AdSurfDaily Gives Up Ponzi Fight

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Many Warriors will remember some of the heated threads last summer about AdSurfDaily Inc.

Longtime Warriors advised supreme caution, saying ASD resembled an autosurf Ponzi scheme.

A number of people defended ASD vigorously, claiming they'd done their homework and that ASD was not using a Ponzi model.

In August, about a month after many Warriors first heard about ASD, federal prosecutors raided its headquarters in Quincy, Fla. Agents from the U.S. Secret Service ultimately seized nearly $100 million.

Prosecutors said ASD was a classic Ponzi scheme that used money from new members to pay off older members in a shell game. They also alleged ASD was an unregistered securities business masked as an "advertising" firm that engaged in wire fraud and money-laundering.

In November, a federal judge ruled that ASD had not demonstrated at an evidentiary hearing that it was a legal business and not a Ponzi scheme. The hearing was held on the narrow issue of whether ASD was entitled to claim back some of the seized funds so it could return to business while awaiting trial.

ASD demanded a jury trial, and a scheduling conference was set for later this month.

But that's all off the table now. Today ASD withdrew its claim to tens of millions of dollars seized by the government, submitting to the forfeiture. It also surrendered valuable real estate that prosecutors said was purchased with Ponzi proceeds.

It's worth noting that ASD collected tens of millions of dollars from members in a matter of only several weeks last summer. Some people took out second mortgages to qualify for matching bonuses. Others spent their childrens' college funds or took out loans so they could buy even more "ads" on ASD.

Patrick
#adsurfdaily #fight #ponzi
  • Profile picture of the author Loren Woirhaye
    I guess that wraps it up then. A lot of us had seen this
    sort of thing before with other autosurfs. You live and
    learn. I lost a little in 12DailyPro when I was first getting
    started. I never forgot that.
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  • Profile picture of the author Tortue
    Wow... I remember the 12dailypro fiasco. It's amazing people still fall for this stuff, especially after all the press that 12DP received.
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  • Profile picture of the author mmurtha
    Hey Patrick,

    It's worth noting that ASD collected tens of millions of dollars from members in a matter of only several weeks last summer. Some people took out second mortgages to qualify for matching bonuses. Others spent their childrens' college funds or took out loans so they could buy even more "ads" on ASD.
    Yes, it's worth noting, but it's a shame people went into serious debt because of a Ponzi scheme, especially at this point in time with the economy the way it is.

    It's amazing what people will do when they are desperate!

    Thanks for the update kid, and good to see you posting ...
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    • Profile picture of the author GarrieWilson
      Originally Posted by mmurtha View Post

      It's amazing what people will do when they are desperate!
      Don't confuse desperation with greed...
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      • Profile picture of the author mmurtha
        Originally Posted by GarrieWilson View Post

        Don't confuse desperation with greed...

        Hey Garrie,

        Nope, I'm not confusing desperation with greed. There may be some greedy folks falling prey to the PS plus the ones that create them, but the majority of people getting involved that I know personally, have used up every bit of their life savings in these types of investments. And trust me, there are more people out there then others realize.

        The worst part is that they buy into it thinking their money problems will be over with once the PS gets off the ground.
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  • Profile picture of the author lazarus4444
    I was a member of Studio Traffic, what a waste of money!
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  • Profile picture of the author sevenish
    I just learned in the last couple of days that an acquaintance of mine has disappeared with at least 20 million in investor dollars. I expect the toll to be much higher as more scammed "investors" gradually emerge. Oh, and he was regarded as a legitimate asset manager.

    In the above case, the FBI is involved and actively looking for the guy. I warned some of my friends that his thinly-veiled favors were nothing more than marketing. I hadn't anything concrete other than recognizing patterns and a gut feeling.

    For several years, he was the pillar of his community making a loud show of his philanthropy and garish mansion. And he won over several of my friends who came to believe that I was paranoid with an ax to grind.

    Now many retirees have lost their only source of income. Unbelievable crap that some will perpetrate.

    Thanks for the update Patrick. You're still as beautiful as you were the day I first laid my eyes upon you.
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    • Profile picture of the author Kay King
      Some people took out second mortgages to qualify for matching bonuses. Others spent their childrens' college funds or took out loans so they could buy even more "ads" on ASD.
      Makes you wonder if those who so strenuously defended this Ponzi a few months ago were among those above - and couldn't admit they'd been had.

      Sevenish - Sound like a smaller version of Maddock. When money isn't flowly freely, it's hard for these guys to keep the scams going.

      kay
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      • Profile picture of the author sevenish
        Originally Posted by Kay King View Post

        Sevenish - Sound like a smaller version of Maddock. When money isn't flowly freely, it's hard for these guys to keep the scams going.
        Yep. That's exactly how the press is covering it. The story is only 10 days old so far. I felt like such a hard ass for several years because I wouldn't participate in or endorse his workshops. This forum has taught me to parse marketing from "peer" communication.

        It's the same mechanism as what Patrick is describing though, and I really appreciate his timely follow-up here.
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        • Profile picture of the author Patrick Pretty
          Originally Posted by sevenish View Post

          Yep. That's exactly how the press is covering it. The story is only 10 days old so far. I felt like such a hard ass for several years because I wouldn't participate in or endorse his workshops. This forum has taught me to parse marketing from "peer" communication.

          It's the same mechanism as what Patrick is describing though, and I really appreciate his timely follow-up here.
          You're welcome, sevinish.

          There also was an element of affinity fraud in this scam, which largely targeted Christians. A number of churches were involved -- and some members of congregations no longer are talking to other members.

          ASD President Andy Bowdoin blamed the prosecution on "Satan," saying it was worse in some ways than the 911 terrorist attacks.

          ASD had plenty of ardent defenders at first, perhaps because people found it hard to accept that they'd been conned.

          Of course, some people weren't conned at all. They knew what it was, and still recruited large downlines. A $100,000 stake in ASD computed to $7,260 an hour. Over a year's time, at the advertised payout rate, a person who plunked down $100,000 would receive a $265,000 profit for only 36.5 hours of work.

          What Garrie Wilson said above is true in many, many instances. People were blinded by greed.

          Regards,

          Patrick
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          • Profile picture of the author sevenish
            Originally Posted by Patrick Pretty View Post

            There also was an element of affinity fraud in this scam, which largely targeted Christians. A number of churches were involved -- and some members of congregations no longer are talking to other members.
            Same in my "acquaintance's" scam. In fact the religiosity and LOUD philanthropy was noted early on and cited among several blogs citing "red flags".

            As evidence, you might have noted an incremental rise in religious stuff on CPA networks (bottles of "Christ's" sand, holier holy water, assorted relics). I've thought to myself "Wow, wouldn't that be an easy target? Hmmmm?"

            Problem is I can't work efficiently whilst gagging in disgust.

            Thanks for that insight Patrick.
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      • Profile picture of the author Patrick Pretty
        Originally Posted by mmurtha View Post

        Hey Patrick,



        Yes, it's worth noting, but it's a shame people went into serious debt because of a Ponzi scheme, especially at this point in time with the economy the way it is.

        It's amazing what people will do when they are desperate!

        Thanks for the update kid, and good to see you posting ...
        Hi Mary,

        Good to see you, too, Kid. :-)
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      • Profile picture of the author Eric Lorence
        Originally Posted by Kay King View Post

        Makes you wonder if those who so strenuously defended this Ponzi a few months ago were among those above - and couldn't admit they'd been had.

        Sevenish - Sound like a smaller version of Maddock. When money isn't flowly freely, it's hard for these guys to keep the scams going.

        kay
        Don't you mean Madoff, Err... "Made Off" ?

        Have to imagine '09 will be a banner year for "Investment Adviser" Indictments.
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  • Profile picture of the author carmene
    I got my money back from Adsurf to repave my driveway ....only a few days before it went belly up! Thank you God!
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    • Profile picture of the author seantaylor
      I lost about 60 bucks. Ah well, took a shot.
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      • Profile picture of the author Floyd Fisher
        Originally Posted by seantaylor View Post

        I lost about 60 bucks. Ah well, took a shot.
        The real question is...did you learn your lesson?
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    • Profile picture of the author Floyd Fisher
      Originally Posted by carmene View Post

      I got my money back from Adsurf to repave my driveway ....only a few days before it went belly up! Thank you God!
      I hope it was worth it. The Feds are coming for the people who made out this time...and that's not going to be pretty.

      Don't say anything more, and get a lawyer asap.
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  • Profile picture of the author AdamHaroun
    Wow, just tragic to hear stories of people getting caught up in this scheme only to lose everything...

    Really, the part that frustrates me is that there are many real, legitimate business opportunities out there with real products and a solid reputation where people can earn an income.

    Sadly, schemes such as ASD seem to prey on those in the most desperate situations or who may not be fully informed about what exactly it takes to succeed online.

    Worse yet is the involvement of churches, etc. in such illegitimate activity.

    Glad to hear those responsible are being put to justice!
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    • Profile picture of the author Barry Goss
      The inner-workings of the minds behind scams, schemes, and broken dreams are explored through CNBC's American Greed.

      I just watched the one about "Big Papa" Lou Pearlman - that lard-ass con who started the Backstreet Boys and NSync.

      Fascinating, too by the way, how he they ended up finding him while he was on the lamb ( hiding from the Fed )... it was his Hotel Manager, in Bali ( where he thought nobody would recognize him ), who used Google to search for his picture to verify he was Lou... gotta love it.
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    • Profile picture of the author MarQueteer
      Originally Posted by AdamHaroun View Post

      Wow, just tragic to hear stories of people getting caught up in this scheme only to lose everything...

      Really, the part that frustrates me is that there are many real, legitimate business opportunities out there with real products and a solid reputation where people can earn an income.

      Sadly, schemes such as ASD seem to prey on those in the most desperate situations or who may not be fully informed about what exactly it takes to succeed online.

      Worse yet is the involvement of churches, etc. in such illegitimate activity.

      Glad to hear those responsible are being put to justice!
      Even worse for business, schemes like this reflect on solid and legitimate online business opportunities. Another online scam...it hurts the whole IM industry.
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  • Profile picture of the author Patrick Pretty
    Steven W,

    Thanks for the nod.

    What MarQueteer says about scams such as this hurting the entire industry is spot-on.

    I'm aware of a family that lost more than $100,000 in the ASD scam -- and they were educated people.

    Bitterness remains in the family, something common in the families of many ASD participants. Mothers and fathers put daughters and sons in the program. They also got Grandma involved, even when she didn't have a Web business to "advertise."

    Lots of people entered the program reluctantly, suspending their disbelief because a loved one plied them with talk of easy money.

    ASD's system created paper profits of $100 a day for an "ad" buy of $10,000 -- 1 percent a day. That's 365 percent over the course of a year. No legitimate enterprise pays interest at such a rate.

    One of the big sales props was a guy claiming to be earning $1,000 a day by clicking on ads for six minutes. Under this scenario, he would have received his $100,000 principal back and a profit of $265,000 for "working" only minutes a day.

    What a crock.

    It's one of the reasons many consumers believe the Internet is one giant cesspool.

    Patrick
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  • Profile picture of the author Takuya Hikichi
    I believe there are no instant gratifications in Internet Marketing (or any internet business), but I will be the first one to admit that it took me a while before coming to such conclusion.

    And I too am glad Patrick is back (Missed talking with you about baseball, I mean Internet Marketing).
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  • Profile picture of the author Michael Oksa
    About time we are able to
    see updates about these
    dunces.

    Thanks for the info Mr. H.
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  • Profile picture of the author Michael Forey
    I find it interesting that the government is pursuing these ponzi schemes given they are running the biggest one only they call it Social Security.
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