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Tag: AVG

  • News And Notes For May 26: AdViewGlobal Website Launch Scrubbed; Site May Invite Scrutiny Of Attorneys General

    AdViewGlobal website launch scrubbed. Amid much fanfare, the AdViewGlobal (AVG) autosurf announced it would launch a new website Saturday — and to celebrate AVG would provide what it deemed an “unprecedented” 250-percent matching bonus for members and a corresponding 200 percent match for sponsors.

    Problems dogged the launch and members grumbled. The new site appeared online briefly, but members said passwords no longer worked and that data seemed to be missing from the back office.

    At least one graphic on the new site — a “walking fingers” logo to which the acronym “AVGA” had been added — potentially raises international trademark and intellectual-property concerns.

    Beyond that, however, the use of the “walking fingers” logo commonly associated with “Yellow Pages” sometimes signals a scam. Selling “Yellow Pages” listings on the Internet to create the impression that customers have purchased an ad in well-known, local print publications is one variant of the scam.

    Another variant is to send businesses a bogus bill for “Yellow Pages” listings. Because firms frequently purchase such listings and associate the “walking fingers” logo with legitimate print and online publishers, they often pay the bill without looking.

    Yet another variant of the scam is to send what appears to be a small “refund” check to businesses for overpayment of a “Yellow Pages” bill. When recipients endorse the checks, they actually are entering into a contract and agreeing to be automatically billed for advertising purchases.

    Although it has been reported that the “walking fingers” logo has fallen into generic use in the United States, companies that use it invite scrutiny from state attorneys general simply because there are so many scams involving the sale of “Yellow Pages” listings.

    Moreover, “Yellow Pages” is a registered trademark of Telstra, an Australian communications giant. Telstra, as a means of protecting its brand, has been known to zealously enforce its intellectual-property rights and employs attorneys to guard against misuse on the Internet.

    Unable to pull off its website launch, AVG reverted to its old site. Some members now say the 250-percent, matching-bonus offer has been replaced by a 200-percent offer that will run through June 29.

    AVG and its members have engaged in some curious marketing practices. At least one promoter advertised AVG on a business-exchange website operated by Business Week magazine, by posting a link to a YouTube video for AVG.

    In an article last year, Business Week reported on the seizure of AdSurfDaily’s assets, noting that video was one of the things that contributed to the expansion of ASD’s membership roster, before federal prosecutors seized the assets of ASD President Andy Bowdoin amid Ponzi allegations.

    The AVG video on YouTube referenced in the promoter’s Business Week ad has been removed, but the ad itself remains.

  • 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.

  • 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.

  • 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.

  • Bowdoin Still A No-Show In RICO Lawsuit; Attorneys For Both Sides Gear Up For What Could Be An Interminable Slog

    AdSurfDaily President Andy Bowdoin still hasn’t responded to a Jan. 15 racketeering lawsuit filed against him by three ASD members seeking class-action certification.

    Meanwhile, Bank of America, a non-RICO defendant accused in the complaint of aiding Bowdoin and others in a fraudulent scheme, has added two additional attorneys who specialize in complex financial litigation to its legal team.

    At the same time, Steven Berk, an attorney for the plaintiffs, has notified U.S. District Court for the District of Columbia that he has left the law firm of Chavez & Gertler and has started his own firm, Berk Law LLC of Washington, D.C.

    Berk filed papers yesterday to ask the court to delay the due date until May 26 for the plaintiffs’ response to a motion to dismiss Golden Panda Ad Builder President Clarence Busby as a defendant in the case. The response had been due May 11, but Busby’s attorneys have agreed to a 15-day delay.

    Like Bowdoin and ASD attorney Robert Garner, Busby was named a RICO defendant, amid allegations he engaged in racketeering with Bowdoin, Garner and unnamed others. Bowdoin is the sole named RICO defendant who hasn’t responded to the complaint.

    Although he is an attorney, Garner filed a pro se pleading asking to have until May 22 to respond to the complaint. It is unclear if he intends to continue to represent himself or if he’ll retain counsel.

    Busby, through his attorneys, said he should be dismissed from the RICO case because he already has settled a separate case filed by the government in August 2008.

    Why Bowdoin hasn’t responded to the RICO complaint, which was filed in January and amended April 27, is unclear. He filed at least four pro se motions in the government forfeiture case in February and March and authored a special statement to ASD members released through the pro-ASD Surf’s Up forum that said other filings he planned “should really get” the attention of prosecutors.

    Prosecutors, however, said Bowdoin had signed a proffer letter in the case and had acknowledged to law enforcement that ASD had been operating illegally. Proffer letters sometimes mean that the one who proffers is trying to minimize exposure while providing information that may help in the prosecution of others.

    Bowdoin’s pro se litany began at the same time the AdViewGlobal (AVG) autosurf introduced members to Pro Advocate Group, a company that says it can help people practice law without a license. Pro Advocate Group is associated with Karl Dahlstrom, who was sentenced to 78 months in federal prison in the 1990s for securities fraud.

    Securities fraud is one of the allegations cited in the government’s August forfeiture complaint against assets tied to ASD and Golden Panda. Both Bowdoin and Busby have had previous run-ins with securities regulators. In separate cases in the 1990s, Bowdoin was almost jailed in Alabama, and Busby was ordered in Georgia not to break securities laws after the SEC alleged he had pushed three fraudulent prime-bank schemes.

    AVG has family and promoters’ ties to ASD. Bowdoin’s stepson, George Harris, is listed as an AVG trustee. The government filed a second forfeiture complaint against assets tied to ASD in December, implicating Harris and his mother — Edna Faye Bowdoin, Andy Bowdoin’s wife — in the ASD scheme.

    Also in March, Andy Bowdoin appeared in a video for an upstart surf firm known as PaperlessAccess, which he positioned as a company that could help ASD members earn back funds seized by the government in August.

    Bowdoin’s PaperlessAccess video went missing after only a few days, and Surf’s Up reported he had been misled by the company. While all this was happening, AVG  announced the sudden resignation of Gary Talbert, its chief executive officer and a former ASD executive.

    Talbert’s March 20 resignation was followed three days later by an AVG announcement that its bank account had been suspended. Earlier this week, AVG announced that it had struck a deal that would enable customers to wire money for advertising purchases to an offshore bank, but a company AVG identified as the beneficiary of the funds — KINGZ Capital Management Corp. — issued a denial that it had any business relationship with AVG.

    Michael P. Krywenky, president and chief executive officer of KINGZ, said the company was “very shocked” and “appalled” by the claims, noting that attorneys for KINGZ were monitoring the situation.

    Krywenky said KINGZ believed a scam of some sort was under way at AVG.

    AVG yesterday ignored Krywenky’s denial, instead issuing a statement that advised members it was looking at other wire “options” and expected to announce “additional funding solutions within the next 2 weeks.”

    Late last month, the plaintiffs in the RICO case alleged that ASD had hired the “majority” of the staff of Bank of America’s branch in Quincy, Fla., as ASD employees, paying the Bank of America employees more than other ASD employees doing the same work.

    One of the plaintiffs’ arguments was that Bank of America knew its employees also were working for ASD and should have detected that the company was up to no good.

    Bowdoin promised ASD members in March that he would have a conference call to update members. The call never occurred, and Bowdoin has not explained why he has not responded to the RICO complaint.

  • AdViewGlobal Ignores Express Public Denial By KINGZ That Business Relationship Existed; Surf Firm Sidesteps Wire Issue

    After announcing Monday that it had a deal for members to purchase “advertising” beginning Tuesday through international wire transfers, the AdViewGlobal (AVG) autosurf now says it had no such deal.

    Rather, the surf said in a note signed “AVGA Management,” negotiations were “ultimately unsuccessful.” AVG did not explain how a deal described as completed — up to and including instructions and account numbers for customers to use — had suddenly become the casualty of unsuccessful negotiations.

    The explanation may not sit well with members — and it may not sit well with KINGZ Capital Management Corp., which expressly denied yesterday that it had any business relationship with AVG and said it believed it was a victim of a fraud attempt.

    AVG announced Monday that customers could wire money to The Bank of N. T. Butterfield and Son Ltd. Customers were provided instructions to list KINGZ as the beneficiary and given KINGZ’ account number.

    The AVG claim came to the attention of KINGZ President and Chief Executive Officer Michael P. Krywenky, who said yesterday the claim was false and that KINGZ was conducting an investigation.

    “KINGZ Capital Management Corporation nor any of its affiliates have any relationship with AdViewGlobal,” Krywenky said. “Also, I have already confirmed with our bank in Barbados that we are NOT accepting any funds from anyone at, or any clients of, AdViewGlobal.”

    AVG did not address Krywenky’s denial or even tell members about it.

    Here is what AVG, which also is known as the AV Global Association or AVGA, told members (italics added):

    “Wire Transfer Option: The wire transfer option in the member back office has been disabled. The negotiations were ultimately unsuccessful. We apologize for any inconvenience this may have caused our members. Please be aware that we have identified multiple options that will better serve our members and AVGA. These new options will be less cumbersome as well as more cost efficient. We expect to announce the additional funding solutions within the next 2 weeks.

    “Thanks and have a wonderful weekend.

    “AVGA Management”

    Krywenky said yesterday that KINGZ believed that a scam of some sort was under way at AVG.

    KINGZ , he said, had discussed services with a firm known as Living Legacy One LLC.

    Public records show that a corporation by that name was registered in Florida April 18, 2008, and filed an annual report on April 29, 2009. Living Legacy One LLC lists Gerald Castor as its managing member.

    AVG, in a March announcement to members concerning the suspension of its bank account, identified Gerald Castor as an employee of its “Compliance” department.

    U.S. regulators say autosurf companies sell securities but call themselves “advertising” companies to avoid scrutiny by agencies such as the SEC. In recent months, autosurfs have been highlighting purported “offshore” locations, and some promoters say the surfs can hide members’ income from the IRS and “shelter” them from the SEC, the FTC and state attorneys general.

    Describing himself and KINGZ as astounded by AVG’s claims, Krywenky said yesterday that attorneys for the firm were monitoring the situation.

    “It’s extremely bizarre,” he said.

    AVG members are complaining about low rates of return after the company, which purports to be an offshore “advertising’ service, promoted a 200-percent, matching-bonus offer for weeks — even after its bank account had been suspended.

    At the “low” rates of return, some AVG members now say they’ll neither earn back the money they spent on advertising by viewing ads nor emerge with a profit through rebates.

    Members also have complained about unclear explanations from AVG.

  • BREAKING NEWS: KINGZ Capital Management Corp. Denies Any Ties To AdViewGlobal Autosurf, Launches Investigation Into AVG Wire Claim; Says Attorneys Are Monitoring Situation

    UPDATED 2:59 P.M. EDT (U.S.A.) Claims by the AdViewGlobal (AVG) autosurf that KINGZ Capital Management Corp. is aiding AVG in offshore wire transfers are false, and KINGZ has launched an investigation, the company’s top executive said in an interview this morning.

    “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].”

    Krywenky said the company was “astounded” when it received a call from Europe about the AVG claims.

    “KINGZ Capital Management Corporation nor any of its affiliates have any relationship with AdViewGlobal,” Krywenky said. “Also, I have already confirmed with our bank in Barbados that we are NOT accepting any funds from anyone at, or any clients of, AdViewGlobal.”

    Krywenky said KINGZ believed that a scam of some sort was under way. He noted that KINGZ had discussed services with a firm known as Living Legacy One LLC, but said he did not have details about the company at his immediate disposal.

    A corporation by that name was registered in Florida April 18, 2008, and filed an annual report on April 29, 2009. Living Legacy One LLC lists Gerald Castor as its managing member.

    Gerald Castor has been identified in AVG announcements as an employee of AVG’s “Compliance” department.

    No money would make its way to the autosurf firm from KINGZ, Krywenky said.

    “It’s extremely bizarre,” he said. “I am absolutely astounded.”

    On Monday, AVG announced in a forum set up by Mods and members of the embattled AdSurfDaily (ASD) autosurf that AVG had secured a deal for members to wire money offshore to pay for “advertising.”

    KINGZ was mentioned in the AVG announcement as one of the companies that would be involved in the transfers. AVG provided a KINGZ account number in its announcement, along with instructions for members to facilitate wire transfers.

    “We’re in discussion with our lawyers,” Krywenky said.

    AVG’s announcement came on the same day that the Obama administration announced it was cracking down on offshore tax cheats.

    AVG has close ties to ASD. The U.S. Secret Service seized tens of millions of dollars from ASD President Andy Bowdoin in August, amid allegations of wire fraud, money-laundering, engaging in the sale of unregistered securities and operating a Ponzi scheme from Florida.

    AVG purports to be headquartered in Uruguay. Gary Talbert, AVG’s chief executive officer and a former ASD executive, resigned suddenly on March 20.

    In a March 23 announcement signed by “The AVG Management Team,” AVG said its bank account had been “suspended.” It blamed customers, saying they had sent too many wire transactions in excess of $9,500.

    On March 25, an AVG announcement signed by Gerald Castor said AVG’s banking problems were being rectified.

    Problems with an Arizona-based, money-service business known as eWalletPlus followed. Servers for eWalletPlus now resolve to Panama. Like AVG, the company claims now to be headquartered in Uruguay.

    Promoters made AVG’s purported offshore location a big selling point since its inception a few months after the seizure of ASD’s assets.

    AVG, which had been promoting a 200-percent, matching bonus offer — an offer that caused one promoter to exclaim that $5,000 turned into $15,000 “instantly!” — said it was working to rectify its banking problem.

    The solution AVG said it had found — wiring money to an offshore bank — was not going to work, said Krywenky of KINGZ.

    “I think that we may be victims of a scam here,” he said.

    AVG also is known as the AV Global Association.

  • BREAKING NEWS: ASD’s New Attorney Seeks To Withdraw Bowdoin’s Pro Se Motion To Rescind His Decision To Submit To Forfeiture And File Anew: Will Case Slow To A Crawl?

    On Feb. 27, ASD President Andy Bowdoin — acting as his own attorney — filed a motion to rescind a decision he made in January to submit to the forfeiture of tens of millions of dollars and real estate seized by the government in a wire fraud, money-laundering and Ponzi scheme investigation.

    Federal prosecutors, on April 24, filed a memorandum asking U.S. District Judge Judge Rosemary Collyer to deny Bowdoin’s motion to rescind the forfeiture. Prosecutors argued that the law wasn’t on Bowdoin’s side, and advised the court that Bowdoin had acknowledged the government’s material allegations all were true and that Bowdoin had signed a proffer letter.

    Bowdoin, according to prosecutors, had:

    • “confirmed to law enforcement officials that he modeled his enterprise on another’s failed fraud scheme”
    • “acknowledged that there was almost no revenue independent from what he secured from the ‘members’”
    • “confirmed that the revenue figures of the enterprise were managed to make it appear to prospective members that the enterprise called Ad Surf Daily was a consistently profitable, and brilliant, passive income opportunity”

    Charles A. Murray, whom Bowdoin retained as paid counsel in April after Bowdoin earlier had filed one pro se motion after another, now has asked Collyer to let Bowdoin withdraw his self-filed motion to rescind his decision to submit to the forfeiture “without prejudice.”

    Murray advised the court that, as Bowdoin and ASD’s new paid corporate counsel, he intended to “resubmit this Motion to Rescind on or before May 15, 2009″  — only with a lawyer’s touch, not the amateur legal prose of a pro se litigant.

    “Good cause exists for permitting Mr. Bowdoin et al, Claimants’ to withdraw the pro se
    pleading and refile it upon consultation with counsel,” Murray argued.

    “Unrepresented at the time Mr. Bowdoin, et al, Claimants’ filed the original motion, Mr.
    Bowdoin et al, Claimants’ were not aware of the legal standards applicable to the motion and, so, did not present all facts germane to decision.”

    In a March 13 letter to ASD members published at the Pro-ASD Surf’s Up forum, Bowdoin chided prosecutors by saying his pro se filings “should really get their attention.

    “Watch for the filings,” Bowdoin instructed. “I will be speaking out on a conference call as soon as the filings are completed. We will notify you of the call. I look forward to talking to you then.”

    Bowdoin, however, never filed another pro se motion (the last one was filed March 9, four days before Bowdoin had turned to Surf’s Up to reinvigorate support and taunt prosecutors).

    And Bowdoin never conducted the promised conference call.

    Even before news of Bowdoin’s pro se filings broke on March 4, Surf’s Up had been hinting something special might be coming. Bowdoin’s pro se move coincided with an announcement by the AdViewGlobal (AVG) autosurf, which has close ties to ASD, that it was moving underground and forming a private association.

    AVG introduced members to a company known as Pro Advocate Group, which says it can help people practice law without a license. Bowdoin’s three initial pro se filings were signed and dated  by him Feb. 25, one day before AVG introduced Pro Advocate Group.  Bowdoin’s filings did not become a matter of public record until March 4.

    Best-laid plans?

    It is possible that an order from Collyer that Bowdoin didn’t anticipate short-circuited his pro se litigation plan. On March 26, the judge ordered Bowdoin’s previous paid counsel to inform Bowdoin that corporate entities that had filed claims in the ASD case — AdSurfDaily Inc. and Bowdoin/Harris Enterprise Inc. — could not proceed pro se. Collyer also ordered the lawyers to request permission to withdraw from the case if that was their intent.

    Akerman Senterfitt, Bowdoin’s previous paid counsel, complied with the judge’s order and was granted leave to withdraw from the case.

    Probe Still Under Way

    The ASD case continues to be an active investigation. It is possible that investigators viewed Bowdoin’s March 13 Surf’s Up letter and that prosecutors made a veiled reference to it in their April 24 memorandum to Collyer asking her not to permit Bowdoin to change his mind about submitting to the forfeiture.

    “Mr. Bowdoin says that after discussing this case with his supporters, and concluding that
    they were smarter than his attorneys, he has changed his mind,” prosecutors said.

    Are they referring to these words in Bowdoin’s Surf’s Up letter?

    “About a month ago, several members introduced me to a group that studied what my attorneys did,” Bowdoin said in the letter. “The group said that my attorneys had taken the wrong approach. The group was very confident that they could help because the government had broken so many laws and had violated our rights as citizens of the United States.”

    Nowhere in any of Bowdoin’s four self-filed pleadings does he discuss his rationale for becoming a pro se litigant after conferring with supporters. His only public statements on the matter have been made on Surf’s Up.

    A New Clash?

    Murray’s filing on Bowdoin’s behalf potentially sets up a new clash with prosecutors, who now have yet another document to address. At the same time, pro se motions filed by other litigants in the case have appeared on the record in recent days, and may require additional responses from prosecutors.

    If Murray persuades Collyer to grant Murray’s motion to withdraw Bowdoin’s rescission motion and Murray files a new motion to rescind, it would mean that:

    • Bowdoin had submitted to the forfeiture on the advice of previous paid counsel.
    • Changed his mind more than a month later as a pro se litigant and tried to undo his forfeiture decision with a self-filed rescission motion.
    • Changed his mind again about his rescission motion under the advice of new paid counsel.
    • Withdrew his motion to rescind his forfeiture decision, only to have it reinstated on his behalf by a professional attorney.

    On Jan. 13, Bowdoin asked the court to permit him to submit to the forfeiture. Collyer granted Bowdoin’s request Jan. 22, a hurdle that began to open a door for prosecutors to begin the slow process of liquidating ASD assets to provide refunds to customers.

    Now, approaching four months later — and with pro se pleadings dominating the docket — prosecutors have not been able even to begin the liquidation process or implement a refund program.

  • PRICELESS: AdViewGlobal Announces Wire Deal With Offshore Bank On Day White House And Treasury Department Announce Plan To Crackdown On Offshore Tax Havens

    obamaUPDATED 12:43 P.M. EDT (May 7, U.S.A.) As often is the case in the tin-eared autosurf world, the timing was impeccable: On the day the Obama administration announced a crackdown on U.S. corporations and citizens who use offshore tax havens to hide income, autosurf company AdViewGlobal (AVG) announced it had a deal with an offshore bank to accept member deposits for the purchase of “advertising.”

    U.S. regulators say autosurf companies sell securities but call themselves “advertising” companies to avoid scrutiny by agencies such as the SEC. In recent months, autosurfs have been highlighting purported “offshore” locations, and some promoters say the surfs can hide members’ income from the IRS and “shelter” them from the SEC, the FTC and state attorneys general.

    “I’m asking Congress to pass some commonsense measures,” Obama said at 11:37 a.m. (EDT) yesterday.  “One of these measures would let the IRS know how much income Americans are generating in overseas accounts by requiring overseas banks to provide 1099s for their American clients, just like Americans have to do for their bank accounts here in this country. If financial institutions won’t cooperate with us, we will assume that they are sheltering money in tax havens, and act accordingly.”

    At 5:54 p.m. yesterday, a member of an AVG forum operated by some of the Mods and members of the Pro-AdSurfDaily Surf’s Up forum announced that AVG members now could wire money from the United States to The Bank of N. T. Butterfield and Son Ltd.

    Butterfield has locations in Bermuda, the Bahamas, Barbados and the Cayman Islands, among other places.

    Obama specifically referenced the Cayman Islands in his remarks announcing the crackdown.

    “On the campaign, I used to talk about the outrage of a building in the Cayman Islands that had over 12,000 businesses — businesses claim this building as their headquarters,” Obama said.  “And I’ve said before, either this is the largest building in the world or the largest tax scam in the world.”

    Under a headline titled “BREAKING NEWS Fund your Advertising,” AVG members were told this (italics added):

    “AV GLOBAL ASSOCIATION is pleased to announce

    “Beginning Tuesday May 5, you will be able to purchase more advertising.

    “There will be a form that you can access to arrange for your purchase.

    “Specific information will be required in order to process your payment.

    “You will need to provide your Name; A Number; email address used for your AVGA Account; phone number; and address.

    “Wire transfers: These instruments usually clear within two business days. Although there are fees charged by your bank and our bank also assesses fees (usually our bank will charge $15) your account is credited immediately upon receipt and your advertising program begins immediately. Your purchase will be adjusted by the fees.

    Review:

    All funds must be accompanied by the correct identifying information:

    * Name

    * AVGA id number

    * email address

    *mailing address

    *and phone number

    Without this information your money will be returned to you through the originating bank.

    Remember: The form will appear on the Website by Tuesday before midnight. If there is a change, you will be notified.

    Please print the form and complete it so that your bank [h]as all of the pertinent information.

    Transfer information:

    The Bank of N. T. Butterfield and Son, LTD.

    Via

    J. P. Morgan Chase Bank

    Bldg. F. Floor 8

    4 Chase Metrotech Center

    New York, NY,

    USA, 11245

    Swift # [Deleted by this Blog]

    Account # [Deleted by this Blog]

    Beneficiary: KINGZ Capital Management Corporation

    Account # [Deleted by this Blog]

    Reference: YOUR NAME & YOUR I.D.# & YOUR EMAIL ADDRESS

    UPDATE:  KINGZ Capital Management Corp. has issued a strong denial of AVG’s claims. Michael P. Krywenky, president and chief executive officer of KINGZ, said on May 7 that the firm had no business tie to AVG and had launched an investigation into the claims.

    “KINGZ Capital Management Corporation nor any of its affiliates have any relationship with AdViewGlobal,” Krywenky said. “Also, I have already confirmed with our bank in Barbados that we are NOT accepting any funds from anyone at, or any clients of, AdViewGlobal.”

    See this post.

    AVG has close ties to AdSurfDaily (ASD), whose assets were seized in August after a joint investigation by the U.S. Secret Service and the IRS was opened in July. Federal prosecutors said ASD was engaging in wire fraud and  money-laundering while selling unregistered securities and operating a Ponzi scheme from Florida.

    Prosecutors alleged that ASD President Andy Bowdoin, who was arrested on felony securities charges in Alabama in the 1990s and pleaded guilty, claimed falsely that he had received a special award last year for business acumen from President Bush.

    Now AVG appears to be courting trouble from the new occupant of the White House — after the Secret Service specifically refuted Bowdoin’s Bush claims.

    George Harris, an AVG trustee, is the stepson of ASD’s Bowdoin. A Tallahassee home and a car owned by Harris and his wife were seized in December, after prosecutors filed a second forfeiture complaint against assets tied to ASD. The complaint alleged massive internal fraud at ASD, citing a litany of personal purchases made with corporate funds and a claim that $1 million had been stolen from the firm by “Russian” hackers.

    No police report was filed.

    AVG purports to be headquartered in Uruguay. Its servers resolve to Panama. Gary Talbert, AVG’s chief executive officer and a former ASD executive, resigned suddenly on March 20

    On March 23, AVG announced that its bank account had been suspended, blaming the suspension on members who sent too many wire transactions in excess of $9,500. No AVG executive or employee signed the suspension announcement. It was signed “The AVG Management Team.”

    Problems with an Arizona-based, money-service business known as eWalletPlus followed. Servers for eWalletPlus now resolve to Panama, and the company claims now to be headquartered in Uruguay.

    AVG, which had been promoting a 200-percent, matching bonus offer — an offer that caused one promoter to exclaim that $5,000 turned into $15,000 “instantly!” — said it was working to rectify its banking problem.

    Its solution was announced yesterday: Wiring money to an offshore bank.

    Promoters made AVG’s purported offshore location a big selling point since its inception a few months after the seizure of ASD’s assets.

  • RICO Lawsuit Against Bowdoin, Busby, Garner Makes Veiled Reference To ’80-20′ Rule; Signals That ‘Surf’ Promoters Run Risk Of Being Named Defendants In Racketeering Actions

    A racketeering lawsuit against ASD President Andy Bowdoin, ASD attorney Robert Garner and Golden Panda Ad Builder President Clarence Busby makes a veiled reference to what autosurf participants refer to as the “80-20” rule.

    The reference signals that both private litigants and the government are wise to methods autosurf promoters use to stem the outflow of cash and maintain the deception to encourage new money to flow into the system. Under the so-called 80-20 plans, participants remove 20 percent in cash and let 80 percent ride in the surf.

    Another unstated advantage the “80-20” plans bring autosurfs is to keep cash-out amounts below daily electronic-transfer limitations imposed by banks and payment processors. By discouraging cash-outs, the surf firms can hide the limitations from participants, meaning their inability to honor all cash-out requests also is hidden.

    Members of AdViewGlobal, a surf firm with close ties to ASD, have formed an “80-20 Club.” But the veiled reference in the RICO lawsuit, which was brought by ASD members, signals that such promotions ultimately may drag autosurf promoters in general into future racketeering litigation, with downline members hiring attorneys to file class-action lawsuits against both the surfs and upline sponsors under RICO statutes.

    “The RICO Defendants induce members to leave earned rebates in ASD as a cash balance by claiming that by doing so, members will significantly increase earnings,” the plaintiffs in the ASD RICO case said.

    “In this way, the RICO Defendants encourage members to continue to contribute to ASD’s scheme,” the plaintiffs said. “Furthermore, members do not learn that ASD cannot live up to its promises until members attempt to cash out. Members may watch their ASD accounts grow by delaying cash out, but the only real growth is of ASD’s pyramid.”

    ASD employed another deception — calling the amount in a member’s account a “cash balance” — to keep money in the system, the plaintiffs said.

    By referring to the amount as a “cash balance,” ASD “falsely represents that the account balance has the liquidity of cash.”