Feds halt ASD Cash Generator

David Arnett

Google news briefly removed from its service our last story on ASD Cash Generator (ASD), likely under threat of legal action from the company.  Google should not have done so without contacting Tulsa Today, but we are glad to see it back.  We never publish all we know about anything and as of Friday the U.S. Attorney General’s Office has apparently frozen ASD’s accounts.  The company’s main web site was changed to a single static page with the following text, “Upon direction from the U.S. Attorney’s office in the District of Columbia, ASD will not be able to move funds into company accounts, or out of them.  We will work to resolve this problem, and return to normal operation, as soon as we are permitted to do so.”

Tulsa Today is the first journalism organization in the world to shed light on what many people believe is a Ponzi scheme and a complicated fraud.   ASD was scheduled to convene a large meeting in Tulsa August 23rd.  Tulsa Today’s particular complaint is that there seems to be no actual advertising in the so-called advertising packages sold by ASD; therefore there was no complete transaction – outside of ASD harvesting money from the unsuspecting.

 

Jack Arons spent time and money investigating and protesting ASD and has been vilified by company supporters or “cheerleaders” with threats of lawsuits.  In response, Arons posted his contact information publicly asking ASD to bring it on.  Tulsa Today also received threats by e-mail and on our office voice mail.  The latest voicemail harassment message was recorded after ASD funds were frozen; it claims a $13 million lawsuit against Tulsa Today and this writer.  An earlier e-mail threatened $30 million.

Tulsa Today believes that work on this topic is a matter of public interest for readers, specifically because ASD was recruiting in Tulsa and publicized plans to do so here in mass at convention.

ASD seems to play fast and loose with the names of major corporations including Google, at conventions, web presentations and during personal recruitment pitches. Such ASD claims have been recorded and archived by Arons and others.  Does Google’s management understand that ASD has unjustly profited at its expense? Or does a business relationship between Google and ASD exist?
 
Investigations have found no ASD relationship with major corporations as company officials and cheerleaders have touted.

Our first source, Robert, worked the numbers on ASD and is quoted liberally in our first story (click here for “ASD considered fraud”).  Counter to company claims, many people believe that member money was being used to fund member revenue which on its face is illegal and defined as a Ponzi scheme or a fraudulent investment operation that involves promising or paying abnormally high returns to investors out of the money paid in by subsequent investors, rather than from net revenues generated by any real business.  It was named after Charles Ponzi. 

Several threads are available online with significant dialogue and personal testimonies of experience with ASD.  One of the most detailed is Scam.com (click here to reach the ASD thread on Scam.com).  More Internet discussions may also be found by simply utilizing various search engines.

In one such posting, a recruit wrote, “I went to an ASD meeting last Thursday night. It was my first introduction to this company.  In the company presentation, it was said that 100,000 people are current members.  Membership fees are $100.00 per month per member. That equates to revenue to the company of $120 million per year.

“The purpose of joining for members is to purchase "ad packets" from $500 on up to many thousands. This creates an account for them that thru internal machinations (by visiting websites and bringing in new members and receiving commisions) the account builds.

“ASD adds $ 0.25 to every dollar invested, and pays back to the account 1% per day for a maximum of 125%. In other words, if you buy an ad packet for $1000, they add $250 to it, and your account receives $12.50 for 125 days (or about 4 months) for a total of $1562.50,” recruit continued.

“Not bad. This equates to 168.75% per year return on your investment. And this doesn’t count the credits added to your account daily by visiting websites or commissions added from new investors or the compounding of your investment.

“If the 100,000 members were in it for only $1,000, ASD would be paying out a cool $169 million per year. But, several people at this meeting got up and testified that their accounts were getting credited with $600, $700, or $800 per day. And they had only been in it a few weeks. THIS IS A FAR CRY FROM $12.50 a day.

“So– ASD has got to come up with multiple billions per year to pay these members!!

"HOW DO THEY DO IT?  Well– When asked that question, ASD responded by saying that it sells advertising to corporations (plus member dues of $120 million per year).  I don’t think so. I find it highly unlikely that they are covering their costs this way,” the recruit added.

Many are befuddled as to how ASD generated money into the daily profit sharing pool aside from new ad packages being purchased by current and new members.  This was the question ASD failed to clearly answer and, from that failure, the charge that the business model lacks sustainability gained additional credence.

Returning to the advertising question, it is important to note that the advertising packages sold by ASD were not available for non-members to view.  Members were required log in and follow a viewing program for 15 seconds (a clock timer displays) then click on the next.  To buy the advertising packages from ASD, you were not required to have a business to advertise which begs the question of why people would purchase such packages other than for investment purposes which ASD repeatedly said they were not selling.

Watching a timer doesn’t equal an advertising impression in our media business.  We can teach a chicken to click a button every 15 seconds.  We can write a computer program to do the same.  There is no value, as we have written, in a paid view by a disinterested party.  Jack Arons reports that with his membership he followed the program and only saw promotions or listings of other multi-level-marketing (MLM) offers.

Was this advertising?  If so, what was being advertised?  Did major corporations look at ASD member web sites?  We doubt it?  Maybe this was the hope of ASD – to use a dynamic to offer a nonexistent product.  ASD reminds us of the 70s scheme, “Dare to Be Great” which required individuals to sell Adventures and Plans to others.  The court concluded that the scheme was “no less an investment contract merely because [the investor] contributes some effort as well as money to get into it” thus involving in substance, if not form, securities. (Click here for more from the book, “You can’t Cheat an Honest Man”.)

One cheerleader by e-mail referenced the Security and Exchange Commission (SEC) lawyers ASD has “on staff.”  The Tulsa Today response questioned why any company that so loudly declares it is not an investment opportunity nor subject to SEC regulations would employ multiple SEC lawyers?  That same writer declared as fact that ASD founder Andy Bowdoin “just has [sic] meetings in DC and met with the President and Vice-President and received some honors in relationship to what ASD is all about.”  Is it likely that the “honor” or “honors” received were distributed to a large number of Republican donors in one gathering?  Did Mr. Bowdoin disingenuously transpose this into an award?

Aside from the foregoing, Tulsa Today has found no proof that such a meeting ever took place.  Other investigators suggest that Bowdoin may have been in a room with political supporters that President Bush visited, but no award has been found in Bowdoin’s name.  Heck, I have met U.S. Presidents and other potentates, but that doesn’t mean they support any business of mine.  Bowdoin talks a lot about how great and honorable and successful he has been in business, but not about twenty companies associated with his name and later dissolved by the Florida Secretary of State.  A complete list of those companies follows this story.

Further, the recent announcement of ASD’s business relationship with William Levine the owner of www.Greenbackstreet.com which is still operating a web site, creates other questions.  Levine also has a long history of companies that have been dissolved due to no annual report.  A list of those fifty-five companies is found following Bowdoin’s also at end of this story.

MLMs have been around for decades and in dispute for much of that time.  The notable examples of properly run legal MLMs are Amway, Tupperware and Avon which all include tangible products.  Hundreds of want-to-be MLM schemes have been declared illegal.  Is ASD due for such declaration?  Only a court of law can determine the facts and declare such a ruling.

In a day of increased communication options within the historical existing group of dedicated MLM fans, new plans or schemes can be launched quickly and rise with the support of the greedy or merely hopeful to harvest millions before law enforcement and the courts can respond.  Could that be considered a conspiracy?  Again, only the courts can decide once the issue is before them and that process never works as fast as someone can hatch a new plan with new terminology or revised definitions of existing terms or complete business models.

For the public good, media has a responsibility to engage in considerations of fraud – to be suspicious – to raise concerns – prior to determinations by a court system that moves too slowly to prevent many from casting life savings to the wind.  With ASD, new communication allowed critics with concerns to link and multiple personal examples to be brought forward for public consideration.  If the pitch is public, then critics should have equal access to public publication of questionable issues within the pitch.

Tulsa Today stands proudly on our First Amendment Right to free speech and the Tenth Amendment, which reserves what rights that are not retained by Federal or state governments to the people.  We claim the right to consider issues publicly prior to their final legal determination by the court system – especially when issues reference Tulsa.  That may sound a little provincial to those readers who believe all things of importance only happen on the coasts, but expressions of appreciation for our ASD investigations have come from as far away as Canada and as close as a long-time reader, financial planner, and a former editor we have not heard much from in the last twenty years or so, Richard Hoe.

Hoe wrote, “Good piece, David.  I’m proud of you; the article was terrific.  I know someone who invested $10 thousand.  She says she has gotten $4 thousand back, and could have gotten more, had she not reinvested, whatever the hell that means.  ASD could be the greatest thing since peas in a can, but without full disclosure, how can anyone know?   I suspect that perhaps very few people have actually received more than 100% on their ASD investments—the whole idea of Ponzi schemes is to keep everyone in a form of suspended animation, selling others and reinvesting while waiting for his or her own ship to come in; if this is a Ponzi, and I hope it is not, it’s among the most clever I’ve seen.”

We agree, there is much confusion, but ASD considerations continue – on or off Google, Tulsa Today will maintain and continue publication until that confusion is resolved in a court of law.  

Addendum
Bowdoin talks a lot about how great and honorable and successful he has been in business, but not about the following companies associated with his name and later dissolved by the Florida Secretary of State:

BOWDOIN, T.A.  GLOBAL SATELLITE DEVELOPER, INC.  P00000061994
BOWDOIN, T. ANDERDSON JR.  PERRY TECHNOLOGY CORPORATION.  580904
BOWDOIN, T. ANDERSON, JR  CHRISTIAN IMPACT, INC.  733341
BOWDOIN, T. ANDERSON, JR  ESI, INC. OF PERRY  F02821
BOWDOIN, T. ANDERSON, JR  ESI, INC. OF ORLANDO  F05574
BOWDOIN, T. ANDERSON, JR.  CHRISTIAN IMPACT, INC.  733341
BOWDOIN, T. ANDERSON, JR.  TUBE-LITE OF DAYTONA BEACH, INC.  G63848
BOWDOIN, T. ANDERSON, JR.  WATERFALL FANTASY, INC.  G63849
BOWDOIN, T. ANDY  CREATIVE RETAILING SERVICES, INC.  P98000021820
BOWDOIN, THOMAS A  GPS TECH, INC.  P04000052704
BOWDOIN, THOMAS A  EADNETWORK, INC.  P06000148969
BOWDOIN, THOMAS A  WORLD PAYMENT SYSTEMS, INC.  P06000148978
BOWDOIN, THOMAS A  GPS TECH, INC.  P04000052704
BOWDOIN, THOMAS A  GPS DEVELOPMENT AND MANUFACTURING, INC. P04000154373
BOWDOIN, THOMAS ANDERSON  MI-COM, INCORPORATED
BOWDOIN, THOMAS ANDERSON, JR.  TUBE-LITE INTERNATIONAL, INC.  G59445
BOWDOIN, THOMAS ANDERSON, JR.  CROSBY ENTERPRISES OF LAKELAND, INCORPORATED  G86108
BOWDOIN, THOMAS ANDERSON, JR.  KDJ ENTERPRISES, INCORPORATED  G86109
BOWDOIN, THOMAS ANDERSON, JR.  SOUTH POLK INVESTORS, INC.  G94144
BOWDOIN, THOMAS ANDERSON, JR.  RIDGE-TEC, INC.  G94146

The recent announcement of ASD’s business relationship with William Levine the owner of www.Greenbackstreet.com which at this report still operating a web site, creates other questions.  Levine also has a long history of companies that have been dissolved due to no annual report, a list of those companies follow:

LEVINE, WILLIAM A.  INTERNATIONAL BEEFALO MARKETING, INC.  545977
LEVINE, WILLIAM A.  NATIONAL BEEFALO INDUSTRIES, INC.  574393
LEVINE, WILLIAM A.  TLC PLANT CO., INC.  621394
LEVINE, WILLIAM A.  NBI SEMEN, INC.  621395
LEVINE, WILLIAM A.  NBI MEAT, INC.  621396
LEVINE, WILLIAM A.  TCH INDUSTRIES, INC.  621397
LEVINE, WILLIAM A.  NATIONAL BEEFALO MARKETING, INC.  627808
LEVINE, WILLIAM A  GENESIS ENERGY, INC.  629666
LEVINE, WILLIAM A  NATIONAL BEEFALO MANAGEMENT, INC.  629667
LEVINE, WILLIAM A.  REPRODUCTIVE RESEARCH & TECHNOLOGY, INC.  635711
LEVINE, WILLIAM A.  TLC TRANSIT, INC.  659039
LEVINE, WILLIAM A  OLD BRIDGE CELLARS INC.  F94000004025
LEVINE, WILLIAM A.  ABBYMARK INDUSTRIES, INC.  G23933
LEVINE, WILLIAM A.  ANIMAL GENETICS & EMBRYONICS, INC.  G30806
LEVINE, WILLIAM A.  THE FURNITURE STORE, INC.  G50139
LEVINE, WILLIAM A.  FIRST COAST GROUP, INC.  H23631
LEVINE, WILLIAM A.  AMERICAN HOME DECORATING CENTER, INC.  H34391
LEVINE, WILLIAM A.  NATURE’S PLAN, INC.  H41845
LEVINE, WILLIAM A.  MLM DISTRIBUTORS, INC.  H60451
LEVINE, WILLIAM A.  PRIORITY PLANNER, INC.  J62235
LEVINE, WILLIAM A.  NETWORK PLANNING, INC.  K02359
LEVINE, WILLIAM A  ABBYMARK, LLC  L05000111199
LEVINE, WILLIAM A.  WATERBED WAREHOUSE OUTLET, INC.  M67299
LEVINE, WILLIAM A.  THE OASIS GROUP, INC.  M69932
LEVINE, WILLIAM A.  HEALTH & WEALTH 50/50, INC.  M69934
LEVINE, WILLIAM A.  RESEARCH DEVELOPMENT GROUP, INC.  M69935
LEVINE, WILLIAM A  MORTGAGE PLANNING, INC.  P04000017481
LEVINE, WILLIAM A  SNOWHOSTER, INC.  P04000099732
LEVINE, WILLIAM A.  PILOT PETROLEUM CORPORATION  P04070
LEVINE, WILLIAM A  GATENET, INC.  P05000161020
LEVINE, WILLIAM A  KLIKFIRE, INC.  P05000161029
LEVINE, WILLIAM A  GREENBACKSTREET, INC.  P07000124669
LEVINE, WILLIAM A  SUCCESS THRU KNOWLEDGE, INC  P08000051635
LEVINE, WILLIAM A.  ANGLO PETROLEUM CORPORATION  P11257
LEVINE, WILLIAM A.  IDEA SERVCOM INCORPORATED  P29702
LEVINE, WILLIAM A.  SECO SOUTH, INC.  P30352
LEVINE, WILLIAM A  PINNACLE COMMUNICATIONS INTERNATIONAL, INC.  P95000094532
LEVINE, WILLIAM A.  INTERNATIONAL BEEFALO MARKETING, INC.  545977
LEVINE, WILLIAM A.  NATIONAL BEEFALO INDUSTRIES, INC.  574393
LEVINE, WILLIAM A  TLC PLANT CO., INC.  621394
LEVINE, WILLIAM A  NBI SEMEN, INC.  621395
LEVINE, WILLIAM A  TCH INDUSTRIES, INC.  621397
LEVINE, WILLIAM A  GENESIS ENERGY, INC.  629666
LEVINE, WILLIAM A  NATIONAL BEEFALO MANAGEMENT, INC.  629667
LEVINE, WILLIAM A  TLC TRANSIT, INC.  659039
LEVINE, WILLIAM A.  ABBYMARK INDUSTRIES, INC.  G23933
LEVINE, WILLIAM A.  NETWORK PLANNING, INC.  K02359
LEVINE, WILLIAM A  MORTGAGE PLANNING, INC.  P04000017481
LEVINE, WILLIAM A  SUCCESS THRU KNOWLEDGE, INC  P08000051635
LEVINE, WILLIAM A  LEVINE HOLDINGS, INC.  P93000069025
LEVINE, WILLIAM A  PINNACLE COMMUNICATIONS INTERNATIONAL, INC.  P95000094532
LEVINE, WM. A  LEVINE HOLDINGS, INC.  P93000069025
LEVINE, WM A  COMMUNICATIONS CONCEPTS MANAGEMENT, INC.  P96000102045
LEVINE, WILLIAM  INTERACTIVE COMPUTER SOLUTIONS, INC.  P95000029581
LEVINE, WILLIAM  INTERNATIONAL COMMUNICATIONS SYSTEMS, INC.  L22873