In early September, federal prosecutors informed U.S. District Judge Rosemary Collyer that an official website had been established to inform victims of the alleged AdSurfDaily Ponzi scheme about the remissions and restitution process.
The government’s filing, which lists the URL of the website — http://www.adsurfdailyremission.com/ — is a public record. It has been on Collyer’s docket since Sept. 2. It is signed by three federal prosecutors, including Ronald C. Machen Jr., the U.S. Attorney for the District of Columbia.
What the filing means is that the government has formally notified Collyer that it has done what it said it would do all along: Arrange for ASD victims to receive restitution from seized funds through a formal process known as remission.
The remissions website is operated by Rust Consulting Inc., which is under contract with the government to handle the remissions and restitution process.
The PP Blog has seen reports and received inquiries from readers about a company known as Anshell Financial Services LLC (AFS). Among other things, AFS claims to be able to “expedite” the process of recovery. It also claims it has “established an efficient business relationship” with Rust, the official claims administrator.
Not so fast, says Rust.
“Rust Consulting, Inc. is an independent claims administrator that has been retained by the U.S. Secret Service to assist in processing Remission Forms,” Rust said. “Neither the U.S. Secret Service nor Rust Consulting, Inc. are in any way affiliated with or endorse AnShell Financial Services.”
AFS published a document on its website that says it will charge a recovery fee to assist ASD, Golden Panda and LaFuenteDinero members. The document was called a “retainer agreement.”
“The fee for these services is a retainer of the lesser of 10% of your investment or $1,000 against 10% of the recovered investment,” AFS said. The company also noted in an email to victims that it may be “intimidating and unpleasant” to work with the government.
There is no need to pay any company to recover money seized by the Secret Service in the ASD case. Contrary to claims made by some ASD members, the government has said all along that it intends to form a restitution pool from the seized assets. It has hired Rust to administer the process and the pool.
As things stand today, the pool is not fully funded because of appeals filed by ASD President Andy Bowdoin. The government is 3-0 in the forfeiture litigation so far, and 1-0 in the appeals process — with a Bowdoin appeal remaining to be decided.
Among the bizarre claims circulated by some ASD members is that prosecutors placed approximately $80 million seized in the case in interest-bearing accounts that generated $1 billion or more in revenue.
Some ASD members claimed prosecutors were partying with the money and had stolen at least some of it. Others claimed Collyer was conspiring with another federal judge to deny ASD members justice.
Even as some ASD members were making one bizarre claim after another, others added to strange nature of the case by claiming there were no “witnesses” and no “evidence” against ASD in the case.
These claims were made despite the fact Collyer conducted an evidentiary hearing in open court over a two-day period in the fall of 2008. ASD members attended the hearing and even testified. Evidence was tested and witnesses examined by both the government and the ASD side.
Some of the evidence against ASD has been in the public record since Aug. 5, 2008. Regardless, dozens of members continued to insist there was no evidence against the company.
In November 2008, Collyer ruled that ASD had not demonstrated it was a lawful business and not a Ponzi scheme.
Bowdoin later signed a proffer letter and acknowledged the government’s material allegations all were true. He met with prosecutors over a period of at least four days, and gave information against his interest because he believed that cooperation possibly could help him avoid a prison sentence, according to Bowdoin’s own court filings.
In January 2009, Bowdoin submitted to the forfeiture. In March 2009, he said through a letter released on the now-defunct Surf’s Up forum that he changed his mind after consulting with a “group” of members. Bowdoin tried to renew his claims to the money, but the effort failed after a months-long court battle.
Bowdoin next tried to have Collyer removed from the case, another effort that failed. He has blamed lawyers from both sides of the case for his legal predicament, and claimed his continuing fight was inspired by a former Miss America.