continue to battle us that’s ok, we can take it! We are not going to give up the fight! Google can make millions every day and no one bats an eye lash (sic).”

    Chris said the fact ASD President Andy Bowdoin is not in jail demonstrates the government has nothing on him.

    “Why is it that Andy is not in jail right now?” Chris inquired. “Mr. Maddoff (sic) is heading there. Why don’t they arrest Mr Bowdoin if he indeed has done a ponzi and taken peoples money? Why? Please explain that to me? I will tell you why, because they can’t. They can take the money and possessions but not Andy becuase (sic) they don’t have evidence of a ponzi scheme plot, people were getting paid, money was being distributed slowly but getting to the people nonetheless.”

    Read Chris’ full remarks here.

  • Patrick Pretty ‘Poof’ Penalty Plagues Portal Posters

    A poster at the Pro-AdSurfDaily Surf’s Up forum has just made brief posts in 11 separate threads in a period of only minutes. The effect of the posts was to knock a post pertaining to this Blog’s coverage of the indictment against ASD mainstay “Professor” Patrick Moriarty off the front page at Surf’s Up.

    The poster punctuated his burst of activity by starting a thread titled, “Overrun With Rats, Bed Bugs, Maggots, Cockroaches And Everything Else.”

    In the thread, he advised readers about what he had just done.

    “This is what happens when you leave a forum go on by itself,” he said. “What would you do if this forum was shut down[?] Would you miss it????”

    The move came on the heels of recent deletions at Surf’s Up that referenced our reporting on the ASD case. Surf’s Up announced Friday that it had a “poof!” policy with respect to this Blog.

    Mention the Patrick Pretty.com Blog at Surf’s Up and your post may go “poof!” It even may go “poof!” if you do not mention the name of this Blog, if the Mods can ascertain that the information might have originated here.

    Two such threads on prosecutors’ recent actions in the ASD case went “poof!” over the weekend, and yesterday an individual post that referenced our reporting Sunday on the Moriarty indictment went “poof!”

    A different member, however, started a new Moriarty thread later yesterday in which another Surf’s Up member referenced our Sunday and Monday reports — and it survived for hours, before being knocked to the second page this morning in a furious burst of posts.

    Surf’s Up management, so far, has chosen to say nothing about the Moriarty indictment or even inform members about it.

    Here is the official explanation for the “poof!” policy from Surf’s Up Mod Barb McIntyre. McIntyre announced the policy Friday night.

    “[P]osting PP BS is nothing but stirring trouble so I am calling the other mods and don’t be surprised if it goes ‘poof!’” McIntyre said.

    McIntyre, along with Moriarty, was one of five co-founders of a defunct organization known as ASD Members International (ASDMI). The organization registered as a Missouri nonprofit in October, making the strange claim that it would litigate against government entities involved in the AdSurfDaily case — even if they were behaving legally. If lawsuits didn’t work, then perhaps ASDMI would see about having prosecutors charged with crimes.

    ASDMI existed for less than 90 days — Oct. 30, 2008 through Jan. 26, 2009. The process of dissolving the entity actually began on Dec. 10, about 41 days after its founding. Formal papers were signed Jan. 21, and the dissolution was recorded Jan. 26.

    ASDMI gathered contributions from at least 167 ASD members before dissolving itself. No lawsuit was filed. Even after ASDMI ceased business, Surf’s Up continued to promote Moriarty. McIntyre sent an email to members, announcing an important letter Moriarty had written to Sen. Patrick Leahy, chairman of the Senate Judiciary Committee.

    Despite the fact ASD’s assets were seized as the proceeds of a criminal wire-fraud, money-laundering and Ponzi-scheme operation, Moriarty advised Leahy that the Senate should set its sights on the prosecutors who prevented the scheme from mushrooming globally — not Andy Bowdoin, the person responsible for organizing the scheme

    “Over 50 individual and notarized DEMAND[S] FOR LEGAL EVIDENCE were sent to Jeffrey Taylor, US Attorney; William Cowden, Assistant US Attorney; and Roy Dotson, Special Agent, US Secret Service,” Moriarty said in the February letter to Leahy.

    “Not once did any of these three Government Servants respond,” Moriarty said.

    “Innocent Americans have suffered and continue to suffer because of these incredulous and despicable acts” by prosecutors, Moriarty said.

    Yesterday this Blog reported that, in 2006, Moriarty set up a nonprofit in the name of a man accused of breaking into a woman’s home and murdering her. The man also shot a police officer four times and another man eight times. The man pleaded guilty to first-degree (premeditated) murder last month.

    The Power Of ‘Poof!’

    If you have some money — and if you believe anything you read on the PatrickPretty.com Blog — McIntyre will sell you a bridge in Arizona, she said.

    “Comes with ocean frontage,” McIntyre added.

    Posting a reference to PatrickPretty.com is an act consistent with “trouble makers” and inconsistent with adult behavior, McIntyre advised.

    “We fixed the forum so that the trouble makers could not harass and most of you are not troublemakers and do not need babysitting…or so we thought,” she said.

  • ‘Professor’ Moriarty Started Nonprofit In Name Of Suspect Accused Of Murdering Woman And Shooting Police Officer

    UPDATED 4:28 P.M. EDT (U.S.A.) On June 2, 2006, Bryan Tullock ran a stop sign in his white Cadillac and was pulled over by police in Montgomery City, Mo., investigators said.

    As officer Brandon LyBarger, 25, approached the car shortly after midnight, Tullock shot him four times with a 9-mm handgun and also opened fire on LyBarger’s partner.

    The second officer, Jarrod Brooks, returned fire, striking the Cadillac but not Tullock.

    When officer Brooks called for backup and went to the aid of his downed colleague, Tullock fled, police said.

    Tullock stopped about a block away and broke into the home of Heidi Casagrand. He shot Casagrand twice. She was pronounced dead at the scene.

    Casagrand, 32, was just just days away from the start of her college career, having recently passed her entrance exams.

    Tullock also shot at Casagrand’s husband, David McManus, before leaving the home.

    About a block away from the murder scene, Tullock confronted Ricky Fry, 33. Tullock shot Fry eight times outside of his home, leaving him for dead.

    A manhunt ensued by Montgomery City Police, the Montgomery County Sheriff’s Office, the Audrain County Sheriff’s Office, Wellsville Police, Jonesburg Police, the Missouri Department of Conservation and the Missouri State Highway Patrol.

    Police captured Tullock at 5:42 a.m., less than six hours after the shootings. The date was June 2, 2006.

    On Oct. 2, 2006, four months to the day after the rampage, the state of Missouri recorded the registration of a nonprofit corporation in Tullock’s name.

    Records show that AdSurfDaily mainstay Patrick Moriarty was the registrant of the corporation. Moriarty uses the title “Professor,” and also claims to be a minister and “Tax Return Specialist” who also is skilled in “Karma Restoration.”

    Both officer LyBarger and Ricky Fry survived Tullock’s rampage. They had been struck by a combined total of 12 bullets, according to witness accounts. Two bullets had been fatal to Casagrand.

    After nearly three years, Tullock pleaded guilty to the crimes last month and threw himself on the mercy of the court. He was sentenced to life in prison without opportunity for parole, but could have been sentenced to death. The guilty pleas to multiple crimes, including first-degree murder and shooting a police officer, were not the result of a deal with prosecutors.

    Some of his supporters said Tullock had been abused by a priest as a child, insisting that the shootings were an expression of rage against the priest.

    Others said Tullock coldly planned the shootings and carried them out in a jealous rage because he was unhappy that his ex-girlfriend was friends with Fry. Casagrand was the best friend of Tullock’s ex-girlfriend.

    Moriarty named the nonprofit “Bryan Tullock Org, Inc.” He told Missouri state officials that the organization’s mission was to “protect children from becoming victims of pedophiles and to perform any other legal acts as allowed by Missouri Law and Statutes.”

    All proceeds would be distributed to the Survivors Network of those Abused by Priests (SNAP), Moriarty said.

    Missouri dissolved Moriarty’s nonprofit on Dec. 27, 2007, about 14 months after registration, for failure to file an annual report.

    Moriarty, a mainstay in the AdSurfDaily case — and a co-founder in October 2008 of ASD Members International (ASDMI), another nonprofit — was indicted in March on charges of filing false tax returns.

    Part of ASDMI’s stated mission was to litigate against the government in the AdSurfDaily case and perhaps even bring criminal charges against prosecutors. ASDMI dissolved itself in January 2009, less than 90 days after registering as a corporation in Missouri.

    ASDMI collected money from at least 167 contributors, but never brought any litigation.

  • BREAKING NEWS: ‘Professor’ Patrick Moriarty Indicted On Tax Charges; ASD Mainstay Simultaneously Battles Cancer

    UPDATED 3:39 P.M. EDT (U.S.A.) “Professor” Patrick Moriarty has been indicted on federal tax charges. Parts of the indictment in U.S. District Court for the Eastern District of Missouri were filed under seal March 19.

    A redacted True Bill charged Moriarty with filing false income-tax returns for the tax years 2002, 2003, 2004 and 2005. In court filings, prosecutors identified him as the owner of PCM Enterprises.

    If convicted on all counts, Moriarty would face up to 12 years in prison and a fine of up to $1 million. Moriarty is suffering from cancer. The court is aware of his condition and has been flexible in scheduling proceedings. A Nov. 2 trial date has been set. The charges are felonies.

    Assistant Federal Public Defender Thomas F. Flynn, Moriarty’s attorney, described the litigation as “a complex tax fraud case involving allegedly fraudulent returns.”

    Moriarty, who fashioned a theory in the AdSurfDaily case that the government was interfering with commerce and espoused the legal theories of Curtis Richmond, was arrested March 24 and is free on recognizance bond.

    Richmond is a member of a sham Utah Indian tribe known for filing vexatious litigation, including litigation that resulted in a successful counter-suit brought by Utah public officials under federal racketeering statutes. Although not a lawyer, Richmond holds the unusual distinction of having been banned from the practice of law in Colorado.

    Moriarty Allegations

    Prosecutors said Moriarty underreported his income by an unspecified amount for the tax year 2002; claimed a false deduction of $30,000 for “legal fees” for the tax year 2003; and claimed a false amount of $23,533 withheld for the tax year 2004 and a false amount of $23,433 withheld for the tax year 2005.

    The state of Missouri dissolved PCM Enterprises in 2005 because Moriarty did not file an annual report, records show. The company’s website now resolves to a free hosting domain at tripod.com.

    Moriarty, who once sold fake academic degrees on eBay, explaining they were gag gifts, uses the title “Rev” and purports to be the “minister” of the Universal Life Church (ULC) of Troy, Mo. He lists his qualifications as a Ph.D. and a D.D., and notes he also is an accountant and “Tax Return Specialist.”

    The credentials are listed on a church-provided website, which includes a link by Moriarty to MLM opportunities at the tripod.com page.

    ULC has been the subject of controversy. The church ordains up to 10,000 individuals per month, without charging a fee or holding any classes. Advanced degrees can be obtained for as little as $29.95 with little academic effort, according to ULC’s Wikipedia entry.

  • BREAKING NEWS: Feds Post Bowdoin Home, Publish Forfeiture Notice; Pressure Mounts On Alleged Ponzi Operator

    The government has published an official notice that it intends to seek the forfeiture of 8 Gilcrease Lane, Quincy, Fla. — the home AdSurfDaily President Andy Bowdoin last was known to be living in.

    U.S. Secret Service agents completed a “post & walk” of the home last month, and the government now has advertised the pending forfeiture, according to documents.

    Forfeiture.gov, the official government website for forfeitures, listed the property on Wednesday. It is unclear if Bowdoin was living in the home at the time. The Secret Service posting included a “Notice of Complaint” and a copy of the complaint against the property, according to court filings this week. The home was targeted for forfeiture in August. Prosecutors said it was part of the proceeds of a criminal enterprise.

    Mystery Deepens As Pressure Mounts

    Bowdoin has not responded to a racketeering lawsuit filed against him in January by three ASD members who seek class-action certification. The plaintiffs in the RICO case have said in court filings that they have been unable to perfect service of the complaint. Bowdoin’s former paid attorneys said in April court filings that his last known address was 8 Gilcrease Lane.

    Why Bowdoin has not responded to the RICO complaint remains unclear.

    The Gilcrease Lane home is in the name of Bowdoin/Harris Enterprises, which prosecutors said was a entity set up to permit Bowdoin and his wife, Edna Faye Bowdoin, to hide assets.

    Prosecutors said George Harris, Edna Faye Bowdoin’s son and Andy Bowdoin’s stepson, helped his mother set up a bank account in the name of Bowdoin/Harris Enterprises last summer.

    More than $177,000 in funds derived from ASD was deposited in the account on June 10, 2008. On June 23, 2008, Harris used more than $157,000 of the deposit to pay off the Tallahassee home he shared with his wife, Judy Harris, prosecutors said.

    ASD Ties To AdViewGlobal

    Harris is listed as a trustee for AdViewGlobal (AVG), a surf firm with close ties to ASD. The government filed a forfeiture complaint against the Harris home in December. Bowdoin never told members about the December complaint. In January, he submitted to the forfeiture of tens of millions of dollars seized in August, but again didn’t tell members.

    In late February — at the same time Bowdoin resurfaced after more than two months of silence and began to file pro se pleadings in the August case without consulting with his paid attorneys — AVG introduced members to Pro Advocate Group, a company that says it can help people practice law without a license.

    Bowdoin said in court filings that he changed his mind about submitting to the forfeiture. In March, he advised members through the Pro-ASD Surf’s Up forum that he had fired his attorneys and had changed his mind about giving up the money after consulting with a “group” to which he’d been introduced by ASD members.

    Prosecutors countered by saying Bowdoin had signed a proffer letter in the case and had acknowledged to law enforcement that ASD had been operating illegally. The government did not disclose the contents of the letter or the date upon which Bowdoin had signed it.

    Proffer letters sometimes mean the one who proffers seeks to minimize exposure while providing information helpful in the prosecution of others.

    AVG’s prelaunch was under way on Dec. 19, the date prosecutors filed the second forfeiture complaint against assets tied to ASD. The assets included the Harris home, a building in Quincy for which Bowdoin had paid $800,000 cash, three automobiles (including one registered to Harris and his wife), an assortment of marine equipment and personal computers.

    The December forfeiture complaint does not reference AVG, but a large section of the complaint details how Bowdoin allegedly started one autosurf site (ASD) and ported members owed money when the surf failed to a new site (ASD Cash Generator) — without telling new members their money was being used to pay off members of the original site.

    One of the early promoters’ suggestions about AVG was that ASD accounts could be ported to AVG. If this occurred, in whole or in part, it would have reflected the process ASD used when morphing into ASD Cash Generator.

    Although AVG expressly denied any affiliation with Bowdoin and ASD in a disclaimer published on its website, the company later announced in articles of association that Harris was a trustee. A previous announcement identified Gary Talbert as its chief executive officer. Talbert is a former ASD executive. AVG also listed Nate Boyd, whom ASD members described as a former ASD employee, as “protector” of the AVG association, which also is known as AVGA.

    Meanwhile, the company issued a news release identifying Chuck Osmin, a former ASD employee who had testified on behalf of ASD last fall, as an AVG employee. Some Mods and members of Surf’s Up started a forum for AVG.

    On March 20, AVG issued an announcement that Talbert had resigned as chief executive officer. On March 23, AVG announced that its bank account had been suspended. On May 4, AVG announced it had a deal that would enable members to pay for “advertising” via international wire transfer. Three days later, on May 7, one of the companies AVG had cited as being a participant in the transfers denied it had any business relationship with AVG and said it believed it had been targeted in a scam.

  • BREAKING NEWS: Clerk Records Golden Panda ‘Default’

    On Monday, prosecutors filed papers to begin the process of finalizing the default of more than $14 million seized from Bank of America accounts controlled by Golden Panda Ad Builder President Clarence Busby and his daughter, Dawn Stowers.

    A court clerk today entered a default notice for a total sum of $14,045,598.07.  The notice clears the way for the government to take final control of the money.

    Golden Panda had five Bank of America accounts, including one that contained precisely $6 million. The company operated in launch phase for only eight days, although Golden Panda also operated in “prelaunch” phase, recording nearly 20,000 members in weeks.

    Here is a list of the Golden Panda accounts and the default amounts:

    (1) $2,282,999.72 seized from account #[deleted by this Blog] at Bank of America, in the
    name of Clarence Busby Jr. and Dawn Stowers, DBA Golden Panda Ad Builder Deposit Account;
    (2) $1,112,978.42 seized from account #[deleted by this Blog] at Bank of America, in the name of Clarence Busby Jr. and Dawn Stowers, DBA Golden Panda Ad Builder Operating Account;
    (3) $1,642,039.08 seized from account #[deleted by this Blog] at Bank of America, in the name of Clarence Busby Jr. and Dawn Stowers, DBA Golden Panda Ad Builder Cashout Account;
    (4) $6,000,000.00 seized from account #[deleted by this Blog] at Bank of America, in the name of Golden Panda Ad Builder;
    (5) $3,007,580.85 seized from account #[deleted by this Blog] at Bank of America, in the name of Golden Panda Ad Builder.

    In court filings, Clarence Busby said Golden Panda was born in April 2008, on a Georgia fishing lake, after discussion with AdSurfDaily President Andy Bowdoin.

    “As a social courtesy to Bowdoin, I asked a pastor friend of mine, Rev. Charles Green, if he might bring his boat and join me in inviting Bowdoin on a relaxing fishing trip,” Busby told U.S. District Judge Rosemary Collyer. “I imagined that operating ASD involved a lot of stress, and I had heard Bowdoin liked to fish. I also wanted a respite from work. The invitation was extended and Bowdoin agreed to join us.”

    “On April 11, 2008, we fished at a lake in Brunswick, Georgia for a day. On that Day Bowdoin surprised me by recommending that I start a Chinese version of ASD,” Busby said.  “Bowdoin suggested that I organize the business without him. He said, ‘I can’t handle the business I already have,’ stating that I should be the one to create, own, and operate this Chinese version of ASD.”

    In his court filings, Busby said he didn’t know Bowdoin “had prior run ins with the law” and had been arrested in Alabama for defrauding investors.

    Busby did not say if he told his fishing partner about his own run-ins with the law: The Securities and Exchange Commission said Busby defrauded investors in the 1990s.

    “[T]he Commission alleged that Busby violated the antifraud provisions of the securities laws by offering and selling investment contracts in connection with three different prime bank schemes,” the SEC said.

    “Using misrepresentations and omissions in each of the three schemes, Busby raised money for purported trading programs in ‘prime bank’ notes by fraudulently representing to investors that the investments were risk-free and that the ventures would pay returns ranging from 750% to 10,000%. In total, Busby raised nearly $1 million from more than 70 investors. None of the investors earned the exorbitant returns promised by Busby,” the SEC said.

    Busby settled the case with the SEC in May 1998 by agreeing not to break securities laws. Ten years later, he once again found himself a central figure in a securities scheme, right next to Bowdoin.

  • AdSurfDaily Downline Group Known As ‘Oneteam’ Repeatedly Used Names Of Government Agencies, Bank Of America In Advertisements For Embattled Andy Bowdoin ‘Surf’ Firm

    An AdSurfDaily downline group known as “oneteam” used the names of U.S. government agencies, a Congressionally chartered insurance entity for depositors and Bank of America in what appears to have been a brazen bid to disarm doubting prospects continuously in advertisements for at least 18 months.

    The ads appeared online beginning in February 2007.

    Among other things, the ads advised prospects that ASD provided “shelter” from the Federal Trade Commission (FTC) and the Securities and Exchange Commission (SEC). The FTC, among its many duties, polices false advertising; the SEC regulates the securities industry, prosecuting illegal activities such as securities fraud, the sale of unregistered securities and Ponzi schemes in a securities environment — all of which are activities associated with the so-called autosurf “industry.”

    Autosurfs typically call themselves “advertising” companies in a bid to avoid regulatory scrutiny and short-circuit prosecutions. “oneteam’s” ads began to appear one year to the month after the SEC filed fraud charges against 12DailyPro in February 2006, in a widely publicized case that effectively smashed a $50 million Ponzi scheme. ASD was struggling to recruit members when the “oneteam” ads debuted.

    “oneteam’s” ads also repeatedly mentioned the Federal Deposit Insurance Corp. (FDIC), an independent agency created by Congress during the height of the Great Depression in 1933 to maintain stability and public confidence in the U.S. financial system. One version referenced the FDIC in prominent type in a headline box and included another FDIC reference below, placing Bank of America’s name right next to the FDIC claim.

    The web library archive.org archived the ads at a specific “oneteam” URL between February 2007 and October 2007, a period of eight months. The ads, however, appear to have continued for at least 10 months beyond that, according to a screen shot taken Aug. 26, 2008, as part of this Blog’s research into ASD.

    ‘Damned Determined To Be Rich’

    Meanwhile, a second URL associated with “oneteam” styled the group as “Teamed For Integrity,” noting that members were known as the “Damned Determined To Be Rich Bunch.”

    The URL “oneteam” created for its ASD ads was active for a minimum of 25 days after the government began the process of seizing tens of millions of dollars from ASD on Aug. 1, 2008, amid allegations of wire fraud, money-laundering and securities fraud in a Ponzi environment. The “oneteam” ad appeared at the URL at least through Aug. 26, 2008. It went missing on a date uncertain after Aug. 26.

    The URL — http://oneteam.homestead.com/asdall.html — now resolves to the main page at homestead.com, a hosting service. Previously it behaved as a subdomain, with the URL resolving to the ASD ads.

    An archive.org archive from Feb. 9, 2007 (see note below about an earlier archive from a different URL), strongly suggests that “oneteam” was trying to plant the seed that ASD was like no other surf program because member deposits were “insured” by the FDIC. Bank of America’s name appeared directly next to the FDIC claim, the third claim on a numbered list.

    Here is a screen shot of “oneteam’s” Bank of America claim, with our notes included in red outlines:

    Screen shot on 'oneteam' making claim that ASD deposits were insured by the FDIC, that the company provided 'shelter' from the FTC and the SEC -- and highlighting a tie to Bank of America next to the FDIC claim.
    Screen shot of 'oneteam' making claim that ASD deposits were insured by the FDIC, that the company provided 'shelter' from the FTC and the SEC — and highlighting a tie to Bank of America next to one of the FDIC insurance claims.

    To see the archive.org archives of “oneteam” ads, visit archive.org and type in this URL:

    http://oneteam.homestead.com/asdall.html

    To see the archive.org archive of the “Teamed For Integrity” page, visit archive.org and type in this URL:

    http://oneteam.homestead.com/index.html

    NOTE ABOUT EARLIER ARCHIVE: To see the archive.org archive for yet another URL “oneteam” used to promote ASD, visit archive.org and type in this URL:

    http://oneteam.homestead.com/asd.html

    The URL that ends with “asd.html” first was recorded by archive.org on Feb. 3, 2007, and lists several captures beyond that. In these versions of the ad, “oneteam” touted ASD “longevity.” The Feb. 3, 2007, version of the ad said ASD was “predicted to go mainstream by 2/23/07!” — making an additional claim that ASD had a “NEW Un-Breakable Business Model.” The “oneteam” group later changed the predicted date ASD would go “mainstream” from Feb. 23, 2007, to May 1, 2007. The earliest archived version of this URL (Feb. 3, 2007) also featured the FDIC claim in a prominent headline box, and placed Bank of America’s name next to the FDIC claim lower in the ad.

    FDIC Claim Removed From Headline

    The Feb. 9, 2007, ad at “asdall.html” appears to have been pulled quickly — perhaps appearing online for a minimum of one day and a maximum of eight before being edited and restructured. By Feb. 17, Bank of America’s name had been deleted from the numbered list — although the FTC, SEC and FDIC claims remained — and Bank of America’s name continued to appear elsewhere in the ad.

    “oneteam” also restructured the ad in other places. The Feb. 9 version, for instance, made the brazen FDIC insurance claim in 14-point Arial type in a headline box near the top of the page. The FDIC claim in the headline box did not appear on Feb. 17, 2007, the date archive.org recorded its next visit to the site.

    Later versions of the ad also dropped the FDIC claim from the headline, while maintaining the claim lower in the ad and not mentioning Bank of America in the context of FDIC insurance. The final archive entry is dated Oct. 5, 2007.

    “oneteam’s” pitch was supplemented in forum posts that also used Bank of America’s name. Here is a claim from Feb. 25, 2007, that cites the “oneteam” URL, Bank of America’s name and a sign-up link for ASD.

    At one time, the first external link on the “oneteam” page at “asdall.html” resolved to this URL: http://www.adsurfdailytraining.com

    ASD President Andy Bowdoin is listed as the adsurfdailytraining.com domain owner. The domain was registered on Oct. 12, 2006. It listed an address — 13. S. Calhoun Street, Quincy, Fla. — federal prosecutors later said was fraudulent. Heardy Myers of Marietta, Ga., is listed as the technical contact for the domain. The URL now resolves to a parked GoDaddy.com page.

    Virtually every claim made in the “oneteam” ad is dubious or demonstrably false, including the apparently toned-down version that deleted Bank of America’s name from the numbered slot next to the FDIC claim. Some of the claims — the references to the SEC, FTC and FDIC, for instance — can be described aptly as utterly preposterous.

    Although the Bank of America reference in the numbered list next to the FDIC claim was deleted, subsequent versions of the ad continued to reference the bank lower in the copy, using these words:

    “*USA – Direct Deposits can be made through Bank of America*.”

    The asterisks led to a prompt to “*Please get back to the person who invited you to this page for their Web Site Link*.” A confusing claim also was made that Dallas Cowboys’ owner Jerry Jones had provided a testimonial, apparently for a non-Bank of America debit card somehow connected to ASD.

    Even as Bowdoin — whom prosecutors described as a “convicted fraudster” — was suspending pay-outs and blaming problems on a script that purportedly overpaid members and drained ASD’s resources in early 2007, “oneteam” positioned ASD as “well-capitalized” with “top management.”

    “oneteam” also repeatedly heralded (for months) an imminent ASD name change and, at one point, asserted that ASD had been marketing itself  “all wrong.”

    Some of the claims border on the bizarre, because they are so obviously untrue. The references to “shelter” can be construed as a bid to make ASD appear to be legal or a safe option — unlike 12DailyPro, which was smashed by the SEC in February 2006, one year prior to the appearance of “oneteam’s” ASD ads.

    Meanwhile, the FDIC claims can be construed as a bid to fool customers into believing that money they invested in ASD was insured against investor losses, meaning there was no way to lose money with ASD.

    Here is a screen shot taken by this Blog Aug. 26, 2008, of a “oneteam” ASD ad that appeared live at the “asdall.html” URL:

    Screen shot of second version of 'oneteam' claim that eliminates the FDIC insurance claim in the headline (while preserving it lower in the copy) and drops Bank of America's name from the ad.
    Screen shot of a second version of 'oneteam' claim. This ad eliminated the FDIC insurance claim in the headline (while preserving it lower in the copy) and dropped Bank of America's name from the slot next to the FDIC claim. Bank of America's name, however, appeared elsewhere in the ad (not pictured).

  • Oddities Abound In ASD Case, ‘Surf World

    Oddity One: As first reported here yesterday, Andy Bowdoin had the exact same amount on deposit in three separate Bank of America accounts: $1,000,338.91.

    Such an oddity seems impossible, if not deliberate. Could the $338.91 tacked on the end of all three sums be interest on individual deposits of exactly $1 million each all made on the same day — not long before the Aug. 5 formal seizure?

    If so, why would ASD need three accounts containing precisely $1 million each opened on the same day?

    Oddity Two: Back in January, this Blog made a video of AdViewGlobal graphics appearing in a webroom operated by ASD and then disappearing. Yesterday the YouTube system emailed us about a comment left at the video site by a person who identified himself as “AVGACompliance” and “Juan.”

    Here is the comment left by “AVGACompliance” and “Juan”  (italics added):

    Please remove this video ASAP as you are using unauthorized material and this is part of our terms & service. If you don’t remove this information your account will be terminated.
    Thanks
    Juan

    We did a quick search of videos about the AdViewGlobal autosurf, and found that the exact same comment signed by “AVGACompliance” and “Juan” had been left elsewhere at YouTube. We also noticed that AVG now appears to have its own officially endorsed video.

    Assuming “AVGACompliance” and “Juan” have a real tie to AVG and that their aim is to make sure only the officially endorsed video gets shown on YouTube under the threat of an account termination at AVG, we have to wonder if “AVGACompliance” and “Juan” actually even watched our video.

    We don’t have an account at AVG for Compliance to terminate. The title of our video is, “Ad Surf Daily Ponzi Scheme Tie To Ad View Global.”

    So much about AVG is hard to explain. At one time, the surf said it had no ties to ASD, after prelaunch promoters for weeks did their best to tie together the two firms, even suggesting that ASD credits could be transferred to AVG.

    See this January picture story.

    AVG and ASD have common ties, common management and common promoters. Just last week AVG said it had a deal that would enable customers to wire money offshore to pay for “advertising.” Trouble was, a company AVG said was involved in the transfers said it had no business relationship with AVG, said the surf’s claims were false and added that it was conducting an investigation because it believed it had been targeted in a scam.

  • BREAKING NEWS: Government Seeks Golden Panda Default

    As anticipated, the government has filed papers to finalize the forfeiture of more than $14 million seized from Bank of America accounts controlled by Golden Panda Ad Builder President Clarence Busby and his daughter, Dawn Stowers.

    Busby surrendered claims to the funds in September. Earlier today the government set the official total of funds seized from Golden Panda at $14,045,598.07.

    Golden Panda’s largest account contained exactly $6 million, prosecutors said. Another account contained more than $3.007 million. A third account contained more than $2.282 million. A fourth account contained more than $1.642 million. Golden Panda’s smallest account contained more than $1.112 million.

    Unofficially, Golden Panda operated only eight days.

    Other than to formalize official amounts seized from AdSurfDaily in the same case, the government has not sought an entry of default and litigation continues. Prosecutors seek more than $65.8 million seized from ASD President Andy Bowdoin.

    Prosecutors, however, included a footnote in this afternoon’s Golden Panda filing that said it intended to oppose any attempts for nonparties to intervene in the ASD case.

    “Some former participants of the ASD operation have sought to challenge the government’s forfeiture case against ASD funds,” prosecutors said. “These would-be interveners maintain that some of ASD’s funds belong to members who were exercising ‘a constitutional right to contract with ASD’ for the wealth ASD promised to them — regardless of the source of the payments.”

    Bowdoin has conceded that ASD was operating illegally at the time of the forfeiture. Prosecutors said last month he signed a proffer letter in the case.

    Golden Panda Seizure Numbers

    Prosecutors certified these Golden Panda seizure amounts:

    (1) $2,282,999.72 seized from account #[deleted by this Blog] at Bank of America, in the
    name of Clarence Busby Jr. and Dawn Stowers, DBA Golden Panda Ad Builder Deposit Account;
    (2) $1,112,978.42 seized from account #[deleted by this Blog] at Bank of America, in the name of Clarence Busby Jr. and Dawn Stowers, DBA Golden Panda Ad Builder Operating Account;
    (3) $1,642,039.08 seized from account #[deleted by this Blog] at Bank of America, in the name of Clarence Busby Jr. and Dawn Stowers, DBA Golden Panda Ad Builder Cashout Account;
    (4) $6,000,000.00 seized from account #[deleted by this Blog] at Bank of America, in the name of Golden Panda Ad Builder;
    (5) $3,007,580.85 seized from account #[deleted by this Blog] at Bank of America, in the name of Golden Panda Ad Builder.

  • BREAKING NEWS: Government Seized $65.8 Million From Bowdoin Accounts, $14 Million From Busby Accounts

    UPDATED 5:13 P.M. EDT (U.S.A.) Federal prosecutors have filed papers that formalize the official total of deposits seized from Bank of America accounts held by AdSurfDaily President Andy Bowdoin and Golden Panda President Clarence Busby.

    The amounts appear to be significantly higher than believed initially and take into account “credits, and net of offsets that occurred,” prosecutors said.  The amount cited in the August forfeiture complaint was approximately $53 million.

    After reconciliation, the actual amount seized totaled more than $79.88 million. Prosecutors said the money was being held in a U.S. Customs Suspense account.

    It was not immediately clear if the total takes into account cashier’s checks seized as part of the investigation into allegations of wire fraud, money-laundering, engaging in the sale of unregistered securities and operating a Ponzi scheme.

    After the Department of Justice announced the figure of approximately $53 million last year, the U.S. Secret Service announced that it ultimately found more than $93.5 million, which led to speculation that the cashier’s checks had totaled approximately $40 million.

    Bowdoin’s 10 accounts — all of which were in his name as a sole proprietor doing business as AdSurfDaily — contained $65,838,999.70 in total, prosecutors said. The largest Bowdoin account contained more than $31.6 million. Another Bowdoin account contained more than $23.7 million. A third Bowdoin account contained more than $4.99 million. (An additional $107 would have made it an even $5 million.)

    Three Bowdoin accounts contained the exact same amount: $1,000,338.91. Three other accounts contained smaller amounts, and one additional account contained more than $1.088 million.

    Bowdoin’s smallest account contained $13,286, prosecutors said.

    Busby’s five Golden Panda accounts — some of which also included the name of his daughter, Dawn Stowers — contained $14,045,598.07 in total, prosecutors said. The largest account contained exactly $6 million. Another Busby account contained more than $3.007 million. A third Busby account contained more than $2.282 million. A fourth Busby account contained more than $1.642 million. Busby’s smallest account contained more than $1.112 million.

    Seizure Totals

    Here are the seizure totals listed by prosecutors today:

    Andy Bowdoin

    (a) $1,088,246.48 from account #[deleted by this Blog] at Bank of America, in the name of
    Thomas A. Bowdoin, Jr., Sole Proprietor, DBA ADSURFDAILY;
    (b) $31,674,039.13 from account #[deleted by this Blog] at Bank of America, in the name of
    Thomas A. Bowdoin, Jr., Sole Proprietor, DBA ADSURFDAILY;
    (c) $937,470.18 from account #[deleted by this Blog] at Bank of America, in the name of
    Thomas A. Bowdoin, Jr., Sole Proprietor, DBA ADSURFDAILY;
    (d) $13,286.89 from account #[deleted by this Blog] at Bank of America, in the name of
    Thomas A. Bowdoin, Jr., Sole Proprietor, DBA ADSURFDAILY;
    (e) $403,791.04 from account #[deleted by this Blog] at Bank of America, in the name of
    Thomas A. Bowdoin, Jr., Sole Proprietor, DBA ADSURFDAILY;
    (f) $4,999,893.00 from account #[deleted by this Blog] at Bank of America, in the name of
    Thomas A. Bowdoin, Jr., Sole Proprietor, DBA ADSURFDAILY;
    (g) $23,721,256.25 from account #[deleted by this Blog] at Bank of America, in the name of
    Thomas A. Bowdoin, Jr., Sole Proprietor, DBA ADSURFDAILY;
    (h) $1,000,338.91 from account #[deleted by this Blog] at Bank of America, in the name
    of Thomas A. Bowdoin, Jr., Sole Proprietor, DBA ADSURFDAILY;
    (i) $1,000,338.91 from account #[deleted by this Blog] at Bank of America, in the name
    of Thomas A. Bowdoin, Jr., Sole Proprietor, DBA ADSURFDAILY;
    (j) $1,000,338.91 from account #[deleted by this Blog] at Bank of America, in the name
    of Thomas A. Bowdoin, Jr., Sole Proprietor, DBA ADSURFDAILY;

    Clarence Busby/Golden Panda

    (k) $2,282,999.72 from account #[deleted by this Blog] at Bank of America, in the name of
    Clarence Busby Jr. and Dawn Stowers, DBA Golden Panda Ad Builder Deposit
    Account;
    (l) $1,112,978.42 from account #[deleted by this Blog] at Bank of America, in the name of
    Clarence Busby Jr. and Dawn Stowers, DBA Golden Panda Ad Builder Operating
    Account;
    (m) $1,642,039.08 from account #[deleted by this Blog] at Bank of America, in the name of
    Clarence Busby Jr. and Dawn Stowers, DBA Golden Panda Ad Builder Cashout
    Account;
    (n) $6,000,000.00 from account #[deleted by this Blog] at Bank of America, in the name
    of Golden Panda Ad Builder; and
    (o) $3,007,580.85 from account #[deleted by this Blog] at Bank of America, in the name
    of Golden Panda Ad Builder.