Erma may have even more problems

It seems Erma Seabaugh funded one of her three ASD accounts in part with a transfer from E-Bullion, a failed payment processor, according to prosecutors.  In 2008, prosecutors asserted ASD had a relationship with E-Gold, a payment processor accused in 2007 of money-laundering. Yesterday’s assertion that ASD also had a relationship with E-Bullion marked the first time that prosecutors have raised E-Bullion’s name in the ASD case.

Erma Seabaugh, known among ASD members as the “Web Room Lady,” used E-Bullion in November 2007 to transfer $10,510 to ASD, according to a forfeiture complaint filed yesterday.

It looks like Erma’s problems continue to mount, I won’t even guess what will come next in this case.

(Parts of this post are from PatrickPretty.com)

Things heat up in the ASD Case

(From the Patrick Pretty blog, used by permission)

Today, the Secret Service and federal prosecutors seized nearly $250,000 from two alleged ASD promoters and filed a new forfeiture complaint. More than $153,000 has been seized from bank accounts controlled by ASD promoter Erma Seabaugh, known as the “Web Room Lady.” Seabaugh was a purported ASD “trainer,” prosecutors said.

She was accused in the complaint of accepting checks made out to ASD, depositing them into her bank account and transferring “ad packs” to her downline by using ASD’s internal system. When the Secret Service executed the warrant to seize the money from Seabaugh, only $153,097 was found in the account, according to the complaint.

Between July 15 and July 30, 2008 — effectively the two week period leading up to the ASD seizure — Seabaugh received nine ASD checks totaling $203,993, prosecutors said.  The checks came from “third parties,” and Seabaugh transferred a corresponding number of “ad packs” to the buyers by using ASD’s internal system, prosecutors said.  “Based on these facts, it appears Ms. Seabaugh was selling her own investment ‘ad packs’ to clients and representing herself as ASD,” prosecutors said.

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Meanwhile, more than $96,000 has been seized from bank accounts controlled by ASD member Robyn Lynn Stevenson, who operated a company known as Robyn Lynn LCC and worked briefly for ASD itself, prosecutors said.

At the same time, investigators seized more than $500,000 from a bank account once controlled by ASD President Andy Bowdoin and nearly $50,000 from an account controlled by Golden Panda Ad Builder President Clarence Busby.  The buffer was necessary to permit checks already drawn on the account prior to the effective date of the seizure warrant to clear, prosecutors said.

All in all, the forfeiture complaint filed today targeted $794,718 in illegal ASD proceeds, prosecutors said.

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Separately, Bowdoin pleaded not guilty today to criminal charges filed against him in U.S. District Court for the District of Columbia. Prosecutors said he was at the helm of a massive Ponzi scheme that gathered at least $110 million.

For the full article, go to http://patrickpretty.com

Andy goes to Court today!!

Our favorite Defendant, Thomas Anderson (Andy) Bowdoin, Jr., is scheduled to be arraigned before United States Magistrate Judge John Facciola today at 1:45 p.m. The hearing will occur in Courtroom 6 of the United States District Court for the District of Columbia which is located at 333 Constitution Ave, N.W., Washington, D.C.

The prosecutors assigned to this case are Assistant United States Attorney Vasu Muthyala and Assistant United States Attorney Michael Atkinson. Mr. Mathyala has been part of the case all during the Forfeiture phase and is now heading the Criminal case.

I’m guessing that once he is in DC, they may not let him out on bail.. just guessing.

Another email from Rust..

Hi, folks. I received another email from Rust Consulting from someone calling themselves a “Victim Witness Assistant”. A few people have also received the same letter and asked me about it. From all appearances, it’s Rust notifying us that they will be sending put updates as the criminal case against Andy Bowdoin proceeds.

The email states:

Defendant Bowdoin is scheduled to be arraigned before United States Magistrate Judge John Facciola on December 17, 2010 at 1:45 p.m. The hearing will occur in Courtroom 6 of the United States District Court for the District of Columbia which is located at 333 Constitution Ave, N.W., Washington, D.C. The prosecutors assigned to this case are Assistant United States Attorney Vasu Muthyala and Assistant United States Attorney Michael Atkinson.
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We will make our best efforts to ensure you are provided the rights described above. It is important to keep in mind that the defendant is presumed innocent until proven guilty and that presumption requires both the Court and our office to take certain steps to ensure that justice is served. While our office cannot act as your attorney or provide you with legal advice, you can seek the advice of an attorney with respect to these rights or other related legal matters.
====

It will be nice if Rust does keep us informed, along with handling the remissions. Of course, I’ll be sending out info as well.

More strangeness..

Someone filed a report on RipOffReport.com saying that people should report Rust to the BBB, and that they are basically fakes. This no more than the ramblings of some ne’er-do-well who either does not understand things or is just plain ignorant.

I filed a response, hopefully people will not follow this guys advice.

“3 Hebrew Boys” sentenced to decades in prison

© 2010 The Associated Press

Dec. 14, 2010, 8:10PM

COLUMBIA, S.C. — Three men who called themselves the “3 Hebrew Boys,” using the Biblical story of faith to create a scheme that prosecutors said fleeced thousands of people out of more than $80 million, will each spend decades in prison.

Timothy McQueen, 52, and Joseph Brunson, 47, were each sentenced to 27 years in prison and Tony Pough, 48, was sentenced to 30 years Tuesday after a daylong hearing. The three, all from Columbia, were convicted in November 2009 of 58 counts each of mail fraud, money laundering and other charges.

Prosecutors said the three men traveled to churches and other gatherings across the Southeast several years ago and spoke to soldiers near military outposts, preaching how faith and an investment in what they said were foreign currencies would at least double their money, wipe out credit card debt and pay off mortgages in months.

But authorities said less than $1 out of every $10,000 invested went into the foreign currency markets. A very small percentage did go to other investments, such as a limo service or small businesses, but most of it went for a fleet of expensive cars, vacation homes, pro football game luxury boxes and other high-end items.

The men remained defiant to the end, telling the judge that they still think they did nothing wrong. They said they were only trying to minister to people and planned to use some of the proceeds to feed hungry children and help the homeless.

“We know what we were called to do and we did that,” McQueen said. “And we never have harmed anybody.”

The men pointed to more than a dozen investors who stood when one of the defense attorneys asked who gave money to the men and still supported them.

But prosecutors said that’s why it was so insidious — the men charmed people into the Ponzi scheme, and the only reason that investors didn’t lose more was because the scam was discovered before it ran it course.

“They used their charisma to sell snake oil and they wrapped it in religion,” prosecutor Mark Moore said. “They did it so well, some people still think they are on the up and up.”

The men took their name, the “3 Hebrew Boys,” from a Biblical tale about two believers in God who survived being tossed into a fiery furnace because of their faith.

In their pitch, the men told investors they had been through the flames of crushing debt and survived, thanks to their secret investments and the power of God.

But there was no rescue Tuesday as they stood before U.S. District Judge Margaret Seymour and took a scathing rebuke for using money given to them to buy luxury items such as a nearly $1 million motor home and a private jet.

“Were they called to buy a Gulfstream jet?” Seymour asked. “Were they called to buy luxury cars and condos?”

The scheme also relied on race, said authorities, who estimate that at least 90 percent of the investors were black, as were all three defendants.

“We were going to help people. The actual process was to get people out of bondage,” said Pough, whose sentence was three years longer than his co-defendants because he was convicted of a felony in a prior fraud scheme.

The sentences for the men were so harsh in part because the judge found they tried to obstruct justice at every turn, hiding cars and other assets from authorities and filing rambling, quizzical motions that called prosecutors “civilly dead.” The motions also called their convictions “an act of war” and referred to the judge as “that woman.”

The men were more respectful Tuesday, calling Seymour “your honor,” but they continued to assert the court had no jurisdiction over them.

Several victims testified of ending up in financial ruin at the trial. But none of them was in court Tuesday, leaving friends, family and investors who blame the state and federal government for their losses to do the talking.

“I don’t know how this thing got out of hand,” investor Jeremiah Williams said. “But the intent was never to do harm. Maybe they were just ignorant about what they were trying to do.”

Prosecutor Winston Holliday said the men knew exactly what they were doing and chose to take from the masses of poor people so they could live the life of the rich.

“What they learned by going through the flames,” Holliday said, “was how to burn other people.”


Our forum on Grou.ps will be closing

Since half the stuff never works and the site is so slow, I have decided not to spend any more money to keep the forum online with Grou.ps; plus, we have very little traffic there any more.

I sent out over 1200 invitations to our Grou.ps members and only about 280 people responded to the invitation to join Google Groups. That seems to indicate many are no longer interested in ASD or its updates. Yet another reason not to pay for a site that very few actually use. The forum is paid up through December 28th. I will likely not post anything further there, but post to our new online locations instead.

Links to our other online sites are listed to the right, in the sidebar. There is also a link to Patrick Pretty’s blog, where you can find a plethora of information/warnings about current scams and schemes.

Oesch/Leaming Claim Dismissed

Some of you may have heard about the claim made by MYHUB against the majority of parties involved in the original ASD forfeiture. The suit sought out “damages” of around $29 Trillion.

The claim was dismissed without prejudice, mostly for jurisdictional reasons. I have posted the Order on our ASD Updates Files site.

A very strange email…

It seems there is an email floating around recently that may have come from someone high up in the ASD organization, Gary Talbert. I have posted the email below.  I cannot attest that it is absolutely genuine, but I’m betting that it is.

Got a email from Andy and he told me to go ahead and send this email out to everyone. He does have a hearing on Dec. 17th in Washington D.C.  He and his lawyers are still positive on the out come.
Here is just a idea and I think this will work for everyone. This should keep everyone legal. Because I think everyone understood it was not a investment. I believe it is time to fill out the info. from Rust inc. with the following addendum.

Where it asks for your signature write in there “See addendum”.

Now put this in your own words on the addendum. Here is a out line.

On the addendum write that you knew this was not a investment and you where purchasing advertising. Now since the gov. stopped my advertising company and I did not get my advertising I would like to get my advertising money back from whom ever is holding it now.
Sign it and send it in with the forms from Rust.

  • I cannot believe that anyone with a smidgen of common sense would think this would do a bit of good. It’s like adding a handwritten note to the back of your mortgage saying that it’s paid in full. It changes nothing regarding the primary document. Let’s also not forget that the signature must be witnessed by a Notary. Seems they failed to mention this, only saying “Sign it and send it in”.
  • If this kind of advice is coming from Bowdoin then he is doing just like he did during the Civil case, not keeping his mouth shut. His conference calls to ASD members while the Civil case as ensuing hurt his case more than he realizes. What’s different now is he has conditions of bail, one of which is to not intimidate witnesses or hamper the investigation.
  • This is not the first I’ve heard of this “Addendum” idea. I think it may have been sent to Andy from one of the “Inner Sanctum”. Hopefully, they can trace it back to Andy and revoke his bail. He needs to be sitting in a jail cell.
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