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Wednesday, August 26, 2009

Judge grants Ad Surf Daily & Federal Prosecutors more time to negotiate 'ponzi' case


US District Judge Rosemary Collyer granted 'Ad Surf Daily's' president, Andy Bowdoin, more time to continue negotiations in the federal case against him. Last week Bowdoin's attorney said he needed an extension based on the fact that negotiations were still taking place and "more time is needed to come to a solution."
Last year Federal officials seized millions of dollars in ASD funds after determining the company was a ponzi scheme. Several months after the seizure prosecutors say Bowdoin voluntarily 'walked away' from the money when he reviewed the federal charges against him. Soon after, Bowdoin changed his mind and decided to fight for the money. He and his attorney must now convince Judge Collyer why he, and ASD, should be allowed to stay 'in the case'.

Judge Collyer ordered Bowdoin to "show Cause no later than September 14, 2009," her previous deadline was August 28th.

Bowdoin's business model for ASD required its ‘members’ to purchase 'ad packs' in order to participate in the program. Members then received a profit each time they clicked on websites of businesses that advertised with ASD. The US Attorney General’s Office contends the company was a ‘ponzi’ because it could only generate revenue by having new members pay to participate in the program.

The government's confiscation of the funds netted $53M (fifty three million dollars) which Bowdoin had deposited in several Bank of America accounts. He claims the accounts were designated to maintain ASD revenue and, subsequently, Bank of America has also been named as a defendant in the federal case against Bowdoin and ASD.

Last week Bowdoin and his attorney, Charles A. Murray, spoke for several hours as they mapped out their next move. Since the seizure, Bowdoin has maintained he would find a way to "give the money back to the people." ASD is estimated to have had upwards of 125,000 members nationwide.
Officials with the United States Department of Justice are hoping Bowdoin will release his claim on the assets and allow the government to assume ownership of the funds. Officials contend the government could then distribute the money to ASD members using carefully controlled methods.

US Justice officials have posted an online form for ASD members who wish to recoup any money they lost while doing business with ASD. Members can fill out the form by going to the government's website:
'www.usdoj.gov/usao/dc/Victim_Witness_Assistance/adsurfdaily.html'
or contact the DOJ by emailing information to the Department at 'usadc.adsurfdaily@usdoj.gov'.

US Department of Justice Senior Trial Attorney William R. Cowden says the government is now ready to begin distribution of $14M it seized from Golden Panda (GP), another similar company they say was controlled by Bowdoin. In late July, 2009 the US Attorney General’s office completed its investigation into GP and officials say they were able to convince Bowdoin to release GP’s assets to the government. Cowden maintains Bowdoin voluntarily ‘walked away’ from his claim on the money after reviewing the Government’s evidence against him. Cowden asserts Bowdoin was never offered any deals in exchange for his cooperation and is still subject to criminal charges.

Some ASD members question the government's motives and refuse to post a claim on funds they have lost. They fear potential legal implications if they disclose their involvement with the embattled company. Many still remain hopeful charges will be dropped against Bowdoin so ASD can get back in business. Cowden says it has been difficult for ASD's members to face the facts, "Every time there's one of these cases the victims and people are disappointed to find out it's a fraud."

10 comments:

  1. Mike,

    Document 89 gives Andy and his lawyer until September 14th, to show Cause. I will email you a copy of the document as I have an account on PACER.

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  2. Thanks for the updates Wizzard7!

    Darrin

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  3. I'm a member of ASD and never once did I consider Andy or ASD a fraud in any way. I hope Andy will pursue his case with lawyer Charles A. Murray and these three expert CEOs testifying in behalf of ASD. The Gov. was wrong in the prosecution of ASD and should grant a new court hearing.
    Good luck to all.

    Tony Robbins
    Email: ajr5702@gmail.com

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  4. Please keep digging Mike, you are making many naysayers nervous.

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  5. If I remember correctly the government could use a claim for money from an ASD member as a complaint and therefore evidence that ASD is fruadulent. I will not concede to the governments fraudulent conception that ASD is a ponzi scheme. And I will only give up if Andy does. Mike you are breath of fresh air in media journalism. Keep on keepin'on.

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  6. Mike,

    In the above article you said, "Officials with the United States Department of Justice are hoping Bowdoin will release his claim on the assets and allow the government to assume ownership of the funds."

    Andy Bowdoin has already done that months ago. He signed off on his claims, and the Judge allowed it and issued the Order. Andy has since changed his mind. The Order to Show Cause was directed at Andy and his attorney to demonstrate why that court order should not stand and Andy be given a second grab at the money in a trial.

    With the current negotiations, your guess is as good as anyone's as to what will transpire. It all depends on who gives in first, and how much. Andy has already given in once and given up, thereby setting the precedence.

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  7. The article is in error when it claims that Bowdoin had control of Golden Panda. That was Clarence Busby. Mr. Bowdoin and Mr. Busby parted ways before Golden Panda went live.

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  8. Now let's see if I have this right. The US government, operator of the biggest ponzi schemes in history, comes in to "save the little people" and STEALS our money to do it. Andy Bowdoin, who may or may not be a criminal, is charged with high crimes and misdemeanors. Meanwhile, our money is sucked into a black hole never to be seen again.

    Okay, POSSIBLE criminal Andy Bowdoin, vs Organized criminals in the "Justice" department. LAUGH OUT BLEEPING LOUD. Oh wait, NOT funny.

    So what exactly WILL our money be used for?? Funding all of the lavish raises and benefits our "public servants" vote for themselves in the dark of night? No, no... let's give more money to ACORN. (A Communist Organization Racketeering Nationwide)

    ASD promised to put hits on my website. They did. Not everyone driving down the road and seeing a billboard will rush into that business and buy. It's called ADVERTISING. Look it up. I still have sites bookmarked for use from other members.

    Is Andy a crook? Don't know. Is the US government crooked? THAT, I do know.

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  9. I love how the govt. keeps us updated! lol Here we are again, way past another deadline, 1 year + now, with no real decision made! But hey, it's ok because their lawyers and the bank are making tons of money off the good, honest people who are just trying to survive or keep from going bankrupt who don't sleep at night! How many more delays is it going to take before the judge can make a final decision! I'm sure it doesn't matter to the govt. and their lawyers! It's pretty obvious, more delays puts more money in their pockets for them. Unfortunately, likely at the cost of asd members!! They will ultimately be the ones they punish! Many hard working Americans who just wanted to find a way to invest their hard earned dollars and make a living for their families!! And they wonder why we have no faith in our govt.!

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  10. hELLO, IS THE ATTORNEY GENERAL BREAKING ANY RULES? I THOUGHT A DEFENDANT WAS INNOCENT UNTIL PROVEN GUILTY. I HAVE YET TO HEAR OR SEE ANY EVIDENCE OF WRONG DOING. I WAS A MEMBER OF A SIMULAR TYPE OF COMPANY, AND HAD NO COMPLAINTS. I BEEN FOLLOWING THIS CASE AND FIND IT AMUSING THAT PEOPLE IN HIGHER PLACES CAN GET AWAY WITH THIS STUFF.

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