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Tag: Noobing

  • BREAKING NEWS: Receiver In ASI/Brett Blackman Case Delivers Devastating Preliminary Report; Noobing Autosurf Identified As Part Of ASI Affiliate Fold And Was Registered In Nevis; Belize Used For Other Firm

    A receiver appointed to review financial records of Affiliate Strategies Inc. and related companies named defendants in a fraudulent government-grants scheme last month advised a federal judge that the companies were insolvent and had less than one day’s operating cash requirements in their bank accounts.

    Astonishingly, receiver Larry Cook advised U.S. District Judge Julie A. Robinson that the attorneys he hired to assist in the probe “received thirty two US Mail crates” filled with complaints on Wednesday alone.

    “Although it is difficult to summarize the mass volume of calls and letters, a majority of the communications are from elderly individuals, or their children, who have discovered automatic checking account deductions from their, or their parents’, checking accounts and are requesting refunds,” Cook said in the preliminary report.

    Although Cook advised the judge he has been able to recover about $300,000 through the early weeks of his investigation and expected to recover more as the investigation proceeds, the defendants’ businesses appeared to be broke.

    “The Receiver’s work over the past three weeks suggests the Defendants’ operations were insolvent on the date [July 24] the [Temporary Restraining Order] was entered and that for at least all of 2009, Defendants operated only by signing up new victims faster than the old victims could obtain refunds,” Cook said.

    He observed that the “Defendants’ business operations were high revenue/low margin operations which required significant cash in-flows from new victims to meet current trade creditor and consumer refund obligations.”

    Noobing, an autosurf that targeted people with hearing impairments, was identified by Cook as a company affiliated with ASI. Noobing was not named a defendant in the fraud complaint filed last month by the Federal Trade Commission and the attorneys general of Kansas, Minnesota and North Carolina.

    Cook, though, said he discovered Noobing had registered as a corporation on the Caribbean island of Nevis on March 25, 2009. Noobing launched last year and was promoted by members of AdSurfDaily Inc., a surf firm from which the U.S. government seized tens of millions of dollars last year in a wire-fraud, money-laundering and Ponzi scheme probe.

    Noobing generated more than $590,000 in revenue last year and more than $541,000 this year before going offline, according to Cook’s preliminary report.

    Cook estimated that Noobing was in the hole nearly $550,000 since last year.

    Blackman, according to Cook, recently registered several corporations offshore, including Noobing; ASI Management Inc., formed in Belize on March 24, 2009; Landmark Publishing Group LLC, formed in Nevis on March 25, 2009; Landmark Publishing LLC, formed in Nevis on March 25, 2009; International Research and Writing Group LLC, formed in Nevis on July 1, 2009; and International Publishing Group LLC, formed in Nevis on July 1, 2009.

    All in all, Cook said, “the ASI defendants have formed and operated eighteen additional Kansas LLCs as subsidiaries of Defendant Apex Holdings International LLC.”

    “Of immediate concern is the large distributions and salary paid to defendant Brett Black[man] since 2008,” Cook advised the judge in his report. “Per the QuickBooks accounting records, Blackman received $841,545 of distributions from Apex Holdings International, LLC in 2008 and made a net contribution of $491,559 into Affiliate Strategies, Inc. ($581,388 of contributions and $89,829 of distributions) for a total net distribution of $349,986, in addition to salary payments of $118,049.

    “In 2009,” Cook continued, “Blackman has received $253,506 of distributions from Apex Holdings International, LLC and has made a net contribution of $113,000 into Affiliate Strategies, Inc. ($349,000 of contributions and $226,000 of distributions). The total net distributions and salary to Blackman for 2008 and 2009 is approximately $490,000.”

    Cook said his assessment was ongoing. He reported that some of the accounts involved in the investigation had chargeback rates of as high as 77 percent, meaning that better than three of four customers who made credit-card charges requested refunds.

    Read Cook’s preliminary report.

  • UPDATE: Receiver In ASI Case Launches Website

    Larry Cook, the receiver in the Federal Trade Commission case against Affiliate Strategies Inc., Brett Blackman and several co-defendants, has started a website to inform interested parties.

    Visit the receiver’s website in the ASI case.

    The FTC said the defendants were involved in a fraudulent scheme that promised “guaranteed” grants of $25,000 from economic-stimulus funds provided by the government. State attorneys general from Kansas, Minnesota and North Carolina joined in the lawsuit.

    Blackman is ASI’s president, chief executive officer and founding partner, and also president of Noobing, a surf site. Noobing was not named in the FTC complaint, but the site is offline. Noobing targeted members of the deaf community.

    U.S. District Judge Julie A. Robinson issued a temporary restraining order (TRO) and asset freeze July 24.

  • UPDATE: Noobing Surf Site Offline As FTC Fraud Case Against Affiliate Strategies Inc. Proceeds; Receiver Appointed And Expected To File Preliminary Report Soon

    A receiver has been appointed in the case against Affiliate Strategies Inc. (ASI) and Brett Blackman, ASI’s president, chief executive officer and founding partner. Noobing, a surfing site, is in the ASI fold, but has not been named a defendant.

    Regardless, the Noobing site is offline. A federal judge has granted a freeze of ASI’s assets. Noobing, based in Kansas, launched in the aftermath of the seizure of tens of millions of dollars from Florida-based AdSurfDaily Inc. last year and was promoted by some ASD members.

    YouTube videos and other records show that the site was targeted at people with hearing impairments.

    Late last month, the Federal Trade Commision sued ASI; Blackman; Landmark Publishing Group (d/b/a G.F. Institute and Grant Funding Institute); Grant Writers Institute LLC; Answer Customers LLC; Apex Holdings International LLC; Jordan Sevy, individually and as a manager of Landmark Publishing Group; James Rulison, individually and as president of Answer Customers LLC; Real Estate Buyers Financial Network LLC (d/b/a Grant Writers Research Network); Martin Nossov, individually and as a manager and member of Real Estate Buyers Financial Network LLC; and Alicia Nossov, individually and as a manager and member of Real Estate Buyers Financial Network LLC.

    Joining the FTC in the lawsuit were the attorneys general of Kansas, Minnesota and North Carolina. The case also appears in federal court dockets in Virginia and Utah.

    A preliminary report by Larry Cook, the court-appointed receiver, was due today. It is possible that the filing will be delayed until Aug. 20, because attorneys for the defendants asked for a delay.

    U.S. District Judge Julie A. Robinson issued a temporary restraining order (TRO) and asset freeze July 24. Based on filings by the defendants, Robinson granted a delay from Aug. 12 until Sept. 1 to conduct a hearing on the TRO. But Robinson denied a motion by the defendants to stay discovery in the case.

    Among other things, the defendants advised the court that they wished “to retain separate counsel for themselves” and noted they needed time to “sort out their financial affairs” and to determine how to pay for separate counsel, Robinson noted.

    And, Robinson noted, “[T]he defendants seek time to attempt to conduct settlement negotiations.”

    The FTC said the defendants were involved in a scheme that promised “guaranteed” grants of $25,000 from economic-stimulus funds provided by the government.

    Kansas Attorney General Steve Six said the alleged scheme was deplorable and that investigators intended to carve back any ill-gotten gains.

    “During this time of economic uncertainty, grant scams are taking advantage of people’s hope for financial assistance and scamming them out of hard earned money,” Six said. “There is no such thing as a guaranteed grant. But to consumers in financial trouble, the chance for extra income can unfortunately be a huge draw.”

    “Scammers like these are using the bad economy to try to get rich at your expense,” Six said. “Beware of anyone who promises to help you win a grant if you pay them first.”

    Blackman, 25, “began trading stocks and bonds at the age of 15,” according to ASI’s website. He also “is involved with numerous civic groups including Business Fellowship International (BFI), Young Life, and Campus Crusades. He also serves on the board of Where Are The Christian Men (WATCM).”

  • Noobing, Surf Site That Pitched Itself To Deaf Community, Goes Missing; Purported President Was Named In FTC Complaint Against Separate Firm Last Month That Alleged ‘Guaranteed’ Government ‘Stimulus’ Grants Of $25,000

    UPDATED 10:48 A.M. EDT (U.S.A.) The Noobing surf site is throwing a server error and will not resolve. The development came in the aftermath of a Federal Trade Commission complaint filed late last month against Brett Blackman and others, although Noobing was not named in the FTC complaint.

    On July 24, a federal judge froze Blackman’s assets and the assets of other defendants in the case.

    Attorneys general from Kansas, Minnesota and North Carolina joined the FTC in the action. One of the claims in the case is that Blackman was part of a scheme to make customers believe they would receive a “guaranteed” $25,000 grant from the government from economic-stimulus funds.

    Web records identified Blackman as Noobing’s president. The precise time the Noobing site vanished is unclear.

    Noobing had a considerable presence in the deaf community, and at least 15 YouTube videos featured sign language.

    Members complained publicly about “bait and switch” in February, saying they were attracted to the program by suggestions of returns of up to 3 percent a day.

    Returns, however, plunged to only a fraction of 1 percent. A Noobing staffer explained at the time that Noobing learned from the AdSurfDaily case that “it became clear that any system that is not SEC registered as an investment that returns more than 100% risks getting shut down and everyone loses everything.”

    What he did not explain is why Noobing chose even to operate in the post-ASD environment.

    The staffer went on to blame the government for the decision to slash the payout rate.

    “The SEC did not contact us,” explained the employee in February, on the ASA Monitor forum. “We are simply being smart and not putting ourselves in a bad position to risk losing everything. Once ASD gave up, and we stood without a firm ruling from the courts, the risk was too high. We’d have preferred that ASD won, or that at least we got a clear ruling, as it is now, cautious action is best.”

    Noobing was popular among some some members of ASD. After the seizure of tens of millions of dollars from ASD President Andy Bowdoin a year ago this month, some promoters turned to Noobing in the fall.

    In the FTC complaint, the agency and the attorneys general seek “a court order permanently stopping the defendants’ illegal conduct and forcing them to return money to consumers injured by the scheme,” the FTC said.

    Named defendants were:

    • Affiliate Strategies, Inc.
    • Landmark Publishing Group, LLC (d/b/a G.F. Institute and Grant Funding Institute)
    • Grant Writers Institute, LLC
    • Answer Customers, LLC
    • Apex Holdings International LLC
    • Brett Blackman, individually and as an officer, manager, and/or member of Affiliate Strategies, Inc., Landmark Publishing Group, LLC, Grant Writers Institute, LLC, Answer Customers, LLC, and Apex Holdings International, LLC
    • Jordan Sevy, individually and as a manager of Landmark Publishing Group
    • James Rulison, individually and as president of Answer Customers, LLC

    In addition, the complaint names the following North Carolina entities as defendants: Real Estate Buyers Financial Network LLC (d/b/a Grant Writers Research Network); Martin Nossov, individually and as a manager and member of Real Estate Buyers Financial Network LLC; Alicia Nossov, individually and as a manager and member of Real Estate Buyers Financial Network LLC.

    “Since at least 2007, GWI has mass mailed postcards to consumers across the country falsely claiming that the consumers “are Guaranteed a $25,000 Grant from the U.S. Government,” the FTC said. “Consumers who call the number are pitched a $59 book titled ‘Professional Grant Writer[:] The Definitive Guide to Grant Writing Success.’”

    “The company’s telemarketers falsely claim that the book will explain how to get government grants — including the ‘guaranteed’ $25,000 grant,” the FTC continued. “GWI and its North Carolina-based telemarketers, also named as defendants in the complaint, then call consumers who have bought the book, trying to get them to pay hundreds of dollars or more for grant research, writing, or coaching services, falsely claiming a 70 percent success rate in securing grant funding. In reality, few, if any consumers ever receive any grant money.”

    From federal complaint.
    From federal complaint.

    Meanwhile, the FTC said, “GWI used the current government stimulus package to make its pitch. For example, when consumers called the number on the mass-mailed postcard, they heard a recording that said, ‘If you’ve been reading the papers you know that recently our government released $700 billion into the private sector. What you probably don’t know is that there is another $300 billion that must be given away this year to people just like you.’”

    It did not end there, the FTC said.

    “The recording continues, ‘And if you’re one of the lucky few who knows how to find and apply for these grants, you will receive a check for $25,000 or more, and we guarantee it . . . If you don’t get a check for $25,000 or more, you pay nothing.’”

    Read the FTC news release. Read the federal/state complaint.

  • Tuesday News And Notes: ASD, AVG, Noobing

    UPDATED 3:44 P.M. EDT (U.S.A.)

    Topic: In their response to an Andy Bowdoin pleading, federal prosecutors yesterday pointedly referred to ASD  insiders as Bowdoin “associates” and “confederates.”

    Is it a signal?

    Topic: Shad Foss, whom the receiver in the CEP Ponzi scheme case views as a Ponzi promoter worthy of pursuing for clawbacks, sent an email in late March encouraging people to sign up for AdViewGlobal (AVG).

    AVG has been running a 200-percent, matching-bonus program, and has close ties to ASD. ASD once advertised that it used the services of CEP Trust, the failed payment processor run by the operators of the CEP Ponzi scheme.

    Foss got some of the math wrong in his AVG pitch. Regardless, he managed to use exclamation points to end four consecutive sentences in his 200-percent promotion (emphasis added):

    That means $500 turns into $1500 instantly!

    $1000 turns into $3,000 instantly!

    $2500 turns into $7,5000 instantly!

    $5000 turns into $15,000 instantly!

    AVG members now are expressing nervousness about trouble the company has been having with payout issues and getting banking and payment-processor issues fixed.

    Some members have questioned whether a process involving a button that permits one AVG member to transfer money to another from within the AVG system might constitute money laundering or tax evasion. Members say it’s a means for upline sponsors to make sure members of their downlines don’t have to wait to have AVG purchases credited, but law enforcement could take a dim view of the system.

    AVG members also are complaining about low rebate rates, as the surf firm continues to offer huge matching bonuses electronically — a way to collect large sums of cash without requiring people to be physically present to qualify for bonuses. ASD filled its coffers by offering matching bonuses to people who attended “rallies” in U.S. cities; AVG is not conducting rallies, but instead is offering rally-like bonuses electronically.

    Topic: Noobing, a surf site that targeted people with hearing impairments, now has been given an official scam label by asamonitor. Noobing used a rebate model similar to ASD, then slashed the payout rate. When members then received only tiny rebates, they complained, claiming bait-and-switch. A Noobing employee said the company slashed rebates because of an unclear ruling in the ASD case.

    Topic: Mods at the Pro-ASD Surf’s Up forum continue to champion Andy Bowdoin. Some of the Mods and members also are promoting AVG, but AVG members have been complaining that they aren’t getting satisfactory answers from the Mods or the company. Meanwhile, some Surf’s Up members are openly questioning the Mods’ undying devotion to Bowdoin.

  • Sign Of The Apocalypse? Ning.com Surf Sites Removed

    Ning.com sites by David Courtney that promoted autosurfs have been taken offline without explanation. It is unclear if the removal is permanent, but sites for MegaLido, AdGateWorld and BizAdSplash went offline last night and remain offline this morning.

    “This social network has been taken offline by its owner,” each site said. “It’s likely that the owner will bring it back online shortly.”

    The sites have been offline for at least 11 hours.

    Courtney also promoted Noobing, which is under fire from members for collecting money, paying rebates of up to 3 percent for a while, and then slashing rates to a fraction of 1 percent. Noobing blamed the rate cut on an unclear ruling in the ASD case and implored members to complain to the government.

    The surf also is under fire from the deaf community.

    Courtney said he’ll no longer write about Noobing in his newsletter, and he also announced that he won’t publish information about AdViewGlobal to protect members of a newly formed private association. Meanwhile, Courtney said he’d no longer publish information about the rebate-paying histories of AdGateWorld or BizAdSplash.

    At the same time, Courtney announced he was down on Aggero Investment, which crashed and burned over the weekend after collecting money until the bitter end.

    “Roger from Aggero really dropped a bomb on us over the weekend,” Courtney said. “Whereas just 13 days prior Roger was saying how great and wonderful everything was going, and even raised the maximum investment from $3,000 to $5,000, a mere two weeks later he announced that the program was in trouble and that he was closing.

    “This announcement was further shocking due to the fact that just a couple of days prior, Roger announced that Premium Ads Club was closing up but that those of us in Aggero had nothing to worry about. Less than 48 hours after that announcement, he told us that Aggero was in fact having problems.”

    In other ASD news, an ALL-CAPS POSTER named “David” — not David Courtney — screamed in multiple threads at the Pro-ASD Surf’s Up forum last night for people to wake up and not let ASD’s big winners hang onto their ASD money.

    David implored the winners to turn over their earnings to the government so ill-gotten gains could be distributed among the rank-and-file losers. One poster assured David that the winners weren’t acting in their own self-interest by trying to rally troops to write letters and rail against the government.

    But David didn’t buy it, and continued to post in ALL CAPS. A poster then appealed to the Mods to shelter Surf’s Up members from the high truths he was telling. Eventually his posts were deleted.

  • DISCUSSION THREAD: CEP Judgments, Ponzis And The Deaf, Noobing, Andy Bowdoin, Surf’s Up, BizAdSplash Surf, More

    miseryindexUPDATE 2:49 P.M. EST (U.S.A.) At a gathering of creditors today, Irving Picard, the trustee overseeing the liquidation of Bernard L. Madoff Investment Securities, said he could find no evidence that Madoff even purchased securities for customers in the past 13 years. Cash came in — and immediately went out — to sustain the Ponzi, Picard said. We’ve added a Madoff Discussion Topic at the bottom of this post.

    Here, below, our earlier post . . .

    This is a discussion thread for readers to share their views on developments in the autosurf world. Offer your opinions on any of the discussion topics below — or even all of them.

    First, however, some news:

    The bankruptcy judge in the CEP Ponzi scheme case has ordered some large judgments against “winners” who were sued in adversarial proceedings by William Perkins, the CEP receiver.

    Judge James E. Massey even ordered interest be paid on the judgment amounts. “Winners” who are now losers include:

    • Chris Barany: $225,702.90
    • Earl Reed: $146,677.50
    • Ginger Phillips Reed: $103,339.70
    • Jessica Phillips: $44,821.85

    As a side note, our research suggests that AdSurfDaily President Andy Bowdoin was a participant in the CEP Ponzi scheme. ASD once advertised it accepted payments from CEP Trust, the failed payment processor owned by the operators of the CEP Ponzi scheme.

    DISCUSSION TOPIC: If you’ve been following the ASD case, you’ve read that ASD was an exciting, new business model and Andy Bowdoin a genius. But how could that be true if ASD was a member of other autosurf Ponzi schemes?

    Ponzis And The Deaf

    As reported on PonziNews, the SEC has taken action against a Hawaii-based firm that allegedly ran a Ponzi scheme targeting the hearing-impaired communities of the United States and Japan.

    Investigators say Billion Coupons Inc., run by Marvin Cooper, made affinity fraud part of a $4.4 million Ponzi scheme.

    “A Ponzi scheme targeting members of the Deaf community is particularly reprehensible,” said Rosalind R. Tyson, director of the SEC’s Los Angeles Regional Office.

    This week, a surf came under fire in forums for slashing payouts to customers. The surf, known as Noobing, targeted the deaf at Deaf Expo events in 2008 and in YouTube videos.

    DISCUSSION TOPIC: Given customers’ claims of “bait and switch,” the fact Noobing launched after the government seized ASD’s assets, Noobing’s statement that people should be angry at the government — not Noobing — for its decision to slash payouts, and the targeting of deaf people, is an investigation warranted?

    Andy Bowdoin

    Two months have passed since prosecutors filed a second forfeiture complaint against assets tied to ASD. The complaint alleged that ASD funds were used to fuel big spending by Bowdoin family members. It further alleged that $1 million purportedly was stolen from ASD by “Russian” hackers and that Bowdoin didn’t file a police report. Meanwhile, it also alleged that money in addition to what “Russian” hackers took also was stolen — and that Bowdoin didn’t file a police report about those thefts, either.

    ASD said it had more than $1 million on deposit in Antigua, which this week became the center of an international financial scandal involving billionaire Allen Stanford, the biggest banker on the Caribbean island. Customers flooded banks in the tiny nation to withdraw money, and the government of Antigua appealed for calm.

    Last summer, Bowdoin told a federal judge that ASD needed money to operate and asked her to free up seized funds. But Bowdoin didn’t tell the judge about the money in Antigua until after prosecutors pointed it out. After prosecutors revealed the presence of the Antigua money, Bowdoin explained in a conference call that the cash — at least $500,000 of it — was a deposit so ASD could process credit-card orders.

    But the account was in a name other than ASD.

    DISCUSSION TOPIC: Did Andy Bowdoin get the money out of Antigua before the onset of the banking crisis? Why was the money in a name other than ASD’s if it was used to process credit cards for ASD? Why didn’t Bowdoin repatriate the money and use it to pay ASD employees and restart the company?

    Surf’s Up

    On Nov. 27, ASD offered the Surf’s Up forum its official endorsement. This was several days after ASD lost the evidentiary hearing and several days before major prelaunch buzz for AdViewGlobal (AVG) began.

    With ASD’s endorsement in hand, some of the Surf’s Up Mods and members started a new site on ning.com to promote AVG. For its part, AVG says it has no ties to ASD, even though the two companies share a common executive, a common customer-service representative, and AVG’s graphics once appeared on a webroom operated by ASD — and AVG listed its street address as ASD’s street address in Quincy.

    DISCUSSION TOPIC: Should Surf’s Up have accepted the endorsement? Does it make sense to promote yet-another surf, especially when the surf has clear ties to ASD?

    BizAdSplash

    Despite all the upheaval in the financial world — and despite the fact the Feds are working harder than ever to expose Ponzi schemes — BizAdSplash says things are going just fine. Yesterday it announced a new promotion: 100 percent matching bonuses for customers and sponsors.

    Here is the announcement:

    Over the past week we have had a number of you contact us about your initial deposit and that you only purchased a small amount of Ad Packages just to test the system. Now you are ready to make a larger purchase. Your question is can we get the 100% match or discount on the cost of a larger Ad Package. Biz Ad Splash has agreed to open a small window for this 100% additional match. Any new purchases made from outside the system will be given the same benefit as your initial purchase and will be given the 100% match along with the sponsor match. This is only on purchases made on February 23 through February 28. This is a tremendous opportunity for all our Biz Ad Splash advertisers.

    Thank you for your patience while we are in our beta launch. We value your participation in Biz Ad Splash and we look forward to exceeding your expectations.

    The Biz Ad Splash Team

    DISCUSSION TOPIC: Is BizAdSplash, which launched only a short time ago, already hurting? Is it desperately trying to collect cash to survive? How can it possibly fund payouts for customers and sponsors when the 100 percent matching bonuses create so much extra liability?

    Will the surf hide behind “rebates aren’t guaranteed” if things go South? If that happens, will surf participants still think “offshore” surfing is the ticket to prosperity?

    And how can any of the new surfs — BizAdSplash, AdviewGlobal, AdGateWorld — expect to thrive when they are fundamentally competing for the same business in a world in which many governments are going after Ponzi schemes with exceptional vigor?

    Bernard Madoff

    Trustee Irving Piccard now says that Bernard Madoff didn’t even purchase securities for customers in the past 13 years, instead taking incoming money to pay off older investors in a virtually pure Ponzi scheme.

    DISCUSSION TOPIC: Given that Madoff escaped detection for years — and given that Allen Stanford appears to have escaped detection for years — are you worried that other Ponzi shoes may drop?

  • Noobing Removes References To Rachel Ray, Red Cross From Surf Website; Members Blast Firm In Forums

    UPDATE 9:08 A.M. EST (FEB. 19 U.S.A.) After having gone missing yesterday, entries below “Noobing Rotator’s Top Rated Sites” on Noobing’s main page have returned. But previous entries for Rachel Ray, the Red Cross, Omaha Steaks and OrganicConsumers no longer are there. Here, below, our earlier post . . .

    Controversial surf site Noobing has removed references to celebrity chef Rachel Ray, the International Red Cross and other entities from its website. Links to Ray’s site and the Red Cross had appeared on the main page at the Noobing site, under a headline titled “Noobing Rotator’s Top Rated Sites.”

    Noobing site references to Rachel Ray, Red Cross, Omaha Steaks and OrganicConsumers.
    Noobing site references to Rachel Ray, Red Cross, Omaha Steaks and OrganicConsumers.

    Noobing, which pitched itself heavily to hearing-impaired clients, has been under fire for days because it slashed advertiser payouts. Members said that, in its early days last fall and into the winter, the company paid ad-viewing “incentives” of between 1 percent and 3 percent to customers.

    The Surf recently has paid “incentives” of significantly less than 1 percent, causing members to ask publicly for refunds and accuse the firm of “bait and switch.” Noobing countered by saying refunds would not be granted because “incentives” weren’t guaranteed.

    Noobing said its decision to slash “incentives” was based on an unclear ruling in the AdSurfDaily Ponzi scheme case. Noobing launched after ASD’s assets were seized by the U.S. Secret Service in August 2008, amid allegations of wire-fraud, money-laundering, selling unregistered securities and operating a $100 million Ponzi scheme.

    Customers now are questioning why Noobing even chose to launch and wondering out loud if Noobing had done all of its regulatory homework up front. Noobing said members should be angry at the government, not the company.

    “If there is a bad guy in this whole story, it’s the government!” the employee exclaimed. “Let’s get mad at them! How can sharing our revenue to help control costs for legitimate advertisers be a bad thing? How can keeping $90+ million dollars to protect the people who worked with ASD be a fair result? It’s madness!!! Our government is the bad guy here, not Noobing.

    “Let’s get mad at the source of this challenge!” the employee railed. “Call your congressman, send letters, speak publicly!!”

    See related post. Also, see this related post.

    Why Noobing removed the references to Rachel Ray, the Red Cross and others is unclear. The information went missing without explanation.

    The development may prompt Noobing members to question whether the company had signed agreements with Ray and the Red Cross to advertise on Noobing, or whether the sites were simply inserted in the Noobing rotator to create the impression that a relationship existed.

    Promoters of ASD placed the main page of Facebook.com in the rotator, suggesting that Facebook itself was an ASD advertiser. Pages from other social-networking sites also were placed in the rotator. An undercover agent working for a Secret Service/IRS task force placed a MySpace page in the rotator and qualified for ASD viewer “rebates” even though the MySpace page offered nothing for sale.

    Rachel Ray, Red Cross, other references now missing from Noobing.
    Rachel Ray, Red Cross, other references now missing from Noobing.

  • Noobing Had ‘Deaf Sales Team’ And Strong YouTube Presence

    mrjimbeachcomdeafnoobingvideoUPDATE 4:16 P.M. EST (U.S.A.) The Noobing domain — www.noobing.com — is now back online. It had been offline for more than an hour, throwing this error message: “The remote name could not be resolved: ‘gonoobing.blogspot.com.’

    What caused this and why the domain tried to resolve to a Blog instead of the sales website are unclear.

    Meanwhile, Noobing identifies Jim Beach, an employee cited in the story below, as “Noobing Sales Manager.” On what it deems its “official” Blog, Noobing says Beach is the son of a deaf parent and, in 2008, traveled to Deaf Expo events in New Jersey, Kansas, Texas and Missouri to promote Noobing.

    “And Noobing was a hit at each,” the company said on its Blog.

    Here, below, our earlier post . . .

    An autosurf under fire in recent days for slashing payouts pitched itself directly to the deaf and employed a salesman who promoted a Noobing “Deaf Team” on YouTube.

    The Noobing salesman’s name is Jim Beach. His YouTube name is “deafnoobing.” Beach, who lives in Kansas — the home state of Noobing — also owns a domain named mrjimbeach.com, which redirects to the Noobing autosurf site. From there, customers who wish to register are included in a downline with the user ID of “Jim Beach (70).”

    Beach, who speaks in Noobing videos and also uses sign language, repeatedly is referred to as Noobing’s point man on the ASA Monitor forum.  He has produced a number of YouTube videos that position Noobing as a good opportunity for deaf people.

    On his YouTube site, Beach instructs that “Deaf Noobing is dedicated to helping the deaf community succeed in all areas of life! Physically, financially and spiritually!

    “Let the Deaf world show the rest of the world that Deaf People are GREAT PEOPLE!” the site exclaims.

    Pitch to deaf members.
    Pitch to deaf Noobing prospects.

    The YouTube page includes at least three URLs deaf people can advertise on Noobing if they don’t have their own business to promote. One of the URLs appears to be a subdomain that uses Beach’s name and the name of a wellness site. Another URL is the address for Clickbank, and yet another is an address that redirects to an affiliate site that sells Multi-PureDrinking Water Systems.

    Noobing has come under intense fire in forums in recent days for slashing payouts to advertisers. A Noobing employee blamed the cuts on an unclear ruling in the ADSurfDaily Ponzi scheme case, and encouraged Noobing members to complain to the government.

    At the same time, Noobing openly criticized members who signed up for the program while not owning their own businesses. Beach’s YouTube page, however, seems to imply that people could sign up for Noobing as long as they had a URL to insert in the advertising rotator.

    Nonbusinesses advertising in ASD’s rotator and a lack of member controls were elements in the forfeiture case filed by federal prosecutors last August.  Meanwhile, Noobing is being slammed in forums for sending a mixed message and is being accused by posters of “bait and switch.”

    See related post.

    Sign-language Noobing pitch.
    Sign-language Noobing pitch.

  • ‘Noobing’ Autosurf Has Hearing-Impaired Clientele; Surf Blames Slashed Payouts On Unclear Ruling In ASD Ponzi Case

    Sampling of YouTube videos by hearing-impaired Noobing members
    Sampling of YouTube videos by hearing-impaired Noobing members.

    UPDATED 9:11 PM. EST (U.S.A.) An autosurf excoriated in forums for slashing payouts has hearing-impaired clients, according to several videos on YouTube.

    At least 15 of the YouTube videos feature sign language and appear to have been created by hearing-impaired members of Noobing. Many of the videos use the word “Noobing” — coupled with the word “deaf” — to generate keyword-search volume.

    Meanwhile, Noobing members are asking tough questions on forums, saying they were led to believe the money they spent on advertising would generate returns of 3 percent. Noobing slashed returns to a fraction of 1 percent, and says members weren’t guaranteed any return at all.

    Earlier today a Noobing employee blamed the lower rates on the government. Tonight the same  Noobing employee said the slash in payouts was because of an unclear ruling in the AdSurfDaily Ponzi case.

    “The SEC did not contact us,” explained the employee, on the ASA Monitor forum. “We are simply being smart and not putting ourselves in a bad position to risk losing everything. Once ASD gave up, and we stood without a firm ruling from the courts, the risk was too high. We’d have preferred that ASD won, or that at least we got a clear ruling, as it is now, cautious action is best.”

    ASD President Andy Bowdoin surrendered his claim last month to tens of millions of dollars and other property seized by the government in August. Noobing debuted after the government’s move last summer. A second forfeiture complaint against assets tied to ASD was filed in December. ASD has not submitted a claim to the assets, including a boat, water equipment, automobiles and real estate owned by Bowdoin family members.

    Prosecutors said the property was purchased with the proceeds of a criminal enterprise: ASD.

    Members have complained that Noobing now is paying only a fraction of 1 percent, meaning that money directed at the firm is producing little income. Some members said Noobing should provide refunds, but the Noobing employee said that wouldn’t happen because the company never guaranteed a return.

    “If there is a bad guy in this whole story, it’s the government!” the employee exclaimed. “Let’s get mad at them! How can sharing our revenue to help control costs for legitimate advertisers be a bad thing? How can keeping $90+ million dollars to protect the people who worked with ASD be a fair result? It’s madness!!! Our government is the bad guy here, not Noobing.

    “Let’s get mad at the source of this challenge!” the employee railed. “Call your congressman, send letters, speak publicly!!”

    Some ASD members also are railing against the government.

    Noobing members, though, find themselves hamstrung by Noobing’s argument that returns — or “incentives,” as the company calls them — weren’t guaranteed. It’s fundamentally the argument prosecutors said ASD used to insulate itself from Ponzi claims.

    And now Noobing is using the argument, even though it is still operating. Noobing also says advertising purchases are nonrefundable, as did ASD.

    At the same time, Noobing members are accusing the company of “bait and switch,” saying it never should have opened for business if it didn’t address all regulatory issues up front, including potential challenges for selling unregistered securities and operating a Ponzi scheme.

    One of the YouTube videos shows Noobing members how to sign up for a Clickbank affiliate account in case they don’t have their own business to advertise. Over the past two days, Noobing has criticized members who didn’t have a business to advertise for signing up.

    See related post.

  • Is The ‘Noobing’ Autosurf Beginning To Tank?

    UPDATED 12:37 P.M. EST (U.S.A.) Members of an autosurf named “Noobing” are beginning to complain about “low” rates of return. Is the surf trying to horde cash?

    Noobing members are complaining publicly about “bait and switch.” They were attracted to the program by suggestions of returns of up to 3 percent a day, but the returns now are generating a fraction of 1 percent.

    Members also are miffed that Noobing introduced a “prize” program funded by members. The prizes are paid out of the same fund used to pay what Noobing calls “incentives” for “reviewing” other websites, which means even less money is available for paying “incentives.”

    Noobing has the same problem as all autosurfs: It can’t control how members promote the company, which means it faces liability issues for excessive claims made by members. At the same time, it doesn’t really know if its “advertisers” are promoting legitimate businesses. One forum poster acknowledged in public that he didn’t have a business to advertise, so just threw up a page.

    This triggered a sarcastic reprimand from a Noobing staffer.

    “You joined an advertising network and didn’t have a site to advertise? Why?” the staffer blared. “Wanting to break even without sales from a website? Really? REALLY? Wow!”

    The same Noobing staffer now is blaming the government for the surf’s need to reduce incentive payments. He also is asserting that Noobing learned from the ASD case that “it became clear that any system that is not SEC registered as an investment that returns more than 100% risks getting shut down and everyone loses everything.”

    What he did not explain is why Noobing chose even to operate in the post-ASD environment. And he also didn’t explain why only surfs that advertised more than a 100 percent return would fall under the purview of the SEC or other regulatory bodies/investigative agencies.

    Any advertised rate of return — even amounts below 100 percent — can trigger an investigation by federal and state regulators and law-enforcement agencies.

    The issue in virtually all autosurf prosecutions to date has been the sale of unregistered securities and the Ponzi nature of such operations. Any firm that engages in the sale of securities is subject to policing by state and federal authorities. The argument that an investment program can be dressed up as an “advertising” program to skirt securities laws is well known by the government — and it’s a dog that won’t hunt.

    Assertions by many autosurf purveyors that the government doesn’t understand the new technology of the Web and should be attacked for destroying small business and the entrepreneurial spirit are just plain absurd.

    More ‘Surf’s Up’ Theater

    As Noobing reports were circulating around the Web, for a brief time yesterday at least one member of AdGateWorld raised a similar concern about the surf’s ability to pay. The AdGateWorld concern was raised on the Surf’s Up Pro-ASD forum, and was quickly deleted.

    The deletion at Surf’s Up was just one of many deletions. Threads — and even members — are routinely deleted for asking tough questions. The forum is accepting paid advertising for AdGateWorld. “Surf’s Up” is only shorthand for the site; its official name is the ASD Member Advocates forum, and it was given the stamp of approval by ASD itself on Nov. 27.

    Surf’s Up also is associated with a surf named AdViewGlobal (AVG), which has management, members and promoters in common with ASD. Despite this, AVG has made the Clintonian assertion that it is not affiliated with ASD.

    It all comes down to the meaning of the word “affiliated.”

    We think a jury won’t be swayed by an argument that AVG and ASD aren’t affiliated. The chief executive officer of AVG, Gary Talbert, is a former ASD executive. Meantime, Chuck Osmin, who has served as a spokesman for AVG, was employed by ASD and testified on its behalf at a Sept. 30-Oct. 1 evidentiary hearing.

    As it awaited a court ruling on Oct. 20, ASD disclaimed AdGateWorld — again by using a form of the word “affiliate” — but did not mention the surf by name.

    “It has come to our attention that there is a new internet company out of Panama City, Panama that is similar to ASD,” the ASD Breaking News site said. “In their web page announcements they are using verbiage that is similar to ASD’s and even going so far as to mention names of people that you may know.

    “Please be assured that this is not an ASD Company or Affiliate Company,” the Breaking News site said. The announcement was signed, “Thank You ASD Management Team.”

    The issue at the time was that AdGateWorld had posted its Terms of Service. The acronym “ASD,” which stands for “AdSurfDaily,” was used in the AdGateWord terms.

    On Nov. 6, still awaiting a court ruling, the ASD Breaking News site sought to bat down reports that ASD’s database had been sold.

    “There have been rumors that suggest that our database has been sold. These rumors are unequivocally not true,” the Breaking News site said. “In fact the ASD corporate office has not had access to the database since the government seizure occurred on August 5, when the government shut down our offices.  The government itself is in possession of our database.”

    The problem with the assertion, however, was that it conflicted with what ASD President Andy Bowdoin had said in a previous conference call. During the call, Bowdoin raised the issue of the database, suggesting that government tricksters had erased it.

    But Bowdoin went on to tell listeners that ASD kept a copy of the database in a secret location. Why Bowdoin even raised the question of the database is unclear. But his words — and ASD’s subsequent actions on the Breaking News site — have the quality of preemption: planting a cover story in case tough questions get asked later.

    In any event, we believe there is a high probability of trouble at AVG and AdGateWorld, and that this trouble will be due to what purveyors awkwardly are trying to sell as a sort of nonaffiliation affiliation with ASD.

    See this previous post.

    And this one.

    We also believe it highly likely that the government and private lawyers know precisely what is going on with respect to the ties among the autosurf firms.