This is a general research brain-dump, and otherwise completely unrelated to my normal blogging topics.
This is regarding a company (currently) known as "BizAdSplash.com". BAS is an 'auto surf' scam, and should be avoided by everyone. Same goes for any company who's 'business model' involves 'click for cash' schemes.
First, let's understand what we're talking about. A
Ponzi scheme (or pyramid scheme) is defined thusly:
A Ponzi scheme is a fraudulent investment operation that pays returns to investors from their own money or money paid by subsequent investors rather than from profit. The term "Ponzi scheme" is used primarily in the United States , while other English-speaking countries do not distinguish colloquially between this scheme and other pyramid schemes.[1]
The Ponzi scheme usually offers abnormally high short-term returns in order to entice new investors. The perpetuation of the high returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors in order to keep the scheme going.
The system is destined to collapse because the earnings, if any, are less than the payments. Usually, the scheme is interrupted by legal authorities before it collapses because a Ponzi scheme is suspected or because the promoter is selling unregistered securities. As more investors become involved, the likelihood of the scheme coming to the attention of authorities increases.
The US DOJ has already determined the following businesses were Ponzi schemes, and has
successfully convicted at least one of the operators, Andy Bowdoin.
AdSurfDaily/ASDCashgenerator/Golden Panda
You can view the DOJ's website
here. The DOJ is offering remuneration to victims of these companies.
The "business model" for these companies was essentially the same: promises of high payouts for buying into an advert system. As with most Ponzi's, the first people "in" were paid, spoke highly of the program to recruit others, then fell apart months later as the operation scaled beyond a crash point.
The connection to catch here is Golden Panda. From the
Georgia Secretary of State, we find out Golden Panda was closed in September 08, and had been registered to a Mr. Clarence Busby.
Clarence Busby is believed to be the founder of Golden Panda and
Biz Ad Splash. (Update: A BAS rep has indicated Busby is not a founder, but an "advisor.")
Biz Ad Splash has been in business for exactly two months (their system went live 12/25 according to several internet forums.) (Note: Yes, I recognize the difference between being incorporated (Sept 08?) and 'operational', which is what I mean in this case.)
The company is allegedly incorporated in PANAMA, but as I cannot locate a SINGLE email address, phone number, or article of incorporation, I cannot verify this.
This lawfirm is handling a class-action lawsuit against Mr. Busby, his associate Andy Bowdoin, and their (former) companies. (Specifically, attorney
Lisa Fialco is handling the case.)
This group has been tracking the case(s) against Andy Bowdoin's companies. The history of these men is just unbelievable. (Patrick Pretty's work is pretty thorough, IMHO.)
It seems they target church groups with pretty startling regularity.
Bottom line: if anything even sounding
remotely like this "business model" comes your way, do not get involved with it.