Tag: ASD

  • UPDATE: Launch Of JSS/JBP Follow-Up Scam (ProfitClicking) Under Way — Sort Of

    The launch of “ProfitClicking,” the follow-up scam to the JSSTripler/JustBeenPaid HYIP scheme (2 percent a day) purportedly operated by Frederick Mann, is under way.

    Sort of.

    Carl Pearson in his JSS/JBP days.

    Just who’s running ProfitClicking is unclear, although the site has claimed that cash-gifting enthusiast J.J. Ulrich is the “PC Executive Director” and that Carl Pearson is on the “Management Team.” Pearson purportedly was the one-time COO of JSS/JBP, which experienced a promotional ban in Italy by the securities regulator CONSOB.

    Mann hinted last month that he feared arrest in the United States. He previously speculated that the JSS/JBP site could be taken out by “cruise missiles.” Some JSS/JBP members complained that their support tickets hadn’t been addressed in weeks.

    Rather than hold JSS/JBP responsibile, Mann suggested, it perhaps was best for members to read a self-improvement manual.

    ProfitClicking’s site had featured a countdown clock for days, with the launch set to go live at 6 a.m. (EDT) today. Despite claims by ProfitClicking that new servers and a new engineering approach would make for a seamless experience, the site experienced an immediate meltdown — with the landing page defaulting to a “Block DOS” gateway.

    The site did begin to load slowly within a few minutes, but members immediately complained on the MoneyMakerGroup Ponzi forum that they couldn’t log in. Members now are saying that they can log in but that the site is performing worse than dial-up.

    Whether members’ data was transferred properly from the JSS/JBP site to the ProfitClicking site remains an open question. Like JSS/JBP, ProfitClicking makes members affirm they are not with the “government.” The site also seeks to disclaim any responsibility on the part of the “opportunity” or its affiliates for offering the “program.”

    As JSS/JBP’s purported owner, Mann compared government workers to the Mafia. Regardless, he once permitted JSS/JBP’s conference-call host to hang up on a man who claimed to have been recruited by Mann and later to have suffered a stroke. Prior to being unceremoniously disconnected from the call, the man informed Mann that JSS/JBP support had ignored his pleas for help.

    A woman who complained about support after claiming her sister’s home was at risk because of the JSS/JBP “program” was treated rudely during an earlier call — this after she pointed out she had a heart condition.

    Among the apparent early aims of ProfitClicking is to permit members to fund accounts, but not withdraw. Such an approach is consistent with an effort to draft suckers into turning over money that may or may not be used at a later time to make Ponzi payments to people who bought into the JSS/JBP scam. AdSurfDaily, a ProfitClicking-like autosurf, scammed its members in this fashion in 2007, according to U.S. federal court files.

    Mann was a former ASD pitchman, according to a 2008 promo.

    ASD President Andy Bowdoin never told his new members that their money would be used to pay old members on board when the original iteration of ASD collapsed, federal prosecutors said. Bowdoin was sentenced last month to 78 months in federal prison.

    All sorts of vacuous claims are made on the ProfitClicking site, including a claim that the purported opportunity is “Legally Compliant” and has a “Patented system.” Like JSS/JBP, ASD and the recently collapsed Zeek Rewards “program,” ProfitClicking has no known securities registrations and purports to do business with payment processors linked to fraud scheme after fraud scheme.

    Because ProfitClicking has a virtually unquantifiable number of HYIP scammers within its ranks owing to the fact it was formed from the carcass of JSS/JBP and was promoted widely on the Ponzi-forum cesspits, new members may be at grave risk. ProfitClicking’s original group of scammers has a vested interest in continuing the deception because attracting “new money” may be the only means of getting paid in the future.

    For posterity, the screen shots below provide a snapshot of the countdown of a new scam in progress:

    1.

    The ProfitClicking countdown timer at the 1:00 mark today.

    2.

    The ProfitClicking countdown timer at the 0:01 mark today, one second before launch.

    3.

    Time to scam anew!
  • BULLETIN: ZTeamBiz, Site Purportedly Raising Funds To Defend Zeek Affiliates, No Longer Has Access To PayPal; Site Weaves Conspiracy Theory That eBay Didn’t Want Zeek To Survive

    BULLETIN: (UPDATED 3 P.M. EDT U.S.A.) This bizarre announcement appears today on ZTeamBiz, the site that was using PayPal purportedly to raise funds to “defend” affiliates of the collapsed Zeek Rewards’ MLM scheme:

    The payment solution has been removed and will be replaced on September 8, 2012. PayPal a company owned by eBay.com had decided it is not in their best interest to assist us in bringing back a Penny Auction that is directly competing with eBay.com.

    We apologize for this inconvenient [sic] and will have a new solution soon. Thank you for your understanding

    ZTeamBiz, which targeted Zeek affiliates in its fundraising pitch, has a tie to Todd Disner, a figure in the AdSurfDaily Ponzi scheme that advertised a Zeek-like payout of 1 percent a day. Affiliates who provided money to ZTeamBiz potentially put themselves at cross-purposes, given that a federal judge has appointed a receiver in the Zeek case and that the interests of all Zeek affiliates are not equivalent.

    In 2011, ASD President Andy Bowdoin sought to use PayPal to raise funds to pay for his criminal defense. The site, known as Andy’s Fundraising Army, eventually was blocked by PayPal from using its services.

    Robert Craddock is part of the purported braintrust behind the ZTeamBiz fundraising effort. Disner once was a guest on a Zeek-related conference call featuring Craddock. That call occurred after the SEC moved against Zeek last month.

    In July, Craddock reportedly was behind an effort to silence the voice of Zeek critic “K. Chang” by bringing a purported copyright and trademark infringement complaint against K. Chang through HubPages, a site used by K. Chang to publish news and opinion about Zeek. The site was taken offline, but eventually returned.

    In 2011, Disner sued the United States for alleged misdeeds in bringing the ASD Ponzi case, claiming ASD was a legitimate enterprise and that the U.S. government had presented a “tissue of lies” when bringing the case in August 2008. About seven months after Disner brought the action, Bowdoin pleaded guilty to wire fraud, admitting ASD was a Ponzi scheme.

    A federal judge sentenced Bowdoin to 78 months in federal prison — and dismissed the lawsuit filed by Disner. Disner’s co-plaintiff in the case was Dwight Owen Schweitzer. At an unclear point in time after the August 2008 seizure of tens of millions of dollars in ASD-related bank accounts in the ASD Ponzi case by the U.S. Secret Service, both Disner and Schweitzer became Zeek promoters.

    Zeek’s business model was similar to ASD’s. On Aug. 17, the SEC described Zeek as a $600 million Ponzi- and pyramid scheme that potentially affected more than 1 million people. The Secret Service also is investigating Zeek.

    ASD’s Bowdoin was sentenced Aug. 29. Federal prosecutors described his “program” as a $119 million Ponzi scheme that had created at least 9,000 victims and had resulted in millions of dollars of losses.

    ZTeamBiz did not explain on its website whether PayPal blocked the account through which it was soliciting funds from Zeek affiliates. Instead, it suggested that eBay, which owns PayPal, was an envious Zeek competitor.

    See “Whose Lawyer Is This Anyway,” an Aug. 29 PP Blog guest column by Gregg Evans. See July 9, 2009, guest column by Evans that raised questions about how the SolidTrustPay payment processor was enabling fraud schemes.

    See July 28 PP Blog column on the Craddock HubPages flap.

  • URGENT >> BULLETIN >> MOVING: Florida Attorney Charged Civilly, Criminally In Alleged ‘Commodities Online’ Caper; 2 Principals (With Felony Convictions) Also Charged

    URGENT >> BULLETIN >> MOVING: Florida attorney Michael R. Casey has been charged both civilly and criminally in the alleged Commodities Online fraud scheme, the SEC said.

    Also charged criminally and civilly were former Commodities Online executives James C. Howard III and Louis N. Gallo III.

    “This trio teamed up to employ all the hallmarks of an investment scheme,” said Eric I. Bustillo, director of the SEC’s Miami Regional Office. “Howard met with prospective investors at a luxury hotel to emanate a false sense of wealth and security, Gallo oversaw an in-house boiler room that drummed up investor interest, and Casey was the company’s purported legal counsel who acted anything but lawyerly.”

    Both Howard and Gallo were convicted felons prior to emerging as executives at Commodities Online, the SEC said. The fraud caper allegedly gathered $27.5 million.

    From the SEC complaint (italics added):

    In reality, COL performed only a limited percentage of the commodities transactions it promised investors. Instead, the Company, Howard, and Gallo dissipated millions of dollars of investor funds to largely sham companies, including Relief Defendants Sutton Capital, LLC, J & W Trading, LLC, American Financial Solutions, LLC, and Minjo Corporation. Through these companies, Howard and Gallo misappropriated investor funds for their own use. So-called profits they distributed to investors they took largely from other investors’ funds.

    Casey personally made misrepresentations to investors about the profitability, structure, and existence of the purported commodities contracts. He also knew about Howard’s misappropriation of investor funds, but failed to disclose this fact when he communicated with investors.

    Howard, 53, resides in of Lauderhill, Fla.

    “In 1997, Howard was convicted of federal narcotics and firearms felonies and sentenced to 57 months in prison,” the SEC said.

    Gallo, 43, resides in Parkland, Fla.

    “In 2005, Gallo pleaded guilty in the United States District Court for the District of New Jersey to bank fraud and narcotics charges and was ultimately sentenced,” the SEC said. “In 2007, in the same court, he pleaded guilty to transmitting a threat to injure and was later sentenced to one day in prison and a three-year term of supervised release.”

    Casey, 65, resides in Oakland Park, Fla.

    “He is an attorney licensed to practice in Florida,” the SEC said. “In early 2010, Casey acted as COL’s outside legal counsel. In May 2010, he replaced Howard as president of COL.”

    From the SEC complaint:

    In May 2010, COL issued a press release announcing Howard was stepping down from his COL management position but would “remain in a consulting relationship with [COL] and will continue to provide the company with the benefit of his many years of experience in the commodities business.” While the press release announced that Casey would replace Howard as president, it did not disclose Howard’s arrest [in a separate alleged fraud scheme]. Gallo and Casey were aware of the press release, which at least one of COL’s sales agents circulated.

    The SEC initially moved against Commodities Online last year. Today’s complaint names individual defendants and companies that allegedly received ill-gotten gains.

    James Clark Howard III

    Howard was arrested by the Boca Raton Police Department in a separate scheme targeting Haitian Americans on March 5, 2010. About six months later — in September 2010 — he was sued by a Nevada company that listed former AdSurfDaily member and Surf’s Up moderator Terralynn Hoy as a director.

    The Nevada company — SSH2 Acquisitions Inc. — alleged that Howard was part of a Ponzi scheme that also involved Patricia Saa, Sutton Capital LLC and Rapallo Investment Group LLC.

    Howard and the defendants, according to the lawsuit, told SSH2 it was trading in commodities and “would produce profits of 40% per month or more, while not risking any of the invested funds.”

    In its lawsuit, SSH2 alleged that its dealings with Howard and the others began in “early 2009? and continued through March 2010.

    Read the SEC complaint against Casey, Howard and Gallo.

  • UNBELIEVABLE: In Wake Of Zeek Collapse, Members Get Pitch For ‘Wealth Creation Alliance’; Promo Features Strange Use Of Capital Letters; Pitchmen Are Called ‘Prosperity Advocates’ — And Promo Claims Tie To Bank Of America

    UPDATED 11:55 A.M. EDT (U.S.A.) On Aug. 17, the SEC accused the purported Zeek Rewards revenue-sharing program of being a $600 million Ponzi- and pyramid scheme that had affected more than 1 million people. Zeek was touted on the MoneyMakerGroup and TalkGold Ponzi forums.

    Now comes word that Zeek members are being pitched on a “program” known as “Wealth Creation Alliance” (WCA), which declares it is operated by an “Executive Dream Team,” makes strange use of capital letters in a sales promo, calls its pitchmen “prosperity advocates” and also has a presence on the Ponzi boards.

    Like Zeek, WCA says members can send in sums of up to $10,000.

    Zeek said participants were purchasing “bids”; WCA says its product is “ad units.”

    The WCA “program” according to one promoter, touts a relationship with offshore payment processors and even Bank of America.

    Bank of America also handled the banking for the 2008 AdSurfDaily Ponzi scheme, according to federal court files. A tie to the emerging WCA “program” could not immediately be confirmed.

    Like ASD and Zeek, WCA has a purported “advertising” component and tiered commissions, according to one promo for the “opportunity” viewed by the PP Blog. Zeek-like language also is present in WCA. Both companies, for example, purport to operate (or have operated) a “profit pool.”

    Some Ponzi-board apologists for Zeek have described it as a “freedom company.” WCA, meanwhile, says it “will apply the proven “Free Enterprise” formula” and emerge as a firm “Of the People, For the People and Built By the People.”

    These email remarks (below/italics added) were received by at least one Zeek member and were attributed to Paul Skulitz, the purported owner of WCA. Many of the words on the left margin curiously begin with capital letters, which leads to questions about whether WCA and/or its pitchmen are communicating in code to certain prospects and are sympathetic to the so-called “sovereign citizens” movement.

    Some “sovereign citizens” are preoccupied by the use of capital letters.

    The capital letters in the first words in the first three lines of the email form the acronym “WCA,” for instance. Whether WCA has any “sovereign” ties is unknown.

    Welcome to our rapidly growing family of prosperity advocates here at “Wealth 
    Creation”. It is our intention to develop a program that is innovative, profitable 
    And sustainable. Our priority is to build a successful  ‘long term home’. 

    You and your families deserve dynamic success and we at WCA are committed 
    To providing you with the vehicle and tools to take control of your life and reach 
    Your greatest goals and dreams. Many of you want to become wealthy and free 
    And we intend to help you do just that! These goals will be met by putting in 
    Place a business model that is not simply exchanging money for money. The 
    WCA model will apply the proven “Free Enterprise” formula of providing 
    Much-needed product and service solutions to the global marketplace. We 
    Are building a sustainable business model with powerful products and services 
    That are in much demand. 

    To unleash the viral power of “Word of Mouth”, we are using a 15%, two level 
    Bonus plan along with a powerful global revenue pool that will be shared with 
    All active affiliates. This plan has produced some of the largest earnings in direct 
    Selling history. 

    An “Executive Dream Team” is guiding our business. These business professionals 
    Bring well over 120 years of high-level business experience to WCA.  They have 
    Run companies and built marketing teams globally over the past 40 years and are 
    Committed to building a company that is, “Of the People, For the People and Built 
    By the People”. 

    Our core product/services are a virtual marketing and advertising tool and a global 
    Directory.  These tools have been developed over the past decade by our CTO (Chief 
    Technology Officer) and are time tested and proven effective. Many of these product/
    Services are available at no charge to our free affiliates. All of our advertising products 
    Can and are being used to promote not only WCA but also any other business or program. 
    There will be certain limitations. These products/services carry a huge profit margin, 
    Which fuel both our first (10%) level and second (5%) level commissions and our 
    Company wide profit pool.

    Our business plan is dynamic and will require flexibility on your part as we roll out 
    Our different divisions, which will include, but not be limited to: 

    Our online banner and text ads, our marketing and communication tools 

    Our robust global directory where both affiliates and customers can advertise 
    Showcase their products/services and causes our upcoming online mall featuring 
    Products/services at a tremendous value

    Our Life Literacy University, where individuals and families can tap into the wisdom 
    Of some of the world’s greatest mentors on topics as diverse as family finance, fitness/
    Nutrition, self-esteem, generational wealth creation, goal settings & achievement, travel 
    & leisure, personal & spiritual development, language skills, public speaking and family 
    And friendship dynamic. As the community develops there will be online empowerment 
    Opportunities as well as regional gathering to learn your favorite topics.

    As with any legitimate business, you will be able to buy these offerings at a discount 
    For personal use, make them available for resale on your website and generate profits 
    Or share the program with others and enjoy referrals bonuses on their purchases. What 
    Sets this apart form everything else is the company wide global profit pool. This is the 
    Best of it all… As our volume grows you will participate in the profit of the entire company 
    On a daily basis. WCA is truly committed to ‘ Sharing The Wealth ‘!’

    We are committed to building people, who will develop culture, which will change this
    World and make it a better place to raise our families.  We are committed to a revolution
    In the hearts and minds of each and every child of God who believe in their hearts, “There 
    has to be a better way!”

    We are fully operational right now and in our company pre-launch, this simply means 
    that you are able to sign up for free and receive your business website and purchase 
    advertising units as well. You can also refer and sign others in as well. We are also 
    currently receiving payments and more importantly we are paying referral bonuses 
    and daily profit sharing. Our pre-launch will continue through October 2012. We 
    will hold our first major event the first weekend of November. (Details will be 
    forthcoming) 

    As we continue to upgrade our system to provide the very best opportunity for you, 
    please be patient as there will be moments of brief interruption of service while we 
    attend to necessary online functions. We just recently finished one fantastic 
    improvement to provide additional protection internally and the systems are 
    systematically coming back online. Our 65% auto re-purchase feature, our 
    100% default system and several other features are being put fully into operation. 
    All of these will have a wonderful affect on your profits and the company’s sustainability. 

    As we continue to improve daily and roll systems out for you, stay excited and 
    positive what the future holds in store for you. 

    Thank you for you time and your trust, 

    Best Wishes, 
    Paul Skulitz Admin
    if you’ve questions
    [Deleted by PP Blog]

  • BULLETIN: CFTC Says California Man At Helm Of Ponzi Scheme Targeted At Deaf Christians; Marc Perlman Charged With Fraud Amid Claim He Advised Investor To Sell House Quickly And Plow Proceeds Into Forex Scheme

    BULLETIN: The CFTC has gone to federal court in the Southern District of New York, alleging that Marc Perlman of Rancho Cucamonga, Calif., and his firm, iGlobal Strategic Management LLC, were running a commodity-pool and Forex Ponzi scheme targeted at deaf Christians.

    Perlman and the company have been charged with fraud. The CFTC said the scheme sucked in “at least $670,000 from at least 17 people.”

    In at least one instance, the CFTC charged, Perlman encouraged an investor “to sell a house at a price that would result in a quick sale, stating that the profits that the iGlobal Investor would earn with iGlobal would make up for the lost equity.”

    It is at least the third major fraud scheme targeted at the deaf community since 2009. In October 2010, the SEC charged an entity known as Imperia Invest IBC in a caper that sucked in millions of dollars and affected thousands of people with hearing impairments. In 2009, the FTC charged Affiliate Strategies Inc. (ASI) in a government-grants scam. The Noobing autosurf was in the ASI stable of companies, and promotions were targeted at the deaf.

    Both Imperia Invest and Noobing were promoted on the MoneyMakerGroup and TalkGold Ponzi forums — the same venues from which Ponzi schemes such as AdSurfDaily and alleged Ponzi schemes such as Zeek Rewards were promoted.

    “Perlman furthered his and iGlobal’s fraudulent scheme by playing upon the Christian faith of certain iGlobal investors, using claims about his own faith and references to scripture to obtain the trust of certain iGlobal investors,” the CFTC charged.

    Victims hailed from Arizona, California, Florida, Georgia, Michigan, Oregon, Utah, Washington and Pennsylvania, the CFTC said, noting that Perlman is deaf.

    “Perlman offered to have calls with certain potential iGlobal Investors through a video phone system that enables communication through sign language,” the CFTC charged. “During these calls, Perlman told certain potential iGlobal Investors that he was offering them the opportunity to invest in a forex investment system that would yield profits of 10 percent each month. He later revised this projected number to 5 percent after certain iGlobal Investors invested funds.”

    The U.K. Financial Services Authority assisted in the CFTC probe, CFTC said.

    Read the complaint.

  • ALERT >> ALERT >> ALERT: Judge Dismisses Lawsuit Filed Against United States By AdSurfDaily Figures Todd Disner And Dwight Owen Schweitzer, Later To Become Zeek Promoters

    BULLETIN: A federal judge has dismissed the November 2011 lawsuit against the United States by AdSurfDaily figures Todd Disner and Dwight Owen Schweitzer.

    The dismissal of the lawsuit by U.S. District Judge Rosemary Collyer came on the same day she sentenced confessed ASD Ponzi scheme operator Andy Bowdoin to 78 months in federal prison.

    After their ASD days, Disner and Schweitzer went on to become promoters of Zeek Rewards, which the SEC now describes as a $600 million Ponzi- and pyramid scheme. ASD was a $119 million Ponzi scheme.

    Disner reportedly now is involved in an effort to raise funds to sue the SEC for its role in the Zeek case. Disner and Schweitzer also raised funds to sue the government for its role in the ASD Ponzi case, but Collyer today dismissed their complaint.

    From Collyer’s order of dismissal in the case brought by Disner and Schweitzer, who alleged the seizure of their records on ASD’s database was unconstitutional (italics added).

    They allege that federal agents seized money, uncashed checks, unendorsed checks, books, computers, and other assets and records created and maintained by Plaintiffs in the computers and servers that were in the custody and control of ASD. Plaintiffs maintain that their information was encrypted and password protected. Specifically, Mr. Disner claims that he is owed $53,000 . . . On September 17, 2008, the Government returned to ASD the computers that it had seized . . . Mr. Schweitzer avers that he cannot remember where his checks/money orders were drawn, that he put $3,500 into ASD, and that he was involved with ASD for “only a few weeks before it was shut down.”

    Read the full ruling.

  • URGENT >> BULLETIN >> MOVING: AdSurfDaily Ponzi Schemer Andy Bowdoin Sentenced To 78 Months In Federal Prison — Maximum Under Plea Agreement

    Thomas A. "Andy" Bowdoin

    URGENT >> BULLETIN >> MOVING: (UPDATED 5:20 P.M ON SEPT 4.) AdSurfDaily President Andy Bowdoin has been sentenced to the maximum term in federal prison under his plea agreement: 78 months.

    The sentence was handed down minutes ago by U.S. District Judge Rosemary Collyer of the District of Columbia. ASD was a $119 million Ponzi scheme operating over the Internet between 2006 and 2008 and creating thousands of victims.

    Separately, Collyer issued an order that authorized the U.S. Department of Justice to reopen remissions, meaning that ASD victims who missed the January 2011 filing deadline will have an opportunity to gain a pro rata share of the remainder of ASD proceeds seized by the U.S. Secret Service in 2008.

    “Thomas Bowdoin was a master of fraud and deception, cheating victims out of their hard-earned money and savings with his get-rich scheme,” said U.S. Attorney Ronald C. Machen Jr. of the District of Columbia. “His actions cost his victims millions of dollars and now they will cost him his freedom. This sentence will protect the public from Mr. Bowdoin’s scams and hold him accountable for his crimes.”

    A top U.S. Secret Service official said the agency is using a variety of tools to bring scammers to justice.

    “Capitalizing on the strength of our financial task force partnerships, we aggressively pursue criminals using computer experts, forensic specialists, investigative experts and intelligence analysts,” said Dennis Ramos Martinez, special agent in charge of the Orlando Secret Service office.

    Machen’s office declined to comment today on whether the ASD probe was ongoing.

    Bowdoin is 77.

    In November 2011, ASD figure Kenneth Wayne Leaming was arrested by the FBI on charges of filing false liens against at least five public officials involved in the ASD case. Two of the officials were federal prosecutors. One was the lead Secret Service investigator.

    Machen’s office — without referencing the FBI allegations against Leaming — today praised the work of former Assistant U.S. Attorneys William Cowden and Vasu B. Muthyala. And Machen’s office also praised U.S. Secret Service agent Roy Dotson. All three men allegedly were targeted with false liens from Leaming, a purported “sovereign citizen.”

    Leaming, 56, is jailed near Seattle.

    Bowdoin’s sentencing today occurred against the backdrop of the collapse of Zeek Rewards, which was accused by the SEC Aug. 17 of operating a $600 million Ponzi- and pyramid scheme that potentially affects more than 1 million people. Zeek’s business model was similar to ASD’s business model. The U.S. Secret Service also is investigating Zeek.

    Here’s what prosecutors in the District of Columbia said today about ASD’s business model (italics added):

    ASD’s business model promised members the opportunity to earn 125 percent (initially 150 percent) on each dollar paid into ASD, as long as the members viewed other members’ websites for a few minutes each day on ASD’s Internet page, commonly referred to as the ASD “rotator.” Bowdoin also promised members commissions for recruiting other members into the program.

    While a small percentage of ASD members who invested early in the program could earn the extraordinary rates of return, the promised opportunity was illusory for the vast majority of ASD members. Indeed, due to the fact that ASD’s pyramid-style business model relied entirely on an ever increasing influx of new money to fund the debt owed to earlier members, the vast majority of members could never earn the promised rates of return, making the promised opportunity fraudulent.

  • URGENT >> BULLETIN >> MOVING: Charles Schwab Accounts Holding Nearly $18.6 Million In Name Of Accused Zeek Operator Paul Ray Burks Or Rex Venture Group Have Been Frozen

    URGENT >> BULLETIN >> MOVING: (UPDATED 12:16 P.M. EDT (U.S.A.) The office of the corporate counsel for Charles Schwab in San Francisco has informed a federal judge that it is holding almost $18.6 million in two accounts linked to the alleged Zeek Rewards’ Ponzi scheme.

    One of the accounts is in the name of Rex Venture Group LLC and has more than $10.3 million in cash and more than $4.94 million in securities, according to court filings. Rex Venture is Zeek’s purported parent company.

    The second Schwab account, meanwhile, holds more than $2.3 million in cash and more than $1.3 million in securities, Schwab informed the court. The second account is in the name of Paul Ray Burks, Zeek’s alleged operator.

    Schwab has “frozen” the assets in both accounts under court order, the firm said in a court filing.

    Separately, North Carolina-based NewBridge Bank has certified in court filings that it is holding more than $11.64 million in an account under the name of Rex Venture Group LLC, Zeek’s purported parent company. Zeek announced suddenly on May 28 (Memorial Day) that it was closing its NewBridge account and advised members to cash checks before June 1 or they would bounce.

    Why so much money remained in the account was not immediately clear.

    Other court filings suggest that Rex Venture also had money on deposit at Four Oaks Bank & Trust Co. Inc., a bank in North Carolina. Four Oaks has asked the court to give it until Sept. 3 to comply with an order to specify precisely how much Rex had on deposit at the institution.

    Extra time was needed because of the “complexity of the financial information that must be analyzed and the need to obtain relevant information from a third party,” the bank informed the court.

    Four Oaks did not identify the third party.

    When the U.S. Secret Service brought the AdSurfDaily Ponzi case in 2008, it was discovered ASD President Andy Bowdoin had more than $65.8 million in 10 personal bank accounts.

    On Aug. 17, the SEC alleged that Zeek was a massive Ponzi- and pyramid scheme that had gathered about $600 million.

    ASD operator Andy Bowdoin is scheduled to be sentenced tomorrow on a charge of wire fraud.

    Zeek is known to have members in common with ASD. The U.S. Secret Service also is investigating Zeek.

     

     

  • Zeek Fallout Almost Too Strange To Contemplate

    For starters, Zeek affiliates being approached by upline sponsors and email/website appeals to send in money “to defend Zeek Rewards and all of our independent businesses as per our legal rights of due process” might want to read this July 25 PP Blog post.

    It’s about how wordplay was used to sanitize HYIP scams.

    For additional background, Zeek affiliates might want to read this July 28 PP Blog post.

    It’s about how purported Zeek “consultant” Robert Craddock sought to disable the Hub of Zeek critic “K. Chang.” Craddock now is part of the effort to raise funds to “defend” Zeek affiliates.

    Zeek and untold thousands of its minions are known to have a tin ear for PR. That tin ear is on full display again today, with a “warning” from the leaders of the effort to “defend” Zeek from the SEC’s Aug. 17 allegations that it was a $600 million Ponzi and pyramid scheme not to contact the SNR Denton law firm.

    “We have asked the firm to provide us the names of the individuals that are calling; we will refund your donation and will remove you from the group to be represented if you call. The law firm is only going to discuss the case with the 12 leaders and we will put out the information to the entire group on this site.”

    “This site,” as it were, is this site, which calls itself ZTeamBiz.

    ZTeamBiz, which calls itself a “professional organization,” says its has hired SNR Denton. The precise reason why is unclear, although ZTeamBiz says the “SEC has tried to make us all believe that Zeek Rewards was an ‘investment’ and a Ponzi scheme. All the pages that were submitted by the SEC indictment has all been one sided and what we believe to be a misrepresentation of the truth and facts of what Zeek Rewards was as a viable and legal business.”

    And ZTeamBiz also accused the SEC of misleading a federal judge.

    One of the persons on the ZTeamBiz squad — although it’s unclear if his presence is formal or informal — is Todd Disner. Disner is a former pitchman for the AdSurfDaily Ponzi scheme and, along with former attorney Dwight Owen Schweitzer, sued the government in November 2011. Disner and Schweitzer alleged that prosecutors and a U.S. Secret Service agent presented a “tissue of lies” to a federal judge when bringing the civil portion of the ASD Ponzi case in August 2008.

    Disner and Schweitzer made that claim after ASD had lost the case in U.S. District Court and the U.S. Court of Appeals. Among other things, Disner and Schweitzer claimed the government had gone shopping for a friendly judge when it brought the forfeiture proceedings.

    That judge allegedly was targeted with a false lien by Kenneth Wayne Leaming, who also targeted three federal prosecutors and a Secret Service agent with false liens, according to the FBI. Leaming was arrested by an FBI Terrorism Task Force in November 2011. He is a purported “sovereign citizen.” All five of the federal officials targeted in the alleged lien campaign have ties to the ASD case.

    ASD President Andy Bowdoin pleaded guilty seven months later to a Ponzi-related charge of wire fraud. He is scheduled to be sentenced Wednesday.

    Zeek is known to have members in common with ASD, which federal prosecutors have described as a $119 million Ponzi scheme that created at least 9,000 victims before its 2008 collapse amid allegations by the U.S. Secret Service of Ponzi fraud.

    Like Zeek, ASD claimed it was not offering an investment program. And like Zeek, ASD planted the seed it offered a daily payout rate of 1 percent a day or more.

    Like Zeek, ASD came under investigation by the U.S. Secret Service. The agency has referred to ASD as a “criminal enterprise,” with the U.S. Department of Justice calling ASD “insidious.”

    Those descriptions apparently were not enough to dissuade investors from throwing money at Zeek, which has listed ASD members as “employees.”

    On Aug, 4, Zeek itself blasted unspecified “North Carolina Credit Unions” for raising concerns about Zeek. Zeek warned members to toe the company line.

    The SEC was in federal court 13 days later.

    Zeek also is known to have members in common with JSS Tripler/JustBeenPaid, which appears now to have morphed into something called “ProfitClicking.” Both JSS/JBP and ProfitClicking may have ties to the sovereign-citizens movement.

    A domain registered in the name of purported JSS/JBP operator Frederick Mann once linked to videos featuring Francis Schaeffer Cox, a purported sovereign citizen implicated in a murder plot against public officials in Alaska.

    Because HYIP scams typically are promoted on Ponzi-scheme forums such as TalkGold and MoneyMakerGroup — and because Zeek, JSS/JBP, ProfitClicking and ASD all had a presence on those forums — questions have been raised about whether cash was circulating between and among various fraud schemes and placing U.S. banks in the position of possessing fraudulent proceeds.

    A receiver has been appointed to marshal the assets of the alleged Zeek fraud.

    Despite the appeal by ZTeamBiz for Zeek affiliates to send in money to “defend” themselves and the company, the interests of all Zeek affiliates almost certainly are not equivalent.  Net “winners” almost certainly are at risk of clawback lawsuits from the receiver. Such court actions are used to enlarge the pool through which victims of a Ponzi fraud receive a disbursement designed to make them as whole as possible.

    It’s often the case that victims never are made whole and receive disbursements of dimes or even pennies on the dollar. Such is the case to date for victims of the 2009 Trevor Cook Ponzi caper in Minnesota. That scheme was a form of affinity fraud targeted largely at people of faith, including senior citizens.

    Post-Ponzi receiverships sometimes turn into an international paper chase because scammers hide money offshore.  Reverse-engineering a Ponzi caper can take years. Even as Zeek receiver Kenneth D. Bell begins his duties, scammers on the Ponzi boards are planting the seed that the receivership cannot be trusted.

    In the 2009 Mantria/Speed of Wealth Ponzi scheme case, which in part was pushed MLM-style, a federal judge issued a specific order not to interfere with the receiver.

     

  • UPDATE: ASD’s Andy Bowdoin Asks Judge For Mercy; Requests Sentence Of ‘Time Served’ And ‘Home Incarceration’ In Ponzi Scheme That Gathered At Least $119 Million And Caused Millions Of Dollars In Losses

    Thomas A. "Andy" Bowdoin

    UPDATED 2:32 P.M. EDT (U.S.A.) Confessed Ponzi schemer Andy Bowdoin of AdSurfDaily has asked U.S. District Judge Rosemary Collyer for mercy and for a sentence of “time served” and “home incarceration.”

    Federal prosecutors have asked Collyer to sentence Bowdoin to 78 months, the maximum sentence under a plea agreement Bowdoin signed in May.

    Bowdoin, 77, is scheduled to be sentenced Aug. 29 in an online Ponzi caper federal prosecutors now say gathered at least $119 million and created at least 9,000 victims. The ASD patriarch has been jailed since June. Collyer ordered him jailed after prosecutors produced evidence that Bowdoin continued to promote scams — including another 1-percent-a-day scam — after the U.S. Secret Service raided ASD in August 2008 and arrested Bowdoin on Ponzi-related charges in December 2010.

    The other 1-percent-a-day scam was AdViewGlobal, which collapsed in 2009. Bowdoin also promoted “OneX,” which prosecutors described as an ASD-like pyramid scheme.

    Bowdoin’s sentencing is expected to be closely watched by members of Zeek Rewards, which the SEC described Aug. 17 as a $600 million online Ponzi and pyramid scheme that potentially could affect more than 1 million participants. Zeek’s business model of suggesting a return of more than 1 percent a day was possible strongly resembled the ASD business model.

    “As an initial matter, Mr. Bowdoin pleaded guilty to the instant offense [wire fraud] [and] stands before this Court accepting of its punishment,” Bowdoin’s attorneys wrote in a memo to Collyer. “The Defendant does not accept punishment bitterly, but understands that he has committed a crime and that he must be punished.”

    Bowdoin, according to his lawyers, disputes a government analysis that pegs total ASD losses by investors at $75 million. The actual loss, the lawyers argued, was $19 million.

    “Mr. Bowdoin does not make this objection to minimize his activities,” the lawyers argued. “He only wishes to put the extent of the harm caused by his activities in the appropriate context.”

    But Bowdoin’s advancing age and declining health are factors the judge should consider when sentencing Bowdoin, whose wife also is sick, the attorneys argued.

    Bowdoin is remorseful for his illegal conduct and has accepted responsibility for his crime, his attorneys argued to the judge.

    Unlike many Ponzi scheme cases, the government was able to seize tens of millions of dollars of assets in the ASD case before they could be dissipated, according to court filings. In August 2008, the U.S. Secret Service seized about $80 million from 15 ASD-related bank accounts.

    Other seizures occurred in December 2008 and December 2010, for much smaller amounts, according to court filings. Some of the later seizures involved the bank accounts of individual ASD members.

  • As Zeek-Related Fundraising Efforts Begin, ‘Andy’s Fundraising Army’ Down For The Final Count: AdSurfDaily Patriarch Andy Bowdoin Awaits Sentencing In Pre-Zeek, 1-Percent-A-Day Ponzi Scheme Case

    UPDATED 11:31 P.M. EDT (AUG. 26, U.S.A.) After the collapse of AdSurfDaily in 2008, there were at least four efforts to raise funds to “defend” the Ponzi enterprise and/or its participants. The PP Blog has received reports that at least one such effort is under way in the aftermath of the collapse last week of Zeek Rewards, which the SEC called a $600 million Ponzi- and pyramid scheme that had affected more than 1 million people. Zeek also is under investigation by the U.S. Secret Service and the office of North Carolina Attorney General Roy Cooper.

    Zeek members who cling to a belief that the government somehow got it wrong perhaps can save themselves both money and heartache by looking at the history of the various ASD-related efforts to “defend” the multilevel marketing “program” after the U.S. Secret Service seized 15 bank accounts (and about $80 million) in ASD-related proceeds in August 2008.

    Here are briefs on the various ASD-related “defense” efforts:

    “Andy’s Fundraising Army”: This bizarre effort was the fourth and final of a series of failed ASD-related efforts. Started by accused ASD Ponzi schemer Thomas A. “Andy” Bowdoin himself last summer (with the purported help of ASD cheerleader Tari Steward), the effort immediately devolved into a symphony of the bizarre.

    With Bowdoin effectively having been out of public view for nearly three years, the purported “army” teased potential contributors for days with a photo that showed Bowdoin smiling broadly and looking confident. Among other things, the teaser asserted there was “MORE GOOD NEWS” and plenty of reasons to help Bowdoin raise $500,000 to pay for his criminal defense.

    It went on to assert that “A Recent Survey of ASD Members Proves that the Vast Majority of You Want to Join Andy’s Fundraising Army” and that “[P]er standard and accepted industry guidelines, public opinion surveying of 140 members of a large group of members that all share a common interest or purpose, of any size, even in the millions, will give an excellent cross section of the opinions and viewpoints of the entire group.”

    But the “army” site did not describe the characteristics of the 140 ASD members purportedly sampled. Nor did it define what specific surveying “standard” it applied or define the source of the purported “industry guidelines.”

    And what would a good, MLM-like approach to raise funds for an accused HYIP scammer (1 percent a day) be without a “prelaunch” phase? With the teaser in place, a placeholder website for “Andy’s Fundraising Army” promised a full launch to come, along with the exciting opportunity for ASD members to send funds to the man accused of defrauding them to the tune of $110 million.

    But like a bad HYIP dream, the “army” website naturally missed its first advertised launch date. This was blamed on the need for more “testing,” reinforcing one of the HYIP world’s longstanding clichés. It then missed its second advertised launch date, explaining that “one last important system is being finalized.” With the first two launch dates missed, the site reported that it had set a “Final Revised Launch Date.”

    During the evening of July 26, 2011, the launch finally occurred. Like many things ASD, it provided minute after minute of MLM infamy. Indeed, Bowdoin appeared in a fundraising video with symbols of American patriotism as the backdrop.

    Among other things, Bowdoin — who in 2008 described himself as a Christian “money magnet” and advised ASD members after the Secret Service raid that “God” was on the company’s side and that “Satan” had infiltrated the government — claimed in the video that he’d been “crucified” by U.S. law enforcement.

    He blamed the ASD-related losses in civil court on a federal judge, the prosecutors and his own former defense counsel. Bowdoin asked members to provide $500,000 to help him pay his new defense team.

    It is believed he raised about $26,000 in the following weeks — but things continued to unfold like a bad HYIP dream. There was a report that a hurricane knocked the fundraising site offline, for instance. By January 2012, the site had lost its ability to collect money via PayPal. Federal prosecutors declined to comment on the development, which occurred after Bowdoin had become a pitchman for “OneX.”

    In April 2012, prosecutors described OneX as a fraudulent scheme and pyramid. Bowdoin pleaded guilty to wire fraud the following month, admitting ASD was a Ponzi scheme. His fundraising website, which published purported “expert” opinions from attorney Gerald Nehra and consultant Keith Laggos that ASD was not a Ponzi scheme, remained online for weeks after the guilty plea.

    The “Andy’s Army” site is now offline and is listed as an expired domain. In recent days, Bowdoin — as part of his plea agreement — has dropped his last remaining claim to cash seized in the ASD case. (A third ASD-related forfeiture complaint was filed by the government in December 2010. Bowdoin entered a claim.) He is scheduled to be sentenced Aug. 29.

    Nehra’s law firm later became counsel for Zeek, according to Zeek. And Laggos became a purported “consultant.”

    Todd Disner and Dwight Owen Schweitzer: Even as Bowdoin was rolling out his “army” website and repeatedly missing launch dates, ASD figures Todd Disner and Dwight Owen Schweitzer were advancing a plan to raise money to sue the government. An email attributed to Disner surfaced in July 2011 that introduced a pronoun mystery: “We plan to go after Akerman Senifit (sic) next,” the email read in part.

    Akerman Senterfitt was the name of Bowdoin’s original defense law firm in the civil portion of the ASD case. In the earliest days of the case, ASD cheerleaders on the now-defunct “Surf’s Up” forum positioned the well-known firm as the “Perry Mason” firm; the government, meanwhile, was said to be represented by “Gomer Pyle.” A federal judge was described as “brain dead” if she ruled against ASD, and a federal prosecutor was described as an individual who deserved to be placed in a medieval torture rack.

    Why Disner chose the pronoun “we” was never explained. The July 2011 email followed an April 2011 email attributed to Disner that included this declaration: “Let the games begin!”

    During this period, Disner and Schweitzer were soliciting funds to sue the government. This effort began at an unclear point of time after November 2008, the month a federal judge issued a key court ruling against ASD while saying Nehra’s opinion could not be relied upon in part because it “relied solely on the written words contained in the Terms of Service without independent investigation or review of ASD’s business records to ascertain how ASD operates in fact before opining.” (Bolding added.)

    If the judge’s ruling could be reduced to two words, it might read, “Gomer won.”

    At an unclear point in time, both Disner and Schweitzer became reps for Zeek. They filed their ASD-related lawsuit in November 2011, claiming, among other things, that the government had presented a “tissue of lies” when bringing the August 2008 forfeiture case. As part of their apparent strategy, Disner and Schweitzer pointed to purported expert opinions of Nehra and Laggos. Disner and Schweitzer produced those opinions months after ASD had lost two civil-forfeiture cases in both U.S. District Court and the U.S. Court of Appeals.

    Months later, Bowdoin himself put both Disner and Schweitzer in a box. In May 2012 — after Nehra and Laggos both had opined ASD was not a Ponzi scheme and after Disner and Schweitzer had sued the government — Bowdoin admitted that ASD was a Ponzi scheme.

    Bob Guenther and ASDMBA: In 2008, ASD member Bob Guenther became the de facto head of an entity known as the ASD Members Business Association. The stated goal of ASDMBA was to raise funds to hire Dallas attorney Larry Friedman to represent ASD members’ interests in the case.

    ASDMBA soon devolved into a circus, with Guenther using its website to promote a company that was developing an online game. Along the way, Friedman sued ASD critic Jack Arons, triggering a side drama that lasted for weeks and burying Arons in an avalanche of paperwork. (As a matter of pure PR, high-powered Friedman came out the loser for bringing out nukes against a web critic armed with a fly-swatter. The avalanche finally ended, with Arons, a Florida retiree who lives in a manufactured home, largely unscathed.) Guenther, meanwhile, refused to provide a reliable accounting of how the tens of thousands of dollars raised by ASDMBA was spent, according to members.

    Guenther bizarrely dismissed his critics as “left wing liberal no balled people,” calling one an “ignorant mouthy broad.” He also claimed ASDMBA was instrumental in returning money to ASD victims, saying the group retrieved funds for retired and active-duty police officers in Texas and California, and for a high profile Dallas Cowboy’s executive.

    Nothing in the public record suggests Guenther had any standing to perform any services on behalf of ASD members. It later emerged that Guenther was a convicted felon. Months after the 2008 formation of ASDMBA, in March 2009, Guenther was charged with two felony counts of aggravated harassment. Mesa, Arizona, police said Guenther repeatedly violated a court injunction for workplace harassment that prohibited him from nuisancing Cheyenne Mountain and Affiliates, the Arizona business that was developing the online game promoted on ASDMBA’s website.

    Guenther later accepted a plea agreement in the harassment case. No jail time was ordered.

    ASD Members International: This one was hatched by members of the pro-ASD “Surf’s Up” forum, which became Bowdoin’s official mouthpiece after the key court ruling went against ASD in November 2008. ASDMI was a purported nonprofit entity formed in Missouri. Its bizarre mission was to raise funds to litigate against the government even if the government was proceeding lawfully. In short, ASDMI planted the seed that prosecutors and investigators would be sued and/or charged with crimes.

    It is believed that at least 168 people contributed money to ASDMI.

    Included in the ASDMI braintrust was former Surf’s Up moderator Barb McIntyre, who enforced a “Poof Penalty” when ASD members left links on Surf’s Up to stories on the PP Blog.

    But if there was an ASDMI “star,” it was “Professor” Patrick Moriarty, one of the most unusual characters in the entire ASD drama. Moriarty was an early advocate for Curtis Richmond, a purported “sovereign” being who advanced a theory that all commerce was lawful as long as the buyer and seller agreed to a contract. Among other things, it was a position that would have legalized slavery and human trafficking. Richmond went on to accuse a federal judge of “TREASON” and to accuse investigators of theft.

    Richmond was hailed a “hero” on Surf’s Up, which never revealed that Richmond had been found in contempt of court for threatening federal judges and was part of a Utah “Indian” tribe a federal judge ruled a “complete sham.” (This is the “tribe” known derisively as the “Arby’s Indians” because it once held a meeting in an Arby’s restaurant in Utah. The purported “tribe” also had a purported “Supreme Court.” The address for the “Supreme Court” was the address of a doughnut shop. Richmond was sued successfully under the federal racketeering statute (RICO) by public officials in Utah targeted in a vexatious legal campaign by Richmond and other “tribe” members.)

    With Surf’s Up fanning the flames that federal prosecutors and a U.S. Secret Service agent needed to be investigated and prosecuted for their roles in the ASD Ponzi case, it emerged that Moriarty — who once sold fake academic degrees on eBay, claiming they were gag gifts — once had started a purported nonprofit in the name of a man accused of killing a woman in cold blood and ambushing two Missouri police officers and another man.

    Moriarty later was indicted on charges of tax evasion. He pleaded guilty, and was sentenced to federal prison.

    NOTE TO ZEEK READERS: This document, which was filed by federal prosecutors in December 2008, is the second of three known forfeiture complaints filed against ASD-related assets. It is highly recommended reading.

    The document was filed about four months after the original — and best-known ASD forfeiture complaint — was filed.

    The ASD case started as a civil case with a parallel criminal investigation. Zeek-related litigation may follow the same track. Ponzi investigations take time. The December 2008 ASD forfeiture complaint shows that investigators continued to “follow the money” and to destroy ASD’s cover story after the original forfeiture complaint was filed.

    It likely is true that the August 2008 complaint has received the most attention — no doubt because it laid out the core elements of the government’s case. But the December 2008 filing was tremendously damaging because it provided the first real inside glimpse into how ASD truly was operating.