Federal Prosecutor of internet ponzi case is now 'off the case'

The Federal prosecutor who kept 'Ad Surf Daily' (ASD) in his crosshairs is no longer on the case and has officially turned in his government badge.

US Department of Justice Senior Trial Attorney William R. Cowden spearheaded the investigation into internet marketing firm 'ASD' and its president, Andy Bowdoin, after feds seized the company's assets in August, 2008.
Department officials have stated: 

"Bill Cowden has left the Department of Justice for private practice. DOJ related inquiries to the Asset Forfeiture & Money Laundering Section at 202-514-1263. AdSurfDaily inquiries may be directed to the United States Attorney's Office for the District of Columbia at 202-514-7700."

It is not clear exactly why Cowden left the DOJ but officials say the case will now be prosecuted by the Chief of Asset Forfeiture Division for the District of Columbia.

ASD's problems began last fall when Feds raided ASD's headquarters in Quincy, Florida. Cowden then filed charges against Bowdoin after determining he was operating an elaborate ponzi scheme. Federal officials contend the internet company’s business model required its ‘members’ to purchase what are termed as ’ad packs’ in order to participate in the online marketing program. Members then received a profit each time they clicked on websites of cooperating members who also paid a nominal fee to advertise their businesses with ASD. Cowden claims the company was a ‘ponzi’ because many members did not have legitimate businesses and ASD was only able to generate revenue by having new members pay to participate in the program. ASD is estimated to have upwards of 125,000 paying members nationwide.


In total the federal government seized $53M (fifty three million dollars) of assets from 'Ad Surf Daily' (ASD) and $14M from Golden Panda (GP), another similar internet company they say was controlled by Bowdoin. In late July, 2009 the US Attorney General’s office completed its investigation and officials say they were able to convince Bowdoin to release Golden Panda’s assets to the government. Cowden maintains that Bowdoin voluntarily ‘walked away’ from his claim on the GP money after reviewing the Government’s evidence against him. Cowden asserts Bowdoin was never offered any deals and is still subject to criminal charges.


On September 21st, 2009 Bowdoin announced he is going to fight the federal charges against him and ASD by taking his case to trial. He hopes to convince jurors that ASD was a legitimate business and did nothing illegal. Bowdoin's decision to go to trial has sparked mixed reactions from ASD members. Many have expressed their opinions on various online forums dedicated to discussing problems surrounding the company. Bowdoin admits to having already spent more than a million dollars in legal fees and those costs will certainly skyrocket if and when the case goes to trial. Many members support Bowdoin and his fight against the federal government while others are outraged and feel he should be imprisoned for the questionable methods he used to operate the company. Still others remain hopeful they will retrieve money they've invested in ASD.

Government officials say they are already prepared to distribute the $14M seized from Bowdoin's other company, Golden Panda. Officials say anyone who lost money while doing business with GP is urged to contact the United States Attorney's Office for the District of Columbia at 202-514-7700.

The United States Department of Justice has 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'.

There are some 'Ad Surf Daily' members who refuse to submit their information to the government. They fear that in doing so they may also be investigated for conducting business with ASD and could subsequently face federal charges.

Many still support Bowdoin and believe the company is a legitimate 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."

Ad Surf Daily President Breaks Silence: I'm going to trial

Ad Surf Daily (ASD) president Andy Bowdoin finally broke his silence Monday announcing he's going to fight the federal charges against him and go to trial. Bowdoin made his public address by recording a phone message which served as an update to all ASD members.
The embattled internet marketing company is said to have 125,000 members nationwide. After federal agents accused the company of being a ponzi scheme and seized assets totalling $53 million dollars, members have been left in the dark. Bowdoin recorded a message but did not hold a 'live' conference call in which members could ask questions.

The call began with an automated voice, "Welcome to Ad Surf Daily update call on September 21, 2009, now here’s Andy Bowdoin":

I transcribed Bowdoin's address which follows:

"I have decided to stop talking with the government and get before a jury to plead our case. I believe that with our present attorneys that we can build a winning case. We have three expert witnesses that are willing to testify that our program was not a ‘ponzi’. The government doesn’t have any right to keep your money. We want to get your money back, we’d like to restart ASD. Now I’d be willing to tweak the program if the government desires. To those of you that would like to restart with ASD when you get your money back you’d have the right to do so. Now I haven’t hurt anyone, we’ve only made money for our members, ASD did not have a victim until the government stepped in and crushed our company. I’ve spent over a million dollars on legal fees to get your money back and to stay out of prison and it reminds me of this person back in Mississippi, Cheryl Blackwood. She was Miss America in 1980. When she was 5 years old a milkman told her that some day she was going to be Miss America. She said that planted a seed in her mind. She entered her first pageant when she was 18, it was a Miss America preliminary; Miss Choctaw County in Mississippi. She lost. The next year she entered the Mississippi State pageant and lost again. The following year she entered the Mississippi State again and lost again. The third year at Mississippi State, which was her fourth year in the pageant, she won the University title and she thought that she was finally on her way but she lost at the state level. The fifth spring she entered another local pageant and won, she won Miss Mississippi and went on to Atlantic City and won the Miss America pageant. It took her five years but she made it.

Now we suffered a great loss on August the first 2008 when the government came in and shut us down and we’ve continued to suffer for the past year. But folks, I firmly believe that beyond a shadow of a doubt that we will win before a jury. I don’t know exactly when that will take place but we will be ready. As I said, that I am restricted on this call tonight as to the things I can say because of the upcoming trial but we will be able to have conference calls and be able to present things to you as they happen."

Bowdoin then concludes his address and introduces a woman who he says he appointed to be ASD's new spokesperson.

ASD's problems began last fall when Federal prosecutors filed charges against Bowdoin after determining he was operating an elaborate ponzi scheme. Officials contend the company’s model required its ‘members’ to purchase what are termed as ’ad packs’ in order to participate in the program. Members then received a profit each time they clicked on websites of cooperating members who paid a nominal fee to advertise their businesses with ASD. The US Attorney General’s Office contends the company was a ‘ponzi’ because many members did not have legitimate businesses and ASD was only able to generate revenue by having new members pay to participate in the program.

Bowdoin's decision to fight the charges against him has sparked mixed reactions from ASD members. Many have expressed their opinions on various online forums dedicated to discussing problems surrounding the company. Bowdoin admits to having already spent more than a million dollars in legal fees and those costs could skyrocket if the case goes to trial. Many members support Bowdoin and his fight against the federal government while others feel he should be imprisoned for the questionable methods he used to operate the company. Still others remain hopeful they will retrieve money they've invested in ASD but now fear Bowdoin will use much of it to fight the federal charges against him.

Several months ago Bowdoin agreed to release his claim on ASD's assets and allow the government to assume ownership of the funds. Officials with the United States Department of Justice promised to distribute the money to ASD members using carefully controlled methods.

Bowdoin later changed his mind and decided to reverse his decision to release the funds to federal officials.

Numerous attempts to personally interview Bowdoin have been declined by his attorney, Charles A. Murray. Murray has also been unresponsive in providing additional details surrounding this case.

Mike Mason
305-527-3088
Mike@MikeMason.Biz
Investigative Reporting Video Resume: http://bit.ly/Z512e
Blog: http://investigativereportermikemason.blogspot.com/

President of internet marketing firm claims he was 'hoodwinked' in order to strike a deal with Feds in ponzi case

The president of internet marketing firm, Ad Surf Daily (ASD), says he only brokered a deal with federal prosecutors because they promised to grant him leniency in the 'ponzi' case against him. ASD president Andy Bowdoin and his new attorney, Charles A. Murray, filed a motion in federal court yesterday claiming Bowdoin should be allowed to fight for money seized by federal agents last year.

The motion filed by Murray is a 'response to order to show cause and a motion to rescind release of claims'. Bowdoin hopes to convince federal officials to restore his right to fight for ASD's assets even though he had previously agreed to release them to the government.

US District Judge Rosemary Collyer is presiding over the ASD case and will ultimately decide whether to grant the motion. Bowdoin must prove to Judge Collyer that he has a legal right to attempt to reclaim the funds. Charles Murray filed the motion to 'show cause' on September 14th which was the deadline set by Judge Collyer. The judge's original deadline was August 28th but she granted Bowdoin an extension after Murray insisted he needed more time to 'continue negotiations' with federal officials.

Last year Federal agents raided ASD's headquarters in Quincy, Florida and proceeded to seize millions of dollars 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 hope this new motion will convince Judge Collyer to allow him to stay 'in the case'.

Judge Collyer's deadline for Bowdoin to show Cause was September 14, 2009. She had extended her previous deadline of August 28th.

Murray believes Bowdoin chose to forfeit ASD funds because he received erroneous information from his former attorneys. In the court order Murray states, "On January 13, 2009, he (Bowdoin) filed a motion to release claims to seized property. Mr. Bowdoin’s January 13, 2009 motion was predicated on misinformation and misrepresentation; therefore, Mr. Bowdoin’s Motion to Release Claims is voidable and subject to rescission under Rule 60(b). Mr. Bowdoin hereby responds to the Order to Show Cause, and respectfully requests that this Court reinstate his claims to seized property."

Bowdoin also filed an affidavit yesterday in which he contends his former attorney Steven Dobson, "represented to me that I could possibly avoid prison or get a reduced sentence if I agreed to disclose details concerning ASD and releasing the assets."

US Department of Justice Senior Trial Attorney William R. 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.

Bowdoin says he was led to believe otherwise, "Cowden explained that I would be subject to the maximum penalty, under the statute, but that he would inform the judge that I cooperated."

Bowdoin says he surrendered ASD's funds to the government because he thought prosecutors would offer him a deal. Bowdoin now claims he "had been hoodwinked."

Federal prosecutors accuse Bowdoin of running an elaborate ponzi scheme which 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.

Bowdoin hopes to convince Judge Collyer that his attorney and federal prosecutors misled and unfairly pressured him to forfeit his claim on those funds. Bowdoin states, "Government counsel wanted me to admit to criminal conduct despite my belief in my innocence."

Officials with the United States Department of Justice are hoping Judge Collyer will dismiss Bowdoin's motion to reclaim the assets and allow the government to assume complete 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'

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."

Ad Surf Daily's president wraps up negotiations as eleventh hour approaches.

The president of 'Ad Surf Daily' (ASD) hammered out last minute negotiations with his attorney today as they deliberated the fate of millions of dollars seized by the government. Attorney Charles A. Murray (below) represents Ad Surf Daily and its president Andy Bowdoin (left).


This afternoon, the two contemplated their next move as Friday's court deadline approaches. Bowdoin and his attorney are deciding whether to grant the government ownership of ASD's assets or if Bowdoin should continue fighting to keep the funds. Either way, Bowdoin maintains he will "give the money back to the people." US Department of Justice officials say it would be easier if Bowdoin released his claim on the funds and transferred them to the government because that way the government could distribute the money to ASD members accordingly.

If Bowdoin chooses to continue the case and fight, US District Judge Rosemary Collyer will review the file on Friday and determine if the US Attorney General's case against ASD should move forward.

Last year the US AG's Office determined Bowdoin’s internet marketing firm was a 'ponzi scheme' and the government seized $53M (fifty three million dollars) from several Bank of America accounts Bowdoin claims were designated to maintain ASD funds.
US Department of Justice Senior Trial Attorney William R. Cowden maintains ASD is a ponzi because it can only stay in business if new paying members join the company.

After federal investigators seized ASD's assets in August 2008, Cowden says Bowdoin met with federal officials, reviewed the evidence against him and agreed to release the company cash and assets to the Government. A few months later Cowden says ASD's president "changed his mind and now wants to keep the money."

This past January Bowdoin filed a waiver to reclaim the assets. Attorney Charles Murray says Bowdoin made the wrong decision to give up the money in the first place because he had received some bad legal advice from previous attorneys. Murray also blames federal investigators for the harsh manner in which they interrogated his client, "They scared the heck out of Andy Bowdoin, he signed the papers saying he waived the money and he felt he was sold out by his attorneys."

ASD is estimated to have upwards of 125,000 members and many purchased 'ad packs' from the company while attending ASD rallies.



Many ASD members still support Bowdoin and believe the company is a legitimate 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."

The United States Department of Justice has 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'.

Is Ad Surf Daily really a ponzi scheme? CEO's experts say 'No'

The attorney representing Ad Surf Daily (ASD), an internet marketing company, says he has credible experts who have testified the company is not a 'ponzi scheme'.

Attorney Charles A. Murray of Bonita Springs, Florida represents ASD and its president, Andy Bowdoin. "Andy does not believe he did anything wrong," Murray said on Monday.

Last year the US Attorney's Office raided ASD's corporate headquarters in Quincy, Florida and quickly determined Bowdoin’s business model was indeed a 'ponzi scheme'. The government then seized $53M (fifty three million dollars) from several Bank of America accounts Bowdoin claims were designated to maintain ASD funds. Murray says Bowdoin "just wants to make sure all of the members get their money back."

US Department of Justice Senior Trial Attorney William R. Cowden maintains ASD is a ponzi because it can only stay in business if new paying members join the company. Many ASD members say that model is no different than other internet marketing companies such as Google's AdSense.

Making money with both companies seems relatively easy. Google pays people to simply display company ads on their websites. Companies pay Google to find these website owners who are willing to post the ads on their sites. Companies are charged a fee each time someone 'clicks' on the ad.

Google collects the fee and then pays the website owners a fraction of the profit. Unlike ASD, Google's program does not charge a fee to the website owners who wish to participate.

Murray hired three expert witnesses to examine ASD's business model and they contend it does not meet the definition of a ponzi scheme. Those experts include Keith Laggos, an author of a textbook on the Direct Sales Industry; Gerald Nehra a former Director of the Legal Division for Amway Corporation and Jerome Osteryoung who is a Professor of entrepreneurship and finance at Florida State University.

Osteryoung maintains ASD's model is effective because it only pays members a profit when they view an advertisement for a minimum of fifteen seconds. ASD "is much more valuable than the click per view for so much internet advertising (e.g. Google) which charges for each click no matter how brief the visit."

In a civil complaint filed by William R. Cowden in US District Court on August 5, 2008 he states, "in a Ponzi scheme, there is in fact no underlying profitable business to support the payments promoters say they will make to the investors/participants. Instead, unbeknownst to many of the participants, the promoters use the money obtained from a growing base of later investors/participants to pay so-called "profits" to earlier investors. Schemes that depend on growing the base of new participants to support payments to prior participants are also commonly referred to as pyramids."

Osteryoung says ASD is not a 'pyramid' because "a business that provides a vehicle for firms to advertise their products will be able to exist regardless if it attracts new members, as it is providing a much needed marketing tool."


Murray hopes his experts' testimonies will be considered by U.S. District Judge Rosemary Collyer who is presiding over the case. August 28th is the deadline for Judge Collyer to determine if the US Attorney General's case against ASD should move forward. At this point Murray is negotiating with the government and could reach a settlement before the upcoming deadline.

Mike Mason
Investigative Reporter

A man and his mission to take down an internet marketing giant

Ad Surf Daily and its CEO, Andy Bowdoin, are in the crosshairs of federal investigators who seized $53 Million from the company....money that belonged to thousands of investors who still feel the company is a legitimate business.

When Jack Arons retired from Hewlett Packard as a Master Technician he wanted to acquire a new hobby to keep himself busy. He wasn’t interested in assembling model airplanes or collecting baseball cards, instead he decided to become a consumer watchdog. Arons says it all began one day in July 2008 when his friend told him about a company that developed a great new way to make money.

Arons says his friend was eager to tell him how he and his mother had both invested $1,000 in ASD because they were told they could make a profit of up to $9,000 per month. The company was called Ad Surf Daily or ‘ASD’. Jack’s friend said ASD members make money by surfing the web and simply clicking on various sites.
The formula essentially works like this: ASD members are known as ‘advertisers’ who pay a membership fee to have their websites displayed to other viewers through ASD’s website. ASD pays these advertisers a "rebate" for viewing fellow advertisers' web pages and encourages advertisers to recruit new advertisers by paying existing ones a referral fee.

Arons decided to find out more about the company so he visited ASD’s website where he says he found promises that its members were basically guaranteed huge returns on their investments.

“You can’t offer 110% return on money and expect it to be legit,” says Arons.

Instead of buying into the ASD program, Arons began digging deeper into the company’s history. He researched ASD’s CEO Andy Bowdoin and uncovered a long list of complaints.

One was filed in Federal Court in Washington, D.C. On August 5th, 2008. US Department of Justice Senior Trial Attorney William R. Cowden filed a civil complaint against Bowdoin and two of his companies, 'Golden Panda' and 'Ad Surf Daily' claiming they were both ‘ponzi schemes‘.

The complaint also detailed past criminal charges filed against Bowdoin for security fraud. The following is an excerpt from the court file:

“Just prior to concocting ASD, Bowdoin was arrested in Alabama for one or more felony violations related to Fraud in Connection with the Offer and Sale of Securities by an Unregistered Agent. Bowdoin and several co-defendants were accused of having been promoters of a company called "Mobile International, Inc." The Alabama defendants said they had developed a mobile telephone system that was a cheaper alternative to the then-current cellular systems. That venture collapsed and Bowdoin and his co-defendants were charged with having sold unregistered securities to investors and with failing to state material facts to the investors that would have impacted the victims' decisions to invest.

In particular, Alabama officials asserted that Bowdoin instigated a scheme by which he took money from some victims to pay off prior investors. On October 6, 1997, in Montgomery County, Bowdoin resolved this criminal matter by agreeing to enter Pre-Trial Diversion with three years of supervised probation and pay restitution of $1 5,000. Bowdoin completed his Pre-Trial requirements and the charges were dismissed. Furthermore, on January 1 1, 1999, in Wilcox County, Bowdain plead guilty to one count of sale of unregistered securities and was sentenced to 1 year in prison, however the sentence was suspended and he was placed on 3 years supervised probation and ordered to pay restitution of $75,000.”

Arons says he contacted Florida Attorney General Bill McCollum’s office to see if they were also interested in investigating ASD and Bowdoin since the company was headquartered in Florida. Arons claims the AG never responded, “I made 2 phone calls and sent 2 emails and didn’t hear anything.”


Instead of waiting for answers, Arons decided to post his concerns on the website ‘scam.com’ where he warned people about doing business with ASD.

He says he also confronted Andy Bowdoin at his corporate offices in Quincy, Florida. While there, he says employees refused to let him inside the building so he began taking photos of the exterior. According to Arons, it didn’t take long for Bowdoin to go outside and confront him. Arons wasn’t afraid to tell the CEO what he thought “he wanted to know why I was on his case and I told him he was a crook.”

Arons claims Bowdoin was so upset that he personally went to the Attorney General’s office to lodge a complaint against him. According to Arons, that very action is what sparked the AG’s interest in the case, “the Attorney General finally called me in to their office to talk about ASD and I was there for 6 hours.”
The following is the email Arons sent to the Attorney General's office:

-------- Original Message --------
Subject: Re: Its in your hands
From: Selisa Beville (Selisa.Beville@myfloridalegal.com)
Date: Fri, August 01, 2008 2:38 pm
To: jackarons@bigbendcrimes.com

Hi Jack -

Thank you for the information provided to date. I look forward to meeting
you!

Selisa Beville, AIC, CFE
Financial Investigator
Economic Crimes Division
Office of the Attorney General
Tallahassee, FL 32399
850-414-3300

At that point the Florida Attorney General's office began its investigation. The AG quickly determined Bowdoin’s business model was indeed a 'ponzi scheme' and the US Attorney's Office soon seized $53M (fifty three million dollars) from several Bank of America accounts Bowdoin says were designated to maintain ASD funds.

In total the federal government seized $53M (fifty three million dollars) of assets from 'Ad Surf Daily' (ASD) and $14M from Golden Panda, another similar company they say was controlled by Bowdoin. In late July, 2009 the US Attorney General’s office completed its investigation and officials say they were able to convince Bowdoin to release Golden Panda’s assets to the government. US Department of Justice Senior Trial Attorney William R. Cowden maintains that 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 and is still subject to criminal charges.

Cowden says the government will begin disbursement of the Golden Panda funds to members as soon as members are able to prove how much they actually lost. A website has been developed to help Golden Panda members to claim their funds, it is www.usdoj.gov/usao/dc/Victim_Witness_Assistance/adsurfdaily.html
or they can email information to the Department at usadc.adsurfdaily@usdoj.gov .

The feds say they will do the same for ASD members if and when they successfully obtain ownership of those funds.

Although ASD is still embroiled in legal issues, there are many supporters of the company. An estimated 125,000 members nationwide invested money in ASD and many are still hopeful the government will drop its case and allow business to continue.


Bruce Disner purchased $1,000 of advertising 'packs' during an ASD rally in Miami, Florida. His brother, Todd, bought $2,500 worth of ad space with the company. Disner says he began making money immediately, “our income was coming out to a 1% daily return based on the amount of AD Packs you have. $400.00 for me and $3800.00 daily for Todd.”
Unlike many ASD members, Todd Disner says he took some of his money out of his ASD account before the Feds seized it and was able to walk away with a hefty profit of $59,000. Disner says ASD readily paid its members and if Bowdoin was corrupt “he would have taken the money and ran.”

Susan Leiker lives in Denver, Colorado and also invested in ASD. She still doesn’t believe the company was doing anything illegal. “My interpretation of a ‘Ponzi’ is where new people paid the old members. There are hundreds of surfers on the internet today. Everyone gets paid, no matter when they join. The same was true for ASD. You buy your units, view ads, and get paid.”

Since the seizure of ASD’s assets, people like Leiker have been struggling to make ends meet, “Thousands of people are trying to make an honest living online. Many of which are disabled and can't work outside of the home, others are mothers or fathers who want to raise their kids and not let strangers raise them.”

At this point ASD members don’t know if or when they will get any of their money back. If the pending Federal case against ASD convinces Bowdoin to release ASD’s total assets of $53M (fifty three million dollars) the US Attorney General’s office promises to distribute them in the same manner as Giant Panda. The distribution process is expected to be lengthy and complicated, as members will have to provide clear documentation of how much money they spent. Those documents will then be reviewed by the government for authentication and approval.

As ASD members await the outcome of the US Attorney General’s investigation, Bowdoin remains silent. The deadline for the US Attorney General to produce evidence implicating ASD is August 28, 2009 and it will likely affect Bowdoin’s decision regarding what he will do with the assets.

It’s a decision that could trigger a devastating financial fallout for thousands of ASD members. Many like Susan Leiker lost their life savings when the Feds seized the company, “I am now fighting to save my home and I had to do a bankruptcy.”


Mike Mason – Investigative Reporter
Investigative Reporting Video Resume: http://bit.ly/Z512e
Blog: http://investigativereportermikemason.blogspot.com/

ASD members may only be getting half the story...is that fair?

It's your money, your business and your right to know what's going on. Do you really want it to go to waste?

I am writing this note because I am concerned about a comment I received today from Steve Watt, a moderator of a website which focuses on ASD issues. He says information about my blog is apparently being eliminated from ASD forum discussions. This is what Steve wrote:

"I tried to get the Mods over on the surfs up forum to send an email blast out for this blog, but they didn't think it was a good idea and have banned me from the site...on the http://asd-biz.ning.com site they closed the discussion on Mike Mason. I do not know what their reasoning behind this was."

I don't know why someone would not want ASD members to know about my blog. I am investigating this case on my own dime and time as a service because I feel it is important.

Also, the moderators of the ASD members forum emailed me; their names are Barb and Kat. They were debating whether to send an email message to ASD members regarding my blog. They have access to 4,000 ASD members and can send an email 'blast' to all of them at the same time but they decided not to.

As ASD members I believe you have the right to know what is going on.

Here is something else to note, while I was searching for more ASD information on Google, I located an article about ASD and when I tried to click on it I was notified that I was 'banned' from the website's forum. The website belongs to the 'World Wide Scam Network' or WWSN. The site address is "wwsnforums.com"

At this time I don't know who maintains the WWSN website or what their motives would be for banning me.

My next report will likely be posted on Saturday. I will have some important developments including news from Andy Bowdoin's attorney, Charles Murray. He has agreed to update me on ASD's legal situation by Monday.

If ASD did nothing wrong then Bowdoin will likely need all the help he can get and ASD members need all their money so they can get back in business.

Thanks,

Mike Mason
Investigative Reporting Video Resume: http://bit.ly/Z512e
Blog: http://investigativereportermikemason.blogspot.com/

Update - Feds to release millions of dollars seized from owner of internet company, 'Ad Surf Daily'

Federal prosecutors say they are now prepared to begin disbursement of more than $14M (fourteen million dollars) they have seized from an internet marketing company owned by Quincy, Florida businessman Andy Bowdoin.



The company, Golden Panda, offers members a way to make money by advertising online and pays them each time they click on another advertiser's website. The US Attorney General's office calls the business model a 'ponzi scheme' and that is why it has also seized $53M (fifty three million dollars) of assets from 'Ad Surf Daily' (ASD), another similar internet company also owned by Bowdoin. ASD is estimated to have approximately 125,000 members nationwide who have invested money in the company.

US Department of Justice Senior Trial Attorney William R. Cowden says the government will begin disbursement of the funds as soon as members are able to prove how much they actually lost. He states, "the government recently became owner of the Golden Panda funds, and it can now pursue cost effective mechanisms to remit funds to Golden Panda victims."

Cowden says he is also confident the Department of Justice will win its pending legal case against Bowdoin and ASD. When that happens he says the government will distribute those assets to ASD members accordingly.

Despite what the government has announced, there are hundreds of ASD members who still support the company. Iowa resident Julie Van Zee doesn't understand why the government seized ASD's assets in the first place, "I was just trying to make an honest living and they stole from many hard working people."
Van Zee heard about ASD from a friend who is also a member. Van Zee supports ASD and its CEO stating, "Andy Bowdoin and his wife are very honest people who may have made a few honest mistakes...and only wanted to help others grow their businesses."

Cowden doesn't see it that way. He wants to clear up any confusion about what is happening to the money seized from Bowdoin and ASD. Cowden says, "I see from one of the comments on your blog a recurring complaint that the government has been holding a person’s money for over a year now and should just give it back to the person. Unfortunately, this person’s money became Andy Bowdoin’s money when he or she voluntarily gave it to Bowdoin/ASD. The government is using the civil forfeiture cases to strip ownership away from Bowdoin and move it to the government. You might explain that the government can’t give money it doesn’t own back to anyone. Perfecting ownership is the point of pursuing court orders forfeiting ASD/Bowdoin & Golden Panda/Busby property to the government as the law permits."

Below is the July 27th press release describing the current legal status of Golden Panda and ASD. I will be posting new updates as they come in.

Channing D. Phillips
Acting United States Attorney
District of Columbia
Judiciary Center
555 Fourth St., N.W.
Washington, D.C. 20530
July 27, 2009 Update
Golden Panda Ad Builder

In two related civil forfeiture cases now pending in the United States District Court for the District of Columbia, the Department of Justice (through the United States Attorney's Office) has alleged that funds and assets either seized from several Internet-based businesses (“Ad Surf Daily,” “La Fuente Dinero” and “Golden Panda Ad Builder”) or traceable to those operations, constituted proceeds of one or more federal criminal offenses. Specifically, the government alleged that each of these three so-called auto-surf businesses, which had promised income opportunities to their paying members, were actually “Ponzi” schemes that used new members’ money to pay income to earlier members in violation of the federal wire fraud and securities fraud statutes. Under federal law, proceeds of wire and securities fraud offenses are forfeitable to the Unite States. On July 24, 2009, the United States District Court issued an order forfeiting $14,048,598.07 to the government. This amounted to most of the funds that the government seized from bank accounts maintained by operators of the Golden Panda Ad Builder operation. Thus, the government now has perfected its title to these former Golden Panda funds, and it is now able to begin the process of remitting forfeited property to victims of the Golden Panda fraud scheme. Individuals who sent money to Golden Panda Ad Builder, and who suffered a pecuniary loss, will need to file petitions for remission or mitigation of the forfeiture with the Department of Justice. Under Section 9.8(a)(1) and (2) of Title 28 of the Code of Federal Regulations, in a petition for remission or mitigation of forfeiture a non-owner victim must demonstrate that it suffered a pecuniary loss of a specific amount directly caused by the criminal offense(s) underlying the forfeiture, or a related offense, and that the loss is the direct result of the criminal acts. In the near future, the Department of Justice will endeavor to contact former Golden Panda members with information about how they may properly file petitions for remission or mitigation with the Department (in writing and under oath). The Department will publish information on this website and also will provide information by email to potential petitioners identified to it. At this time, the United States does not have access to funds or property seized from or related to the Ad Surf Daily and La Fuente Dinero operations. The government’s effort to perfect those forfeitures remains under challenge.

Here is a link to the Attorney General's civil complaint filed against ASD in August, 2008
http://myfloridalegal.com/webfiles.nsf/WF/KGRG-7H9MY7/$file/ASDComplaint.pdf

Feds seize internet firm's assets and investors say they've lost millions with little explanation

The US and Florida Attorney General's office recently seized millions of dollars from investors of a marketing firm that sold ad space on the internet.

The Attorney General (AG) is investigating 'Ad Surf Daily', a Quincy, Florida based corporation founded by Thomas Bowdoin in 2006. Bowdoin stated the purpose of the corporation was to 'provide advertising space for websites on the internet' but the USAG says the company is nothing more than an elaborate ponzi scheme.

Ad Surf Daily (ASD) is designed to pay members dividends by surfing various business websites.The AG states the company "members were entitled to earn “credits” by viewing other members’ advertising websites. One credit was received for each viewing of another member’s website advertising."

The Florida AG says ASD is only able to pay members a profit when new members pay to join the company. In a complaint filed by Florida AG's special counsel Keith Vanden Dooren he states "Defendants have engaged in a sales or marketing plan or operation to induce and cause persons to pay consideration, or to make an investment, in excess of $100 and acquire an opportunity to receive a benefit or thing which is
not primarily contingent on the volume or quantity of goods, services or other property sold in bona fide sales to consumers and which is related to the inducement of additional persons to participate in the same sales or marketing plan or operation."

The company's members are said to total upwards of 100,000 and they've invested millions. They accuse the AG of holding their money hostage for nothing that they did wrong.

Marcia Breitenbach says she invested most of her savings in the company and is worried she has lost it all. "I'm trying to save my house, scraping by and others are much worse off than me."

Even though the AG accuses the internet firm of running a 'pyramid sales scheme', it has not yet provided evidence to support those charges. The second judicial circuit court in Leon County, Florida has given the Florida AG until next week to provide proof of wrongdoing.

Breitenbach is anxious for answers, "I've been patient and have contacted the Attorney General's office many times and have gotten nowhere."

Many ASD investors say they have no idea what's happening with their money and fear they could lose their life savings. The government has frozen assets totalling tens of millions of dollars but has not said how that money will be distributed.

The Florida AG has agreed to respond to my inquiries by tomorrow and as I investigative this further I will deliver a detailed account of how this happened and what the next steps will be. You can subscribe to my blog for updates as soon as they are posted.
Stay tuned.

Mike Mason - Investigative Reporter
305-527-3088
Mike@MikeMason.Biz
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