International Law

Ad Surf Daily Not a Ponzi Scheme - Legal Expert Says So

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So is Ad Surf Daily a Ponzi scheme? Well, the Gerald Nehra, the MLM lawyer says no.

In his affidavit, in support of the Ad Surf Daily's motion for relief, Nehra claims that Ad Surf Daily is not a Ponzi scheme.

Nehra has submitted an affidavit tendering himself as an "expert witness" for Ad Surf Daily.

In his short affidavit, Nehra claims that Ad Surf Daily is not a ponzi scheme for three reasons.

1.  First, nobody was promised a "return on investment".

2.  Second, there is a product or service underlying Ad Surf Daily which sufficient to "sustain the promised payouts."  [His exact words in quotes.]

3.  Third, new participants are not needed to keep Ad Surf Daily afloat.

I pause to note the incongruity between 1 and 2; promised payouts are not a return on investment because the service contract language doesn't speak about returns, but rebates.

Uh, don't think this is going to work.

What is going to be at issue is whether people who bought into the Ad Surf Daily program actually a) had internet affiliate sites, and b) saw real increased traffic to their websites as the result of purchasing the advertising program.

It is note worthy that in the testimonials, over 1000 emails, in support of the Ad Surf Daily program, not one of the believers has put into affidavit form that fact that they saw increased traffic - pretty easy to do check.

The US Government was supposed to file a response to the emergency motion, but as of the time of writing this article, no such response was available through Pacer.

Full post as published by Misleading Advertising Law on August 25, 2008 (boomark / email).