Attorney General Bill McCollum News Release
|August 6, 2008
Contact: Jenn Meale
Phone: (850) 245-0150
|en Español||Print Version||Tweet|
Quincy, FL Company Sued for Massive Pyramid Scheme
~ Multilevel marketing scheme bilked victims out of thousands of dollars ~
TALLAHASSEE, FL – Attorney General Bill McCollum today filed a lawsuit today against Quincy company AdSurfDaily accusing the company and its owners of operating a huge pyramid scheme. The Attorney General’s lawsuit is seeking civil damages for the victims and an injunction against the company, its president, Andy Bowdoin Jr., and its employees to prohibit them from engaging in future deceptive marketing. The lawsuit comes on the heels of a raid conducted by the U.S. Secret Service on the company’s headquarters. The federal authorities also froze $53 million in bank accounts held by the company.
The lawsuit filed today by the Attorney General alleges that AdSurfDaily – also known as ASD – operated a pyramid scheme, a multilevel marketing operation which depends on new investments to keep the scheme running. The lawsuit claims there were insufficient funds from any legitimate enterprise to support the profits ASD promised to pay. Instead, ASD depended upon new victims to turn over cash in order to make promised payments to those who had earlier given money. The Attorney General believes many of the victims of AdSurfDaily were Floridians who were scammed into handing over thousands of dollars to Bowdoin with promises of big profits that were rarely, if ever, provided.
Over the last several months, ASD hosted large conventions in Miami and Tampa where attendees were encouraged to pay thousands of dollars for internet advertising that would allegedly bring them huge paybacks. Consumers were allegedly promised that they would make as much as 150 percent on their investments. According to the Attorney General’s investigators, the company made approximately $100 million from the Miami and Tampa conventions. The Attorney General’s Economic Crimes Division has been actively investigating this company since late July.
According to the lawsuit, the pyramid scheme promoted by ASD is a violation of Section 849.091, Florida Statutes, and a per se violation of the Florida Deceptive and Unfair Trade Practices Act found in Part II of Chapter 501, Florida Statutes. The Attorney General seeks actual damages for consumers as well as civil penalties. The lawsuit is not connected with the criminal investigation being conducted by federal authorities.
A copy of the civil lawsuit is available here. Consumers with complaints or questions about the company may call the Attorney General's fraud hotline or may file a complaint online at: http://myfloridalegal.com. The toll free number within the State of Florida is 1-866-966-7226 or outside the state is 850-414-3990.