FL Attorney General's Office on ASD Scam

By: Blaine Tolison Email
By: Blaine Tolison Email

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.

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  • by Tracy Location: Michigan on Sep 17, 2008 at 11:08 AM
    I am deeply disturbed by the AG's insistence to find fault in this wonderful business. Our economy is going down the drain President Bush had to give out Stimulus checks to stimulate the economy. I don't know about you but all I did with that was pay a bill sounds like a big economy booster. All I am saying is people were making alot of money with ASD. NOONE lost any money until the government stepped in, and what do you think people were doing with it all their money? Paying off houses, buying cars with cash, shopping, paying all their bills on time, that sounds like a bigger economy booster than any $600.00 check. Please give us back our ASD!!! It never hurt anybody.
  • by David Location: Charlotte on Sep 1, 2008 at 11:04 PM
    OK .. I'm late to the party. B.Tolison, please do some home work. A follow-up is in order. Have you ever purchased something and received a rebate it the mail? Really! That's all ASD is doing when it comes to 'Huge returns'. So I paid $1.00 for my ad to be seen for 15 seconds.. it cost ASD $0.01 to make it happen. I sold my widget and ASD sent me back $ 0.25. WOW !! Huge Return !! You failed to mention the part about all of the sales that were generated by advertizing in a captive market of people who have money to spend.. or did until the DA got his knickers in a twist! Or,should I say.. "Got on his high horse." But that's the New American Way isn't it? Shoot first, ask questions later. Regards, D. Dennis Jr.
  • by joy Location: FL on Aug 22, 2008 at 04:12 PM
    The news media, FL AG, Jansen are all "in bed together" so to speak coming into agreement with the US AG - what's new? That's politics. I'm a novice with legal issues, but even reading the Govt court order shows lame evidence and documentation to back up the allegations against ASD. In comparison read the ASD Emergency Motion, and you'll see not only professionalism but also evidence through legal cases, legal documents, etc. to prove their stand. The bottom line is this.....truth and justice should prevail, and no one has been proven guilty or innocent of anything as of yet by official courts. This whole case is certainly revealing weaknesses and poor leadership on the part of the US AG as well as the FL AG. A leader has a responsibility to those he leads to do his own due diligence before speaking out....which the FL AG, Jansen, and others have not done. If they do not do their due diligence before speaking, then there can be no trust in regard to anything they say!
  • by Bill Location: Dallas on Aug 22, 2008 at 04:01 PM
    We love ASD! Scammed? --by the GOV or ASD? No one lost money in ASD- well not till the great GOV took our check. ASD’s accounts all have money to pay checks issued and now the government won’t let us cash them. All our advertising dollar is gone out the window - no shopping, no spending with this company. Let’s run out and buy an ad in the paper or this TV page and see how many of you look at it- ASD ads work! Advertising has moved on into the new century. Ask a real business owner if they ever lost- NONE at all. Every check Paid on time - every time!! Many thanks to all ASD employees - People are being hurt and unemployed by the GOV once again. File against the AG now!
  • by Frank Location: Princeton on Aug 22, 2008 at 03:57 PM
    As an American citizen, tax payer and small business owner, I can barely find the words to adequately express how disturbed I am over the actions of the US Attorney and the Florida Attorney General. I feel that this invasion by the AG has severely damaged my confidence and faith in the entrepreneurial freedom I as an American hold so dear. Suddenly and for the first time in my life I am seriously asking the question: What on earth has happened to our government? I strongly believe in the business principles, platform, business model and owners of ASD and I intend to work to protect the viability of this business model. As a small business owner and satisfied advertiser I feel a responsibility to make every attempt to see ASD cleared of these ridiculous misrepresentations brought by the AG and the media. We are Advertisers. The small business owners involved with ASD need this marketing vehicle in order to effectively compete in today’s marketplace.
  • by Jack Jr Location: FL on Aug 22, 2008 at 12:48 PM
    I doubt the judge is paying attention to this or any other forum. But the investigator for the AG's office IS. The ASDers who think they're helping Andy or themselves are actually helping those who are actively working to shut him down. So, let's say Andy by some SLIM chance has his motion granted. Do you honestly believe that he is going to be able to do business in Florida? Let's see, I believe at last count there were 37 different violations of Florida Law and that is not counting the three other Florida Agencies that are also investigating ASD and Andy. Now add up all the fines and charges both civil and criminal; let's just say that Andy might have enough left for a bus ticket. Then there's the freezing of the accounts. Florida already has the paper work written up and signed by a Judge. So just as soon as the funds would be released by the Feds...WHAM! We now have all 93.5 million. And as for the Adsurfzone idiots, they can expect to be contacted by the authorities soon.
  • by Magnus Sjosvard Location: Miami on Aug 16, 2008 at 11:16 PM
    To whom it concern, you should not through stones if you are sitting inside a glass house, lets see that the other part have to say before you accuse any others, thank you
  • by Gary Location: Indiana on Aug 15, 2008 at 06:36 AM
    One other observation and question...why are there so many people in support of ASD from Wisconsin and in particular Green Bay? Did they really find that many gullible people in one location? And to think that the closest rally was in Chicago. That means those folks may have spent hard earned gas money to give more money to an alleged criminal.
  • by Gary Location: Indiana on Aug 15, 2008 at 06:34 AM
    I love it...a petition in which the word rebate is misspelled. In order for the government to take the petition seriously, you'd probably do best to use spell check first. Secondly, I love how the petitioners are so helpful (in giving the Government, the names and city locations of their whereabouts) in assisting the prosecution! All you have to do is match up the names and cities with the telephone numbers and street addresses in zabasearch and you've got a built in witness list for the prosecution. How could the signers of the petition be so foolish? Oh yeah, they're still drinking the kool-aid.
  • by Dan Location: Lake Placid on Aug 15, 2008 at 05:04 AM
    Whereas the normal public read these stories of how ASD transformed their lives (with an alleged ponzi scheme), may the senate hold hearings on how so many adults could be tricked and conned so easily into giving up what little finances they had to a man with a criminal past. I certainly hope the senate would conduct such hearings so that the rest of the gullible and naive people in this world would be made privy to the details of how to avoid such scams, er...I mean schemes in the future.
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