ASD Fights to Re-Open Business

By: Roman Lillie Email
By: Roman Lillie Email

Advertising company Ad Surf Daily has filed a motion to re-open its door after being shut down by the Feds. But the U-S Attorney's office will now have extra time to respond to that request.

Attorneys for ASD asked the U-S Attorney to respond by Thursday.
But the court has given the U-S Attorney's Office until Monday to give an official response.

In the motion filed by A-S-D's attorneys, they say if the company isn't allowed to begin operating again, the company will soon collapse completely. ASD was raided by the Feds about two weeks ago. They say the company was operating a money-making scheme.
A Quincy Internet company raided by the Feds is now going to court to try to get back to business. Ad Surf Daily says it should be able to operate under court supervision until lawsuits filed by the US Attorney and Florida's Attorney General are resolved.

On Wednesday, about a half a dozen people were going in and out of ASD's main office in Quincy. They say they were moving files, and while they're busy doing that, ASD's lawyers are playing the waiting game.

Feds raided ASD about two weeks ago. The Secret Service has now seized $93.5 million and shut down the business.

ASD's attorneys have filed a motion saying ASD needs emergency relief. Without it, they say the company will soon collapse completely.

Tim Jansen has prosecuted and represented companies that were accused of being ponzi schemes. He says civil cases like the ones filed against ASD can take up to two years to resolve. He says when a company isn't allowed to continue operating, there's practically a presumption of guilt.

"Right now the way this has happened, they have already been found guilty of operating a ponzi scheme, and all their assets have been taken away," says Jansen.

Florida's Attorney General Bill McCollum says he wouldn't feel comfortable with the ASD operating again even with court oversight.
He says the company used advertising as a front for its money making scheme.

"At the end of the day that's the only way they could ever sustain themselves is by getting new members and that's an illegal pyramid scheme. And it's not right for them to go back and do it again. It just doesn't work that way," says McCollum.

"The court will have to look at a business and say if I don't grant you a remedy, business, you're out of business. And they may not have money to hire the lawyers to fight the litigation. So really it's a tough position for the business owners. It appears to me the motion is well founded," adds Jansen.

ASD's lawyers filed the motion on Monday and the U-S Attorney will have until Thursday to respond to this complaint. After that it's likely the judge will set a date for a hearing.

Attorney General Bill McCollum says anyone who's put money into ASD should log onto their website and file a complaint. He says after the situation is resolved, people may be able to get some of their money back, provided the company is found guilty of operating an illegal scheme.

This is a press release issued by the Secret Service:

Multi-Level Marketing Scheme Targeted

(Washington, D.C.) - Nearly two weeks after the Department of Justice
announced the seizure of approximately $53 million from a Florida
business involved in an online scheme, the U.S. Secret Service has
identified and frozen additional funds, raising the total of assets
seized to more than $93.5 million.

On August 5, 2008, agents from the Secret Service Orlando and
Tallahassee Field Offices executed a series of federal search and
seizure warrants on business locations, residences, and bank accounts linked to AdSurfDaily, Inc (ASD). The search and seizure follows an investigation initiated in July 2008 that revealed ASD was engaging in questionable business practices that operated on a pyramid or Ponzi scheme principle.

"Cooperation among investigators, including the private sector partners
who brought this case to our attention, allows us to combine not only
our resources, but also our expertise in order to more effectively
address evolving criminal methods, such as these online schemes," Secret Service Assistant Director of Investigations Michael Merritt commented.

Ponzi schemes promote allegedly lucrative business opportunities, when in reality there is in fact no underlying profitable business to support the payments promoters say they will make to the investors/participants.

The Internet is increasingly used as a vehicle to promote each of these
types of frauds and while Ponzi schemes have evolved with technology, the basic premise remains the same: later investors' funds are used to pay the earlier investors.

The version of the Ponzi scheme Secret Service investigators uncovered in the ADS investigation is referred to as an "auto-surf" program, a form of online advertising that claims to generate revenue from so-called "advertisers" who pay fees to have their websites displayed to
other viewers through the "host's" web-based operation. As part of the
program and to encourage more advertisers to pay the membership fee, the
host pays the advertisers a so-called rebate for viewing fellow
advertisers' web pages, while encouraging the recruitment of new
advertisers by paying a referral fee. In this Ponzi model, the host
generates most, if not all, of its funding from membership fees, and
therefore must use money received from later advertisers to pay rebates
and referral fees to earlier advertisers. These programs collapse when
new membership fees fail to cover the payouts promised to existing

On August 5, 2008, U.S. Attorney Jeffrey A. Taylor and Secret Service
Orlando Field Office Special Agent in Charge John Mrha announced a civil
forfeiture Complaint was filed in the U.S. District Court for the
District of Columbia against two homes located in Florida and South
Carolina, as well as the initial $53 million in funds. On August 6,
2008, the Florida Attorney General filed a lawsuit against ADS and its
president, Thomas A. "Andy" Bowdoin Jr., seeking civil damages and an
injunction against the company to prohibit them from engaging in future
deceptive marketing schemes. The Secret Service is currently
coordinating with the Department of Justice to identify victims that may
be entitled to a portion of the seized proceeds.

The United States Secret Service was originally founded in 1865 for the
purpose of suppressing the counterfeiting of U. S. currency. Over the
years it has grown into one of the premier law enforcement organizations charged with investigating financial crimes. The Secret Service has taken a lead role in the developing area of cyber crime, establishing working partnerships in both the law enforcement and business communities to address such issues as protection of critical
infrastructure, Internet intrusions and associated fraud.

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  • by Bryon Location: Elizabethton on Aug 27, 2008 at 04:44 PM
    Wow, John. Feel the love. Untruths? Nope. Sorry, buddy..I post the truth. Even though that was not Andy's shared the truth why both the account and Andy are in Antigua. Why are you getting so emotional? Don't like me sharing the truth? Would you rather me join the Pro-ASD choir and sing the praises of Saint Andy? Ain't gonna happen. Fact: Andy is a crook. ASD is a scam. Prove what I say is not the truth. Please. Show me I'm wrong. I can't stand scams and scammers. Instead of whining..tell us please what I said that is not truth. I am not going away. I am not going to shutup. Have a nice day! :)
  • by Preston Location: Minnesota on Aug 27, 2008 at 04:30 PM
    What’s WRONG Here Imagine 1OOO's who left their jobs and traditional businesses finding success at ASD Whats their Fate today, ? What if the Govt lost 1OO,OOO JOBS , would that be impactful NoW there are More losses to people, more losses to Govt Revenue, more wrong thoughts against the Govt Its time for the Government to rewrite the business definitions, expecially after the massive growth of Internet World. What was written 30 years back about Home Business /Networking is still being followed . FTC websites and different Attorneys of state websites should be updated. Their (Govt) Definitions of networking and MLM industries have to change if home business industry is to survive. Else every home business will turn out to be a SCAM in the eyes of the Govt at some time or the other. Gone are the days of MLM where you could build a 1OOO people steady downline / each selling products to make the main rep couple thousand /month The Internet has changed the way we do busines
  • by IRS Location: USA on Aug 27, 2008 at 04:06 PM
    Code Sec. 7623 gives the IRS discretion in its authority to pay awards to whistleblowers ranging from 15 percent to not more than 30 percent of proceeds collected as a result of information provided by the informants. In Notice 2008-4, IRB 2008-2, 253, the IRS provides guidance regarding the filing of claims with the Whistleblower Office. An article in Federal Tax Course Letter outlines the new guidance, which addresses a host of threshold filing requirements and outlines how informants should report information.
  • by NON member Location: Food for thought on Aug 27, 2008 at 03:29 PM
    Think about this: We live in a society where we have limitless recording technology. You can hide a microphone in a ball-point pen. Why in the world didn't the secret service agent record his interview with Andy? If the secret service can not provide a recording of their interview with Andy, than I have no choice to side with ASD on this one. I believe the AG is GRASPING at straws, trying to come up with anything they can. SERIOUSLY...don't you think the conversion would have been recorded? That just blows my mind!! If it wasn't recorded than the secret service has some explaining to do, that's for sure.
  • by Xavier Location: USA on Aug 27, 2008 at 03:26 PM
    In any case that involves the government prosecuting a person, entity, what have you it is inherently true that the defense can and will say anything they can manage to pull out of the sink, for reference I point you to OJ Simpson's legal team bringing up increasingly bizarre theories on who really killed his ex wife (and OJ is to this day searching for the real killers on golf courses all over Florida, or currently in a jail in Nevada I think). Anyhow, you get the point, the defense can blame it on UFOs, Illuminati, the Trilateral Commission or evil Secret Service agents and corrupt US Attorneys.
  • by John Location: MN on Aug 27, 2008 at 03:19 PM
    What are you doing on here Bryon? What is the meaning of your posts? Please share with us EXACTLY what you have against ASD? Did they hurt you in any way? Please stop the hate and go join a 24 hour fitness club because I think all you do is post hateful garage full of untruths?
  • by IRS Location: USA on Aug 27, 2008 at 03:07 PM
    Life is complex enough without con artists trying to separate you from your hard earned dollars. It can be very costly if you become a victim of a scam. Everyone should be vigilant in protecting personal, financial and tax information. The IRS has these tips to avoid falling prey to con artists. Watch your personal and financial information very closely, particularly during electronic transactions. The IRS is among a growing group of government agencies and corporations whose names and Web sites are being copied by imposters posing as employees conducting official business and seeking your personal information. Be aware that the IRS does not use e-mail to initiate contact with taxpayers about their accounts. Do not open links in unsolicited messages claiming to come from the IRS.
  • by Chris Location: Wisconsin on Aug 27, 2008 at 02:43 PM
    ASD will be proved right in a court of law. The US AG has sated that he has taken personal money from Mr. Bowdoin, when in actuality he has taken corporate money as Andy has filed ASD as a corporation with Bank of America but the bank were slow in straightening out the paper work. The AG is in trouble here because they are not recognizing this in any of their reports and once this comes out and it will, they will have to explain why this was not reported. Because 50% of all that money is ours the people who purchased AD packs for the purpose of advertising which we are now not getting because of the AG's foolish seizing of these corporate funds. The AG needs to act accordingly here and stop playing games. Tell the truth even if it hurts. Right noe they are covering their you know what and many people are being hurt by it. Stop it now!!!!
  • by Surfer Girl Location: USA on Aug 27, 2008 at 02:34 PM
    Check out Professor Moriarty's letter online at the Joy Luck Club ASD Website. It has some very good points against the AG's case, and is very well written. I posted at 2:15pm today, and it was not included.
  • by Jon #31231 Location: Sarasota Florida on Aug 27, 2008 at 02:19 PM
    Fellow ASD members. Even if the Judge does not rule in our favor we must accept and try to live with her decision. We will have to move on and accept the facts. We can all find other similar business on line to become part of. This will not be the end of the world for any of us. I have communicated several times with the US AG and he does not appear to want to give in to our needs. I have told him the truth about ASD as I know it to exist. I am not sure my words have convinced him to lay off of ASD. Maybe I will be suprised? I thought I would try to do everything I could to get ASD back on line for all of our sakes. I do appriciate William allowing me the opportunity to voice my opinion and concerns. Getting this opportunity to speak to the US AG was very unexpected for me. I hope I did some good for ASD. Be blessed. Jon out!
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