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Tag: ASD Refunds

  • Two Days Before Remissions Deadline, ASD Members Receive Yet-Another Confusing, Highly Questionable Email That Suggests Victims Seeking Restitution Should Tell Administrator That Program Was Not An Investment

    Andy Bowdoin.

    Some AdSurfDaily members have received an email that appears to be attributed in part to Sara Mattoon, the embattled autosurf firm’s former spokeswoman. The most recent correspondence fractures facts, suggests the government has no credible witnesses or evidence in its wire-fraud and securities-fraud case against ASD President Andy Bowdoin and implies suggestions given to recipients are a legal “opinion” from a qualified expert.

    The date upon which the email was sent was unclear. At least one former ASD member reported receiving a copy of it today.

    Like previous emails, the content of the email appears to be a compendium in which Mattoon and perhaps others assembled information and passed it along as though it were fact.

    Among the claims are that federal prosecutors are creating victims out of thin air, that the government is engaging in trickery, that a pyramid-scheme case filed against ASD in Florida “was decided in ASD’s” favor, that “the government is in a very bad position to win a jury trial,” that prosecutors have “have no material tangible evidence and no credible witnesses to prove their case” — and that the remissions program is a “scam.”

    Contrary to the claims in the email, the pyramid case brought by the state of Florida was not decided in ASD’s favor. The case did not go to trial, and no judge ruled that the government’s case was fatally flawed. Moreover, no judgment was issued in ASD’s favor.

    State prosecutors said they dismissed the Florida civil case because two final orders of forfeiture already had been entered by U.S. District Judge Rosemary Collyer in civil litigation in federal court and that victims had a compensation remedy through the federal remissions program.

    The deadline for filing a claim through Rust Consulting Inc. — the official claims administrator — is Jan. 19. There have been repeated attempts by some ASD members to discredit Rust, which is under contract with the U.S. government to administer the program.

    A list of Florida victims already had been submitted to Rust, Florida prosecutors said. In October 2010, Florida confirmed it had dismissed the state-level pyramid case. Two months later, in December 2010, Bowdoin was charged criminally under federal law with wire fraud, securities fraud and selling unregistered securities. An investigation into his business practices has been under way since July 2008.

    Regardless, the most recent email suggests that government evil is afoot.

    “And we all need to be very pragmatic about this,” the email read in part, citing a purported “opinion” without providing the source of the opinion. “We purchased advertising legitimately. … Now it’ll be up to a real jury, and if ASD/Andy have lawyers that are even remotely competent, the verdict will be not guilty.”

    Bowdoin was arrested Dec. 1. Federal prosecutors accused him of operating a Ponzi scheme that had gathered at least $110 million. Bowdoin, 76, is free on bail.

    In the email, the criminal charges against him were pooh-poohed, apparently by the author of the “opinion.”

    “But the bottom line on all of this is twofold,” the email read. “First, the government is in a very bad position to win a jury trial – they have no material tangible evidence and no credible witnesses to prove their case. Second – all these ‘scams’ including the Rust group are ploys, most likely instigated by the government to try and turn up ‘witnesses’ who will say they have been victims of investment fraud. But those who will say that can be torn apart by the ‘Terms and Conditions’ they agreed to during Defense cross-examination. The other witnesses – the government agents (or informers) can also be torn apart during cross examination. The vote by the jury must be unanimous in a felony case BEYOND A REASONABLE DOUBT and the government knows that they simply don’t have the evidence or the witnesses to get by that.”

    Repeated claims have been made by some ASD members for months that the government lacked both witnesses and evidence. Despite the claims, the government announced last week in court filings that it had gathered at least 500,000 pages of emails and at least 100,000 pages of bank records as part of the probe.

    Meanwhile, prosecutors said the U.S. Secret Service had identified at least 40,000 potential ASD victims.

    Like a previous email, the most recent email also suggested that ASD members should use the remissions form to claim ASD was not an investment program. Such an approach potentially could result in a situation in which participants disqualified themselves from receiving restitution from assets seized in the case by the U.S. Secret Service.

    Prosecutors alleged that ASD was an investment business masked as an advertising company.

    Even so, some ASD members are sticking with an assertion that ASD was a legitimate advertising firm.

    “If you feel that you want to fill it out, [the claims form] must be mailed to [Rust] by 1/19/11,” the email read. “If you do choose to fill it out, then where your signature would be, you may want to write the words ‘See Addendum.’ Then attach a statement something like this (in your own words):

    ‘I am very clear that this was not an investment and that I was purchasing advertising. And, since the government shut down my advertising company and I therefore did not get the advertising I paid for, I would like to get my advertising money back from whomever is holding it now.’

    “Sign it and send it in with the forms supplied by Rust,” the email advised recipients.

    At the same time, the email solicited prayers and cautioned against working with AnShell Financial Services, a company that says it is helping some ASD members fill out the remissions form for a fee.

    Rust, the official claims administrator, has specifically disclaimed any affiliation with AnShell and has urged caution in dealing with the firm, which is approved neither by Rust nor the government.

    Some ASD members appear to be as paranoid about the work AnShell is doing for certain members as they are about the government and Rust.

    “The form you received from Sheldon Drobny, CPA/AnShell Financial Services is someone who was retained by a group of ASD/Golden Panda members to get their money back from the government,” the most recent email read. “This is the company that is holding the conference calls. If you feel you want to participate, be careful here also. Use the same attitude there: you didn’t make an investment; you purchased advertising. There is danger that this could be used against ASD also. Pray about it and decide for yourself if you want to participate.”

    The email ended by citing the name “Sara” as the sender.

    “That’s all I have for now,” the email concluded. “I am still very swamped caring for my husband and I am not a lawyer so I can’t really advise you further and answer any questions. Hope this is helpful. I still haven’t been able to process all the emails I received from ASD members in the Fall of 2009, giving me their change of e-address, so please pass it on to all ASD members you know. God’s Blessings, Sara.”

  • Now, Highly Confusing, Competing Claims About The AdSurfDaily Remissions Program Appear On RipoffReport.com; Post Fractures Facts; DON’T BE CONFUSED

    Andy Bowdoin

    First, don’t be confused. Rust Consulting Inc. is the official claims administrator under contract with the U.S. government to handle claims from victims of the alleged AdSurfDaily Ponzi scheme. ASD also is known as ASD Cash Generator.

    See this document at Justia.com. It is signed by Ronald C. Machen Jr., the U.S. Attorney for the District of Columbia, and appears on the court docket of U.S. District Judge Rosemary Collyer. The document lists the URL for the official claims site: http://www.adsurfdailyremission.com

    Today a highly confusing report appeared on RipoffReport.com suggesting that, not only was ASD a ripoff,  but so is the claims program. The PP Blog became aware of the report after receiving a message from Google Alerts, which the Blog uses to track mentions of ASD Cash Generator across the web.

    The PP Blog sought to contact Rust about the Ripoff Report, but it was past business hours. The Blog left a detailed message for the firm.

    Here is the headline of the Ripoff Report: “Asd cash generator ad Surf daily remission administrator Beware…scam, Internet . . .”

    Meanwhile, the report says this, “do not reply to remission forms that says from secret services asking for your bank account and social security number informations. secret services do not send out such forms asking specific account numbers. and secret services do not use post office box numbers address.”

    At the same time, the report urges readers to “report your forms to your better business bureau.”

    Other mistakes dot the Ripoff Report — for example, the Minnesota address of the claims administrator is listed as the address for ASD and the URL for the official claims site is incorrect.

    The U.S. Secret Service conducted the ASD investigation. Rust, the government-approved claims administrator, is using a Post Office Box to receive completed claims forms. The company specifically informs ASD members on the remissions site that it is asking victims to provide bank-account information so they can receive restitution by electronic deposit.

    “Payment will be disbursed by electronic funds transfer after all Remission Forms are decided,” the company notes on the website. “Therefore it is necessary to ensure that the section requiring your banking information is completed in full on the Remission Form in order to receive a remission payment.”

    The official remissions form also asks for a Social Security number or Employer Identification Number (EIN).

    Why a poster on RipoffReport.com appeared to imply that the “secret services” did not authorize the information to be gathered was unclear. The U.S. Secret Service has the duty of assisting the U.S. Department of Justice in reviewing the claims.

    The ASD case has been marked by one bizarre event after another. In recent weeks, some ASD members have tried to confuse others about the remissions process.

    ASD President Andy Bowdoin, who was indicted on felony charges earlier this month, is scheduled to make his first court appearance in the District of Columbia tomorrow.

  • NOTE TO ASD VICTIMS: Rust Consulting Inc. Is The ONLY Authorized Claims Administrator; Don’t Be Confused By Claims Another Company Can Expedite Refunds

    ASD's Andy Bowdoin.

    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.

  • EDITORIAL: AdSurfDaily Refund Procedure Takes Weapon Away From Serial Ponzi Autosurf Promoters

    The government has established a refund procedure for the AdSurfDaily, LaFuenteDinero and GoldenPandaAdBuilder Ponzi case that requires victims to file petitions for remission or mitigation.

    Petitions must be filed in writing and under oath. The government will provide instructions. Patience is required because the case has not been litigated to conclusion.

    “Under Section 9.8(a)(1) and (2) of Title 28 of the Code of Federal Regulations, in a petition for remission or mitigation of forfeiture a non-owner victim must demonstrate that it suffered a pecuniary loss of a specific amount directly caused by the criminal offense(s) underlying the forfeiture, or a related offense, and that the loss is the direct result of the criminal acts,” the government said.

    We see this as a valid, useful approach, something that places a critical check on the wink-nod nature of autosurfs. Serial promoters now know — beyond a shadow of a doubt — that the government views autosurfs as criminal enterprises. If you played the game, you have to take proactive steps to get your money back, and you have to certify you were a crime victim.

    It might be hard to certify yourself a crime victim if you’re still playing the autosurf game and your name pops up the next time an autosurf gets busted. It will be harder yet to persuade people that government “evil” led to your demise after you’d been warned repeatedly not to play the game.

    Most members will view the refund procedure as a minor hurdle. After all, they relied on assertions Andy Bowdoin made that the program was legal. They were shocked at the seizure and appalled beyond measure as details about the depth of ASD’s deception came to light.

    But this will be a bitter pill for some ASD members to swallow, perhaps particularly serial promoters, promoters who race from program to program and actively, even aggressively promote autosurf Ponzi schemes.

    They were “shocked” by ASD developments only in the same sense Captain Renault was “shocked” at the gambling “going on” inside Rick’s Café Américain in “Casablanca,” which is to say they weren’t shocked at all. Like Renault, they pocketed their winnings and looked forward to pocketing some more in wink-nod fashion.

    What the government is doing, plainly, is signaling autosurf participants that they’re not going to be able to claim victimhood in one autosurf while collecting profits and insisting all is legal and completely above-board in another.

    What’s been most appalling about the ASD case is the insistence by some people that autosurfs are a harmless game. Even as autosurfs were folding and failing during the holidays, taking members’ money and leaving them with even deeper feelings of uncertainty and insecurity during lean economic times, they continued to promote these miserable businesses.

    One board we visited a few days ago included a thread in which people were inquiring how to get ASD refunds while the same people were actively promoting other autosurfs. It is impossible to reconcile these conflicting messages, which must be both instructive and maddening from a prosecutor’s point of view.

    Prudence, Professionalism, Sound Judgment

    The reason there is money to distribute — and the government warns it won’t be 100 percent — is because dedicated public servants exercised prudence, professionalism and sound judgment in seizing the cash before ASD could plunder all of it or abscond with all of it and cite “rebates aren’t guaranteed” as its “out.”

    It will take some time to get a refund. The government has to liquidate assets, and there is the issue of a second forfeiture complaint filed last month against other assets tied to the firm.

    Although ASD has surrendered claims to assets seized in August, the forfeiture complaint filed last month was filed as a separate action. Included were real estate, automobiles, water craft and other items seized from favored participants, including Bowdoin family members.  How that case will proceed is unclear. People from whom the property was seized can file claims and challenge the seizure, just as ASD did the first time around.

    In any event — and if the government prevails in the second case — the cars and water craft are all “used” items now and won’t fetch anything that approaches 100 cents on the dollar, especially at auction prices. And who will want to buy the old Masonic Hall in Quincy for $800,000 like Bowdoin did? Because Florida has one of the highest foreclosure rates in the United States and is experiencing falling property values, none of the real estate is apt to be sold at anything that approaches a break-even price.

    Also gone is the money ASD spent on legal fees.

    Employees, Quincy Get The Shaft Because Bowdoin Misled Them

    Quincy, Fla., is a proud community that is struggling. The riches of old largely are gone, which is why ASD gained acceptance in the community quickly. People were thrilled to hear an important new business was in town — a business that demonstrated that the power of the Internet could be harnessed even in small communities.

    But Bowdoin fleeced Quincy, just as he had fleeced ASD members.

    ASD always was unsustainable. The business model was unsustainable. Paying “rebates” was only one thing that made it unsustainable. ASD also had to pay employees. Whether they received checks or “ad packs” as compensation, the company could not pay them without putting an even greater strain on the Ponzi. “Ad packs” were the worst remedy of all because they created even greater deficits.

    This doesn’t even take payroll taxes and other taxes into account. And it doesn’t take the light bill and equipment costs into account or the cost of compliance. One of the biggest reasons autosurfs are moving offshore is because they know they can’t get around the issue of selling unregistered securities by calling them “advertisements.” There is no sense spending money on compliance only to be told that the only way you can comply is to stop offering “rebates” and simply sell advertising for a fee. The riches evaporate when an autosurf company comes into compliance.

    Rebates are what draws the crowd. It’s like giving away free food and drinks. Absent huge piles of disposable start-up capital or spectacular amounts of revenue from sources beyond “advertising” fees, however, an enterprise such as ASD can’t sustain itself. The best it can do is create the illusion of sustainability. The reason start-up capital has to be disposable in the ASD business model is because every dollar that floats into the firm creates a liability of $1.25.

    No legitimate venture-capital firm would fund such a company. The model is unsustainable on its face. Due diligence by the venture capitalists would be reduced to its bare essence: If $1 in means $1.25 out, then this is a Ponzi scheme. It is no more complicated than that, which is why autosurfs rely on smoke and mirrors.

    Refund Procedure

    Here, verbatim, is a notice the Department of Justice posted yesterday:

    U.S. Department of Justice
    Jeffrey A. Taylor
    United States Attorney
    District of Columbia

    Judiciary Center
    555 Fourth St., N.W.
    Washington, D.C. 20530

    January 23, 2009 Update
    Ad Surf Daily, La Fuente Dinero & Golden Panda Ad Builder

    In two related civil forfeiture cases now pending in the United States District Court for the District of Columbia, the Department of Justice (though the United States Attorney’s Office) has alleged that funds and assets it seized from several Internet-based businesses, “Ad Surf Daily,” “La Fuente Dinero” and “Golden Panda Ad Builder,” constituted proceeds of one or more federal criminal offenses. Specifically, the government alleged that each of these three so-called autosurf businesses, which had promised income opportunities to paying members, were actually “Ponzi” schemes that violated the federal wire fraud and securities fraud statutes. Under federal law, all proceeds of such criminal offenses are forfeitable to the United States.

    On January 13, 2009, in the first civil forfeiture lawsuit against over $53 million and other real and personal property, claimants AdSurfDaily, Inc., Thomas A. Bowdoin, Jr., and Bowdoin/Harris Enterprises, Inc. filed a “Motion for Leave to Withdraw Claims Release of
    Claims to Seized Property and Consent to Forfeiture.” In that motion, these individuals and entities asked to have all previous challenges they had made to the government’s effort to forfeit the property named in that lawsuit withdrawn. On January 22, 2009, the Court granted that motion and deemed the claims withdrawn. Earlier, on September 22, 2008, the individuals and entities that had challenged the government’s lawsuit against funds seized from the Golden Panda Ad Builder operation also moved to withdraw their challenges to the government’s lawsuit.

    The government intends to pursue each forfeiture case to its completion, and to perfect the forfeiture of all fraud proceeds as quickly as possible. Although the recent withdrawals of the prior challenges to the first forfeiture case should expedite resolution of that lawsuit, the forfeiture process is not yet completed. Moreover, even upon their forfeiture, disposition of noncash assets will take some time because such assets must be liquidated before any funds derived from those assets can be made available as victim compensation.

    Individuals who sent money to Ad Surf Daily (or AdCashGenerator), La Fuente Dinero or Golden Panda Ad Builder, and who suffered a pecuniary loss, may choose to file petitions for remission or mitigation of the forfeiture with the Department of Justice. Under Section 9.8(a)(1) and (2) of Title 28 of the Code of Federal Regulations, in a petition for remission or mitigation of forfeiture a non-owner victim must demonstrate that it suffered a pecuniary loss of a specific amount directly caused by the criminal offense(s) underlying the forfeiture, or a related offense, and that the loss is the direct result of the criminal acts.

    The Department of Justice will work with the records it receives to build a database of former members of these auto-surf “Ponzi” schemes. The Department will endeavor to contact members with information about how they may properly file petitions for remission or mitigation with the Department (in writing and under oath). The Department may employ individuals or entities to assist it in identifying potential petitioners, to assist them in filing petitions, and to expedite resolution of each petition it receives. Because some existing records may be incomplete or out of date, potential petitioners may want to provide to the Department their current contact information directly, preferably by completing the information submission form located at www.usdoj.gov/usao/dc/Victim_Witness_Assistance/adsurfdaily.html or by emailing information to the Department at usadc.adsurfdaily@usdoj.gov (Prospective petitioners who already provided such information, by submitting the form, email or letter, need not do so again.)

    Prospective petitioners’ contact information should include, at minimum, full names, member numbers, total funds paid to Ad Surf Daily, La Fuente Dinero or Golden Panda Ad Builder, and methods of payment. Mailed correspondence should be directed to the Asset Forfeiture Unit of the United States Attorney’s Office for the District of Columbia, and sent to the address listed at the top of this memo.

    The United States will not have access to funds before the forfeitures are concluded, and forfeiture orders issue from the Court.