A local e-business is being sued for a massive wire fraud just one day after it was raided by secret service agents. As we've reported, the on-line advertising company allegedly engaged in deceptive marketing. Attorney General Bill McCollum says the company, AdSurfDaily, was not making profits for its new clients--only false promises.
Sandi Copes, Press Secretary with the Attorney General's Office said, "When you have a company that's claiming to be able to provide huge returns for its investors, but isn't actually generating any revenue and is using new investments to pay off older investors--that's a problem."
The investigation by the Florida Attorney General into AdSurfDaily has been active since July. On Tuesday afternoon, a search warrant brought Secret Service and Gadsden County Deputies streaming into the office of AdSurfDaily. On Wednesday, a lawsuit was filed by the Florida Attorney General with allegations that ASD falsely lured in investors on a large scale.
"The company would actually hold conventions and they would invite people to come listen to their business spiel and they would promise them these huge returns on what they invested and they'd rake in millions of dollars, really, from investors. But they weren't actually generating any kind of income." said Copes.
Without actually creating a pillow of capitol or an investment base, the Attorney General says cash from fresh investors at the bottom went straight to older investors at the top and approximately 100 million dollars was made from ASD's conventions in Miami and Tampa over the last several months. Furthermore, the Florida Attorney General is seeking damages for consumers as well as civil penalties.
ASD's business practice was brought to the attention of authorities through consumer complaints and the lawsuit filed by the Attorney General is not related to a civil suit filed by the U.S. Attorney's Office Tuesday.
Viewers with disabilities can get assistance accessing this station's FCC Public Inspection File by contacting the station with the information listed below. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or firstname.lastname@example.org.