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Tag: Golden Panda Ad Builder

  • PROSECUTORS: ‘Final Action’ In Second ASD Forfeiture Case Not Expected For ‘Several Months’

    UPDATED 11:46 A.M. ET (U.S.A.) Final judicial action in the second forfeiture case filed against assets connected to AdSurfDaily “is not expected for at least several months,” federal prosecutors said.

    The second action was filed in December 2008. It identified family members of ASD President Andy Bowdoin as beneficiaries of a Ponzi, wire-fraud and money-laundering scheme operated by ASD.

    Among the family members identified in the December complaint were Bowdoin’s wife, Edna Faye Bowdoin, and her son, George Harris. Judy Harris, the wife of George Harris, also was identified in the complaint as a beneficiary of ASD’s alleged illegal conduct.

    Prosecutors filed the initial action against ASD’s assets in August 2008. That case concluded with the Jan. 4 issuance of a final forfeiture order by U.S. District Judge Rosemary Collyer, prosecutors said.

    The government now has title to nearly $80 million seized in the August 2008 case — the lion’s share of the liquid assets (cash) from the combined cases. Only about $635,000 in cash was listed as seized in the December case, meaning prosecutors have control of more than 99 percent of the money targeted in the combined cases.

    Prosecutors did not explain why they anticipated a considerable delay in finalizing the December 2008 case. (UPDATE: 11:46 A.M: Citing an investigation in progress, a Justice Department spokesman declined to comment.)

    Nothing so far suggests, however, that the December case has been delayed as a result of an appeal by Bowdoin in the August case. The record does not reflect an appeal. The delay appears to be procedural.

    The December complaint alleged that Edna Faye Bowdoin and George Harris used money from two ASD Bank of America accounts to open an account at a third bank.

    The new account was funded with an opening deposit of more than $177,000 — more than $157,000 of which was used to pay off the mortgage of the Tallahassee home George and Judy Harris shared, according to the complaint.

    Read the prosecution’s statement.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • Judge Signs Forfeiture Order In AdSurfDaily Case; Gives Government Title To $65.8 Million In Bowdoin Bank Accounts; Case Resolved In ‘Entirety’

    Andy Bowdoin

    After more than 17 months, more than 165 court filings and more than $1 million in legal fees, ASD President Andy Bowdoin has lost the August 2008 civil forfeiture case and the government has been granted title to $65,838,999.70 seized from Bowdoin’s 10 Bank of America accounts.

    U.S. District Judge Rosemary Collyer, whom Bowdoin attempted to have disqualified from the case last month, has entered a default judgment and final order of forfeiture in the case.

    In a footnote, Collyer said the order decreeing forfeiture “resolves all remaining issues and this forfeiture action in its entirety.”

    As PatrickPretty.com first reported last year, three of Bowdoin’s accounts contained the exact same sum: $1,000,388.91. Why the accounts contained the exact same sum remains a mystery.

    Another mystery is why Bowdoin, 75, initially submitted to the forfeiture on Jan. 13, 2009 — a year ago next week — but then changed his mind more than a month later and attempted to reassert his claims as a pro se litigant. Bowdoin’s former attorneys, Akerman Senterfitt, said in court filings that Bowdoin began to file pro se “without consulting with counsel and without bothering to advise counsel that he would be submitting motions on his own.”

    Akerman Senterfitt filed a motion to withdraw as Bowdoin’s counsel, saying its representation of him had become unreasonably difficult.

    Bowdoin’s pro se re-entry in the case coincided with the shift by the AdViewGlobal (AVG) autosurf to a “private association” structure. This shift was announced to AVG members on Feb. 26, 2009, after AVG said it had consulted with a company known as Pro Advocate Group.

    Bowdoin signed the first of his pro se pleadings just one day before, on Feb. 25, 2009. Pro Advocate Group, which says it can help people practice law and medicine without a license through a private-association structure, is associated with Karl Dahlstrom.

    In 1997, Dahlstrom was sentenced to 78 months in federal prison for his participation in a securities scheme. In court documents in a tax case, Karl Dahlstrom is described as having  “been in the abusive trust business for many years.”

    Bowdoin has not publicly revealed the identities of his pro se advisers, describing them as members of a “group.” Nor has Bowdoin revealed how much he paid for the pro se advice.

    Bowdoin, however, told members in a letter published on the now-defunct Pro-ASD Surf’s Up forum in March 2009 that he had paid his professional lawyers $800,000 before firing them. In September 2009, Bowdoin said his legal fees had exceeded $1 million.

    “Now I’ve spent over a million dollars in legal fees to get your money back, and to stay out of prison,” Bowdoin said on Sept. 21, according to a transcript by the U.S. Secret Service. Bowdoin made the remark in a conference call with members. The Secret Service transcribed the call, and then filed the document  in court.

    Collyer refused to disqualify herself last month, saying Bowdoin no longer had standing in the case.

    Read the final order of forfeiture in the August 2008 case against assets connected to ASD.

    Collyer earlier ordered the forfeiture of more than $14 million from the bank accounts of Golden Panda Ad Builder, whose assets also were seized in the ASD case.

    Bowdoin did score a win of sorts in the forfeiture litigation. He asked for — and was granted — an evidentiary hearing in 2008 to refute the government’s Ponzi allegations and to ask for the emergency release of $2 million because the company could not pay its rent and hosting bills and needed money to implement a new business plan.

    Prosecutors did not object to the hearing, but pointed out that Bowdoin had $1 million in a bank on the Caribbean island nation of Antigua in an account under a different name.

    Bowdoin asserted his 5th Amendment right against self-incrimination, advising the court through counsel that he would not testify at the evidentiary hearing he had requested. Surf’s Up described the performance of ASD’s witnesses at the hearing as uniformly “excellent,” while at once describing the government’s case as “not so much.”

    At the same time, the forum helped spread the rumor that the government had admitted that ASD was not a Ponzi scheme.

    In November 2008, Collyer ruled that ASD had not demonstrated at the hearing that it was a lawful business and not a Ponzi scheme. A month later, prosecutors filed a second forfeiture complaint against ASD-connected assets, restating the Ponzi allegations despite the Surf’s Up claim that prosecutors had admitted ASD was not a Ponzi scheme.

    The AVG autosurf was laying the groundwork for launch within days of Collyer’s November 2008 ruling against ASD. Promoters highlighted its purported location in Uruguay as a reason to join.

    AVG suspended cashouts in June 2009, exercising its version of a “rebates aren’t guaranteed” clause.

    Dozens of pro se litigants attempted to intervene in the ASD case, largely causing the court docket to swell from about 40 entries in January 2009 to its current total of 166.

  • BizAdSplash Now Says It May Be Offline Until Jan. 11; Surf Says It Wishes Members A Happy New Year

    UPDATED 12:04 P.M. ET (U.S.A.) BizAdSplash (BAS) now says it may be offline until Jan. 11. “due to the challenges of the transfer of our servers.”

    A message website visitors see is confusing because it does not state plainly when the autosurf will return. Rather, it says BAS will come back online “on or before January 11th.”

    The message is unsigned. BAS, which suspended member cashouts and declared a “crisis” in July because it had overpaid members, later returned. The site appears to have gone offline again Dec. 23, but initially reported that it would return today.

    BAS lists its “chief consultant” as Clarence Busby, the former president of Georgia-based Golden Panda Ad Builder, the so-called “Chinese” option for AdSurfDaily members. The U.S. Secret Service seized tens of millions of dollars in a civil-forfeiture case against ASD and Golden Panda assets in August 2008.

    After reconciliations, about $14 million was attributed to Golden Panda. More than $65 million was attributed to ASD.

    All three of the so-called AdSurfDaily clone surfs that promoted “offshore” locations after the seizure of ASD and Golden Panda’s assets — BAS, AdViewGlobal and AdGateWorld — now have either have gone offline or are existing in unclear forms.

    All three of the surfs tried to implement reconfigurations. None appears to have been able to sustain itself in a new form. BAS repeatedly has cited server problems as a reason for its absence.

    See Dec. 30 story.

  • BizAdSplash Website Offline For ‘Upgrades,’ But Surf Says It Is ‘Excited’; BAS Also Was ‘Excited’ After Announcing Meltdown In Summer

    BizAdSplash, one of the so-called AdSurfDaily autosurf clones, always is “excited” about something.

    This time it’s “excited” about 2010. The surf, however, says it will be offline for the first four days of the new year — and a note on the site suggests members could not log in for the final eight days of 2009.

    BAS said the site was down “For Server Upgrades and other changes in our system.”

    Known for going heavy on the syrup, BAS said “We are excited and look forward to a tremendous 2010. God Bless You All.”

    BAS, which lists its “chief consultant” as former Golden Panda Ad Builder President Clarence Busby, also was “excited” after it crashed and burned last summer. In July, reports surfaced that BAS was behind on payments to members. On July 24, Busby, who is listed in Georgia corporation records as the surf’s registered agent, announced BAS was in a “crisis situation.”

    BAS also says it is registered in Panama. Its Georgia address is UPS Store No. 2644 in Kennesaw.

    Busby blamed the July crisis on overpayments to members — one of the excuses AdSurfDaily used in March 2007 to explain why it was not paying members. With Busby at the helm, Golden Panda’s assets were seized in 2008 as part of the ASD probe.

    BAS launched after the federal action against ASD and Golden Panda in August 2008.

    After BAS suspended payouts in July 2009, Busby announced the company was performing an audit. In August, the planned launch of a new site was delayed, but Busby explained exciting developments were in the offing.

    By the middle of August, he promised, the company would show members how to make “instant money, very, very quickly.”

    “We need you to believe in us,” Busby said. “You’ll see why we’re excited. You’ll see why it’s important to hang on.”

  • SPECIAL REPORT: Alleged Colorado Ponzi Schemer Had Criminal Record For Securities Fraud, Previous Bankruptcy Record; Allegations Reminiscent Of ASD/Golden Panda Cases

    EDITOR’S NOTE: This story is about securities and fraud allegations leveled in Colorado against Philip R. Lochmiller and others. The case was brought amid assertions Lochmiller was operating a real-estate Ponzi, although the backdrop of the story is similar to the backdrop of the story on the “advertising” Ponzi allegations against Florida-based AdSurfDaily. Some of allegations against Lochmiller are strikingly similar to the allegations against ASD President Andy Bowdoin. Part of the story backdrop also shares a common venue: Vernal, Utah.

    Lochmiller had a real-estate development in Vernal, which also was home base to the so-called “Arby’s Indians,” a sham “tribe” of which ASD mainstay Curtis Richmond was a member. The “tribe” used the address of a Vernal doughnut shop as the address of its “Supreme Court,” and became known as the “Arby’s Indians” because it held a meeting at an Arby’s restaurant in Provo, Utah, in 2003.

    There are no assertions that the Lochmiller, ASD and “Indian” cases are in any way related or that Lochmiller had any ties to ASD or “tribal” figures. However, ASD members — as well as members of AdViewGlobal (AVG) and Golden Panda Ad Builder (GP) — may find the similarities in the Lochmiller and ASD cases instructive.

    Here, now, the story . . .

    This Rolex watch is an auction item in the Lochmiller case.A Colorado man sentenced to prison in California in the 1980s on state charges of securities fraud was indicted Dec. 15 in Denver on federal charges of securities fraud. Philip R. Lochmiller, 61, of Mack, settled in Colorado after his release from prison and started a new company, prosecutors said.

    That Grand Junction-based company, which first was called Valley Mortgage in the 1990s and is known today as Valley Investments, now is at the center of a new firestorm in a complex Ponzi scheme case that includes spectacular allegations of forgery and real-estate fraud in Colorado, Idaho and Utah.

    Investor losses could exceed $30 million. Also indicted and arrested for multiple felonies in the Colorado case were Philip R. Lochmiller II, 38, of of Olathe, Kansas, and Shawnee N. Carver, 33, of Grand Junction. If convicted, the defendants face dozens of years in federal prison. Each is free on bond, awaiting court appearances and trial.

    Lochmiller II is Lochmiller’s son.

    Certain assets, including a Rolex watch and a vintage 1955 GMC 450 American fire truck, already are being auctioned by a court-appointed receiver to raise money for an estimated 400 fraud victims.

    Family Fraud Affairs

    Records show that Philip R. Lochmiller was sentenced to three years in a California state prison in the 1980s after he was charged with 60 counts of securities fraud and pleaded guilty to about half of them.

    Also sentenced to prison in the California case were Lochmiller’s mother and brother. Jo Alice Lochmiller, Lochmiller’s mother, pitched the California scheme involving a Vista-based company known as Lochmiller Mortgage Co. on TV. She was sentenced to three years.

    Lochmiller’s brother, Stephen Lochmiller, was sentenced to four years, according to news accounts at the time.

    The 1980s scheme operated in the Greater San Diego area and resulted in 1,600 investors being bilked out of a total of $5 million. Jo Alice Lochmiller, who pleaded guilty to 10 counts and was sentenced to three years on the most serious one and given concurrent three-year sentences on the other nine, appealed her sentence.

    Jo Alice Lochmiller argued her intent was not to fleece customers but to raise money for Lochmiller Mortgage. She further argued that she should not be punished for each separate sale of unregistered securities and that her sentence was unfair because it subjected her to double punishment.

    A California appeals court consisting of a three-judge panel unanimously rejected her claim.

    “Because each unlawful sale [of unregistered securities] occurred at different times for different amounts of money to different victims, punishment for each separate sale is not prohibited by Penal Code section 654. A single object, to obtain money, does not bar multiple punishment for separate crimes,” the panel wrote.

    “The situation here is analogous to that of the robber who commits several robberies and claims he had one objective, to gain money,” the panel wrote.

    Citing case law, the panel wrote, “[W]here there are consecutive robberies in several communities . . .  over a period of several hours, a defendant may not bootstrap himself into avoidance of additional penalties by claiming that the series of divisible acts, each of which had been committed with a separate identifiable intent and objective, composed an indivisible transaction.”

    Under Jo Alice Lochmiller’s logic, the panel wrote, a defendant could fleece millions of people and expect to be punished as though she had fleeced only one person.

    “Lochmiller, through her part in the unlawful scheme, took the life savings of a group of elderly citizens,” the panel wrote. “She did so by making separate sales to 11 individuals on 10 occasions over a 3-month period. This was not one act or one indivisible course of conduct. To accept her argument, she could have continued to take the savings of every citizen in San Diego County and be punished no more than if she had done so to one individual.”

    Parallels To ASD

    The Colorado Ponzi case against Philip Lochmiller, his son and Carver is drawing comparisons to the fraud case against Florida-based AdSurfDaily and Georgia-based Golden Panda Ad Builder, the so-called “Chinese” option for ASD members.

    Federal prosecutors said Philip Lochmiller did not disclose his previous felony conviction in a securities case to investors; prosecutors made the same assertion against Bowdoin, adding that Golden Panda President Clarence Busby did not reveal his previous run-in with the SEC in a securities case alleging that Busby was involved in a prime-bank scheme.

    At the same time, prosecutors in the Lochmiller case said both Lochmiller and Lochmiller II had bankruptcy filings that were not disclosed to investors. Busby also had a bankruptcy that was not disclosed to Golden Panda members, prosecutors in the ASD case said.

    At the same time, the AVG autosurf  — purportedly based in Uruguay and now collapsed –  appears to have close Bowdoin family ties and appears to have risen from the ashes of the alleged ASD Ponzi scheme. Prosecutors alleged Philip Lochmiller’s family scheme in Colorado surfaced after his previous scheme in California collapsed and that the Colorado scheme also collapsed.

    Company name changes also are present in both the alleged Lochmiller and ASD schemes, according to court records.

    Feds Outline The Lochmiller Colorado Scheme

    “Between November of 1999 through April 2008, Valley Investments acquired five properties purportedly to develop affordable housing subdivisions,” prosecutors said.  “To finance the properties, Lochmiller and Lochmiller II advertised and solicited investments from individuals by promising a short duration high percent interest rate to be paid monthly. The advertisements characterized the investment as a ‘solid security’ secured and recorded by a Deed of Trust in the investor’s name.”

    The properties were in Colorado, Idaho and Vernal, Utah. With respect to the Vernal property, prosecutors said, Lochmiller, Lochmiller II and Carver “secured at least 12 separate investments, all with purported first Deeds of Trust, on Lot 34, Country Living Park, a lot with a rental trailer.”

    Indeed, prosecutors said, the trio sold 12 “first” positions on the same Utah property. Similar shenanigans were pulled in Idaho and Colorado, and prosecutors alleged that some people bought “first” positions in properties that already had been sold.

    Despite the fact Lochmiller was warned in 2001 by the Colorado State Securites Commission to cease and desist from selling unregistered securities, the scheme continued unabated, prosecutors said.

    In January 2004, “[Philip] Lockmiller and others traveled by air to Cancun, Mexico,” prosecutors said. In February 2004, Philip Lochmiller “caused two wire transfers for $25,000.00 each, one from his Mesa National Bank account and one from his Community First Bank account, to be sent to a recipient in Mexico as a down payment on the purchase of a furnished condominium located in Puerto Aventuras, near Cancun, Mexico.”

    In April and May 2004, Philip Lochmiller made various wire transfers to pay for the condominium in the famous resort area of Cancun, prosecutors said, adding that Lochmiller and his son traveled to Mexico by air at least 18 times.

    “The Lochmillers and Carver continued to misrepresent to investors that the business was thriving, and did not disclose to new investors how their money was being used,” prosecutors said. “Also, because there were not sufficient funds, the defendants did not file all of the Trust Deeds on behalf of investors, and most of the filed Trust Deeds were not the first encumbrance of the properties named and were thus worthless.”

    Carver was charged with notarizing forged signatures of investors for fraudulent releases of Deeds of Trust.

    “Investors should always remember the old saying that if it looks too good to be true, it probably is,” said U.S. Attorney David Gaouette of the District of Colorado. “Unfortunately, there are many people out there who are unscrupulous and tempting potential investors with false claims. Law enforcement will investigate these criminals and our office will prosecute them, but the public needs to be wary and only invest after thoroughly checking out these claims of large profits.”

    A veteran FBI agent said the agency was pursuing financial fraudsters aggressively.

    “These arrests demonstrate the FBI’s continuing commitment to aggressively investigate complex financial crimes, especially when the targeted victims are vulnerable and elderly,” said James Davis, special-agent-in charge of the Denver FBI office.

    Davis lauded victims for their willingness to cooperate in getting to the bottom of the mess.

    “We are especially appreciative of the tremendous cooperation from the victims in this case. The success of this investigation to date is tribute to the combined efforts of our federal law enforcement partners, including the IRS-CID, U.S. Postal Inspection Service, and the U.S. Attorney’s Office in Grand Junction.”

    An IRS agent who specializes in financial crime said the agency was leaving no stone unturned in the case.

    “Money laundering creates an untaxed economy that uses legitimate businesses to conceal criminal activity,” said Christopher M. Sigerson, special-agent-in-charge of IRS Criminal Investigation Unit in Denver. “IRS-CI has the financial investigators and expertise to follow the money and deprive criminals of their gains.”

    He was backed by a colleague in the U.S. Postal Inspection Service.

    “Postal Inspectors partnered with fellow law enforcement agencies in this investigation to assure the arrest of individuals utilizing the U.S. Mail for fraudulent means,” said U.S. Postal Inspector In Charge Shawn Tiller. “This is an offense the Postal Inspection Service takes very seriously.”

    Philip R. Lochmiller faces one count of conspiracy to commit mail fraud and securities fraud, one count of conspiracy to commit money laundering, 20 counts of money laundering and 10 counts of mail fraud.

    Lochmiller II faces one count of conspiracy to commit mail fraud and securities fraud, one count of conspiracy to commit money laundering, eight counts of money laundering and 10 counts of mail fraud.

    Carver faces one count of conspiracy to commit mail fraud and securities fraud, one count of conspiracy to commit money laundering, and 10 counts of mail fraud.

  • BREAKING NEWS: Bowdoin Family Knew About December Forfeiture Complaint A Month Prior To Launch Of AdViewGlobal; AdSurfDaily-Connected Assets Seized In December ’08 Case Prepped For Sale

    Even though Andy Bowdoin and his family knew in January 2009 that the government intended to seize the Tallahassee home of his stepson George Harris and an $800,000 building purchased with cash in ASD’s home city of Quincy, Fla., the AdViewGlobal (AVG) autosurf proceeded with its launch in February 2009, according to an analysis of web records and new court filings.

    Although a “Proof of Service” filed by federal prosecutors yesterday did not mention AVG, other records say that Bowdoin was given “direct notice” of a second forfeiture complaint that had been filed in December 2008 against ASD-connected assets. The initial forfeiture complaint against ASD was filed in August 2008.

    Yesterday’s filing by the prosecution showed that the Harris home and ASD building in

    Andy Bowdoin
    Andy Bowdoin

    Quincy were publicly posted for forfeiture on Jan. 8, 2009. AVG launched less than a month later, triggering a virtually relentless series of 200-percent, matching bonus offers to generate cash and events that ultimately led to its collapse after the Harrises were identified by AVG as the owners of the company.

    A Nov. 6 filing by the prosecution states that Bowdoin was given “direct notice” of the December 2008 seizure in January 2009, as were “all known potential claimants.” Prosecutors noted in the Nov. 6 filing that they had “signed receipts” from Bowdoin and others.

    Other records clearly show that AVG’s launch proceeded in February 2009, pushed by former members of ASD despite the filing of two forfeiture complaints against the firm and a racketeering lawsuit.

    Cash and property seized by the U.S. Secret Service in the December 2008 forfeiture complaint against assets tied to Bowdoin, his wife, stepson and Golden Panda Ad Builder are being prepared for liquidation, according to yesterday’s filing in the December case.

    The property includes $634,266.13 in cash seized from a Golden Panda bank account. It is being held in a U.S. Customs Suspense account in Indianapolis.

    The $800,000 building ASD paid for in cash also is being prepared for liquidation. The building is located in Quincy, Fla. It was promoted by Bowdoin as the site to which the company intended to move to accommodate employees and customers, owing to ASD’s rapid expansion.

    ASD’s growth was fueled by both video and written lies that its business was legal, the Secret Service said.

    In only months last year, ASD morphed from a company that earlier said it could not afford to pay members because of a malfunctioning computer script that purportedly had overpaid members and an accompanying  $1 million theft at the purported hands of “Russian” hackers  to a purported cash turbine was was going to buy an interest in an “international bank” and a “call center” in South America, the Secret Service said.

    In August 2008 — in the first forfeiture case filed against ASD’s assets — prosecutors told a federal judge that they believed Bowdoin was preparing to flee the United States. After reviewing a 37-page affidavit filed by the Secret Service and an additional 57 pages of evidence, including surveillance photos taken in Quincy prior to the filing of the application for seizure, a federal magistrate judge ordered Bank of America to freeze 13 bank accounts linked to ASD or Golden Panda and the U.S. Department of Homeland Security to seize the money.

    Prosecutors later seized two additional Golden Panda accounts at Bank of America, as part of the August complaint, bringing the total of accounts seized in the August matter to 15 — 10 from ASD, and five from Golden Panda. Those accounts, after reconciliations, contained more than $79.88 million, according to court filings.

    As the investigation continued, prosecutors established more links to ASD-connected assets. In December 2008, they filed a second forfeiture complaint, naming an additional Golden Panda account maintained by Bartow County Bank, rather than Bank of America. The Bartow County account is the one that contained the $634,266.13 now being held in Indianapolis.

    Prosecutors also seized the Tallahassee home of George and Judy Harris in the December complaint, saying its mortgage of more than $157,000 had been paid off with illegal proceeds from ASD. Records show the mortgage  was paid off about three weeks after a May 31, 2008, ASD rally in Las Vegas had concluded.

    George Harris is the son of Bowdoin’s wife, Edna Faye Bowdoin. Judy Harris is the wife of George Harris. The AdViewGlobal (AVG) autosurf, which came to life four months after the August seizure of tens of millions of dollars from Bowdoin’s bank accounts and approximately one month after a key court ruling went against ASD in November 2008, later identified George and Judy Harris as its owners.

    Bowdoin invoked God at the May 2008 Las Vegas rally, imploring members to imagine themselves wealthy and thanking God for providing him tremendous wealth.

    “And I always say, ‘Thank you, God, for developing me into a money magnet,’” Bowdoin said at the rally. “And I see myself as a money magnet in attracting money and, I say, attracting large sums of money.”

    Within days of the conclusion of the rally, according to court filings, ASD money was used by Edna Faye Bowdoin and George Harris to open a bank account into which more than $177,000 of illegal proceeds were deposited. More then $157,000 of the opening deposit was used to pay off the Harris home, which was seized in the December complaint.

    Neither George nor Judy Harris filed a claim to the home, prosecutors said. In September 2009, prosecutors made a veiled reference to the AVG autosurf in court filings.

    “Maybe Bowdoin thought that before the government brought its charges he (like some of his family members) could move to another country and profit from a knock-off autosurf program that Bowdoin funded and helped to start,” prosecutors said.

    AVG purportedly was headquartered in the South American country of Uruguay. Servers of the purported “advertsing” firm that operated in largely the same form as ASD resolved to Panama.

    Also seized in the December complaint were three automobiles: a 2009 Lincoln luxury sedan that had been acquired in July 2008 for nearly $50,000; a 2008 Honda CRV registered to George and Judy Harris acquired in June 2008 for nearly $30,000 after the Las Vegas rally; and a 2009 Acura TXS registered to former ASD figure Hays Amos for nearly $34,000.

    The check to acquire the Acura registered to Amos was signed by ASD Chief Executive Officer Juan Fernandez, prosecutors said.

    Also seized in the December complaint were computer equipment, two jet skis and a hauling trailer that were purchased with $20,506 of ASD money; and a Triton Cabana boat, Mercury motor and trailer purchased with $23,445 of ASD funds, prosecutors said.

    All of the property seized in December now is being prepared for liquidation, pending an order from U.S. District Judge Rosemary Collyer. Prosecutors said no one made a claim to any of the seized property.

    Based on the lack of claims, it is possible that prosecutors may argue that none of the property was claimed because ASD already had a plan to replace it through AVG.

    ASD’s seized computers are being held at Secret Service headquarters in Orlando, according to to the prosecution court filing. Meanwhile, the Lincoln luxury sedan registered to Bowdoin/Harris Enterprises and the Honda registered to George and Judy Harris are being held at a company in the auto-auction business in Lakeland, Fla.; the Acura registered to Amos is being held at an auto-auction company in Daytona Beach, Fla.; and the marine equipment is being held at auction companies in Fort Lauderdale and Pensacola, Fla.

    The $800,000 building and the Harris home were posted for forfeiture on the same date — Jan. 8, 2009, according to the prosecution filing. Only 5 days later Bowdoin surrendered his claims to the millions of dollars seized in August 2008.

    Regardless, the AVG autosurf proceeded with its formal launch in February 2009 — less than a month after the Harris home in Tallahassee and the ASD building in Quincy were posted for forfeiture.

    By the end of February, Bowdoin attempted to reenter the August case, acting as his own attorney and saying he’d changed his mind about submitting to the August seizure. Coinciding with Bowdoin’s pro se filings was an announcement by the AVG autosurf that it was becoming a “private association” based offshore.

    During the same time period, a poster at the Pro-ASD Surf’s Up forum told members that the Secret Service had seized the bank accounts of ASD promoters. The poster warned members to remove money from their bank accounts before it could be seized.

    By June 25, 2008, AVG announced that it was suspending cashouts. After initially blaming its inability to pay members on the greed of some members, it later changed its story and said $2.7 million had been stolen from the firm.

    The story was remarkably similar to the story the Secret Service said ASD had told about the purported “Russian” hackers to explain why it couldn’t pay members.

    See the prosecution’s filing yesterday that shows ASD’s Quincy building and the Harris home in Tallahassee were posted prior to the February 2009 launch of the AVG autosurf.

    See the prosecution’s Nov. 6 filing that says Bowdoin and family members had “direct notice” of the December 2008 forfeiture case and that the government had “signed receipts” prior to the launch of AVG, which later was linked to George and Judy Harris.

  • BREAKING NEWS: Secret Service Feared Bowdoin Would Flee Country After Moving Money Offshore And Relinquishing His Interest In Golden Panda Ad Builder

    The U.S. Secret Service feared AdSurfDaily President Andy Bowdoin had become aware of scrutiny into his business affairs and planned to flee the country, according to a 37-page affidavit originally filed under seal in the case.

    Meanwhile, the affidavit revealed that a key Secret Service investigator in the case formerly was a member of a Drug Enforcement Administration (DEA) Task Force in Florida and was experienced in “investigating large criminal organizations that distributed and sold controlled substances.”

    The Secret Service affidavit, however, did not list allegations of a drug crime. Instead the agency focused on what was described as a “wide-spread Ponzi fraud” and the crimes of wire-fraud and conspiracy to commit wire fraud, noting that the affidavit had been “submitted for the limited purposes of establishing probable cause.”

    “I have not included every detail of every aspect of the investigation for this affidavit,” the agent who prepared the affidavit said. “Rather, it only includes the information necessary to prove that probable cause exists for a seizure warrant to be issued for property constituting proceeds of a wire fraud scheme.”

    Accompanying the affidavit were government exhibits of evidence totaling 57 pages, all of which were reviewed by U.S. Magistrate Judge Alan Kay, who determined that the Secret Service had established probable cause to seize 10 Bowdoin bank accounts.

    In a series of 13 orders dated Aug. 1, 2008, Kay directed the Secretary of the U.S. Department of Homeland Security “and any Authorized Officer of the United States” to seize Bowdoin’s bank accounts and three accounts tied to Golden Panda Ad Builder.

    Bank of America, the financial institution in all 13 cases, was ordered to freeze the accounts.

    The documents are the first to reveal that a judge other than U.S. District Judge Rosemary Collyer had a role in the case. Meanwhile, the documents destroy myths advanced by some ASD members that the seizure was accomplished extrajudicially, that the government was not authorized to seize the funds — and even that agents were partying with the money.

    “Based [on] ASD’s indication that it intends to cease accepting funds into [Bank of America] at the end of July 2008, Bowdoin’s indication that he has relinquished his interest in Golden Panda [Ad Builder], and an indication that Bowdoin intends to establish his offshore presence, and the recent complaints governmental authorities have received, I believe that Bowdoin is aware of increasing scrutiny and that he intends to move himself, his proceeds, and, until it collapses possibly his operation, offshore,” the Secret Service wrote in the affidavit.

    The agency said Bowdoin had moved millions of dollars into Canada just prior to the seizure

    Read a warrant originally issued under seal Aug. 1, 2008, by U.S. Magistrate Judge Alan Kay, who ordered the U.S. Department of Homeland Security to seize a Bowdoin bank account that contained more than $31.6 million based on the government’s affidavit in the case.

    On July 22, prior to the seizure and during the early part of the investigation, the Secret Service listened to a Golden Panda conference call featuring Clarence Busby, according to the affidavit.

    “During the call, a person who identified himself as Busby said that Bowdoin approached him about running ‘Golden Panda,’” the Secret Service said in the affidavit. “Busby stated that he and Bowdoin were 50% partners but that Busby would be in charge of the daily operations of Golden Panda.”

    But Busby’s words ultimately conflicted with a note on Golden Panda’s website “purportedly written by Bowdoin advising that he was relinquishing his role as President, as well as his ownership rights in, Golden Panda,” the Secret Service said.

    A federal judge lifted the seal on the records in October 2008. Although the filings became public records upon the lifting of the seal, the information was difficult — though not impossible — to obtain though federal database searches.

    Records were filed under 13 different case numbers — one for each bank account — none of which could be accessed by searching under the names of Bowdoin, Busby, AdSurfDaily or Golden Panda.

    Agents had been probing ASD since early July, and increasingly gained knowledge about the firm by conducting surveillance in ASD’s home city of Quincy, Fla. Multiple agents joined the autosurf, the Secret Service said.

    Among the troubling developments in the earliest days of the probe were that a bank other than Bank of America had closed a Bowdoin account amid Ponzi scheme fears and that Bowdoin was moving money into Canada, where it could not be easily traced, according to the affidavit.

    Bowdoin’s behavior pointed to a plan to leave the United States, the Secret Service said.

    At the same time, the Secret Service said, the FBI was beginning to receive complaints about ASD, including an inquiry from the Gadsden County Chamber of Commerce about the legitimacy of the surf firm.

    Bowdoin proved to be an embarrassment for the Chamber, which initially lauded him for creating jobs but later found itself confronting troubling questions about the firm.

    Investigators “also learned that Bowdoin had purchased, or was seeking to purchase, a home in another country,” according to the affidavit.

    On July 12 in Miami, the Secret Service said in the affidavit, Bowdoin told attendees of an ASD “rally” that the company “was looking to purchase a South American call center, to purchase a credit card processing center, to purchase an interest in an international bank, and to profit from future investments in real estate.”

    All of the ASD bank accounts were in Bowdoin’s personal name, with a “D/B/A,” the Secret Service noted.

    A Dallas-based company with ties to ASD was charged in a sealed indictment in April 2008 with helping a Colombian cocaine operation launder money by providing debit cards that were used to convert drug proceeds to cash in Medellin.

    The company — Virtual Money Inc. — once provided debit cards to ASD. A grand jury in the Virtual Money case authorized forfeiture complaints totaling $7.12 million. The complaint was unsealed in September 2008, several weeks after ASD’s assets were frozen. The indictment names 10 defendants, including VM President Robert Hodgins, who is believed to have fled the United States.

    Prosecutors said that Virtual Money, known simply as VM, helped the Colombian drug operation offload at least $7.1 million in drug proceeds at automated teller machines in Medellin. Medellin once was home base of the infamous Medellin Cartel, operated by drug lord and terrorist Pablo Escobar. Escobar was killed by Colombia National Police in 1993.

  • EDITORIAL: In The Past 24 Hours On The PP Blog . . .

    Some things have happened here in the past 24 hours that deserve their own post and discussion thread.

    EXTREMELY NOTEWORTHY

    Poster “Tony H,” a longtime, thoughtful contributor, observed there could be more than one reason why some ASD members appear to be trying to discourage other members from filling out the government information form and claim form that will follow.

    “Perhaps the reason some ponzi promoters have been advising the flock not to file a claim is because the ponzi supporters have filed multiple claims themselves,” Tony said.

    Tony’s post struck us instantly as worthy of a wide-ranging discussion. Previously we noted that various bids to discourage ASD members from filing claims and cooperating with investigators smacked of a conspiracy to obstruct justice. We still believe that to be true.

    But, as Tony pointed out, the shenanigans may not begin and end there. If he is correct, one possible reason some ASD members are discouraging others from filing claims is to create a condition under which they can maximize their shares of the restitution pool at the expense of victims, thus fleecing them twice.

    If fewer people file claims, the pro rata shares of refunds from the government program would be higher. Beyond that, if an upline sponsor is discouraging downline members from filing individual claims by casting the government as evil, it could set the stage for all kinds of shenanigans.

    • Upline sponsors could gain disproportionate shares of the restitution pool because “Mom” and “Pop” in the downline — the real victims — became fearful of filing a claim.
    • Upline sponsors could be trying for reasons of self-interest to plant the seed that the sponsor has a duty to file a claim for the entire downline. Are some upline sponsors employing tactics of deceit, perhaps by saying things such as, “Don’t worry; I’ll fill out the form for you” or “Filling out the form only will get you in trouble” or “My downline members all agree that I’ll file the only claim and distribute refunds to members when I get the money from the government?”

    The rules suggest each ASD member is/will be required to file an individual claim through a process in forfeiture cases known as “remission.” Upline sponsors appear to have no authority to file claims for downline members.

    Because it is known that some downline members paid upline sponsors directly for “ad-packs” — as opposed to paying ASD itself for “ad-packs” — is is possible that some sponsors may try to manipulate members into not filing claims in a bid to keep the heat off the sponsors. Such direct sales by sponsors could affect a downline member’s standing in the case if the downline member cannot produce documentation that the purchase was made directly from ASD.

    This is troubling. As poster “dirty_bird” has noted, such devious upline tricks have been pulled in other dying Ponzi schemes — and ASD is known to have a good number of professional Ponzi promoters in the organization.

    We encourage readers to share their thoughts on this issue.

    NOTEWORTHY

    ASD mainstay Bob Guenther, de facto head of the ASD Members Business Association (ASDMBA), once again rattled the china when he bulled his way into a thread here.

    In one thread, Guenther said the government was capturing “personal information” from people who called the new Justice Department hotline for ASD or visited the website prosecutors set up for ASD victims.

    “So because the US Government sets up a hotline and a website, both of which will capture YOUR personal information, people think they will see a refund,” Guenther said.

    We wondered if it had not occurred to Guenther that victims in criminal cases all have to make a showing to receive justice. It’s one of the reasons rape cases often are particularly difficult to prosecute and why prosecutors set up information/support networks to aid victims through horribly painful ordeals.

    At the same time, we wondered why Guenther — who implies he can help ASD members get refunds faster than the government — suggested the government hotline was nefarious, that people should avoid it because of all the purported capturing of personal information.

    Perhaps the answer to that question can be found in yet another thread into which Guenther plowed. He reminded our readers that ASDMBA used “pressure” to gain a refund for an ASD member.

    “Let’s just say a little pressure was applied in the right places,” he said. Guenther was describing a case in which ASDMBA encouraged website visitors to “make Dan Trost’s life miserable until he refunds Mr. Smith’s $2,000.00 dollars.”

    For good measure, the ASDMBA website provided Trost’s postal address, email address and phone number, along with these instructions:

    “Call, email and write this man until he gives Bill Smith, Jr. his $2,000.00,” the ASDMBA website instructed, on a page marked “Testimonials.”

    “With Unity there is Power,” ASDMBA instructed.

    People can get in trouble for engaging in threatening behavior and vigilanteism.

    NOTEWORTHY

    A poster, “Arnet,” pointed out that there seems to be a disparity between the amount ($93.5 million) the U.S. Secret Service listed as seized in the ASD case and the amount ($65.8 million) federal prosecutors said was seized from ASD President Andy’s Bowdoin’s bank accounts.

    Arnet noted the disparity is $27.7 million.

    We noted that Golden Panda also is part of the ASD case, and the total seizure listed from Golden Panda/ASD combined was $79.88 million. This takes the seeming disparity down to $13.62 million.

    But we also pointed out that perhaps no disparity exists because of reconciliations that occurred after the seizure. Some banks might have stopped payment on seized checks that had been deposited, for example.

    It’s also possible that no disparity exists because the ASD case is proceeding on two separate tracks — civil and criminal — and that the $93.5 million figure reported by the Secret Service reflects what is publicly known about the forfeiture case ($79.88 million) and an additional amount that is filed under seal in a criminal matter.

    It could be that $13.62 million — the difference between the amount published in the forfeiture case ($79.88 million) and the total seizure amount published by the Secret Service ($93.5 million) — is being held in a separate account in a case under seal.

    As we pointed out, we’re not sure precisely what accounts for the seeming disparity of $13.62 million. We believe it a virtual certainty, however, that no disparity actually exists.

    We believe the government will explain this issue in detail at an appropriate time. The investigation still is in progress. It’s important to remember it also involves the LaFuenteDinero autosurf, and that information concerning how LaFuenteDinero managed its operations and finances is particularly sketchy.

  • BREAKING NEWS: Prosecution Seeks More Than $65.8 Million From Andy Bowdoin’s Bank Accounts; Asks For Default Entry

    Federal prosecutors have filed an affidavit that seeks to give the government permanent control over more than $65.8 million seized from 10 bank accounts in the name of AdSurfDaily President Andy Bowdoin.

    Prosecutors already have permanent control over money seized from the bank accounts of Golden Panda Ad Builder in the same case.

    Today’s move against ASD’s bank accounts followed quickly on the heels of a ruling Tuesday by U.S. District Judge Rosemary Collyer that Bowdoin would not be permitted to reassert claims to the money. Prosecutors said they intend to implement a restitution program for victims of the alleged ASD Ponzi scheme.

    “[T]he time for filing pleadings to intervene has expired,” said Barry Wiegand, one of the prosecutors handing the case, in today’s affidavit.

    In all, the government seized $65,838,999.70 from Bowdoin’s bank accounts, according to court filings.

    The largest Bowdoin account contained more than $31.6 million. Another Bowdoin account contained more than $23.7 million. A third Bowdoin account contained more than $4.99 million. (An additional $107 would have made it an even $5 million.)

    Three Bowdoin accounts contained the exact same amount: $1,000,338.91. Three other accounts contained smaller amounts, and one additional account contained more than $1.088 million. Bowdoin’s smallest account contained $13,286, prosecutors said.

    Bowdoin surrendered claims to the money in January. He attempted to reassert his claims in February. Collyer ruled Tuesday that he would not be permitted to reenter the case.

    Today’s affidavit by the prosecution asks the Clerk of Court to enter a default notice. The default would become finalized with a formal order of forfeiture from Collyer, meaning the government would perfect its title to the money.

    In July, Collyer signed an order of forfeiture against assets once held by Golden Panda Ad Builder, giving the government formal title to more than $14 million seized from Golden Panda. Golden Panda ‘s assets were seized as part of the ASD probe.

    Golden Panda President Clarence Busby’s five accounts — some of which also included the name of his daughter, Dawn Stowers — contained $14,045,598.07 in total, prosecutors said. The largest account contained exactly $6 million. Another Busby account contained more than $3.007 million. A third Busby account contained more than $2.282 million. A fourth Busby account contained more than $1.642 million. Busby’s smallest account contained more than $1.112 million.

    In May, prosecutors tallied the ASD money as follows:

    (a) $1,088,246.48 from account #[deleted by this Blog] at Bank of America, in the name of
    Thomas A. Bowdoin, Jr., Sole Proprietor, DBA ADSURFDAILY;
    (b) $31,674,039.13 from account #[deleted by this Blog] at Bank of America, in the name of
    Thomas A. Bowdoin, Jr., Sole Proprietor, DBA ADSURFDAILY;
    (c) $937,470.18 from account #[deleted by this Blog] at Bank of America, in the name of
    Thomas A. Bowdoin, Jr., Sole Proprietor, DBA ADSURFDAILY;
    (d) $13,286.89 from account #[deleted by this Blog] at Bank of America, in the name of
    Thomas A. Bowdoin, Jr., Sole Proprietor, DBA ADSURFDAILY;
    (e) $403,791.04 from account #[deleted by this Blog] at Bank of America, in the name of
    Thomas A. Bowdoin, Jr., Sole Proprietor, DBA ADSURFDAILY;
    (f) $4,999,893.00 from account #[deleted by this Blog] at Bank of America, in the name of
    Thomas A. Bowdoin, Jr., Sole Proprietor, DBA ADSURFDAILY;
    (g) $23,721,256.25 from account #[deleted by this Blog] at Bank of America, in the name of
    Thomas A. Bowdoin, Jr., Sole Proprietor, DBA ADSURFDAILY;
    (h) $1,000,338.91 from account #[deleted by this Blog] at Bank of America, in the name
    of Thomas A. Bowdoin, Jr., Sole Proprietor, DBA ADSURFDAILY;
    (i) $1,000,338.91 from account #[deleted by this Blog] at Bank of America, in the name
    of Thomas A. Bowdoin, Jr., Sole Proprietor, DBA ADSURFDAILY;
    (j) $1,000,338.91 from account #[deleted by this Blog] at Bank of America, in the name
    of Thomas A. Bowdoin, Jr., Sole Proprietor, DBA ADSURFDAILY.

    Golden Panda money was tallied as follows in May:

    (k) $2,282,999.72 from account #[deleted by this Blog] at Bank of America, in the name of
    Clarence Busby Jr. and Dawn Stowers, DBA Golden Panda Ad Builder Deposit
    Account;
    (l) $1,112,978.42 from account #[deleted by this Blog] at Bank of America, in the name of
    Clarence Busby Jr. and Dawn Stowers, DBA Golden Panda Ad Builder Operating
    Account;
    (m) $1,642,039.08 from account #[deleted by this Blog] at Bank of America, in the name of
    Clarence Busby Jr. and Dawn Stowers, DBA Golden Panda Ad Builder Cashout
    Account;
    (n) $6,000,000.00 from account #[deleted by this Blog] at Bank of America, in the name
    of Golden Panda Ad Builder; and
    (o) $3,007,580.85 from account #[deleted by this Blog] at Bank of America, in the name
    of Golden Panda Ad Builder.

    The government seized more than $79.88 million combined from the bank accounts of ASD and Golden Panda.

  • BREAKING NEWS: Justice Department Establishes Information Hotline For AdSurfDaily, GP, LFD Victims

    Victim of the alleged AdSurfDaily autosurf Ponzi scheme? Want the latest information about claims and how the proposed restitution program is shaping up?

    The Department of Justice has established a special telephone number for the ASD case. By calling the number, you’ll hear a recording that updates members on developments in the case, which involves ASD, Golden Panda Ad Builder and LaFuenteDinero.

    Here is the phone number: 202-616-2420

    “The United States Attorney’s Office for the District of Columbia will update this message on a regular basis,” the Justice Department said.

    Prosecutors also have updated an informational website. Here is the URL:

    http://www.justice.gov/usao/dc/Victim_Witness_Assistance/adsurfdaily.html

    The site includes a page for Frequently Asked Questions. The FAQ page can be accessed by clicking on a link. Look for a list of bullet points on the page you’ll visit by clicking on the link above. The FAQ link currently is at the bottom of the list of bullet points. The headline for the FAQs is “Answers to Frequently Asked Questions.”

    The page answers these questions:

    • Why did the government get involved in Ad Surf Daily, Golden Panda, Ad CashGenerator, and La Fuente Dinero?
    • Why is the U.S. Secret Service involved?
    • What is a forfeiture case?
    • How much money has the government recovered from Ad Surf Daily and related schemes?
    • How did the government recover money from Ad Surf Daily and related operations?
    • Will the forfeited funds be distributed to people who were defrauded in these schemes?
    • How long will it take to distribute the forfeited money to victims?
    • Why will the claims process take so long?
    • Will victims recover their full losses?
    • What are the next steps in the process?
    • Where can I get more information and keep up to date?

    Here is the answer to the question, “Will the forfeited funds be distributed to people who were defrauded in these schemes?”

    Yes. Money that has been declared forfeited will be returned to victims of the schemes through a process called “remission.” Remission occurs when forfeited assets are returned to the victims of a crime underlying a forfeiture. The remission process is governed by the Code of Federal Regulations, Title 28, Part 9 (2009). When forfeiture is ordered by a federal court, authority to grant remission rests with the United States Attorney General. This authority has been delegated to the Chief of the Asset Forfeiture and Money Laundering Section (AFMLS), which is located in the Criminal Division of the United States Department of Justice. AFMLS will manage the remission process, and other agencies involved in the case, including the U.S. Secret Service, as well as the United States Attorney for the District of Columbia, will have a role in the remission process.

    Here is the answer to the question, “Will victims recover their full losses?”

    Because the total value of the seized assets is less than the estimated member losses, it is unlikely that members will receive full compensation for their losses. Accordingly, each member will receive a pro-rata share of the forfeited money based upon his or her loss amount. The exact amount of each person’s recovery will not be known until the claims review process is completed.