Victims of an Internet-based Ponzi scheme have filed a lawsuit against Bank of America and the organizers of the scheme in the United States District Court for the District of Columbia.
Using elaborate misrepresentations, including numerous video postings on YouTube, organizers induced victims from around the country to purchase so-called “ad packages” from the following entities: AdSurfDaily, AdSurfDaily Cash Generator, Golden Panda Ad Builder, and La Fuente Dinero. The scheme promised that participants could earn large rebates for viewing web advertisements and commissions for referring additional participants.
Hundreds of millions of dollars were collected from approximately 140,000 victims across the country, in amounts ranging from $500 to $250,000 at large rallies and through online deposits…
At least one other financial institution closed the accounts of the organizers for suspicious activity, according to a sworn government complaint. VISA also considered the enterprise suspicious and would not process charges directed to the scheme by would be victims. And the very popular PayPal payment system rejected efforts by participants to purchase “ad packages” using their system.
Beginning in November of 2006, Bank of America allegedly allowed the scheme’s main perpetrator carte blanche at the bank. The complaint claims the scammers opened and maintained at least 10 separate accounts for running an unlawful Ponzi scheme. These accounts were opened at a tiny Bank of America branch in Quincy, Florida under various “doing business as” designations.
The suit claims Bank of America looked the other way when these accounts amassed deposits in the tens of millions of dollars from thousands of individual transactions.
There is an established range of regulations requiring oversight from bankers over activities like these. Most require reporting suspicious activity to the Feds. Surely looks like someone in the food chain at BofA was looking the other way. Deliberately.