F.B.I. Struggles to Handle Financial Fraud Cases

Posted by on Jan 26, 2013 in Archive | 0 comments

By ERIC LICHTBLAU, DAVID JOHNSTON and RON NIXON, October 19, 2008   WASHINGTON — The Federal Bureau of Investigation is struggling to find enough agents and resources to investigate criminal wrongdoing tied to the country’s economic crisis, according to current and former bureau officials. The bureau slashed its criminal investigative work force to expand its national security role after the Sept. 11 attacks, shifting more than 1,800 agents, or nearly one-third of all agents in criminal programs, to terrorism and intelligence duties. Current and former officials say the cutbacks have left the bureau seriously exposed in investigating areas like white-collar crime, which has taken on urgent importance in recent weeks because of the nation’s economic woes. The pressure on the F.B.I. has recently increased with the disclosure of criminal investigations into some of the largest players in the financial collapse, including Fannie Mae and Freddie Mac. The F.B.I. is planning to double the number of agents working financial crimes by reassigning several hundred agents amid a mood of national alarm. But some people inside and out of the Justice Department wonder where the agents will come from and whether they will be enough. So depleted are the ranks of the F.B.I.’s white-collar investigators that executives in the private sector say they have had difficulty attracting the bureau’s attention in cases involving possible frauds of millions of dollars. Since 2004, F.B.I. officials have warned that mortgage fraud posed a looming threat, and the bureau has repeatedly asked the Bush administration for more money to replenish the ranks of agents handling nonterrorism investigations, according to records and interviews. But each year, the requests have been denied, with no new agents approved for financial crimes, as policy makers focused on counterterrorism. According to previously undisclosed internal F.B.I. data, the cutbacks have been particularly severe in staffing for investigations into white-collar crimes like mortgage fraud, with a loss of 625 agents, or 36 percent of its 2001 levels. Over all, the number of criminal cases that the F.B.I. has brought to federal prosecutors — including a wide range of crimes like drug trafficking and violent crime — dropped 26 percent in the last seven years, going from 11,029 cases to 8,187, Justice Department data showed. “Clearly, we have felt the effects of moving resources from criminal investigations to national security,” said John Miller, an assistant director at the F.B.I. “In white-collar crime, while we initiated fewer cases over all, we targeted the areas where we could have the biggest impact. We focused on multimillion-dollar corporate fraud, where we could make arrests but also recover money for the fraud victims.” But Justice Department data, which include cases from other agencies, like the Secret Service...

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ASD Evidentiary Hearing

Posted by on Jun 29, 2012 in Archive | 0 comments

“NOTICE of Hearing: A two-day Motion Hearing in re [7] is set to commence on 9/30/2008 at 9:30 AM in Courtroom 2, main building, 2nd floor, before Judge Rosemary M. Collyer. “Upon consideration of the request by Claimants AdSurfDaily, Inc. (“ASD”) and Thomas A. Bowdoin for an evidentiary hearing to challenge the Government’s opposition to the pre-trial release of seized funds, see Dkt. # 7, as well as the Government’s non-opposition to the request for an evidentiary hearing, see Dkt. # 19, the Court finds that it is in the interests of justice to grant the Claimants’ request for an evidentiary hearing. “Accordingly, it is hereby ORDERED that ASD’s and Thomas A. Bowdoin’s motion for an evidentiary hearing is GRANTED. It is further ORDERED that, pursuant to 18 U.S.C. § 983(f)(5), the scheduling of an evidentiary hearing regarding the pre-trial release of seized funds establishes good cause for extending the time for the Court to render a decision on the Claimants’ emergency motion for return of seized funds through the date of completion of the evidentiary hearing, at which time the Court shall determine whether further extension is necessary while the Court takes the motions under advisement. “It is hereby ORDERED that the Deputy Clerk of the Court is directed to schedule an evidentiary hearing on the Claimants’ emergency motion. Signed by Judge Rosemary M. Collyer on 09/18/08. Indinavir...

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Criminal Charges Filed in ASD Case

Posted by on Jun 29, 2012 in Archive | 0 comments

LATEST INFORMATION REGARDING ASD On December 17, 2010, defendant Thomas Anderson Bowdoin Jr., also known as Andy Bowdoin, (“Bowdoin”) was arraigned on a seven count indictment charging him with: Five counts of Wire Fraud (18 U.S.C. § 1343), One count of Securities Fraud (15 U.S.C. §§ 78j(b) and 78ff)) and One count of Unlawful Sale of Unregistered Securities (15 U.S.C. §§ 77e(a)(2) and 77(x)). There has been no trial date set for Andy’€™s criminal trial in Washington, D.C. Andy had requested a change of venue for his criminal trial from Washington, D.C. to Tallahassee, FL. This motion was denied. No appeal of this denial has been filed at this time. Andy’€™s previous appeals of his rescission of the Forfeiture in Rem, and to overturn Judge Collyer’€™s ruling in the Final Order of Forfeiture were both denied by the appellant...

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Why Bringing ASD down saved the participants, whether they know it or not – Greggory B. Evans, PhD

Posted by on Jun 29, 2012 in Archive | 0 comments

The members of internet ponzi scheme Ad Surf Daily ASD Cash Generator are a pretty vocal crowd, and some of them have active imaginations, too. The root cause if this is, like many internet scams, ASD preyed upon people who have an incredible ignorance about business in general and how “real companies” work in particular. Read their own support chat room and you find all manner of “evil government took down a perfectly legitimate company that no one had complained about” themes, some of them absurd enough to claim the prosecutors have in fact admitted they made a mistake but didn’t put it in writing and they’re going to go ahead and put President Andy Bowdoin in jail, simply because they can’t find a way out of the mess without losing face. Let me make this as plain as I can, ASD was a cheap ponzi scheme, new members money was used to pay older members (and of course, Andy managed to skim a few million for himself), there was no outside income and despite a clause in their Terms of Service that did not guarantee rebates, there were in fact at least three references to these payments that could and were construed to conflict with that. Legally, as soon as one dollar of new member money was paid to an older member, they broke the law, case closed. ASD has made a very public fight in the courts, but it’s only impressive to those unschooled in the law, at least one of the major motions filed is the brunt of jokes on a website frequented by attorneys who practice before the federal bar, one lawyer describing it as “read as though they were written by a Christian Scientist with appendicitis.” These filings are clearly intended for the unschooled masses and no one who was ever admitted to the bar thinks they have much chance of prevailing. The “Emergency Motion” filed to release seized funds asked the court to grant an evidentiary hearing, which the government chose not to oppose. The real comedy started when the court then issued subpoenas for the hearing that ASD asked for, only ASD through counsel decided to file to quash these subpoenas and claimed if ASD management was compelled to appear they would exercise their 5th amendment rights and refuse to answer questions. The faithful, as is typical of several of these financial cults of late, somehow managed to paint this train wreck as a quasi-victory, or explained it away as a government plot to entrap the good people in management, one going so far as to say “Andy is too honest to testify”. You can’t make this stuff up, pure stupid on...

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