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Tag: Frogress

  • PARTIAL LIST: Gold Nugget Invest (GNI) Just Latest Failed Scheme Promoted By AdSurfDaily Members; One Program After Another Pushed By Promoters Has Collapsed

    EDITOR’S NOTE: This list summarizes several programs pushed by members of AdSurfDaily, a Florida company implicated in an alleged $100 million Ponzi scheme. In some cases, the programs were pushed prior to the seizure by the U.S. Secret Service in August 2008 of 15 bank accounts linked to ASD or Golden Panda Ad Builder, one of the companies implicated in the ASD scheme. Each of the programs listed below came to a dubious end or continue to exist in an unclear, shadowy form. This list is presented in no particular order and does not include every HYIP/autosurf pitched by ASD members.

    UPDATED 3:16 P.M. ET (U.S.A.)

    Gold Nugget Invest (GNI): Collapsed Friday. HYIP. Government of Belize issued warning in November. Ownership hidden behind proxy. Business model unclear. Presented as betting arbitrage, but perhaps was involved in forex. Advertised payout of 7.5 percent per week. Possibly linked to European banking investigation. Changed rules on the fly. Still collecting money after “Re-organization.” Purportedly launched in October 2006, the same month ASD was preparing for launch.

    Genius Funds/Cash Tanker/Saza Investments: Pushed by ASD member “joe” in a post on the ProASD Surf’s Up forum just prior to collapse of GNI. CashTanker, which used a graphic depicting Jesus, now has tanked after advertising payouts of 2 percent a day. “joe” pitched GNI, Genius Funds, Cash Tanker and Saza Investments in an egg-themed promotion in which the word “egg” was used in domain names that redirected to the HYIPs. “joe’s” egg-themed domain that redirected to Cash Tanker now redirects to a program called PTV Partner, an HYIP that bills itself “The Ultimate High Yield Asset for your Financial Portfolio!” “joe’s” egg-themed pitch was based on the screaming notion that “ALL MY EGGS ARE NOT IN ONE BASKET. I MAKE $2000.00 A WEEK.” A street address for the egg-themed domains corresponds to an address in a federal lawsuit involving cell-phone trafficking.

    Regenesis 2×2: Matrix in Seattle area. Records seized by U.S. Secret Service in July 2009. Operators kept under surveillance for five weeks. Multiple search warrants issued. Discarded records found in Dumpster. Sold “commission centers” for $325. Touted itself the “THE ECONOMIC STIMULUS PLAN FOR YOU.” Site appears to have been registered behind a proxy in Europe. Jeffrey William Snyder, one of the individuals kept under surveillance, was a convicted felon on probation for a previous securities scheme.

    GoldenPandaAdBuilder: So-called “Chinese” version of ASD. Assets seized in two forfeiture complaints in ASD case. Operated by Clarence Busby of Georgia. Records in now-dismissed RICO lawsuit against Busby identified him as “Rev.” at least 120 times. Busby was implicated by SEC in 1990s in three prime-bank schemes that promised enormous payouts. Purportedly became Golden Panda president after going fishing with ASD President Andy Bowdoin in April 2008. Federal judge ordered forfeiture of more than $14 million from Golden Panda in July 2009. Busby now purported “chief consultant” of BizAdSplash (BAS). Ceased payouts in July 2009, after declaring “crisis” and claiming members were overpaid. Went offline. Returned online. Went offline again for about two weeks during 2009 Holiday season. Now back online.

    BizAdSplash (BAS): (Also see GoldenPanda entry above.) BAS launched in aftermath of seizure of assets in ASD/GoldenPanda case. Assets seized in civil complaints in ASD/GoldenPanda case total about $80.52 million. Clarence Busby purported to be chief consultant of BAS. BAS touted purported offshore registration in Panama. Georgia corporation records show version of surf’s name used address of UPS Store No. 2644 in Kennesaw, Ga.

    Noobing: Pitched as alternative to ASD after seizure. Noobing targeted deaf people. Deaf member says she reported Noobing to FBI and sheriff’s department in California. There are recent suggestions that deaf members also reported Noobing to SEC. FTC and attorneys general of Minnesota, Kansas and North Carolina joined in suing Affiliate Strategies Inc. (ASI), Noobing’s parent company, in alleged scheme offering guaranteed government grants from economic stimulus funds. Illinois now has joined the FTC action. Original lawsuit filed in July 2009. Like ASD, ASI owned a jet ski. Court-appointed receiver sold it at auction. Receiver performed a preliminary exam of Noobing’s records and determined surf was upside down by approximately $550,000. Noobing gathered money in aftermath of seizure of ASD’s bank accounts. Surf slashed payouts in early 2009, citing unclear ruling in ASD case. Site offline since FTC lawsuit, which did not name Noobing.

    DailyProSurf (DPS): DPS is a largely unknown and mysterious surf site registered by ASD President Andy Bowdoin in August 2006, about two months prior to the formal birth of ASD. Records suggest DPS operated prior to registration, although its ownership was unclear. (NOTE: The story in the DPS link in this paragraph also contains information on 12DailyPro and PhoenixSurf, two surfs sued successfully by the SEC.)

    AdVentures4U (ADV4U): Surf tanked in August 2009. Reportedly had more than 60,000 members. Members identified Steve R. Smith as owner. Smith also purported owner of venture called TradingGold4Cash. In confusing note to ADV4U members, Smith purportedly said his family received threats. Used ASD-like “rebates aren’t guaranteed” excuse upon payout suspension. Urged members not to contact payment processors. Site reportedly conducted business with hotmail address.

    CEP: Judicially declared Ponzi scheme. Smashed by SEC. ASD once advertised it accepted funds through CEP Trust, the payment processor associated with the CEP Ponzi scheme.

    MegaLido: Pushed by ASD members in aftermath of seizure of ASD’s assets and positioned as a safe, “offshore” alternative, MegaLido tanked late in 2008, during the Christmas season, a few months after the ASD seizure. MegaLido purportedly had 27,000 members. MegaLido might have had a tie to Instant2U, another surf that tanked during the 2008 Holiday season. “MegaLido Rocks!” one ASD promoter blared, noting excitedly that it paid 12 percent a day and “It’s Offshore!” Instant2U advertised 14 percent a day.

    Frogress: Pitched by ASD members in aftermath of seizure. Frogress tanked in January 2009, just after the Christmas holiday in 2008.

    DailyProfitPond: Another surf pitched by ASD members in aftermath of seizure. DailyProfitPond tanked in December 2008, in the days leading up to Christmas. One DailyProfitPond promoter said it was possible to start with $12 and turn it into $12,000. The “return” was listed as 150 percent over 30 days.

    AdViewGlobal (AVG or AVGA): Surf with ASD/Bowdoin ties. Formally debuted in February 2009, with a push from the now-defunct Pro-ASD Surf’s Up forum and ASD members. Tanked in June 2009 after collecting untold millions of dollars.

    Perhaps one of the most bizarre autosurfs ever to enter the “industry.” Switched to “private association” structure after reportedly meeting with felon convicted in a 1990s securities scheme. Cited U.S. Constitutional protection despite purported headquarters in Uruguay.

    AVG disclaimed any ties to ASD, despite fact its CEO was a former ASD executive who submitted a sworn affidavit in the ASD case. Issued news release disclaiming ASD ties; release was signed by an ASD employee who had testified in federal court for ASD in 2008. Said the fact AVG’s graphics appeared on ASD-controlled website was “operational coincidence.”

    Announced bank account “suspension” in March 2009, blaming it on members who wired too many transactions in excess of $9,500. Announced CEO resignation, saying CEO would remain in “accounting” department. Announced new wire facility as done deal in May 2009. Company it identified as wire facilitator issued public denial, suggesting AVG was trying to funnel money to itself through a shell company.

    Shell company operated by man with two large bankruptcy filings, including one in which an address listed as an apartment was the address of a mail drop. Purported AVG “compliance” department head was sued twice in 2008 for noncompliance with federal law. AVG claimed to own eWalletPlus payment processor. Actual eWalletPlus ownership far from clear. At least two people close to AVG money had spectacular bankruptcy filings. Andy Bowdoin, whom members later said was AVG’s silent head, was arrested for felony securities violations in the 1990s and entered guilty pleas.

    AdGateWorld (AGW): Now-defunct surf launched after ASD seizure. Later purportedly sold to interests in the “Middle East.” Claims cannot be verified. AGW linked to ASD member Jack Schrold, a Florida attorney once suspended from the Florida bar for misconduct. Schrold was sued successfully by the FTC for the actions of his credit-repair firm, and also was convicted separately of knowledge of the commission of conspiracy and wire-fraud. AGW announced its death as “End of Dream.” Blamed members in announcement: “This honest and legitimate approach using the advertising rebate model apparently did not meet the expectations of the herd mentality.”

    PaperlessAccess: Mysterious upstart surf. ASD President Andy Bowdoin appeared in a video for Paperless Access in 2009, after the ASD seizure. Video appeared online in March 2009 — during time frame in which AVG was announcing bank-account suspension and the departure of its CEO. PaperlessAccess positioned as way for ASD members to regain money seized by the government. Bowdoin did not identify the owners of Paperless Access, describing them only as a small group of people. Nor did Bowdoin mention that the government was establishing an ASD refund program.

    PremiumAdsClub (PAC): Tanked in February 2009. Members said it collected money right up to the end.

    AggeroInvestment: Had PAC ties. Advertised 60 percent a month, plus bonuses. Collected money to the bitter end.

    QBusinessSolution: Surf with purported ties to former ASD executive Juan Fernandez, who took the 5th Amendment in the ASD forfeiture case. # # #

  • Surf’s Up: ‘Paperless Access’ Misrepresented Itself To Bowdoin

    The Paperless Access video starring ASD President Andy Bowdoin went missing because the company misrepresented itself to Bowdoin, according to a Mod at the Pro-ASD Surf's Up forum.
    The Paperless Access video starring ASD President Andy Bowdoin went missing because the company misrepresented itself to Bowdoin, according to a Mod at the Pro-ASD Surf's Up forum.

    Upstart surfing company Paperless Access “was not accurately presented” to Andy Bowdoin, who made the decision to ask the company to remove a video that starred Bowdoin, a Mod at the Pro-ASD Surf’s Up forum reported tonight.

    The Mod said Paperless Access had been banned as a topic for forum discussion, advising members that, if they wanted to talk about it, to “please start a group in the Business Center!”

    With those words, Surf’s Up closed the thread to discussion. The forum had deleted at least three previous threads about Paperless Access and the Bowdoin video in recent days.

    Many ASD members expressed outrage after Bowdoin appeared in the video. Tonight members were questioning why Bowdoin sent a broadcast email for Paperless Access today, after declaring it did not accurately represent itself to him and deciding to ask the company to remove the video.

    Bowdoin, whom lawyers said today had managed for more than two months to avoid being served a lawsuit accusing him of racketeering, enraged some ASD members by appearing in the video.

    He pitched Paperless Access as a way ASD members could recapture money seized by the U.S. Secret Service last year amid allegations of wire fraud, money-laundering and operating a $100 million Ponzi scheme.

    A Blog reader, “Joe,” reported this evening that Paperless Access is registered as a Wyoming corporation. We confirmed the registration through the state database.

    “Joe” also reported that the company appears to be trading on Ponzi pain, saying it had positioned itself as an outlet for people who “had income seized by the government for buying advertising” or people who know people who’ve had income seized by the government.

    Paperless Access even has an acronym for seized money: LAL, which stands for “Legal Advertising Losses.”

    At the same time, “Joe” said he visited the site and found that seven out of 25 sites he viewed in the advertising rotator were not compliant with the Paperless Access Terms of Service. This computes to a noncompliance rate of 28 percent.

    Plenty of surfs have failed in recent weeks and months, including Aggero Investment, Premium Ads Club, MegaLido, Frogress, Daily Profit Pond and others.

    Promoters pitched some of the failed surfs as a remedy for ASD’s woes.

    Surf’s Up did not explain how Paperless Access had misrepresented itself to Bowdoin. The video was pulled a few days ago.

  • Frogress Autosurf Apparently DOA

    doaartAn autosurf known as Frogress apparently has gone the way of MegaLido, leaving members in the lurch.

    Frogress seems to have started in October — about the same time as MegaLido. It advertised 12 percent a day for 12 days, and forum posts raved about the communications skills of the Frogress operator.

    MegaLido employed a similar model before going belly-up in a matter of weeks. People also raved about the communications skills of the MegaLido operator — until he stopped communicating, that is.

    In any event, the Frogress server is throwing an error message, and people in forums said the program has tanked. Some people, however, added that they’d join the next autosurf opened by the Frogress operator. After all, he had good communications skills — and 12 percent a day is nothing to sneeze at.

    Frogress and MegaLido both used the flameout model — high rebate percentages purportedly paid quickly.

    This is distinguished from the slow-motion model — low rebate percentages paid over considerably more time.

    Regardless, Ponzi math applies to both approaches, and a rational argument can be made that slow-motion Ponzis actually are more dangerous than flameout Ponzis because more people have more time to join and more money can enter the system before collapse.

    Bernard Madoff’s alleged $50 billion scheme was a slow-motion Ponzi, as was the alleged AdSurfDaily Ponzi.

    That a slow-motion Ponzi could be construed as more dangerous than a flameout Ponzi does not inply that there is any virtue in using the flameout model; it simply means the individual autosurf’s pot may not grow as large in the flameout model.

    No matter. A fameout Ponzi operator still can collect big sums quickly, shut down the autosurf, and start another flameout Ponzi, hopscotching across the Ponzi universe fueled by promoters who can’t say no to the sign-up commissions and the chance to make a quick kill.

    It’s worth pointing out that Ponzi collapses can be voluntary or involuntary. It’s common for autosurf Ponzi operators to take the money and run, invoking disclaimers and contract language members agreed to at sign-up:

    Advertising fees are “nonrefundable,” for instance. And “rebates aren’t guaranteed.”

    If the cessation of operations is involuntary, it could be because the government has stepped in to stop an alleged scam from mushrooming and sucking away even more money. That’s the ASD experience.