Aug 052008
Here it is everyone. It spells out everything in the Us Attorney’s case. It doesn’t look pretty.
Who knows what Andy Bowdoin, Juan Fernandez, Clarence Busby Jr., Dawn Stowers or anyone from ASD, Ad Surf Daily Inc, will do to get themselves out of this.
I don’t know anything about the laws or how bad this really is but after reading this it was quite enlightening as to the background of these people. I hope this looks a lot worse than it appears, but it appears to be bad.
http://tallahassee.com/assets/pdf/CD11468785.PDF
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Its bad. The feds don’t do this stuff lightly. If you read the civil complaint, you’ll see they actually enrolled in the program themselves, thoroughly investigated the background of the people involed and then took action.
If they were just investigating, they would not have seized all the assets of the company. The factual statements regarding the backgrounds of these individuals and othe results of the investigations are made in the complaint under penalty of perjury, so they are findings of fact.
The company’s lawyer makes statements that this is a legitimate business while at the same time time he is a boardmember of ASD. Not exactly an impartial statement.
You have a so-called successful business man that is sitting on piles of cash. Any good businessman knows that is poor management. Not only that but these accounts are all in his personal name, so he can take money anytime he wants. I don’t know what he did or was planning to do with the cash but that just points out that there is no accountability for any of the income or expenses. No business I know would be that reckless unless there was a good purpose.
The fact that you can only buy Ad packs through Money Orders or through direct deposits to his BofA account should be a big red flag. Why? No accounability. No paper trail. Who is to say where that money actually went. Credit card payments leave a trail.
Even though the company is privately held, there still have to be prudent business practices put in place that provide accountability, especially with that much cash.
He’s been in business for two years and has accumulated millions and know he’s just hired a CFO??? Give me a break.
The fact is that he never got an award fron President Bush. He got an award from the Republican Party for making a big contribution.
Here is a CEO who covered up his prior felony conviction and who is still associating himself with other known felons.
Even if you gave Bowdoin the benefit of the doubt that he was simply an honest business man trying to help people, I’d have to conclude that he must be the most inept businessperson on the planet to run a business this way. The complaint alleges that none of Bowdoin’s business ever made any money.
As far as the business itself goes, a little simple work with a spreadsheet should convince you that the business is unstable. Other than Ad Packs, there is no other source of outside revenue to the company. So the company’s whole stability depends on the member’s confidence and willingness to leave their earnings in the company as upgrades. If most members decided they wanted their money out at some point, it would be a mathematically impossible situation. Its what accountants call an unfunded liability.
To be a viable business, the company has to have another revenue stream to offset the liability created by payouts members.