First of all, we must examine the value of a Club Asteria membership. Club Asteria does allow individuals to sign up for a free membership and test drive some of the benefits, along with their own back office. Members are encouraged to sign up for Silver memberships at $9.95 per month and Gold Memberships at $19.95 per month. These levels allow members to access more products and services, and further supplies them with additional “Asterio” credits, of which members can earn a profit from at the end of each week.

Some examples of products offered to Club Asteria members include a traffic optimizer, website creation tools, shopping mall with rebates and rewards, and various e-books. Therefore, upgraded (or “paying”) members are receiving products / services for the membership price, which would appear to satisfy the first and most important step in weighing “legitimate programs” vs. “pyramid schemes.”

However, one caveat that should not be overlooked is the true VALUE of the products and services themselves; i.e. do Club Asteria members feel that these products and services are worth the price tag attached for “upgraded” perks, even if the referral incentive did not exist? The United States FTC often uses this as a basic litmus test, whereas the concept of a “fair price” is rarely the biggest concern.  Consumers typically determine the true value of such memberships / fees, and therefore, a general consensus of what is “fair” can be somewhat difficult to determine.

Here are two questions that should be asked by prospects and current Club Asteria members:
- Would anyone pay for these products / services if the business opportunity and rewards were not attached?
- Are current members using and accomplishing anything with the products / services they are paying for?

The next crucial examination revolves around the payplan. Club Asteria claims they distribute 75% of their revenues toward commissions and rewards for their business affiliates. The basic explanation on the “Commission” segment of the Club Asteria website implies that 45% of revenues are paid as direct commissions, and another 30% is divided between Gold Members and Silver Members, with a total weekly commision cap of 10%. The amount distributed to each member’s account depends on their accumulation of Asterios.

What exactly is an “Asterio“? Think of it as credit system designed to keep track of individual member’s participation and level in the Club Asteria program.  Weekly distributions are then made to Club Asteria members in proportion to their Asterio count.  Asterios can be earned as members purchase additional programs and services offered through their affiliates. At first glance, Club Asteria’s explanation appears to account for a sustainable reward system, which shares similarities with MLM models incorporating profit sharing pools and team bonuses.

However, the “Asterio” concept requires a very important warning. The rewards dispersed to Asterio holders must be less or equivalent to all revenues obtained by member purchases in Club Asteria; otherwise, the model would have ponzi scheme characteristics similar to Sophisticated Ponzi schemes, such as the common “Autosurf” concept (though, in this case, not requiring any surfing or web viewing). This does not appear to be the case with Club Asteria; unfortunately, outsiders do not have access to full data regarding the specific allocation of revenues.   Therefore, members should simply exercise basic caution and keep an open eye out for any abnormally high rewards that are attained in excess of product / service revenue.

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FINAL OPINION:

Given the current information about Club Asteria at this time, I will neither be recommending it or discouraging people from participating in it.  I do not see any major red flags that would immediately condemn it as a dangerous scam. The full Club Asteria membership cost is relatively cheap, but the price vs value of the products / services members are urged to purchase remains in question.

Hopefully, we’ll hear some opinions from current Club Asteria members and other industry analysts. As more information is presented in the future, PSA hopes to provide additional updates and articles.
Attributes to “Regarding Club Asteria Scam” – Ponzi Scheme Alert, All Rights Reserved. 2010.
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- Mr. Ryz

www.PonziSchemeAlert.com

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Victims of the now infamous 12 Daily Pro, originally founded and operated by Charis Johnson, have been awaiting the refund process for nearly 3 and a half years.

Finally, many victims that originally filed a complaint with the Receiver, Thomas F. Lennon, are walking to their mailboxes and pulling out refund checks with excitement. All qualified claims are estimated to be settled between September 1 and September 30, 2009.

Unfortunately, many victims involved in Charis Johnson’s 12 Daily Pro money laundering scheme are faced with a cruel reality. The aftermath of one of the largest Autosurfs now clearly demonstrates that all ponzi schemes ultimately result in heavy losses and misery for the majority of “investors.” Eligible victims – i.e. people who filed a claim and completely lost their investment after 12 Daily Pro assets were seized by the government – only received approximately 30% of their “upgrades” (which were essentially referred to as “initial investments”).

Charis Johnson & 12 Daily Pro Overview

Charis Johnson founded 12 Daily Pro through MyLifeClicks, LLC in April of 2005. The company advertised an opportunity to purchase advertising upgrades (“investments”) and earn a 44% ROI within 12 days. Members were required to surf a minimum of 12 websites per day for 12 days in order to gradually earn 12% portions of their 144% total return. Once the 12 day cycle was completed, 12 Daily Pro would payout the principle plus 44% ROI via internet payment processors; the most popular of which were StormPay and E-Gold.

Between April of 2005 and January of 2006, 12 Daily Pro had attracted over 300,000 people and inspired them to create member accounts. Only a portion of these 300,000 accounts actually upgraded money into the 12 Daily Pro system; however, thousands of these accounts were actually maxed out at $6,000, the 12 day period advertising upgrade limit. During this 9 month period, 12 Daily Pro’s total “upgrade package” value exceeded $50 million.

After a month of investigations, the SEC charged Charis Johnson, 12 Daily Pro Administrator, with running an illegal ponzi scheme. All 12 Daily Pro related assets were seized and placed in the hands of a court appointed receiver, Mr. Thomas F. Lennon. Future reports acknowledged that although Charis Johnson had claimed that 12 Daily Pro was earning revenue through a variety of income streams in order to pay the 44% returns, more than 95% of these payouts was merely transferred through the classic “rob Peter to pay Paul” ponzi scheme model.

Let Us NOT Forget 12 Daily Pro!

As described earlier, the end results for this massive ponzi scheme were not pretty. The legal battles and recovery process took well over 3 years – essentially from February of 2006 to September of 2009 – before most victims even received a penny back. Now that the 12 Daily Pro case is finally winding down to a close, these victims are left with mere fraction of their investments. Only approximately 30% of victims’ funds remain due to (1.) initial (or “early”) 12 Daily Pro “investors” withdrawing their profits through the ponzi scheme money pool, and (2.) the excessive legal fees during the 3 year process.

One nightmare might be wearing off, but the internet is still flooded with Autosurfs that essentially utilize the exact same ponzi scheme elements as 12 Daily Pro. Some popular examples of similar, long-term Autosurfs include Bob Krimm’s Tri Star Media of 2006 and Andy Bowdoin’s Ad Cash Generator (ASD) of 2008. In fact, Andy Bowdoin of ASD is currently facing the same charges and undergoing the same legal process that Charis Johnson met in early 2005. Just like 12 Daily Pro, many ASD victims are standing by for refunds, but will unfortunately soon realize that (1.) the legal process will take 2-4 years and (2.) only a fraction of assets involved in the ponzi scheme can be recovered in the end.

Let us not forget the eye-opening, dreadful truths about the “Autosurf” concept. It can NOT work from any realistic financial perspective; it is mathematically impossible, just like all ponzi scheme elements. Do not fall prey to the next “12 Daily Pro,” or you will learn a painful lesson in reality vs. greedy ambitions.

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- Mr. Ryz

www.PonziSchemeAlert.com

Ponzi schemes masked as HYIPs come in all shapes and sizes, and you’ll find the exact same is true for the marketing themes behind each program. However, I recently received a notification about a so-called “private HYIP” called “Cash Tanker” that really makes me wonder if some of the greedy charlatans behind these schemes have even a shred of dignity left. After investigating the Cash Tanker scam, I really have to ask “Is there anything they WON’T do?”

I know – that might sound harsh, but as we dig a little deeper, you’ll begin to understand where I’m coming from.

Cash Tanker is supposedly operated by a bank administrative specialist known only as Sam Serino. The investment plans offered under this supposed “elite community” aren’t too different from standard plans you’d find with any typical low rate, long-term HYIP. Investors who place between $5 and $1000 with Sam Serino’s Cash Tanker receive 2% daily, while those with a little more cash at hand – between $1001 and $50,000 – can earn 3% daily.

So, what’s all that different about this HYIP resembling a ponzi scheme model when compared to all the other garbage found across the HYIP / Autosurf industry? This particular program specifically markets its “investment opportunity” to Christians, and uses the innocence of Jesus Christ as its key symbolism.

Now, I will certainly state for the records that I am myself am a follower of the Christian faith and truly believe in the Gospel of Jesus Christ as the Savior of the world. While I certainly realize that some people reading this may not share my beliefs, I would expect that most (if not all) people would agree that any acts of perverting a religion’s white symbol of love and peace for the sake of manipulating others and capitalizing on their ignorance and greed is nothing less than a unconscionably low blow and depraved act.

Here is just one example:

And why exactly am I of the strong opinion that Sam Serino of Cash Tanker is running nothing more than an illegal ponzi scheme?

Well, let’s look at the facts, as presented on his Cash Tanker website:

#1. The overall website script is blaring ponzi scheme alarms like a complete madhouse. There is absolutely no specific explanation as to how profits are achieved through investment activity. No proof of legal registration or investment qualification is available. The main Cash Tanker website does include a mission statement, but overall but it presents nothing more than an emotional hook to attempt to win over skeptical prospects.

#2. The returns offered are absolutely ridiculous. 2 to 3 percent a day, which results in 60 – 90% in one month? What market – I don’t care which one you want to look at, stocks, forex, real estate – can guarantee you a 60% ROI every single month? NONE! Some of the most wealthy, knowledgeable traders that produce billions of dollars in profit per month don’t even tackle a mere 5% a month! Is any reasonable individual really supposed to believe that this mystery Sam Serino discovered some magical trading secrets of “massive wealth” unparaled by any other trading methodologies? Oh, and in the process he’s wasting time collecting a few bucks here and there from random people as opposed to seeking out major, qualified investors? All for the sake of helping out “fellow Christians?” That’s some high-stacked pile of BS, if you ask me.

#3. Where is this extra 5% bonus for referrals coming from? Is Sam just being generous and taking this out of his own pockets to reward his promoters? Or are we now supposed to believe that the 90% ROI you generate by the month is now 95% or more?

After stating all this, can I claim that I am 100% sure – beyond a shadow of a doubt – that this is a blatant ponzi scheme model created by a reckless crook? Generally, 99.99% of HYIPs are ponzi schemes, yet there are always the lucky 0.01% that somehow do manage to pull off an impressive, legitimate investment program.

However, if you want to compare the 3 points I listed above about Cash Tanker to legitimate high yield investment programs, I think you’ll be able to quickly read the writing on the wall and determine that Sam Serino’s platform does NOT even come close to matching up with those 0.01% wonder-programs. Sam Serino is running a scam; plain and simple.

I must say it is truly unfortunate (yet not entirely surprising) to see that some con artists set no ethical boundaries whatsoever. They play off as kind-hearted people trying to help victims of past scams and convince them to throw even more money away at another ponzi scheme. Now they use banners and images of Jesus Christ to promote their greedy filth.

Even more unfortunate is the grim reality that Sam Serino’s Cash Tanker is only one particle of the massive trash bag known as the “HYIP / Autosurf industry.” What vile creation will we see next?

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- Mr. Ryz

www.PonziSchemeAlert.com

Many ASD Cash Generator members thought Andy Bowdoin was going to get off easily and return to pay everyone. They didn’t see the real picture.

When you have a million people purchasing overpriced advertising for the sole purpose of earning returns off future participants, you’ve got a scam on your hands.

Andy Bowdoin’s team of “experts” ( HA HA HA ) may have fidgeted around with legal terms as much as possible, but the truth stands out.

Just look up the definition and practical use of a “REBATE.” It’s a return or discount from one’s own purchases.

It has nothing to do with a continuous trickle or percentage base from future community sales.

That would be considered a ROI, return on investment, or profit sharing. The Andy team can argue the rebate point, but it is what it is and the court recognized that.

A legit business requires the sale of services to consumers. It cannot be 100% composed of investors all with the primary interest of profiting from sales.

Otherwise the company just continues to gain more investors and more investors and more and more and more…

Then the business reaches a critical point of saturation, the monthly rates of new members initializing their purchase of ads begin to decrease and all members stop making money.

It’s a gradual process. Sooner or later less and less new people start purchasing ads, causing the “rebate” amounts to decrease.

The chain effect is that with rebates halting or being decreased to minimal amounts, even the earliest members stop buying ads.

And when no more people buy ads, no one makes any money. And since the vast majority of ASD Cash Generator members only bought these ads for the “rebate” potential, they will feel cheated and mislead. In their eyes, they will have lost money.

And when there is no money to be earned, people stop viewing ads. The service itself cannot even exist without new member’s purchases.

The model may be using different words, but this is really no different than an investment scheme.

Very few ASD members even bothered to examine the math behind this program. They simply trusted the mangled terms Andy’s team created. They were incapable of putting the pieces of the puzzle together because they couldn’t set their feelings aside.

Sure, some people can make a lot of money with this model. But it will only consist of those early birds and will leave far more people with less money who purchased a personally useless or unneeded service for the right to earn profits.

I’m not going to hold too much ill will toward Andy because I don’t even know if he fully knew what he created. To him it may have seemed like a good model, but even if he didn’t realize what he was doing, ignorance is not a fair excuse if you’re dealing with millions of dollars.

When you look at the long term effects, you can’t lure in a few hundred thousand investors and justify it by calling their action “purchases.” It won’t change the future problems of saturation.

I give him props for improving the Autosurf model but this goes to prove that you can’t perfect such a model. In long term view, it just cannot work. The world is only composed of so many people.

An Autosurf is and always will be an elaborate ponzi scheme, no matter which way you slice it.

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Original Post Written by: Delkin
Arranged and Edited by: Mr. Ryz

Backstory:

I originally posted an article warning all ASD Cash Generator members about the program’s true nature about 3 days before the Feds raided Bowdoin’s office and seized his assets.

Many people responded to this post even after the true ponzi scheme model was exposed.  Some former ASD members continued to ignore the ponzi scheme elements of the program and defended Andy Bowdoin’s model as a legal business paying rebates.  One of the contenders to this argument, Delkin, clearly pointed out how Andy’s “rebates” were nothing more than money laundering through deceptive terminology.

Apparently, not all former ASD members understood the truth.  Even a year later, some people are defending ASD with the same ridiculous “rebate” points.  Therefore, I thought it would be helpful to post one of the better explanations that was originally posted on my previous blog.

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- Mr. Ryz

www.PonziSchemeAlert.com

Just 10 minutes of reviewing the “business” made me feel as if I was staring at a reformed version of another infamous program in Autosurf history: Charis Johnson’s 12 Daily Pro scam. The red flags sticking out of ASD seemed obvious. Yet, thousands of people had their head in the clouds only because they were being paid repeated high returns for the simple act of viewing website ads.

The popular opinion that Bowdoin was a “Saint” quickly changed after the State of Florida and United States Attorney General took a closer look at ASD related activites and then soon revealed that Andy Bowdoin’s “internet advertising business” was nothing more than a masquerade for an illegal ponzi scheme model.

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When you see these kinds of situations with major, sophisticated ponzi schemes and realize just how many people get hurt in the process, you hope that at least some people learn an important life-long lesson about responsible investing and research.  Unfortunately, it appears that many people did not learn anything at all.  Many of them held on to their “get rich quick” emotions and refused to come back to reality.

Even after the Courts and various Autosurf related blogs and websites warned about the ponzi scheme element – AND even after Judge Collyer ruled that Andy Bowdoin’s ASD Cash Generator was not a legal business and therefore operated as an illegal ponzi scheme – former members flocked to the new birth of the same treachous program: The Ad View Global Association or AVGA, also abbreviated as simply AVG.

AV Global Association was founded by a group of participants from the Andy Bowdoin / ASD ring.  Supporters of AVG often posted that it’s claim to fame was the fact that it was Andy Bowdoin’s same “genius” business concept registered offshore, and therefore, protected from the “evil U.S. government trying to ruin everyone’s fun.”  Those claims may have had even a small ounce of merit, if it weren’t for the fact that Bowdoin’s so-called “revolutionary business” with ASD Cash Generator revolved around a money pot that required a consistent increase in investments and/or members to function in the long run.

I would have hoped that the majority of people would have been able to put this basic, logical concept together- “If ASD Cash Generator’s business model was ruled an illegal ponzi scheme, and Ad View Global (AVG) essentially uses the same model, Ad View Global is also a ponzi scheme!”  Putting it in even more simple terms- “If ASD Cash Generator was a scam, then Ad View Global is a scam.”  Fairly simple, right?  Apparently, hundreds (if not thousands) of people failed to understand this.  So, before we dive into further discussion about Ad View Global (AVG)…

Let’s do a quick 30 second re-cap on WHY Bowdoin’s ASD was a ponzi scheme:

ASD Cash Generator members upgraded (or “invested”) their accounts by purchasing “advertising packages.”  This specific dollar amount of advertising packages would eventually yield a 25% ROI.  Substantial referral rewards were also offered.

The ASD business model did not have the means to earn enough outside revenue to continually pay out this high ROI and referral bonuses.  In other words, ASD was using new upgrades (or “investments”) to pay former “25% ROI” obligations and all referral incentives.

Since the ASD model relied on an exponential growth effect to continue to pay these high rewards and the world contains a limited number of people, eventually growth rates would diminish. The money pot would eventually run dry, and many people would be left with a loss. This is the very definition of a ponzi scheme.

I won’t even bother explaining the securities regulations ASD violated when it decided to construct a model based on offering these ridiculous returns.  I don’t need to.  The ponzi scheme element alone makes this model illegal and dangerous.

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Now let’s go back to Ad View Global, shall we?

The main argument for predicted long-term success I’m seeing from former, die-hard ASD supporters is:  “AVG is located offshore, and this time we will be safe.”

Oh really?  Well, before you go about believing something so absurd, you should know 2 interesting facts about ponzi schemes…(1.) They are illegal in all countries, and (2.) even if the program does play out for a considerable amount of time, eventually the money pot will still dry up and most people will LOSE money.

Members of the Ad View Global scam aren’t protected simply because business registration took place across the oceans.  A ponzi scheme is a ponzi scheme, no matter how you slice it.  People get hurt in these scams either way- If the government doesn’t step in and eventually refund small portions to victims, the pool of investor contributions will die off and the “business” will collapse on itself.

Unfortunately, once again, it looks like many former ASD Cash Generator members are going to be faced with the same hard lesson they refused to learn the first time around.  As of 2009, many AVG members were already irritated with money transfer problems.  However, during late June, Ad View Global lifted up the “grand daddy” red flag pointing to a desperate ponzi scheme on the verge of death.  AVG suspended payments to its members, only to back up their action with the excuse that rebates (i.e. “returns”) were never officially guaranteed.

In early July, AVG quickly followed up by announcing a restructured payment plan that greatly disadvantaged current members and may even prevent members from receiving their rebates altogether.  The Ad View Global forum activity grew out of control, and it was repeatedly opened and closed for member viewing.  Some angry members demanding explanations for AVG’s unfavorable changes posted their concerns in the forums only to find them erased soon after.

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Clearly, AVG is in panic mode, and the signs don’t point to a pretty sight.  For some, the “get rich quick” dream is about to crash and burn for the second time.  Let’s hope the lessons to be learned from the Ad View Global scam aren’t so carelessly discarded this time around.

ASD Cash Generator already caused enough problems; it’s a shame history had to repeat itself so quickly.

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- Mr. Ryz

www.PonziSchemeAlert.com