PatrickPretty.com

Tag: Uruguay

  • 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. # # #

  • BREAKING NEWS: Did AdViewGlobal Cancel Florida Registration By Fax From Hotel In Uruguay?

    UPDATED 7:53 P.M. EDT (U.S.A.) AdViewGlobal (AVG), which also is known as the AV Global Association (AVGA), registered the association name as a fictitious entity in Florida in April, canceled and re-registered it in May — and canceled the registration again July 21 in a transaction that involved a hotel fax machine in Montevideo, Uruguay, according to records.

    AVGA’s name initially was registered by Gary Talbert April 21 and used the same address AdSurfDaily used — 13 S. Calhoun Street, Quincy, Fla. — according to documents on file in Florida. Federal prosecutors said last year that the S. Calhoun address was bogus.

    Talbert, once an ASD executive and later the chief executive officer of AVG before resigning in March, was listed as the owner in the April filing, which was dated a month after AVG had announced Talbert’s resignation.

    AdViewGlobal claimed to have no ties to AdSurfDaily, but this document lists ASD's address in Quincy, Fla., as AVG's address.
    AdViewGlobal claimed to have no ties to AdSurfDaily, but this document lists ASD's address in Quincy, Fla., as AVG's address.

    It was not immediately clear why the filing occurred in April and included Talbert’s name after he had resigned a month earlier, but Talbert’s name and purported signature appear in the document. The surf announced a shift to an association structure in February, one day after AdSurfDaily President Andy Bowdoin signed the first of his pro se pleadings in the ASD forfeiture case and two days after reports circulated that the U.S. Secret Service had seized the bank accounts of some individual ASD members.

    On May 29, the surf reregistered the name, this time listing Judy Harris as the owner and using the address of the Harris home in Tallahassee as its address. The reregistration occurred two days prior to the issuance of a news release by AVG through PR Newswire that used a Tallahassee dateline.

    AVG sent a follow-up email announcing its news release to members on the same day. The email hotlinked to servers at Forbes Magazine and other publishers, pulling the publishers’ logos off their servers and creating the impression that the companies had endorsed AVG. The email purported to have originated in Uruguay.

    By June 25, a little more than three weeks after the issuance of the June 1 news release, AVG announced it was suspending cashouts.

    Federal prosecutors said in December that the mortgage on the Harris home had been paid off in June 2008 with more than $157,000 in illegal proceeds from AdSurfDaily Inc., a Florida company accused last year in a forfeiture complaint of wire fraud, money-laundering and operating a Ponzi scheme.

    The name of the Montevideo hotel appears at the top of the faxed document, as do the fax number and international dialing identifier. The document suggests the fax might have been sent to another company in the United States before being forwarded to the Florida Department of State — or the opposite, faxed from the United States to Uruguay.

    The timing of the registration cancellation coincides with an unconfirmed report that AVG had fired employees in Uruguay on July 20.

    Members later said that Bowdoin was the silent head of AVG.

    In early February, after AVG’s graphics were seen Jan. 31 in an ASD-controlled webroom that showed AVG’s street address as the same S. Calhoun address ASD used, AVG explained the appearance of the graphic was an “operational coincidence.”

    Regardless, AVG used the address in April in filings in Florida.

  • DID SURF FIRM JUST MAKE HISTORY? AdViewGlobal Says It Filed State, Federal Complaints About $2.7 Million Theft; Surf Wants New CFO, Compliance Officer, Department Managers; Asks Members To Keep Surfing

    UPDATED 12:03 P.M. EDT (U.S.A.) One day after AdSurfDaily Inc. revealed in court filings that it was negotiating with federal prosecutors, the AdViewGlobal (AVG) autosurf announced it had been the victim of a $2.7 million theft.

    AVG, which purports to be headquartered in Uruguay, said it reported the theft to state and federal authorities. If confirmed, it may mark the first time in history that a surf filed such a report. Autosurfs frequently are associated with Ponzi schemes and the sale of unregistered securities.

    “Legal complaints have been filed in both cases and are currently being pursued by law enforcement authorities at both the state and federal levels,” AVG said in an announcement to members.

    It was not immediately clear if the surf was conceding it was headquartered in the United States, rather than Uruguay. The surf did not identify the agencies to which it had reported the alleged theft.

    AVG identified two suspects, saying they once were affiliated with the eWalletPlus payment processor. Some members had been clamoring for the surf to name suspects.

    “We’ve been reluctant to share this information with you, because we were under the impression that the money would be returned within a fairly brief period of time. In the past 24 hours, however, we’ve learned that it could take 6 months to a year to get the money back to us,” AVG said.

    AVG did not say how it got the impression that the money would be returned in “a fairly brief period of time.” Nor did it reveal how it learned it could take up to a year to recover the money or that the funds even were recoverable.

    Federal prosecutors said in December that ASD President Andy Bowdoin never reported a $1 million theft at the purported hands of “Russian” hackers. The allegation is contained in a Dec. 19 forfeiture complaint that names George and Judy Harris as beneficiaries of illegal conduct by ASD.

    Today is the one-year anniversary of the formal seizure of tens of millions of dollars from ASD by the U.S. Secret Service.

    George Harris is Andy Bowdoin’s stepson; Judy Harris is the wife of George Harris. AVG announced last month that George and Judy Harris owned AVG. Since that time, a Pinksheet stock known as Vana Blue (VBLU.PK), which says it owns Karveck International and the associated eWalletPlus payment processor, has clouded the issue of what individual or company actually owns AVG.

    In today’s announcement, AVG did not say if George or Judy Harris — or another management employee — contacted authorities to report the alleged theft.

    AVG did say it was seeking a new chief financial officer, compliance officer and department heads for public relations, customer service and new projects. The surf did not say whether it had fired employees who held those jobs previously.

    “We’re undergoing a complete overhaul of all management positions and procedural systems,” AVG said. The surf added that it was recruiting from within and that applicants are required “to sign a confidentiality agreement that will be strictly enforced.”

    The surf did not say whether the successful candidates would be required to move to Uruguay.

    AVG, which announced June 25 that it was suspending member cashouts and making an 80/20 program mandatory if and when payouts resume, said today that it was “evaluating the extent to which the inflated page impressions amassed by some members created artificial cash balances.”

    Members said AVG’s frequent use of 200-percent, matching bonus programs for both recruits and sponsors — coupled with an in-house, member-to-member cash button — led to some downline groups and individuals owning millions of page impressions and creating untenable liabilities for the surf.

    How AVG intends to deal with the liabilities it created through unchecked bonuses and purported abuse of the cash button is not clear. By suspending payouts June 25, the surf exercised its version of a “rebates aren’t guaranteed” clause.

    Some members said they will not surf until cashouts resume because each advertisement AVG displays erodes profitability for individual members.

    “We sincerely hope that you’ll continue to support us . . . and keep on surfing! AVG said today.

    See July 23 story.

    See July 27 story.

  • IN CASE YOU MISSED IT: New AVG Ownership Questions

    UPDATED 1:43 P.M. EDT (U.S.A.) Friday was a day unlike any previous day in the so-called autosurf “industry.” A federal judge issued orders on two fronts: a forfeiture case brought by the U.S. government against AdSurfDaily Inc. and a racketeering lawsuit brought by ASD members against ASD President Andy Bowdoin and others.

    Capsule Review

    For good measure, BizAdSplash (BAS) announced a financial “crisis,” saying it was suspending cashouts until at least Sept. 1 and conducting an audit of itself. BAS says Clarence Busby, the former president of Golden Panda Ad Builder and a central figure in the ASD prosecution, is its “chief consultant.” Incongruously, Busby also claims to run the company — something consultants normally don’t do.

    Busby’s video announcement of the BAS crisis appears to have occurred on July 24, the one-year anniversary date of the formal launch of Golden Panda.

    Meanwhile, AdGateWorld (AGW), still another surf that began operating at a purported offshore location after the seizure of ASD’s assets, announced it was selling itself to unnamed interests in the Middle East.

    All of this came on the heels of announcements that AdViewGlobal (AVG), yet another surf purportedly headquartered offshore, was suspending payouts, conducting an audit of itself and making an 80/20 program mandatory should payouts ever resume.

    So, three surfs that launched after the ASD seizure — AVG, BAS and AGW — all announced important developments in the days leading up to the one-year anniversary (Aug. 1) of the date ASD was notified its bank accounts were being seized.

    Yes, all of these things happened just shy of the ASD anniversary date.

    New Name Surfaces: Who is Karveck International?

    Lost in the blizzard of news Friday was a report that AVG had fired its staff in Uruguay, and that owners George and Judy Harris and other Bowdoin/Harris family members are or were in Uruguay and had rented homes and acquired automobiles.

    These reports have not been confirmed.

    At the same time, a person who uses the handle “Luisa” and may be in position to have some knowledge about AVG, said the company initially registered in Uruguay as Karveck International.

    Some things about Karveck International can be confirmed. The company, for instance, is listed as an acquisition of Vanu Blue Inc., which trades as a pinksheet stock (VBLU.PK). Vana Blue issues news releases. One of the news releases referenced the acquisition of TMS Corp., also known as TMS Association, which was the purported owner of eWalletPlus.

    This news release, dated Feb. 21, 2008 — a year and a half ago — vaguely announces a name change for Vana Blue (from what to what isn’t clear) and announced the acquisition of TMS Corp.

    Meanwhile, this news release, dated Jan. 30. 2009 — just a few days before the formal launch of AVG — announced the acquisition of “Karveck Corporation” had been finalized.

    On Feb. 18, 2009 — when AVG had been formally operating in launch phase for just shy of three weeks after operating in January in prelaunch phase — Vana Blue announced that “Karveck International” had posted $1.8 million in revenue in January. How Karveck Corporation apparently became Karveck International wasn’t clear.

    “Karveck will be offering increases in affiliate incentives and payouts coming up in March to maintain momentum,” Vana Blue said.

    eWalletPlus once worked side by side with AVG. In March, after AVG announced its bank account had been suspended because too many members had wired transactions in excess of $9,500, eWalletPlus quickly faded from the stage.

    At the same time in March, an AVG member posted an ad for AVG on a small-business website Bank of America provides as a free service.

    “All of you who were associated with ASD. Do not link this to AVGA!” the poster warned March 27, just a few days after AVG announced the suspension of its bank account. The poster also shared news about TMS.

    “We are happy to inform you that TMS Corporation has been dissolved and a new association,TMS Association, has been formed which is a member of AV GLOBAL ASSOCIATION,” the poster wrote.

    The eWalletPlus website once resided on the same server that powered AVG, according to web records. The eWalletPlus site now appears to have been listed for sale on sedo.com. The site simply beams ads now.

    Vana Blue used an address of 4757 E. Greenway Rd Suite 107B-105 in a news release. It is an address that resolves to a PostNet outlet in Phoenix, the home state of TMS Association. PostNet describes itself as a “Mailbox Rental, Fax, Passport Photos, Copies, Notary, UPS, DHL, FedEx, USPS” service.

    At a minimum, the information suggests AVG had strong ties in Arizona, particularly in the Phoenix area.

    In February, Vana Blue announced that Karveck International posted $1.8 million in revenue in January. That’s when AVG was in prelaunch.

    Vana Blue did not use AVG’s name in the news release. Instead, it described Karveck International as a company that “specializes in internet advertising and promotion in a search engine and ad clicking type environment.”

    News releases associated with many penny-stock companies tend to be vague. Many such companies speak in broad generalities. News releases sometimes are employed as a means of generating buzz about the companies, and they often leave more questions unanswered than answered.

    Vana Blue’s entry into the AVG story is not the first time a pinksheet stock has been associated with an autosurf. ASD, for example, announced last year that it was expecting $200 million in revenue from the penny-stock company Praebius Communications. ASD withdrew the news release from its Breaking News site after members said they intended to call Praebius to confirm or deny the deal.

    And, speaking of the ASD Breaking News site: It is no longer there. It has been replaced by a site that beams ads.

    See this story, along with the comments.

  • UNCONFIRMED: Harris Family In Uruguay, AVG Staff Fired

    Comments on this Blog from a poster who uses the username Luisa are working their way around the web, but we have not been able to confirm the claims.

    Among other things, Luisa said George and Judy Harris, whom AdViewGlobal (AVG) identified as its owners, are or were living in Uruguay and fired the Uruguay-based AVG staff of eight or nine employees July 20.

    “A fact: they moved to Uruguay with Judy’s mom (Barbara), brother (Joey) and his wife April,” Luisa said. “Rented house in a private neighborhood, bought cars, hired employees/rented office space, fired employees . . . what is going to be next step?”

    The AVG staff is owed money and was told the company was broke and that George and Judy Harris were not the owners — even though employees reported to George, Judy or Judy’s mother Barbara, Luisa said.

    “George and Judy claimed to be broke and no longer working for AVGA because of too many wrong doings on them,” Luisa claimed. “They went as far as saying they were not the owners AVGA . . .  As you see too many contradictions . . . ”

    No second source has emerged to confirm or deny Luisa’s claims.

    Luisa writes in comprehensible, slightly broken English, suggesting English is her second language. She may be in position to have specific knowledge about AVG, although her initial reports have not been verified independently.

    The comments come on the heels of an announcement by AVG yesterday that “unethical” members who misused a member-to-member cash button AVG itself provided are responsible for the company’s inability to announce findings of an audit the company is performing on itself.

    AVG suspended member cash-outs last month, exercising its version of a “rebates aren’t guaranteed” clause and saying an 80/20 program would become mandatory if and when the surf resumed payouts. Earlier this month AVG’s name was mentioned in a racketeering lawsuit against AdSurfDaily President Andy Bowdoin, although the company has not been named a defendant.

    Plaintiffs’ attorneys described AVG as the next iteration of ASD, listing managers and employees the two surfs had in common. George Harris is the stepson of Bowdoin. Property owned by George and Judy Harris — including a home in Tallahassee, Fla. — was sued for forfeiture by federal prosecutors in December.

    Prosecutors said the property was the proceeds of illegal conduct by ASD. Neither George nor Judy Harris has filed a claim to the seized property, according to federal court records.

    AVG has a history of blaming members for its problems and deflecting accountability from management to the rank-and-file. In the past, it has blamed members for the suspension of a bank account and threatened to sue members who shared information outside association walls — and even to contact their ISPs to suspend service of people who asked pointed questions about the company in forums.

    Yesterday’s announcement by AVG also blamed the delay in audit findings on unspecified “complications created by changes in payment processors.”

    “[D]on’t expect the ‘audit’ to be finish any time soon,” Luisa said. “[I]f you hear somewhere of a ‘staff’ in Uruguay, well as far as July 22, there is NONE.”