Tag: Golden Panda Ad Builder

  • MEMORY LANE: Before DailyProfitPond ‘Surf Tanked In 2008, Operators Warned That ‘Substainability’ Of 12 Percent Daily Payout Was ‘Questionable’

    EDITOR’S NOTE: We were researching an unrelated matter last night, and came across this gem (outlined below). In 2008, a number of autosurfs that became popular in the aftermath of the seizure of tens of millions of dollars from the personal bank accounts of AdSurfDaily President Andy Bowdoin tanked just prior to Christmas. One of them was Daily Profit Pond. The story below illustrates the fractured thinking that dominates the autosurf landscape — and the role promoters and autosurf “experts” play in spreading spectacular frauds virally on the Internet.

    As incredible as it sounds, an autosurf Ponzi known as Daily Profit Pond (DPP) said it was a legitimate business but warned prior to its collapse during the 2008 holiday season that its advertised payout rate of 12 percent a day might be unsustainable.

    Why promoters and members even had to ponder whether a Ponzi existed or the sustainability of an enterprise that advertised a 144 percent return in 12 days when there was no verifiable source of revenue beyond members’ funds was left to the imagination.

    But ponder it they did . . .

    In a missive to members, DPP described itself as thoughtful company that had listened to the input of unidentified “leaders” before making a decision to slash the advertised payout rate.

    “A few of our members got scarced (sic) and have contacted us that they want such a fine program like DPP to be here in the long run,” DPP said. “We have listen (sic) to these leaders and have decided to make some changes that will ensure the longterm success of DPP.”

    How did DPP address the sustainability issue?

    “[T]he management of DPP have decided to change the 12% daily plan which pays 144% in 12 days to a more realistic plan of 150% earnings in 30 days.”

    Yep. DPP suggested 144 percent in 12 days was too much, but added that 150 percent in 30 days was “more realistic.” DPP did not explain precisely how it had arrived at the conclusion that its new, 150 percent plan was a winner, but it noted (italics added):

    “The DPP administration are expects (sic) in the digital currency business and advertising business. This is where we intend to invest our members (sic) funds and the profit we generate will be used to substain (sic) our members payouts. This new strategy will enable DPP to be there in the long run when all other sites have closed and vanished into the (sic) thin air.”

    And like an overnight infomercial eager to add a free can of snake oil to the deal, DPP shrieked, “But Wait!” (Italics added):

    “How does this work, you may ask?

    “Henceforeth (sic), Our (sic) members will start earning 150% of their profit spots in 30 days. Ref. commission for upgraded members remains 12% down through 3rd levels (sic). 6% commission on level one, 3% ref commission on level two and three.”

    One promoter cheered DPP’s business acumen.

    “Well, I’m glad to see that someone at Daily Profit Pond is paying attention to the accounting,” he said. “They realize that their liability to their existing members is higher than the cash that is flowing in. You don’t have to be a math expert to realize that when you have more money going out than you have coming in, that you are going to run into cash problems pretty fast.

    “For the people who are upset by this change, I can understand where you are coming from but you have got to look at the alternative.

    “Would you rather keep earning 12% per day of virtual money that you will NEVER receive? Or would you rather earn 5% per day of money that you will actually be able to cash out? The choice is obvious.”

    Records suggest that DPP’s site vanished a week prior to Christmas in 2008. One ad viewed by the PP Blog prior to the collapse of DPP said it was possible to start with $12 and turn it into $12,000.

    Just days earlier DPP had lamented surf sites that vanish into “thin air.”

    Surfs such as DPP and MegaLido, which also went missing prior to the 2008 Holiday season, were particularly noxious. Members of AdSurfDaily and Golden Panda Ad Builder, whose assets were seized by the U.S. Secret Service in August 2008, cynically promoted DPP and MegaLido to other members of ASD, suggesting these miserable enterprises provided a way for people who lost money in ASD and Golden Panda to get it back quickly.

    Good grief: 144 percent in 12 days — later slashed to a “more realistic” 150 percent in 30 days.

    There was an earnings “calculator,” of course.

  • WebsiteTester.Biz Pitched On Reborn GoldenPandaAdZone Forum, Plus MoneyMakerGroup, TalkGold And Other Ponzi Havens

    EDITOR’S NOTE: This story originally was published June 30. The PP Blog later encountered a database problem, which caused the site to go down and resulted in the temporary loss of some data. The data now has been retrieved.

    This story is about a new site known as “WebsiteTester.biz,” but some background is in order.

    It turns out that the April reports of the demise of the Golden Panda Ad Zone Forum, which changed its name to the Online Success Zone (OSZ), were premature.

    OSZ now is back online — and a poster is pitching  “WebsiteTester.biz,”  which appears to be promoting itself as an upstart advertising “testing” platform.

    Positioning surfing sites as testing platforms dates back at least to the CEP Ponzi scheme. Last summer, the failed AdViewGlobal (AVG) autosurf, which had close ties to the AdSurfDaily autosurf, was trying to reposition itself as an ad-testing site.

    Just prior to going offline in April, OSZ was pushing Narc That Car and Data Network Affiliates, two highly questionable companies  whose membership roster includes people linked to alleged Ponzi or pyramid schemes. OSZ got its start as the Golden Panda Ad Zone forum after the U.S. Secret Service seized more than $80 million from ASD and its purported “Chinese” autosurf companion, Golden Panda Ad Builder.

    During the summer of 2008, with ASD at its zenith and about to be accused of operating a Ponzi scheme, a predecessor to the INetGlobal autosurf also was coming online. INetGlobal eventually morphed into a surf site that largely targeted Chinese members, according to the Secret Service, which is investigating INetGlobal as its operator, Steve Renner, is in federal prison serving time for income-tax evasion.

    The ASD and Golden Panda money was seized amid allegations of wire fraud, money-laundering, selling unregistered securities and operating a Ponzi scheme. A forfeiture complaint in the case alleged a conspiracy with unnamed participants, and ASD was sued separately under the federal racketeering statute by members who also alleged a conspiracy was under way.

    Participants’ marketing of WebsiteTester.biz. occurs against the backdrop of a forceful statement by federal prosecutors in Illinois that virtually all HYIPs are Ponzi schemes. Autosurfs are a form of an HYIP program.  The business model of WebsiteTester.biz is unclear, and the company has not been accused of wrongdoing.

    In the Illinois case, Pathway To Prosperity (P2P) was alleged to have operated a global Ponzi scheme that gathered more than $70 million and fleeced more than 40,000 people. Nick Smirnow, P2P’s operator,  has a criminal past dating back to at least 1979, including convictions for breaking and entering, driving the getaway car in a robbery and cultivating and selling drugs. He also told a colleague he was involved in a double homicide in Canada and claimed to have ties to organized crime in Ontario, according to court filings.

    Posts on forums such as ASA Monitor, TalkGold and MoneyMakerGroup sought to sanitize the P2P scheme, authorities said. This important piece of information seems to have escaped the OSZ forum, which apparently continues to operate on the theory that HYIPs, autosurfs and cash-gifting programs somehow are a legitimate form of commerce.

    Incongruities abound in the autosurf and HYIP universes. “WebsiteTester.biz,” the apparent new darling of Ponzi boards such as OSZ, has a domain that is registered behind a proxy. It is unclear if any of its early boosters even know who owns the company or could name a single executive or a board member. Because the site’s business model is unclear, promoters are pitching a program they know virtually nothing about.

    The mere fact the “opportunity” is being pitched on the Ponzi boards shows, at a minimum, that promoters instinctively turned to the cesspools to drive business to the company.

    On its website, Website Tester, which purportedly is in prelaunch,  says this (italics added):

    “FINALLY . . . This is the business you have waited for so long:

    “It is completely free, you earn through EVERYBODY who registers after you, even if you do not sponsor people; you must not sell or buy anything. Guaranteed!

    “The faster you register, the more can be your potential income, even if you do nothing else than register for free . . .

    “How does it work? – It’s simple!

    “A market research company from the USA is searching for internet users all over the world, who get paid for testing websites and giving a short opinion. You also can earn up to 1,000 US$ per month working 1 to 10 hours weekly.

    “Even if the job as a website tester is not for you, you can earn two passive incomes month after month.”

    Excuse us while we vomit.

    Based on information on the landing page of WebsiteTester, the upstart company appears to have a tie to an upstart, Las Vegas-registered company known as Alpha Market Research Inc.  Alpha Market appears to have a Twitter site from which it relentlessly links to self-produced news releases that are posted on PRLog.org, a free press-release distribution service.

    Hey, did you see how the SEC described a scam yesterday that allegedly relied on Twitter and Facebook to help line up people to be fleeced in a securities swindle?

    Here is a paragraph from one of Alpha Market’s PR gems:

    “Global marketing is nothing but marketing done on national and international level and which involves understanding the similarities, dissimilarities and taking advantage of the opportunities to attain the goal.”

    Here is another gem:

    “When you buy something from eBay, Amazon.com or any online store, you’ve participated in e-commerce.”

    Meanwhile, here is yet another:

    “If you do not have a ghostwriter writing your blog content, then it means you will need to spend some time writing some blog posts.”

    Separate from its news releases, Alpha Market says this (italics added):

    “Potential clients who are disturbed by trifles during the ordering process are often unaware of exactly why. For you, the entrepreneur, the big questions remain: why did the potential client visit your website and why did they accept or not accept your offer?

    Alpha Market Research, Inc. starts exactly at this point: we make your website available for thousands of AMR website-testers, assigned in groups of age and interest – this way we get detailed feedback with an honest evaluation of your website.

    Like WebsiteTester.biz, AlphaMarketResearch.com is registered behind a proxy. The Alpha Market site was registered May 28, according to records. The Web Tester site was registered five days later, on June 2. Alpha Market’s Twitter site appears to date back to June 4.

    The buzz about Website Tester also is occurring against the backdrop of the launch of yet-another surfing company: AdPayDaily (APD).

    APD, which appears to have promotional ties to ASD and AVG, is running an AVG-like series of promotions that offer bonuses.

    Interestingly, APD, which appears to have only about 550 members despite virtually nonstop flogging for weeks, now says members can send in as much as $10,000.

    Website Tester, at the moment, appears just to be gathering names — and generating excitement by publishing the names of the latest registrants on the left side of its landing page. The names suggest the enterprise is attracting many people from outside the United States, but it is far from clear if anything about the company is real.

  • Affiliate Links Show That Surf’s Up Mod And ASD Members Hold High Positions In Upstart Surf: Things To Consider If You Are Tempted To Join AdPayDaily

    Alfred E. Neuman: From Wikipedia.

    Dear Readers,

    We have received a few inquiries about a new surfing program called AdPayDaily (APD). Our initial take is that the program is a dressed-up version of AdSurfDaily, AdViewGlobal, BizAdSplash and AdGateWorld and that the operators are persuaded they’ve found a word combination and legal structure that will neutralize critics and law enforcement should concerns about the sale of unregistered securities and a Ponzi and pyramid scheme be raised.

    AVG, BAS and AGW were positioned by former ASD members as offshore “clones” of ASD. APD, like ASD, appears to be operating in the domestic United States.

    In our view, APD’s presentation raises numerous red flags. At a minimum, it is starting out as an MLM absurdity, if not a potential monstrosity. To get a flavor of the absurdity, imagine that Walmart was clueless enough to start an autosurf and provide a corporate-approved greeter who says, “Welcome to Walmart Pay Daily. We count all the money out of sight in the back room at midnight to determine how much you get, and keep 50 percent of the cash for ourselves. Don’t worry. We have excellent lawyers, and we’ve instructed the money-counter not to rip you off.”

    That’s effectively what APD is saying.

    Another red flag is the fax number listed on a document APD refers to on its website as “Ad Pay Daily’s Conference Registration Form For July 30th and 31st 2010.” The fax number is listed online as a number used by a Kansas real-estate flipping company billed as National Flips. Like APD, the National Flips domain registration is hidden behind a proxy, although the website says this: “To learn how to become a Hard Money Lender and earn 30+% per annum, call [a telephone number] . . .”

    Meanwhile, the invitation for the APD conference that uses the National Flips fax number says this — not once, but twice: “Any person who does not provide photographic proof of identity will not be permitted to attend this event, so don’t forget your photo ID.”

    Why a photo ID would be required to attend a sales pitch for an advertising company is left to the imagination. Undercover Secret Service agents have been known to attend such functions, however.

    Virtually every autosurf that has come along has used strange approaches or applied language tweaks designed to skirt securities laws, disarm critics and sanitize the “opportunities” for prospects. Serial autosurf promoters are infamous for telling prospects that a particular surf has found the magic pill that makes everything legal. Historically they rely on the surf operators to provide a legal cover. When things go south, they claim no one can blame them for promoting the schemes. After all, they relied on the assertions of the operators that everything was above-board and legal. They have been disingenuous in the same way that Alfred E. Neuman, Mad magazine’s fictional mascot, was disingenuous.

    “What, me worry?”

    Worry, however, appears to be front-and-center at APD, which is preemptively denying in multiple places that it is a Ponzi scheme. This strikes us as a big red flag. There are others.

    ASD, Surf’s Up Members Become APD Players

    During its early research into APD, the PP Blog has determined that a number of members of the alleged AdSurfDaily autosurf Ponzi scheme have high positions in the APD venture. Some of the former ASD members hold more than one position in the top 80 positions in APD, including a former Surf’s Up Mod who appears to hold positions 76 and 77. It is possible that another Surf’s Up Mod also is high up in the pecking order of APD affiliates at No. 56.

    The Blog determined the names of APD promoters by researching the method by which APD creates affiliate links. At least one ASD member who made himself part of the ASD Ponzi litigation by submitting pro se pleadings holds positions 9 and 10 in APD, according to the affiliate links.

    Surf promoters are not fond of pointing out the pain of previous prosecutions of autosurfs and the time-consuming and expensive litigation involving both the government and court-appointed receivers that may occur when a surf collapses. It is not uncommon for millions of dollars to go missing in a surf.

    ASD’s Andy Bowdoin has told members that he has spent more than $1 million in his legal defense. Nothing (other than GIGO passed along by promoters) suggests Bowdoin was a man of means prior to the Secret Service raid on ASD’s headquarters in August 2008. His money for his defense appears to have come from ASD members. On a side note, Bowdoin tried to persuade members in September 2009 that the million dollars he dropped to keep himself out of prison was for their benefit. At the same time, he claimed his fight with the government was inspired by a former Miss America.

    ASD gathered at least $65.8 million. When the sum seized in the Golden Panda Ad Builder action, which is part of the ASD litigation, is factored in, the number surges to more than $80 million. That’s a big number, of course — one that shows why others want to start surfs and just tweak and tweak and tweak in search of the elusive magic pill.

    APD’s website was registered on Nov. 18, 2008. That’s just one day before U.S. District Judge Rosemary Collyer ruled that ASD had not demonstrated it was a lawful business and not a Ponzi scheme. APD’s domain-registration date also coincides with a string of registration dates by the so-called ASD clones:

    • Aug. 18, 2008: Domain name for AdGateWorld registered. (About two weeks after the ASD raid by the U.S. Secret Service, which is working in concert with the IRS and federal prosecutors.)
    • Sept. 22, 2008: Domain name for AdViewGlobal registered. (AVG had very close ties to ASD.)
    • Nov. 7, 2008: Domain name for BizAdSplash registered. (ASD and Golden Panda figure Clarence Busby purportedly was both the “chief consultant” and owner of BAS.)

    APD’s domain was registered just 11 days after the BAS domain was registered and only a couple of weeks before ASD declared that the now-defunct Surf’s Up forum was its official organ for ASD news. Surf’s Up became infamous for shilling for Bowdoin, fracturing the facts of the ASD wire-fraud and money-laundering case and misinforming members.

    Each of the surfs in the bullet points above failed spectacularly. Each of them blamed members for their problems. Each of them had promoters and members in common with ASD. Each of them also offered various “bonuses” to join — something APD is doing at the moment.

  • ESSAY: Why Narc That Car Has A Duty To Reveal The Names Of Its Database Clients And Police Departments Whose Members May Be Narc Consultants

    This promo by a Narc That Car member appeared on a .org website that used AMBER Alert's name in its URL. The U.S. Department of Justice, which administers the AMBER Alert program, denied in February that it had any affiliation with Narc. Days later, Narc removed a reference to AMBER Alert in its own video production to advertise the opportunity. The actions of both Narc and its promoters have led to questions about whether the company had come into possession of money based on misrepresentations that caused prospects to believe they were helping out worthwhile causes by joining Narc. The very first Narc promotions observed by the PP Blog were authored by members of AdSurfDaily and Golden Panda Ad Builder, companies implicated in a Ponzi scheme involving tens of millions of dollars.

    EDITOR’S NOTE: Narc That Car says it is a private company and has no duty to reveal the names of its data clients. This essay challenges Narc’s arguments.

    The public has a compelling interest not only in learning the identities of Narc That Car’s clients through appropriate channels, but also in learning the identities of the company’s data-gatherers who may hold jobs in the public sector and are supplementing their income by moonlighting for Narc as consultants.

    Narc is a highly questionable business. Moonlighting by public employees in highly questionable ways is one of the elements in the Scott Rothstein Ponzi scheme in Florida. Rothstein is alleged to have employed off-duty members of law enforcement as bodyguards while he orchestrated a $1.2 billion fraud. Moonlighting also is an element in a recent case in which investigators in Georgia probed allegations of sexual assault against Pittsburgh Steelers’ quarterback Ben Roethlisberger, who employed off-duty police officers as bodyguards.

    The assault allegedly took place in the women’s restroom of a nightclub. Roethlisberger was not charged in the case, but was suspended for six games by the NFL for conduct detrimental to society and the league. Two Pennsylvania police officers working for him potentially face disciplinary action for sullying the reputations of their departments and not extricating themselves from a situation in which a crime or crimes might have been committed in their presence.

    Why Wouldn’t The BBB Have Questions

    Today the PP Blog challenges its readers, including its critics, to read this essay, observe the sampling of graphics and answer a few simple questions: Why wouldn’t the Better Business Bureau, responsible businesspeople, journalists, law-enforcement agencies and taxpayers not have questions about Narc That Car? (Now suddenly known as Crowd Sourcing International after issuing checks to members under at least two different names earlier in the year.)

    And why isn’t the company stepping forward with answers that enlighten, not deflect or hop-scotch, around key issues? The company should supply the information to the Better Business Bureau and any law-enforcement agency that asks for it.  Information Narc provides could be kept private while any investigation ensues and released by the government if it is determined that wrongdoing has occurred.

    Narc says it is in the business of paying people to record the license-plate numbers of cars for entry in a database that will be used by “lien holders” and companies that repossess automobiles when owners default on loans.

    Members of Narc say they record plate numbers randomly — in places such as parking lots — on the off-chance the vehicle is or later will become a target of the repo man. Narc’s data-gatherers are required to provide the address at which the plate number was viewed and recorded. Because the location data likely will be stale and the car likely will be moved before it becomes the subject of a repo bid, there are legitimate concerns about the actual usefulness of the data to lien-holders and concerns about whether Narc is just an excuse for a business, not an actual business capable of making profits from retail sales to database clients.

    There also are significant concerns about privacy, and the propriety, safety and legality of the Narc program. Some Narc members have advertised that they collect “extra” plate numbers and use them as incentives for prospects to qualify for commissions without gathering data themselves, a practice that leads to troubling questions about whether Narc members have provided corrupt data to the company. An unknown number of plate numbers recorded in Narc’s database may be third-party sightings passed along to incoming members who entered bogus addresses at which plates purportedly were sighted — all to qualify for payments.

    Equally troubling is that Narc, which has to know that some members are providing plate numbers for downline recruits, does not reveal the names of its database clients, saying the information is proprietary. There may be no way for existing Narc clients to know whether the data Narc reportedly is selling has been corrupted by the practices of members so eager to earn money that they’re giving away plate numbers and the recipients of the plate numbers are fabricating addresses at which the plates were spotted.

    Corrupt data is worthless data.

    There are reports that Narc can verify the validity of a plate number — but it is inconceivable that Narc has the means to verify that the plate actually was spotted at a specific address. Adding to the ripples of a potentially corrupt data stream is that some Narc members have instructed incoming members in purported “training” videos not to bother noting the address at the time the plate number was sighted. Rather, the prospects have been told to go home and look up the address on the Internet or refer to a store receipt if they happened to be shopping at, say, Walmart or Giant Eagle, when they were doing their side business for Narc.

    Members appear to be able to enter any address they please, whether the car was spotted there or not. Meanwhile, some members have openly said they don’t like their neighbors knowing they’re recording plate numbers for a fee, so they record the numbers in the same fashion a character in a spy novel hides behind a newspaper or makes himself invisible in plain sight. The casualty is transparency at virtually all levels, meaning clients don’t know if they’re buying reliable data, members of the public don’t know their cars are being watched and if profiles are being created, and Narc members don’t know anything other than the information Narc chooses to share.

    Public Esteem For Police At Stake Amid Confusing Claims

    Narc members say police officers have joined the Narc program as data-gatherers and upline sponsors. If true (and the PP Blog believes that police officers are involved in Narc), it is incumbent upon Narc to publicly identify the police departments for which the officers work.

    Because of claims made by Narc promoters, the public has the right to determine if officers who belong to Narc are collecting data while on “city time” or during their off-duty hours and assisting Narc in ways that nonpolice members of Narc cannot.

    Why? Because Narc largely operates in the shadows. Moreover, some of the public claims of its promoters have been beyond reckless — and only Narc knows the truth about how it is paying members and using the data they collect. If Narc has police officers among its ranks amid these circumstances, it means the officers are promoting a business they may know very little about.

    Police officers should not be promoting a business they know very little about, especially amid these circumstances. That Narc is paying members is not evidence that no wrongdoing is occurring. All successful pyramid and Ponzi schemes pay members. Moreover, the advertising claims of Narc promoters alone give officers all the information they need to pull out of Narc today and potentially spare themselves and their departments embarrassment later — just as Rothstein’s bodyguards and Roethelisberger’s bodyguards should have pulled out.

    That the officers are repping for Narc and not providing security services is immaterial. Narc emits the same kind of stink. It stinks even if it’s legal.

    Few people would begrudge a police officer from supplementing his or her income in legitimate fashion — but that is not the issue here. The issue is whether Narc and many of its data-gatherers are legitimate. The Better Business Bureau has expressed concerns that Narc might be a pyramid scheme. Whether Narc is a pyramid scheme is not the only issue, however. This essay points out some of the other issues.

    Only Full Transparency Can Lead To A Clean Bill Of Health For Narc

    Absent full transparency from Narc, no police officer or nonpolice officer gathering data, asking people to send money to Narc and building Narc downlines — can determine if they are promoting a scam.

    Period.

    There have been reports in recent days that Narc — through its own unfiltered channels — has claimed the reason it does not publish data clients’ names is because such clients got “incessant” calls when it did publish the names.

    This claim strikes us as the precise kind of dreck that cannot pass the giggle test on Main Street but somehow passes the plausibility test in the most florid hallways of MLM, which much of America and the world already view as a cesspool. Not only is the claim absurd, it also is contrary to promoters’ claims that Narc was employing a revolutionary MLM concept by which members would build the database product first and Narc would sell it to retail customers later. This approach could be illegal if Narc does not have “true” customers (database clients) in  sufficient volume to destroy the pyramid concerns. Although some Narc promoters have claimed the company has “investors,” the claim itself only leads to more questions: Who put up the purported investment money if investors actually exist?

    Narc promoter “Jah” (see below) has been telling prospects for months that Narc reps engage in “No Selling, Trying, Switching, or Using Anything” — in short, Narc’s data-gatherers do not buy the retail database product. Rather, they pay an up-front fee to earn the right to submit plate numbers, become Narc recruiters and have the prospect of earning more money by sponsoring more fee-paying members who pay for the right to submit plate numbers and become recruiters themselves, and Narc sells the database to another set of customers.

    These claims and similar claims have led to concerns that Narc was operating a pyramid scheme. Such an approach also can be viewed as a Ponzi scheme. Absent continuous membership growth and real profits from sales to retail database customers to support the payments to Narc’s data-gatherers, the business could collapse.

    A video promotion in February by another Narc member showed a tab labeled “Clients.” The video was recorded inside the member’s Narc back office and appeared on YouTube  — after Narc had been operating for months. “Don’t worry about that right now,” he said of the “Clients” tab. He did not explain why members should not concern themselves about the tab, which led to questions about whether Narc had data clients in sufficient volume to quash concerns that members were getting paid exclusively or almost exclusively with money from other members — not retail sales to database clients.

    This Is ‘Training?’

    The promo was described as a teaching tool in a YouTube headline titled, “NarcThatCar Training Video.” In the same video, viewers were told that the parking lots of libraries, schools and universities provided a steady stream of license-plate numbers to be harvested and entered into the Narc database.

    “So, carry a pen and paper with you,” the narrator instructed. “You can go to parking lots. You can go to libraries. You can go to schools. My wife goes to the university, and just goes through the parking lot and collects license-plate numbers.”

    An address in the video suggests plate data was recorded in or around the University of Nevada, Las Vegas. The address is the same street address as the UNLV campus. Indeed, one Narc promoter after another has pointed one prospect after another to sources of license-plate data, implying that cars parked on both public and private property were fair game for downline commissions.

    Not even public schools, universities and libraries were off limits in Narc’s universe of members. Narc itself has said its database will be used to locate people, boats, cars and any item imaginable. Data is being mined on both private and public property, and Narc itself says the plate numbers are checked against “the DMV,”  commonly known in many U.S. states as the Department of Motor Vehicles.

    If Narc’s data is checked against the DMV, then Narc’s business is the public’s business. The public has an interest in determining the identities of Narc’s data clients in no small measure because the data potentially could be used to monitor private citizens and people who hold sensitive jobs in government, science, research and the military.

    Narc’s explanation that its clients’ names are proprietary is unacceptable. Its own members are claiming plate numbers are “public” information and “training” prospects to drive through “university” parking lots and the lots of retail stores and restaurants to get a supply of tags, which are checked against DMV records.

    If you’re shopping at Walmart, for example, your plate number could be recorded and entered in Narc’s database by a Narc participant in search of MLM commissions and interested in recruiting prospects who could record your plate number elsewhere, leading to even bigger commissions and an even greater loss of your privacy. Incredibly, some Narc promoters have anticipated the public’s objection to such a pursuit, answering it with a chilling argument that people who’ve done nothing wrong have nothing to fear.

    That is just downright creepy. Is it any of Narc’s business where you park your car because it wants to help the repo man repossess your neighbor’s car? And what if the repo man isn’t Narc’s only client?

    What if a company poses as a repo company or a “lien holder” company and has an objective totally unrelated to the repossession of collateral? What if a suspicious husband with a violent streak, for example, wants to monitor sightings of his wife’s car? What if a private investigator wants to determine where you spend your time? What if the government wants to determine if you’re seeing a shrink? What if an unfriendly government wants to monitor the whereabouts of an important government official or scientist?

    Narc’s purported assurance that members don’t record the plate numbers of government vehicles is hollow because government employees own private cars and do not always travel in government vehicles. The sensitivity of their jobs does not vanish if they are in their private cars whether on-duty or off, and the prospect that a data profile on the movement of these cars can be created and offered for sale is unacceptable.

    It is unacceptable whether the target for monitoring is employed by the government or is just an ordinary citizen employed by any private company. Cars are inexorably linked to their owners. To track the car is to track the owner. Left unchecked, Narc could be used as a data source by private and public entities to monitor people. That is inconsistent with liberty and privacy. It is offensive by its very nature because it potentially puts people who don’t know they are being watched under a microscope, and it is offensive to any notion of propriety because it potentially puts private citizens in the business of spying on other private citizens to qualify for downline commissions. That Narc’s own members are cheerleading for the supposed the riches to be made by helping the repo man theoretically get the neighbor’s car causes one to wonder if America is taking leave or its senses and willing to package and sell anything.

    What’s next? News releases from Narc that announce yet-another successful repo brought about by the company’s army of commission-based spies?

    A World-Class Example Of MLM Excess

    MLM has served up a doozy this time: Peel away the hype and Narc emerges as a private spy-agency-in-waiting. At last count, 52,000 people have expressed a willingness to help Narc build the database and share in the joy of knowing they’ve helped the repo man separate a struggling, single, stay-at-home Mom from the car she shares with her laid-off husband who lost his job when the economy went in the tank.

    Lien-holders do have the right to seize their collateral if a car owner is in default. Lenders do have a corresponding duty to be responsible to investors and depositors to protect assets. But to create a cheerleading section for the repo man when unemployment is at 10 percent is something only the darkest minds in MLM could serve up. That people seem actually to be comforting themselves with the thought that they’ve performed some sort of civic duty by ratting out their neighbor to the repo man and somehow made America a better place is one of the surest signs yet that a big pocket of U.S. commerce has become morally bankrupt.

    And that’s before the Narc privacy and security issues are examined in any detail.

    Does anyone really want Narc to come into possession of data that could be used to create movement profiles on private citizens in any context — all under some implausible theory that the repo man needs extra help?

    Sensitive research — including research paid for by the government — is performed by some universities. The data could be used to monitor people who hold sensitive jobs. This makes it the public’s business to determine precisely what Narc is doing and how and why it is doing it.

    A ‘GOOGLE Opportunity Like Never Before’

    Narc, according to an email members received, also is blaming the media for not understanding what it is doing. Its response to the bad press it has received recently was to tell members not to worry, that Narc remains a “GOOGLE Opportunity like Never before” — and then close the email with insipid, flowery motivational drivel, including this gem: “EVERYTHING is funny when you [sic] making MONEY!”

    Even dispossessing your cash-strapped neighbor of his car, apparently, is funny as long as it pays a downline commission.

    The email remided us of the now-defunct Surf’s Up forum, which promoted the now-defunct AdSurfDaily Ponzi scheme by instructing members that “there are no prizes for predicting rain, only for building arks.” Perhaps finding the fuel they needed in Surf’s Up’s trite prose, many members of ASD pressed forward, introducing prospects susceptible to the harmful power of trite prose to one Ponzi scheme after another.

    As we proceed in this essay, we ask readers to note that check-waving videos and “earnings” reports produced by some members of MLM programs are not evidence of success or honesty. It often is the case in the MLM sphere that promoters who throw caution to the wind and pitch programs they know little or nothing about end up the biggest winners, with the vast majority of participants breaking even or losing both money and time that could be better spent trying to make ends meet by other means.

    Moreover, it often is the case that willfull blindness and forced ignorance are the dominant traits displayed by promoters. Incongruously, a lack of knowledge about companies and products is what often drives MLM profits.

    Practiced hucksters often prefer ignorance themselves, while also preferring prospects who will not ask hard questions and are willing to pass along hype and unchecked information as though they were the high gospel of truth.

    BBB’s Concerns Grow

    Although Narc That Car provided the identity of a single, purportedly “major” client to the Better Business Bureau April 27, the BBB now says “the client’s identity only raises more concerns” about the company.

    The BBB did not disclose the name of the Narc client or reveal why its doubts were heightened after Narc provided the information. On its website, however, the organization said it is “communicating” its concerns about the client to Narc. The BBB also noted its inquiry into Narc advertising claims remains open. The advertising inquiry began Jan. 18. It has been unresolved for nearly four months.

    On March 3, the BBB noted, the organization asked Narc to provide a “comprehensive” list of clients. Narc responded April 27 by providing the name of “one of its major clients,” a development that not only did not dampen the BBB’s concerns that Narc was using a pyramid business model and did not have a product with true value, but also ramped them up.

    Narc That Car has identified Rene Couch as its vice president of marketing. He also has been listed by titles such as executive vice president and chief field advisor, leading to questions about whether Narc and its promoters were making things up as they went along.

    Narc already has an “F” rating from the BBB, the lowest score on the organization’s 14-point scale. In the past two weeks, at least two television stations in major markets in the United States have aired reports about Narc, questioning Narc’s business practices, the level of knowledge Narc’s promoters have about the Dallas-based company and Narc’s willingness to address the questions in an atmosphere of transparency.

    Meanwhile, some Narc promoters have been attacking the BBB and accusing the TV stations of biased reporting — instead of insisting that Narc get out in front of the stories and concerns and put the issues to rest.

    BBB Under Attack

    One of the promoters attacking the BBB is Ajamu M. “Jah” Kafele. Kafele once was accused in Ohio of practicing law without a license and ordered to pay a civil penalty of $1,000 by the Ohio Supreme Court after the bar proved its case against him.

    Attorney or not, Kafele is no stranger to the courts. What follows in the passage below is an exchange between Kafele and the attorney for a law firm he had sued for attempting to collect a debt. The exchange started after the lawyer asked Kafele how old he was. In response, Kafele attempted to assert his 5th Amendment right not to answer the question — in a case in which he was the plaintiff, not the defendant, and a case in which a federal judge admonished him that his “invocation of the Fifth Amendment in response to that question was improper.”

    A. [Kafele]. I don’t recall my age. Next question.
    Q. [Defense counsel]. What was your date of birth?
    A. I don’t recall my date of birth.
    Q. Do you have a driver’s license on you?
    A. No, I don’t.
    Q. Do you have any form of identification on you?
    A. No, I don’t.
    Q. Where were you born?
    A. I don’t recall.
    Q. Do you have parents?
    A. I don’t recall.
    Q. Do your parents — are your parents living or deceased?
    A. I don’t recall. Are you going to ask me some relevant questions to the defense and claims or are you going to find out about my livelihood for your personal gain?
    Q. You’ve indicated you don’t recall whether —
    A. That’s right.
    Q. — or not you have parents. Do you have siblings?
    A. I don’t know.
    Q. Are you married?
    A. I don’t recall.
    Q. Where do you live?
    A. I don’t recall.
    Q. What’s your home address?
    A. I don’t recall.
    Q. How long have you lived there?
    A. I don’t recall.
    Q. What’s your current occupation?
    A. Who said I had an occupation?
    Q. Are you gainfully employed?
    A. Who said I was employed?
    Q. I’m asking you a question.
    A. I’m asking you, who said I was employed?
    Q. Are you employed?
    A. I don’t recall being employed.

    Three-figure, check-waving YouTube video by "Jah," who publicly announced his downline group was "not going to be out here flashing, you know, five-figure checks.” The video, which featured a claim that repping for Narc was like working for the "Census Bureau," later was removed from YouTube's public site. Why it was acceptable to publish a three figure-check but not a five-figure check was never explained.

    Strikingly, Kafele, who once believed it was prudent to sue lawyers who were trying to collect on a debt, now has thrown in his lot with Narc That Car, which says it wants to help repossession companies collect their collateral when buyers default on loans. The case cited above did not have a happy ending for Kafele: A federal judge tossed the preposterous lawsuit he had brought, saying Kafele had engaged in “egregious” conduct.

    “Plaintiff’s repeated and persistent refusal to participate in the discovery process has clearly been willful and done in defiance of the express and unambiguous orders of this Court,” U.S. District Judge John D. Holschuh said. “As a result, the defendants have been denied virtually all discovery in this case. Moreover, plaintiff has been warned — most recently in the April 4, 2005, Opinion and Order granting defendants’ motion to compel and awarding monetary sanctions against plaintiff, . . .  that his continued refusal to participate in the discovery process would result in the dismissal of the action. Nevertheless, plaintiff persists in attempting to transform the litigation process initiated by him into a game. Under these circumstances, no sanction other than dismissal of the action is appropriate.”

    Kafele now is telling prospects he is an authority on Narc That Car. He said he has hundreds of members in his downline. He has been conducting meetings in Ohio to recruit even more prospects, according to his website.

    Fox TV Reports Exposed Promoters’ Willful Blindness

    Not a single Narc promoter approached by Fox 5 in Atlanta in a package aired recently could identify a single Narc data client — and yet the promoters were out in force recruiting people for the firm. Meanwhile, Fox 11 in Los Angeles recently visited YouTube and reported on unsubstantiated claims passed long by Narc promoters to a worldwide audience, noting that California Attorney General Jerry Brown was seeking information on the firm.

    It is known that attorneys general from at least three states — Georgia, California and Texas — are aware of growing doubts about Narc’s business practices.

    Narc’s approach — and the approaches of its promoters — have caused even longtime proponents of multilevel marketing (MLM) to question whether the often-controversial industry had reached an all-time low and whether participants would buy into any scheme under the sun. It is clear that promoters either do not know if Narc is engaging in legitimate commerce or do not care if it is not

    Narc promoter shows prospects that parking lots at the University of Nevada Las Vegas are an excellent source of license-plate data. Narc prospects in this promoter's YouTube video were given no guidance on whether the university or campus police needed to be consulted before recording the plate numbers of students, faculty and employees. The promoter said "libraries" were excellent sources of license-plate data.Â

    — as long as commission checks for recruiting members keep streaming in.

    As things stand, there is no way to determine if Narc is operating legally. The reason there is no way is that Narc does not reveal the names of clients, will not step out of the shadows, put an executive and attorney on TV or consent to a probing interview by a print journalist to answer the doubters and publish verifiable financial data audited by a CPA that shows inputs and outputs and the sources of revenue.

    Any argument that suggests members are not entitled to this data or that the data is proprietary because Narc is a “private” company is not going to fly. The company’s promoters are saying that license-plate numbers are “public” information available for the harvesting by a membership roster of 52,000 people for the purpose of populating a database that Narc itself has said is going to be used to locate people, cars, boats and any item imaginable. That alone makes it the public’s business. Beyond that, promoters say Narc is using government databases to verify data. The assertion that Narc is using the DMVs of America’s 50 states to verify registration data gives the public a compelling reason to demand answers from the company.

    Narc has a duty to tell the public through appropriate channels precisely what database it is using to cross-check data entered by members and how it is accessing the database. It also has a duty to reveal the names of its clients, explain how it screens clients, explain how it screens its data-gatherers, explain whether Narc is able to connect a car to a person when members enter license-plate numbers and explain how the data is secured.

    Absent complete transparency, the privacy of every person whose tag number is entered by a Narc member is a potential casualty. It is inconceivable that Narc is empowering itself to collect your license-plate number — no matter where you park — because it has secret clients in the business of repossessing cars and there is a small chance that you are behind on your car payments or a person you do not even know parks his or her car in the same parking lot as you and is behind on his or her car payments.

    This is the business Narc has chosen to enter — and the public has a compelling interest in knowing precisely how it operates.

    Narc Subjecting Own Promoters To Embarrassment; Promoters, Company Blame It On Media

    Narc exposed its own Atlanta-area members and prospects to embarrassment after a Fox 5 reporter showed up to a pitchfest with a hidden camera and could not get answers even to basic questions, but the company has not issued a statement that addresses the concerns in any real way and is suggesting the media is to blame.

    No part of the Narc story is consistent with transparency or ordinary business practices — and the media attention likely is only now beginning. Viewers in Atlanta and Los Angeles — two of the largest markets in the United States — now have been treated to an appalling lack of professionalism in the MLM sphere, which only will fuel the public’s legitimate doubts about the industry as a whole.

    Why wouldn’t the public believe the Internet is just one giant cesspool after viewing the reports on Fox here and here? If you’re a Narc fan and want to argue that Narc was ambushed, you need to know that Narc had plenty of opportunities to answer questions from journalists before they started hiding their cameras. The PP Blog, for instance, has attempted to contact Narc multiple times. The Blog is aware that other news sites have met dead ends in bids to get Narc executives and knowledgeable employees to answer questions, including NBC-5 of Dallas-Fort Worth and others.

    The Fox 5 Atlanta report neatly exposed promoters’ willingness to cheer for a program, duck responsibility for their claims and then hide behind the skirt of a company when the heat became too intense.

    The trouble with hiding behind Narc’s skirt, however, was that the skirt provided no cover for members. Promoters found themselves in the awkward position of taking heat for a company that did not defend them in any credible way. Narc’s skirt provided no cover at all, and yet some members merrily continue to promote the opportunity and apparently see no incongruity at all.

    Let us spell it out: If you’re going to say the media must get answers from the company rather than promoters in the field, you are hiding behind the company’s skirt. And if the company does not provide the answers, you have no cover at all. This creates the appearance that the prospect of making money is the only thing you value. You certainly don’t value transparency if you’re hiding behind the company’s skirt, and the company certainly does not value transparency by ducking questions, avoiding them altogether or spinning things to create the appearance that the media are responsible for Narc’s lack of transparency.

    The media are not responsible for Narc’s bad press; Narc and its promoters are. One Narc promoter created a red banner on a .org site to create the appearance that sending money to Narc was like donating to the Red Cross. Other promoters appropriated the name of the AMBER Alert program to do the same thing on a .org website. At one point the message became so impossibly butchered that a promoter urged prospects to “Help AmberAlert and other organizations find repossessed cars.”

    Some Narc members made much ado about a TV anchor referring to Narc as a “job,” but dozens of Narc members posted ads on craigslist that advertised Narc as a job. Promos for Narc have been reprehensible. One member claimed Narc would be used to help the Department of Homeland Security find terrorists. Others claimed that the FBI and the AMBER Alert program endorsed Narc.

    These were blatant misrepresentations — plain and simple. If the MLM world wants the rest of the world to take it seriously, it has to quit serving up this slop and stop apologizing for its chefs and the seemingly mindless cheerleaders who cheer for the chefs even when roaches are swimming in the soup.

    In the AdSurfDaily case, for instance, the Secret Service said the chef served up a Ponzi scheme. How did the cheerleaders respond? They called the Secret Service, the agency that guards the President and the Treasury, Nazis and “Satan.”

    Now, amid a circumstance in which the BBB — one of America’s most recognized business organizations — has questioned whether the Narc chef is serving up a pyramid scheme that potentially affects tens of thousands of people, the cheerleaders are responding by trying to plant the seed that the BBB has a secret agenda and is infested with roaches. It is reprehensible — and it must not stand.

    Myriad questions about Narc remain, including these:

    Why are Narc promoters so willing to represent a company they know so little about?

    Does Narc not understand that vague, ambiguous claims on its own website and its apparent unease in addressing media questions are what’s driving the story?

    Why has a Narc PR spokesman not emerged to address media inquiries and become the face of the company? Why aren’t Narc executives stepping out in front of the cameras?

    Why have the statements Narc has issued not explained the incongruity of insisting that license-plate data is “public” information while at once insisting the public has no right to know who its clients are, how they are being screened, how data-gatherers are being screened and how the information is being indexed and sold?

    Why does Narc insist it has the right to collect your license-plate number and offer it for sale to a third party whose identity and motives are unknown to you?

    Why do tens of thousands of Americans suddenly seem so willing to waltz through parking lots of major retailers to record the plate numbers of their neighbors and to recruit others to do the same — when they have knowledge in advance that troubling questions are being asked about the firm?

    Why does the repo man suddenly need the help of a commission-hungry MLM army to dispossess people going through lean times?

    Any chance that the “buy here, pay here” car business and the title loan business are backing Narc because the industry’s practice of approving anyone for a loan actually is driving repos?

    Why are prospects so willing to hand over money when neither sponsors nor Narc itself are willing to provide information that could make the concerns go away?

    How many data clients does Narc have and when did the clients become clients? How much revenue do the data clients generate for Narc weekly and monthly?

    Is it possible that Narc is selling data to itself through a process in which it formed another company to become a Narc client or is relying on an alter ego of some sort or close association with another firm to create a client out of thin air?

    Is Narc closely connected to the “buy here, pay here” automobile business, meaning an entity with a close association with Narc is making high-risk, front-loaded, usurious loans to disadvantaged consumers?

    Is Narc closely connected to the title-loan and payday loan business?

    Is Narc closely connected to the repossession business?

    Does Narc have an investment angel? If so, what is the source of the money and was a private offering involved?

    Is Narc making pyramid or Ponzi-style payments to members?

    Narc promoter tells prospects the company was started to provide data to the Amber Alert system.

    Who are Narc’s executives beyond CEO William Forester?

    What are their names, job descriptions and backgrounds?

    Do they have high positions in the MLM organization and rely mostly or exclusively on commissions or do they draw a salary?

    Who are the members of Narc’s board of directors?

    Are police officers involved in Narc? If so, are they collecting information off-duty or on-duty — and are they complying with the policies of their departments and their cities in their efforts to increase their income?

    Promoters have claimed that Narc is authorized to verify license-plate data through the DMVs of all 50 states. Is that true? If so, is Narc able to view the names and addresses of vehicle owners and the makes and models of vehicles as police officers could do? If untrue, is Narc verifying the data entered by members through another process — for example, querying databases to determine if a plate number already is “taken” in a state and thus unavailable to any other party, and then concluding the plate is valid simply because it is unavailable to another party?

    Is is possible that police officers are querying restricted databases on Narc’s behalf?

    The parking lots of these famous companies are sources of license-plate data for Narc affiliates, according to a promoter. Whether any permission is required of store managers or motorists to record plate numbers for entry in a private, for-profit database is left to the imagination.

    Are police officers and nonpolice officers alike collecting scores of plate numbers and using their supplies as incentives for people to join Narc? (The PP Blog has observed multiple instances in which Narc sponsors suggested they would supply the first 10 plate numbers to incoming recruits, thus qualifying them for an immediate payment from Narc.)

    What part of the approach in the question above is consistent with an attempt to build a valid database, especially if Narc cannot verify that a “gift” plate number actually was viewed in a specific location by the recipient of the gift?

    Why has Narc not publicly and loudly renounced the practice of providing the “gift” of plate numbers to incoming prospects? Can Narc tell if entire downline groups are simply trading or recycling existing plate numbers among members and instructing members and prospects to fabricate an address where the plate was sighted?

    How can Narc possibly know if the cars members say were parked at a specific location actually were parked there?

    What specific event occurred that caused Narc to remove a reference to AMBER Alert in a video promotion and insert the name Code Amber instead?

    About Data Network Affiliates . . .

    We’ll close this essay by asking a few questions about Data Network Affiliates, Narc’s purported competitor in the business of collecting license-plate numbers:

    Is is possible that DNA saw that Narc’s new business of recruiting members to record license-plate numbers was resonating in the MLM universe? And did DNA then engage in a cynical ploy to build a customer base by incorporating Narc’s message — including references to law enforcement and AMBER Alert — simply because it was “working” for Narc?

    DNA declares "GAME OVER – WE WIN" repeatedly in a hype-filled email pitch to announce a $10 unlimited cell-phone plan. The company had been in the cell-phone business only days when it claimed to be able to beat virtually every other competitor on earth on cell-phone pricing. Only weeks later DNA claimed it had been hoodwinked into believing it could offer such a price, removing the offer and claiming to be excited about its future.

    DNA quickly backed away from emphasizing data collection after it observed Narc becoming the focus of critics who raised concerns about the propriety, safety and legality of Narc — and then DNA morphed into a sort of anti-Narc, saying it existed to help law enforcement only and would never share data with repo companies that wanted to take away cars owned by poor people.

    What follows are DNA’s own words (italics added):

    “DNA Affiliates STAY ALERT – They are watching out for their neighbors children. If DNA has 1 million affiliates that is 1,000,000 more people watching out for and caring about children world-wide.

    “Other companies may collect data to sell to REPO COMPANIES to take cars away from many people who are just down on their luck. A single mom, a dad out of work or 100 other good reasons why good people just can not make a payment. One DNA Affiliate just had his car repossessed because he owed 3 payments and offer to pay two of them and they said no and picked up his car.

    “DNA will have no part in such cases. At DNA we collect car data for one purpose and that purpose is that there is a small chance that this data in the right hands could help save a child or help prevent or solve a crime.

    “We do not boast of 6 figure contracts with REPO COMPANIES. At the end of the day a DNA Affiliate knows that what they are trying to do will only be a FORCE FOR GOOD in their community…”

    DNA also positioned itself as the “free” Narc, before springing a $127 upgrade on customers to purchase a data-entry tool that worked faster than the clunker provided the “free” members at no cost. Free members were not told they were getting a clunker until the upgrade program was announced. Before long, DNA announced it was in the cell-phone business — and plenty of other businesses willing to sell products to members who thought they were joining a “free” business.

    Could DNA’s approach be the most cynical, ribald effort in the entire history of MLM? And does the DNA braintrust not recognize that MLM has so many critics precisely because of the obnoxious and absurd approach of the man behind the green curtain and the men letting him get away with serving up ceaseless, hyperbolic slop?

    In our view, DNA is the worst example of wretched excess the MLM trade has ever served up — and Narc is close on its heels for enshrinement in the Hall of Shame. To be sure, Narc is not the next Google, DNA is not the next anything — and the industry has demonstrated once again that many, many of its members think that trite talk about arks is the same thing as building one.

  • Another HYIP Pushed By ASD Members Now DOA; Cypriot, Canadian Securities Regulators Issue Warnings About Genius Funds; Regulator Seeks Criminal Probe

    Regulators in Cyprus have referred Genius Funds for criminal investigation and released a warning that the company “[is] not permitted to provide investment and ancillary services in the Republic.”

    Genius Funds, a darling of the HYIP world,  was heavily promoted on the Ponzi boards. The program also is known as Genius Investments. The program was referred for criminal investigation by the Cyprus Securities and Exchange Commission, which also issued the warning. The announcement that the case was referred for criminal investigation was made Friday in Cyprus.

    One of the matters referred for criminal investigation pertained to a question about whether Genius Funds used a “falsified document that possibly stated that it possessed an operational license which was not authentic,” the Cypriot regulator said.

    Separately, Canadian securities regulators also have acted against Genius Funds, permanently banning the HYIP “for illegally selling securities,” the British Columbia Securities Commission (BCSC) said.

    Genius Funds’ website is throwing a server error.

    The program was pitched on the pro-AdSurfDaily Surf’s Up forum in December by a poster who dubbed himself “joe.” Genius Funds was one of four HYIP’s pitched by “joe” in an egg-themed promotion. The egg-themed domains redirected to HYIP programs.

    All of the programs appear to have failed or gone missing, but the egg-themed domain names now redirect to other HYIPs.

    “ALL MY EGGS ARE NOT IN ONE BASKET,” the Surf’s Up pitchman said in all-caps. “I MAKE 2000.00 A WEEK.”

    Some ASD members continued to promote autosurfs and HYIPs after the federal seizure of tens of millions of dollars from the personal bank accounts of ASD President Andy Bowdoin in August 2008. The Surf’s Up forum went missing earlier this year.

    In recent weeks, the Golden Panda Ad Zone forum (also known as the Online Success Zone forum), another website from which ASD members pitched autosurf and HYIP programs, also went missing.

    BCSC opened its probe into Genius Funds after receiving a tip from “a financial institution,” the agency said.

    Read the Genius Funds’ announcement from Cyprus. Read the announcement from Canada.

  • A SILENT DEATH? Did GoldenPandaAdZone Forum For Autosurf Shills Follow Surf’s Up Into The Electronic Graveyard?

    Has the Golden Panda Ad Zone forum, which was renamed the Online Success Zone after federal agents seized tens of millions of dollars from AdSurfDaily and Golden Panda Ad Builder in 2008, followed the Pro-AdSurfDaily Surf’s Up forum into the dust?

    The website URL — http://goldenpandaadzone.ning.com — now is returning the same error message Surf’s Up produced when it went missing early this year. Other failed autosurf forums on ning.com have generated the same error message.

    It was not immediately clear how long the Golden Panda Ad Zone forum has been offline. The forum was a meeting place at which promoters shilled for autosurf programs, cash-gifting schemes and other questionable “business opportunities” such as recyclers.

    It is believed that every single autosurf program pitched on the Golden Panda Ad Zone Forum collapsed or is in the process of failing, giving the forum an unblemished record for failure. In recent weeks, the forum was used to promote MLM programs such as Narc That Car and Data Network Affiliates.

    In one memorable video, the forum pitched multiple surf programs that reportedly collapsed this year or last after the spectacular seizures in the ASD case. These included — but are not limited to — Biz Ad Splash, AdGateWorld and Daily Profit Pond.

    Biz Ad Splash purportedly was operated by Clarence Busby, who presided over the collection of more than $14 million before it was seized in the ASD case and an untold sum with Biz Ad Splash. AdGateWorld, meanwhile, collapsed after collecting an untold sum and purportedly being sold to buyers in the “Middle East.”

    Daily Profit Pond, which suddenly went missing just prior to Christmas in 2008 after collecting an untold sum, also was said to have collapsed.

    In AdGateWorld’s earliest days, the acronym “ASD” appeared in its Terms of Service, which suggested the surf simply copied and pasted terms from one program to another.

    The Golden Panda Ad Zone forum also was notable for promoting MegaLido, another program that resulted in a spectacular flameout prior to the 2008 Holiday Season, and a host of cash-gifting schemes promoted as “Pay It Forward.”

    “Pay It Forward” is a promotional scheme by which members sign up under each others links as a means of assuring they can build downlines or establish relationships with like-minded participants.

    Autosurf programs that pay a lower daily rate “normally have sustainability,” a forum pitchman counseled prospects in a video. He cited no authority for the claim, but noted that 7 percent to 14 percent a week was a “really, really good” return that no bank could match.

    “I can assure you [of] that,” the pitchman said, noting that higher return-on-investment surf programs “just tend to go away quicker.”

    MegaLido, he explained, might have been a clunker because its advertised payout rate of about 13 percent a day perhaps made it unsustainable. How a program that paid a lower rate of say, 1 percent a day or 365 percent a year, could be any more sustainable without being a Ponzi scheme never was explained.

    Like their brick-and mortar cousins, autosurf Ponzi schemes are not sustainable. They sustain themselves temporarily only through the use of smoke-and-mirrors, paying old members with money from new members to create the mirage of sustainability and performing other sleight-of-hand such as “80/20” programs to minimize cash outflow. Ponzi scheme operators typically siphon funds paid by investors, which is a form of theft. Prosecutors view the money as proceeds of a crime.

    Like the Surf’s Up forum — but to a lesser degree — the Golden Panda Ad Zone forum became an outlet for members to complain about how the government views the autosurf “industry.” Some members complained openly, if not bitterly, about perceived “slow” refunds as a result of the seizure of assets connected to ASD and Golden Panda.

    Those assets were seized amid wire-fraud, money-laundering and Ponzi scheme allegations — but members continued to push surf programs even after the seizure, while still complaining about “slow” refunds.

    The complaints continued even after the government explained it had not perfected title to the seized assets because of court challenges by Andy Bowdoin. Although the government now holds title to the assets, an appeal filed by Bowdoin in one of the forfeiture cases — and the prospect of a Bowdoin appeal being filed in a second case — means that restitution could be delayed even longer, prosecutors said.

    Some Golden Panda Ad Zone members positioned new surf programs as a means by which ASD and Golden Panda members could recover losses. Like Surf’s Up, entire threads went missing at the Golden Panda Ad Zone forum.

    One thread that went missing pertained to a surf program purportedly operated by ASD Chief Executive Officer Juan Fernandez after the ASD seizure. Some Golden Panda Ad Zone members  used religion in their sales pitches.

    Religion also was an element in ASD pitches. ASD President Andy Bowdoin told a crowd assembled at a company “rally” in Las Vegas that he thanked God for making him a “money magnet.”

    Prosecutors said Bowdoin family members and at least one insider embarked on a spending spree less than two weeks after the Las Vegas rally concluded on May 31, 2008, purchasing cars, jet skis, a boat and haul equipment — and retiring the $157,000 mortgage on the Tallahassee home of George and Judy Harris.

    George Harris is Bowdoin’s stepson. Members later said he was the co-owner of the AdViewGlobal (AVG)  autosurf, which crashed and burned in June 2009, after launching in the aftermath of the ASD seizure and in the weeks after a key court ruling went against ASD.

    Some members of the Golden Panda Ad Zone also pitched AVG, despite everything that had happened to ASD, Golden Panda and a related surf known as LaFuenteDinero. There were reports later that at least $2.7 million was stolen from AVG, but the reports have not been confirmed.

    After AVG announced a suspension of cashouts last summer and exercised its version of a “rebates aren’t guaranteed” clause, the surf said that, if the program restarted, an “80/20” program would become mandatory.

    AVG pitchmen started out by saying the surf paid about 1 percent a day — or 365 percent a year — an amount the Golden Panda Ad Zone pitchman described as reasonable and sustainable for  autosurfs in general.

    The claims were made despite the fact that prosecutors had laid out a case against ASD that its 1 percent daily payout rate was unsustainable and that the surf was insolvent.

  • Another Fraud Case In Minnesota: Renee Marie Brown Accused By SEC Of Starting ‘Sham’ Investment Fund Known As ‘X’

    UPDATED 7:52 A.M. EDT (April 13, U.S.A.) On the very day Tom Petters was sentenced in Minnesota to 50 years in prison for operating a colossal Ponzi scheme, a federal judge froze the assets of Renee Marie Brown after the SEC accused her of ripping off clients by persuading them to invest in a mysterious vehicle known as “Fund X.”

    U.S. District Judge Donovan W. Frank issued a temporary restraining order against Brown and her company, Investors Income Fund X LLC. The order was issued April 8.

    Brown, 46, of Golden Valley, was accused of operating a “sham” fund into which investors plowed more than $1.1 million between July 2009 and March 2010.

    “Brown told her investors that Fund X is a ‘bond fund’ with fixed annual returns of 8% or 9%,” the SEC said. “[S]he distributed fictitious ‘returns’ to investors, furthering the fiction that Fund X was a legitimate and successful investment opportunity.”

    But Brown “misappropriated most of the $1.1 million she raised from investors to, among other things, purchase a condominium for herself and build . . . office space for her new business,” the SEC said.

    Investors Income Fund X LLC was registered as a corporation in South Dakota, the SEC said.

    “Unbeknownst to her victims, Fund X is a sham — Brown’s alter ego,” the SEC said.

    The case features allegations of siphoning, forgery, cherry-picking clients of Brown’s former employer and issuing fraudulent “returns” in Bernard Madoff-like fashion. It also occurred against the backdrop of March 17 Congressional testimony by FBI Director Robert Mueller III that U.S. companies increasingly were relying on shell corporations to commit fraud.

    Minnesota Fraud Cases

    In recent months, investigators and prosecutors in Minnesota have opened up a number of major fraud probes. The combined cases are alleged to have drained hundreds of millions of dollars from investors. In some instances, prosecutors and regulators have asserted that companies used multiple names to commit fraud.

    Petters was convicted last week of presiding over that was described as the largest financial-fraud case in Minnesota history: a $3.65 billion Ponzi scheme.

    Petters displayed “stunning criminality,” prosecutors said. One of the victims wrote, “Our society, unfortunately, is becoming plagued with too many people like this, and like Bernard Madoff. Tom Petters needs to learn that there are severe consequences for his incomprehensible behavior.”

    Meanwhile, the SEC, the CFTC, the FBI, prosecutors and a court-appointed receiver are poring over records to reverse-engineer the alleged Trevor Cook/Pat Kiley Ponzi scheme. Court records suggest multiple company names were involved and that the scheme involved at least $190 million and caused investor losses of at least $139 million.

    Money was moved “all over the world,” according to court filings.

    Cook and Kiley were sued by the SEC and the CFTC in November. Cook was charged criminally last month. Prosecutors said he was “aided and abetted by others.” In this document, the National Futures Association, which also filed an action that references Cook, asserted that $75 million from a purported Swiss fund may have been directed at a mysterious investor known only as “Fased.”

    The purported payment occurred while Cook, a Minnesota resident, allegedly was managing money for a Canadian company known as KINGZ Capital Management Corp. KINGZ name also has been linked to an autosurf known as AdViewGlobal (AVG), which had close ties to an autosurf known as AdSurfDaily (ASD).

    On May 4, 2009 — on the same day the Obama administration announced a crackdown on international financial fraud — AVG announced that KINGZ had become its facilitator for international wire transfers. KINGZ denied the assertion, saying it believed it had been targeted in a scam. The company painted the picture that AVG was attempting to route money to itself through a U.S. shell company.

    AVG purportedly operated from Uruguay.

    Florida-based ASD, which members said was popular in Minnesota, was implicated in August 2008 by the Secret Service in a Ponzi scheme. A federal judge has issued orders of forfeiture totaling more than $80 million in the ASD case. ASD used at least three names, according to records: AdSurfDaily, AdSalesDaily, and ASD Cash Generator.

    Prosecutors also linked ASD to at least two other autosurfs: LaFuenteDinero (the “fountain of money”) and Golden Panda Ad Builder, the so-called “Chinese” option for ASD members.

    In February, the U.S. Secret Service alleged that Minnesota resident Steve Renner was operating a Ponzi scheme through a company known as INetGlobal and companies related to the firm. The scheme, the Secret Service said, largely targeted Chinese members who may have little or no facility in English.

    Renner denies the allegations. Prosecutors described the case as a “major fraud and money laundering investigation,” saying INetGlobal came to life during a period in which federal agents were seizing tens of millions of dollars in the ASD case amid Ponzi, wire-fraud and money-laundering assertions.

    An ASD member introduced an undercover Secret Service agent to INetGlobal, the agency said in court filings.

    Other recent fraud cases in Minnesota include the Gerard Cellette Jr. Ponzi case ($53 million); the Charles “Chuck” E. Hays case ($20 million); and the Kalin Thanh Dao case (up to $10 million).

  • Government Scores Clean Sweep In ASD Forfeiture Litigation, But That May Not Be The Biggest News: Is A Separate Legal Drama Playing Out In Background?

    Andy Bowdoin

    UPDATED 11:57 A.M. EDT (U.S.A.) Federal prosecutors have won the second forfeiture case against assets tied to Florida-based AdSurfDaily, meaning the government now holds title to 100 percent of the money and assets seized in the autosurf Ponzi scheme, wire fraud and money-laundering investigation.

    U.S. District Judge Rosemary Collyer issued a final order of forfeiture March 30 in a case brought in December 2008. On Jan. 4, Collyer issued a final order of forfeiture in a case brought in August 2008. The government now has control over more than $80 million seized in the cases, along with real estate, cars, marine equipment, computers and other property.

    But that may not be the big news.

    Grand Jury Probe

    Indeed, the big news may be that a hidden legal drama is playing out behind the scenes. Appeal documents filed by attorneys for ASD President Andy Bowdoin in the August 2008 case reference two separate matters filed “under seal” and say that attorneys for unnamed “defendants” were called to testify before a grand jury.

    The filings suggest — but do not state plainly — that prosecutors subpoenaed at least two attorneys involved in the defense of ASD-related property to testify and that a federal judge ordered the attorneys to comply.

    Charles A. Murray, an attorney for ASD President Andy Bowdoin, referenced two sealed court cases when informing the appeals court about litigation “related” to ASD.

    “Only one case related to this matter is currently pending before this Court, an interlocutory appeal alleging that the court below erred in ordering the defendant’s attorneys to testify before a grand jury,” Murray wrote.

    Murray identified the case as “Grand Jury Subpoena, Case No. 09-3118 (Under Seal).”

    “This related appeal arose from an ongoing grand jury investigation, In re: Possible Violations of Title 18, United States Code, Sections 1341, 1343, and 1349, Misc. No. 09-270 (Under Seal),” Murray wrote.

    The sections of federal law cited in Murray’s appeal brief pertain to mail-fraud, wire-fraud and conspiracy statutes. The attorneys are not named, and the brief does not identify the targets of the grand-jury probe.

    Details Unclear

    Why the attorneys were called to testify is unclear. Also unclear are the identities of the attorneys’ clients, the nature of the information the government sought from the attorneys, whether the attorneys sought to invoke attorney-client privilege and whether they actually testified before the interlocutory appeal filed under seal was brought.

    An interlocutory appeal is an appeal to a higher court of a ruling by a lower court that is made before the trial in the lower court has concluded.

    Such appeals, which higher courts are reluctant to entertain, may be filed when a party believes a lower court’s ruling is severely prejudicial and turns to an appeals court to stop it in its tracks, instead of following the customary procedure of waiting for the case to conclude before filing an appeal.

    Racketeering Case Cited

    Murray also identified as a “related” matter a racketeering lawsuit filed against Bowdoin and ASD attorney Robert Garner by three ASD members in January 2009. The racketeering lawsuit, which alleges ASD was a criminal enterprise as defined under federal statutes, has been placed on hold until issues in the federal case are resolved.

    In June 2009, attorneys for the parties suing Bowdoin and Garner referenced the AdViewGlobal (AVG) autosurf, an entity with close ties to ASD. In September 2009, federal prosecutors made a veiled reference to AVG in a filing that suggested that Bowdoin and family members initially planned to “move to another country and profit from a knock-off autosurf program that Bowdoin funded and helped to start.”

    The assets seized in the December 2008 forfeiture case identified Bowdoin family members as beneficiaries of ASD’s illegal conduct. Members of AVG later identified George and Judy Harris as AVG’s owners, with Bowdoin as a silent partner.

    George Harris is the son of Bowdoin’s wife, Edna Faye Bowdoin, who also was named in the December 2008 complaint as a beneficiary of ASD’s illegal conduct.

    AVG crashed and burned in June 2009, taking an unknown sum of money paid by members with it by exercising its version of a “rebates aren’t guaranteed” clause. There were reports that $2.7 million was stolen from AVG, which purportedly operated from Uruguay.

    Among AVG’s most noteworthy promoters were former ASD members, including some of the moderators of the now-defunct Pro-ASD Surf’s Up forum. Surf’s Up suddenly went missing in the earliest days of 2010.

    Bowdoin, 75, has been portrayed by prosecutors as “delusional.” He pleaded guilty in Alabama during the 1990s to felony securities charges, according to court records. A decade later, he associated with Clarence Busby, the operator of Golden Panda Ad Builder, the so-called “Chinese” option for ASD members.

    Bowdoin and Busby, according to court filings by Busby, talked about forming Golden Panda in April 2008 while on a “relaxing fishing trip” to a Georgia lake.

    Busby, identified by the title “Rev.” at least 120 times in autosurf-related litigation, was implicated by the SEC in three prime-bank schemes in the 1990s, according to records. Golden Panda has ceded more than $14.6 million to the government in the ASD case, including $646,266.13 formally ordered forfeited by Collyer last week, and more than $14 million Collyer ordered forfeited in July 2009.

    In his court filings, Busby said he didn’t know Bowdoin “had prior run ins with the law” and had been arrested in Alabama for defrauding investors.

    Busby did not say if he told his fishing partner about his own run-ins with the law: The SEC said Busby defrauded investors in the 1990s “by offering and selling investment
    contracts in connection with three different prime bank schemes.”

    “Using misrepresentations and omissions in each of the three schemes, Busby raised money for purported programs in ‘prime bank’ notes by fraudulently representing to investors that the investments were risk-free and that the ventures would pay returns ranging from 750% to 10,000%. In total, Busby raised nearly $1 million from more than 70 investors. None of the investors earned the exorbitant returns promised by Busby,” the SEC said.

    Busby went on to operate an autosurf known as Biz Ad Splash, which also crashed and burned, reportedly taking members’ money with it. All of the notable autosurfs that dominated the stage in the aftermath of the ASD seizure — MegaLido, AdGateWorld, BAS, Ad-Ventures4U, Noobing and others — have now either died or are in a serious state of decay.

    Last month, the U.S. Secret Service, which conducted the probes into ASD, Golden Panda and LaFuenteDinero, asserted that INetGlobal, a company operated by Steve Renner, was operating an autosurf Ponzi scheme and targeting Chinese participants.

    The IRS is involved in both the ASD case and the INetGlobal case, according to court filings.

    Steve Renner was convicted of income-tax evasion in December 2009. Federal prosecutors described the INetGlobal case last week as a “major fraud and money laundering investigation.”

    Renner has denied the government’s allegations.

    Bowdoin now says he is appealing the forfeiture order issued by Collyer last week in the December 2008 case. If Bowdoin does appeal the order, it will be his second appeal. He also is appealing the forfeiture order in the August 2008 case.

  • NarcThatCar: Site Operates As MLM, Says Members Earn By Writing Down License-Plate Numbers; Links Itself To Amber Alert Program

    NarcThatCar wants you to pay it $100 up front. For that fee, you become a “consultant” qualified to write down the license-plate numbers of 10 cars per month, input the information into a database and earn multilevel commissions by recruiting. After you pay the $100, you’re then charged $24.95 a month for a website, according to Narc That Car.

    Some members of AdSurfDaily and Golden Panda Ad Builder now are promoting the NarcThatCar program, which says clients such as major automobile manufacturers, companies that have private liens against cars, banks, car dealerships that do their own in-house financing and commercial vehicle companies are interested in purchasing information from the database.

    If the repo man, for example, is looking for a car and the owner is hiding it, NarcThatCar — relying on the input of its team of license-plate gawkers — will sell him a database entry on reported sightings of the car for $99 — and even provide a map of the reported sightings.

    The repo man also has the option of offering a “finders fee for information which leads to the location of your collateral,” Narc That Car says. “This option sometimes helps the process along.”

    NarcThatCar labels its license-plate gawkers “independent consultants.” It appears as though any independent consultant hit by a car or otherwise injured while while gawking at license plates and recording their numbers would need to rely on his or her own insurance.

    The NarcThatCar website does not explain how consultants should proceed if, say, a local merchant calls the police to complain that a strange person appears to be walking around the parking lot and writing down license-plate numbers.

    Who else can use the Narc That Car database?

    “Law-enforcement agencies, government agencies, missing persons and the Amber Alert program,” Narc That Car says in a video to recruit prospects.

    Information on Amber Alerts, which are issued when a child goes missing, scrolls across the bottom of the NarcThatCar website.

    The U.S. Department of Justice, which celebrated the 14th anniversary of the Amber Alert program Jan. 13 and maintains an official website on the program, did not immediately return a call seeking comment on the NarcThatCar program.

    NarcThatCar does not list the names of any clients on its website. Nor does the company disclose information on how many database clients it has and how many of them are paying fees to receive a report on a target vehicle. Also unclear is whether Narc That Car imposes a fee if the government or the Amber Alert program wanted to use its database.

    Narc That Car, however, does disclose that it has rounded up “thousands” of consultants to write down license plate numbers, enter the information in a database and potentially earn MLM commissions at least five levels deep.

    The business is simple, Narc That Car explains.

    “Narc a Few Cars,” the company says. “Teach Others How to Narc Cars.”

    The company says members are required to act in a “lawful, ethical and moral manner” and perform “with honesty and integrity.” NarcThatCar adds that it provides instruction on federal and state privacy laws and “fundamental training on the the proper way to gather information.”

    On “the online success zone,” a forum once known as “The Golden Panda Ad Zone,” a Narc That Car sponsor is promoting the program in a thread titled, “ANYONE CAN DO THIS…write down 10 license plates a month get paid.”

    The Amber Alert program is referenced in the first sentence (18th word) of the Narc That Car pitch.

    “A company out of Dallas needs to grow a data base of license plates to use for Amber Alerts and other reasons,” the pitch begins.

  • EDITORIAL: BizAdSplash, AdGateWorld, AdViewGlobal: Serial Promoters Should Be Prosecuted, ASD Members In Clone Ranks Should Be Excluded From Restitution Fund

    ASD's Andy Bowdoin

    If a thousand people tell you the autosurf they’re promoting is the “real deal” and that they’ve done their “due diligence” — they are lying.

    If you believe them, you are setting yourself up to be fleeced and perhaps even dragged into court, perhaps as a reluctant victim or perhaps even as a defendant in a fraud case.

    If you promote the surfs, email prospects, attach your referral URL to forum and web posts, set up forums to pimp these miserable businesses, accept commissions, provide strategic advice or an “earnings calculator” or spreadsheet, tell people to “call” you for details, maintain a list of surfs that are “working” and surfs that are not, defend the surfs in forums, repeat Garbage In, Garbage Out (GIGO) from the program owners and claim you had no ill intent when the surf failed because you were relying on the assertions of your upline sponsor or the program owner, well, you are asking for trouble.

    The SEC told you that three years ago with the 12DailyPro prosecution and the follow-up prosecutions of Phoenix Surf and CEP.

    And the U.S. Secret Service told you that almost 18 months ago with the prosecution of AdSurfDaily, Golden Panda Ad Builder and LaFuenteDinero. Moreover, the President of the United States and the Attorney General of the United States told you that last year with the creation of the Interagency Financial Fraud Enforcement Task Force.

    Plan to defend your surf participation on the grounds people are free to make up their own minds and that the government has no right to interfere with commerce? Congratulations. You’ve just provided aid and comfort to securities fraudsters, narcotics traffickers, drug dealers and people engaged in human trafficking.

    That’s their argument, and that makes you their intellectual soulmate. It also was the argument for slavery in the 19th century and earlier. Society rejected the argument long ago. It was far too taxing on the intellect and the human soul to be assigned any continuing credibility. The poison you deliver through your Ponzi is at least the equal of the poison the man hiding in the shadows of the school yard wants to deliver to your child.

    Selling a Ponzi? You are selling people into financial bondage. You might as well sell human beings to the highest bidder on Public Square: Ponzi = Slavery To Money Lost. That’s what you’re selling, and it consumes human souls.

    Willful Blindness

    Still an autosurf player? There you are, still ignoring information published in the open, still flailing, still pimping, still telling people this one is “different,” still pretending that the enterprises are wholesome or a “game” or a nontraditional investment, still persuading yourself daily that there is no way that any of the money gathered by these schemes could fall into the hands of people who’d sooner drop a bomb on your office than assign you or your family members and friends any worth as human beings.

    Perhaps you’re even signing your emails with a “God Bless” or a religious reference. Maybe you’re even including a disclaimer of some sort, perhaps not recognizing that you’re setting the stage to be labeled an affinity fraudster in addition to being labeled a financial fraudster — and providing investigators the evidence of “consciousness of guilt” by all the ducking and weaving and dancing you’re doing in your bid to find words to insulate yourself from liability.

    “God bless” makes you look like a crook in the context of autosurfs and HYIPs. The disclaimer makes you look like a common fraudster who’s made a cold calculation and arrived at the conclusion you’re smarter than the cops and the regulators.

    You likely haven’t seen a disclaimer along these lines, but here is what the standard disclaimers mean — no matter how they’re dressed up, no matter how polite the language:

    I am a common fraudster, but I’d like you to think I’m an “industry” expert and a thoughtful sponsor. Basically I’m a parrot: I repeat what the program owners tell me. Usually I’m better with words than they are, so I dress it up. I’m smart enough to know that no real due diligence is possible with these things. They don’t publish financials. They all use offshore payment processors. There is no real way to check on any financial claims. I got “paid” and others got “paid” is good enough for me. I’m willing to take the risk that the money generated by the surfs will be used for peaceful purposes, rather than building bombs.

    Every autosurf (and HYIP) I’ve pitched has failed. Some of the operators are the subjects of criminal actions and lawsuits filed by the government and members of the surfs. Some of the participants had criminal records, had been arrested for felonies, had been charged civilly with securities fraud or had been sued for other wrongdoing. I didn’t bother to tell you these things because I didn’t really know and, besides, it was not my job to do the research. My job is to be willfully blind. My job is to show you what’s out there and let you make up your own mind — you being an adult and thus free to make your own choices. I just want your money.

    Don’t come crying to me if the surf fails after you’ve signed up under me. I’m a victim, too, but I won’t whine about it. Too much risk of getting caught. Stick with me and we’ll become victims in one scheme after another. For now, I’ll make the most money because my list is bigger than yours and I run a forum and am an active participant in other forums. Follow my lead. Build your surf list. Start a forum — and you can be a victim just like me!

    You are on thin ice for even participating in a surf. This ice becomes thinner yet if you make the decision to become a pimp. You could find yourself all alone — in need of an attorney.

    Under The Microscope

    Have you read any of our coverage of the alleged Trevor Cook/Pat Kiley Ponzi scheme in Minnesota? We have published a number of stories demonstrating that local communities are paying close attention to the Ponzi players in their midst. Neighbors and local cops are putting the alleged schemers under the microscope.

    Cook was videotaped in a grocery store after the Ponzi allegations surfaced because a loss-prevention specialist thought he just might be using the store to deplete assets of the receivership estate. His wife also was videotaped. The 71-member police department in Eagan, Minn., contacted the receiver in the case to report Cook was using a credit card after his assets were frozen.

    The general public and its representatives have connected the dots autosurf and HYIP promoters refuse to connect, let alone acknowledge: Ponzi = Pain, and Ponzi = Scrutiny — even by the local cops and grocers and retailers.

    Trevor Cook now has been jailed for contempt of court. A federal judge has ordered him to turn over tens of millions of dollars investigators have traced to the alleged scheme. Jamie Solow was ordered to jail in Florida for trying to hide assets in the Cook Islands in another fraud scheme.

    Still undecided on where you stand on the issue of autosurfs and HYIPs? Ask yourself if you want to be videotaped when you go into the store to buy a loaf of bread — or videotaped as you return to your car. Ask yourself if you want to be sitting in court watching a video produced by a camera that even captured the numbers on your license plate.

    That’s how much regard society has for Ponzi schemers these days. If you get named in a Ponzi complaint, you’re going to be on TV, in the newspapers, on the radio, on the Internet. You’re even going to be on the video the store detective is shooting because he figures you’re up to no good.

    And if you are promoting autosurf and HYIP schemes today, you are sticking out like a sore thumb. You may be putting your freedom at risk because you cannot say no to the money and continue to believe that, if there’s a hole, you can wiggle out of it with your command of language or by playing the victims’ card.

    You are not a victim if you are continuing to promote autosurfs and HYIPs. You are a perpetrator.

    ‘Offshore’ Beacon Signals The Crime

    Ever receive a pitch highlighting the advantages of an “offshore” surf or HYIP enterprise? The people who send you such pitches want you to think that “offshore” equals “safe.” You should regard such pitches as clear evidence you are being scammed by a criminal, one who is willing to lie to separate you from your money and perhaps even make you part of a court case.

    The three so-called AdSurfDaily clones — BizAdSplash, AdGateWorld and AdViewGlobal — all have tanked. Each launched in the aftermath of the federal seizure of tens of millions of dollars from ASD. Each domain name for the clones was registered after the seizure. Each of the clones highlighted “offshore” locations. Promoters preached the gospel of having learned from ASD’s mistakes.

    Like a bunch of Stepford children, ASD members lined up to promote the clones. The clones filled their “membership” rosters with ASD members looking for a way to retrieve their ASD losses.

    Andy Bowdoin put some ASD members in desperate straits. All three of the clones traded off that misery, positioning themselves as cures for what ailed ASD, while they also benefited from Bowdoin’s antigovernment missives. He fanned the flames, told the troops that the U.S. Secret Service — the agency that guards the President and the Treasury — was comprised of Nazis and terrorists responsible for losses 30 times greater than the 9/11 losses.

    We’re of the mind that very few true BAS, AGW and AVG victims exist. There is good reason to believe that most of the earliest members of the clones also belonged to ASD. Their participation in the clones speaks of a willful blindness — and also of a desire to enrich themselves by trading off the misery of those who would come later.

    It is particularly galling — almost galling beyond measure — that some of the earliest members of the clones were complaining about “slow” refunds in the ASD case. They were perfectly willing to see themselves as ASD “victims” if it meant getting back a share of their money from restitution proceeds. At the same time, they were perfectly willing to rail against the members of law enforcement who stopped the ASD scheme from mushrooming — all while they were trying to help the clones mushroom to pocket commissions and make up for ASD losses.

    Those positions are irreconcilable. They speak compellingly of egregious intent to defraud.

    Looking for your BAS, AGW or AVG money? Good luck. It could be in the pocket of an insider or a serial promoter. It could be in any number of offshore banks or payment processors — or it could be hidden practically anywhere. The cash is not in plain view, to be sure.

    We sincerely hope the investigators dug down deep into the filthy laboratories of these schemes — and just observed and observed and observed and interacted with the “players” undetected, using the intelligence they gathered to set the stage for a spectacular autosurf and HYIP takedown to come.

    In the near term, members of BAS, AGW and AVG who also were members of ASD should be excluded from the proposed ASD restitution fund. The days of willful blindness and wink-nod need to come to an end.

    Ponzi = Slavery To Money Lost.

  • BizAdSplash Tanks, Takes Participants’ Money With It, Members Say; Surf Invokes God, Says ‘Party Is Over’ In Sign-Off Note

    The Biz Ad Splash (BAS) autosurf has tanked, taking participants’ money with it, members said tonight.

    Members reported receiving a platitude-filled email from Clarence Busby announcing the surf’s closure. The email, which included a pep talk and invoked God, did not say if, when or how members would be compensated.

    “Now what about the future?” the email said. “No matter what, there is a future. There are many things on the internet that will help you in this future, so don’t give up. Make the effort and success is just right around the corner. May your life be full of faith, hope and love. This is where you will find your best rewards. May God bless you all!”

    Busby’s name appeared at the bottom of the email, which carried a business address of Acworth, Ga. The surf, which purported upon its 2009 launch to be headquartered offshore, came to life in the wake of the seizure of tens of millions of dollars from AdSurfDaily Inc. and Golden Panda Ad Builder. Busby is the former president of Golden Panda, which ceded more than $14 million to the government in the ASD/Golden Panda case.

    Known for syrupy communications, Busby described the BAS staff as “sad,” according to the email.

    “Our staff has been sad, not just because of losing a job, but because they have developed friendships with many of you and are very sad to ‘break up the party,’” the email said. “With anything that has had life, it is very sad to have that life taken away.”

    Busby was identified in the email as the owner of BAS. In earlier communications, he was identified as “chief consultant.” It was not immediately clear how he purportedly had ascended from consulting work to ownership.

    “As owner of this company, I have had many, many hours that I sincerely enjoyed working with you, and of course, a few ‘witching’ hours that were just plain scary,” the email said. “After many sleepless nights over the past few weeks, trying to come to the correct conclusion, I have made a decision to ‘pull the cord and turn out the lights.’ The party is over.

    “No decision like this comes easy, at least not for me,” the email continued. “I know many people have had tremendous success, while others have just learned another of life’s lessons in their loss. With a heart that is very heavy and sad, I have come to realize that not every plan brings success. But I do know that every failed plan does bring you a tremendous amount of knowledge in lessons learned, that will bring you closer to the success you are reaching to achieve.”

    One BAS member who contacted the PP Blog said her family was out tens of thousands of dollars with the closure — and also out the value of advertising they purchased.

    “I am retired and I did not get involved in this company just to give money away for we need the money to retire,” the member said. “Mr. Clarence Busby is nothing but a dishonest crook.”

    Busby, who used the title “Rev.” at least 120 times in a court filing involving Golden Panda last year, was implicated by the SEC in three prime-bank schemes in the 1990s, according to records. He agreed not to break securities laws in a settlement with the SEC.

    Despite the failure of BAS and the problems Golden Panda had that resulted in the seizure of more than $14 million in five Busby/Golden Panda bank accounts, Busby had he was better for having operated BAS.

    “Please accept my humble appreciation to all of you who have encouraged, supported and worked so diligently with all of us this past year. Also, for those who prayed for me when I was in the hospital, I will never forget your calls, your letters and your friendships. It really did help move me to get well.”

    BAS paid out more than $2 million during its operations, according to the email. The email did not say how much the surf had taken in.

    “Biz Ad Splash has been online as an internet advertising business for one year this very week,” the email said. “During that time, BAS has paid out over $2,000,000 in commissions and has almost 9000 members.

    “This year has brought many new friends who have believed in BAS and whose efforts gave BAS a chance for success,” the email continued. “Your encouragement and commitment was well received, and with sincere appreciation for the opportunity we had working with each of you, we honorably salute you.

    “You are the reason that we have delayed this closing, hoping that there would be enough that believed in the program to see it through,” the email said. “The past 120 days BAS’ balance sheet as continually gone in the red, and at this time, we do not have the funds to continue with our program. The past few weeks our sales have not been strong enough to pay out reasonable commissions with our RRSP program, or enough funds to handle overhead and continue operations.”