Tag: Rosemary Collyer

  • ASD Members International Dissolved

    It came online a few months ago with the strange promise it would litigate against government entities involved in the AdSurfDaily case — even if they were behaving legally. If lawsuits didn’t work, then perhaps it would see about having prosecutors charged with crimes.

    But ASD Members International (ASDMI), a nonprofit registered in Missouri, is no more. The corporation has been formally dissolved. It existed for less than 90 days — Oct. 30, 2008 through Jan. 26, 2009. The process of dissolving the entity actually began on Dec. 10. Formal papers were signed Jan. 21, and the dissolution was recorded Jan. 26.

    ASDMI’s website now redirects to tripod.com.

    “As most of you know by now, Andy Bowdoin has withdrawn as a claimant in the Forfeiture of Assets against ASD,” ASDMI said on the tripod site.  “ASDMI (ASD Members International) had retained an attorney to try and overturn the forfeiture. It was determined that it would be too difficult and costly to work on a contingency basis for a class action suit. ASDMI was attempting to obtain legal standing in case 1:08-cv-01345. We also found that to obtain standing would be extremely difficult if not impossible.

    “Mr. Bowdoin’s recent actions were a surprise to us and our negotiations have ended abruptly,” ASDMI continued. “The moneys we have spent on this negotiation have been wasted to say the least.”

    ASDMI had crowed on its website as late as last week that it had persuaded 167 people to part with their money and join in the important work of jailing prosecutors and suing the government back to the Stone Age, if necessary, to recover money paid to AdSurfDaily.

    Prosecutors seized at least $93.5 million amid allegations that ASD President Andy Bowdoin was running a Ponzi scheme and engaging in wire fraud and money-laundering.

    Image problems for ASDMI began out of the gate. A PR flap ensued when two board members of the group were linked to Curtis Richmond, a man associated with a Utah “Indian” tribe a federal judge ruled a sham. The tribe, purportedly formed in an Arby’s restaurant, is well-known in local, state and federal government circles for employing a strategy called “mailbox arbitration” and threatening prosecutors, judges and police officers.

    ASDMI denied any links to Richmond, who was convicted of felony contempt of court in 2007 for threatening or trying to intimidate federal judges, but the links were obvious. In November, Richmond attempted to file a motion to dismiss the ASD case. Judge Rosemary Collyer denied him leave to file.

    At the same time, at least one ASDMI board member — through a separate website — was organizing a campaign to send certified letters to prosecutors.

    Mailbox arbitration works on the theory you can mail certified demand letters to litigation opponents. If they don’t sign for the letters or choose to ignore the demands, you declare they’ve defaulted on a contract and file a judgment for an enormous amount of money.

    It didn’t help that Dale Stevens, “chief” of the sham tribe — the Wampanoag Nation, Tribe of Grayhead, Wolf Band — was arrested for child pornography and anounced his intention to marry two underage girls.

    One of the girls was 12. Stevens, 69, said he’d hoped to enter into marital bliss with her in exchange for half a cooler of “energy bars.”

    And it didn’t help when Judge Rosemary Collyer issued a ruling in November that ASD had not demonstrated that it was a legal business and not a Ponzi scheme at a Sept. 30-Oct. 1 evidentiary hearing.

    In the end, ASDMI lasted about as long as a typical autosurf Ponzi scheme. Many surf sites begin to fail within two to three months of launch (if not sooner) — sometimes because the operator is impossibly upside down, and sometimes because he or she simply decides to run with the money.

  • Edward Purvis, Head Of ‘Christian’ Group, Indicted For Running Ponzi Scheme; Case Has Echoes Of Ad Surf Daily Probe

    In a complex case apt to remind some members of AdSurfDaily about strange twists and turns the ASD case has taken, an Arizona man has been indicted on charges of running a Ponzi scheme that fleeced Christians.

    ponzinewsEdward Anthony Purvis was accused of setting up the Ponzi through an organization known as Nakimi Chi Group Ministries International (NGGMI), collecting at least $8 million in the process.

    The case has featured allegations of bribery, claims that proceeds from the enterprise could not be taxed, and bizarre legal filings naming a judge, court clerk, investigators and a reporter defendants.

    Purvis already is in prison, serving an 18-month term. He was convicted in May of attempting to bribe a police officer in Chandler, Arizona, and of harassing public officials in a bid to thwart an investigation by the Arizona Corporation Commission.

    The commission ordered more than $11 million in restitution and administrative fines of $250,000.

    Cash-Gifting Scheme, Coupled With Ponzi And Affinity Fraud

    “Although investors expected a return that was allegedly guaranteed, Purvis and [civil co-defendant Gregg] Wolfe referred to these investments as ‘donations’ and the dividend income as ‘gifts,’” the commission said.  “In some instances, investors received phony account statements that showed their investments were increasing in value when they were not. In other instances, investors did not receive any documentation at all.”

    Purvis and Wolfe, the commission said,  “funneled investor money into offshore accounts and used it for cars, jewelry, a down payment on a luxury home, gambling debts, a payment to a woman’s professional soccer team, and for Purvis’ legal fees in connection with the Commission’s proceedings.”

    Prosecutors in the AdSurfDaily case said ASD funds were used to purchase luxury automobiles, real estate, jewelry, a 20-foot Triton Cabana boat, jet skis and trailers to haul the water equipment. Prosecutors also said ASD had money in offshore accounts in Canada and Antigua.

    ASD President Andy Bowdoin, prosecutors said, also made claims that Russian hackers had stolen $1 million from ASD. Bowdoin never filed a police report, which prompted questions from members about whether the money actually had been stolen or was hidden offshore.

    Case Takes Criminal Twist

    Arizona Attorney General Terry Goddard now is prosecuting a criminal Ponzi case against Purvis. A grand jury handed down an indictment Friday.

    “Purvis told some investors that by forming a ‘corporation sole’ they would not have to pay taxes on the investment return paid by N.G.G.M.I. each month or that payments made by N.G.G.M.I. were ‘gifts’ and therefore were not taxable,” according to the indictment.

    The indictment accused Purvis of multiple felonies, including theft, securities fraud, selling unregistered securities and running a racketeering enterprise.

    Purvis targeted at least one pastor, church elders and at least two congregations, authorities said.

    Members of the Arizona Corporation Commission said affinity fraud is one of the worst forms of financial fraud because it takes advantage of people’s tendency to trust members of a group.

    “This tragic case demonstrates how important it is for investors to verify the registration of both the seller and the security before they buy—no matter who is selling the investment,” said Commissioner Bill Mundell.

    “Watch out!” warned Commissioner Jeff Hatch-Miller. “In rough financial times, the scam artists are out in full force.”

    Echoes Of ASD

    Last fall, some ASD members advocated an approach by which members would send certified letters to prosecutors and others involved in the case in a bid to undermine the government’s efforts.

    The strategy previously had been employed by members of a Utah Indian tribe a federal judge ruled a sham. A cornerstone of the strategy is to force recipients of certified letters to default on demands made in the letters, and then to seek punitive financial judgments through UCC filings.

    Curtis Richmond, a member of the Utah-based tribe, attempted to file a motion to have the ASD case dismissed. On Nov. 19, Judge Rosemary Collyer refused to accept the motion, denying Richmond leave to file.

    The tribe, known as Wampanoag Nation, Tribe of Grayhead, Wolf Band, has been implicated in a number of attempts to stifle prosecutors, judges, investigators and others by making vexatious court filings and filing fraudulent judgments against litigation opponents and public officials.

    Richmond was convicted in February 2007 of criminal contempt of court for threatening or trying to intimidate judges in a case separate from the ASD case. His name is listed on incorporation papers for an entity known as Pacific Ministry of Giving International. California records say the registration has been forfeited.

    Investigators in Arizona say Edward Purvis and Nakimi Chi Group Ministries International employed some of the same methods the sham Utah Indian tribe employed to nuisance public officials.

    Purvis filed fraudulent $15 million liens against a judge, a court clerk and two investigators, for example, according to an indictment charging him with felony counts of bribery and harassment of public officials.

    Investigators said Purvis bribed former Chandler police officer Bradley Todd Forward to gain access to confidential files used in the investigation of N.G.G.M.I. by the Arizona Corporation Commission.

    Here is the indictment against Forward for helping Purvis.

    And here is the criminal indictment against Purvis for the Ponzi and affinity fraud.

    (Note: The indictment URLs load slowly.)