THE JOY LUCK CLUB

Summary - ASD Members Business Association Call 9-3-08

 
Mike, with The Friedman Law Offices gave an initial comprehensive
run down of what's happening with the lawsuit as of the last
conference call -  which was last week.
 
August 29th - last Friday, there were two motions filed and a reply
filed. Here are some of the highlights:
 
* First motion - Emergency motion for release of property pending
    forfeiture and for evidentiary hearing. Filed by Clarence Busby Jr
    and Golden Panda Ad Builder. They were seeking release of seized
    funds that are in five different accounts in the BOA. They assert that
    the funds held in those accounts, but do not identify 'how much' in
    funds they are talking about, is not affiliated in anyway with ASD.
    That the two companies are independently owned, operated and
    controlled. They assert that no funds from ASD or Andy Bowdoin,
    were ever deposited in those accounts. Andy Bowdoin declared
    publicly, weeks before the seizure, his non-affiliation with Golden
    Panda. They contend that all funds used for the operation of the
    business came from Clarence Busby Jr. and the 34 founders. None
    of who were Andy Bowdoin, or ASD. They also assert they do not
    run an illegal ponzi scheme as the government alleges.
 
*Second Motion - Also filed by Clarence Busby Jr and Golden Panda
    was a motion for severance and transfer. In that they are requesting
    severance from the governments case against ASD, so there can be
    two different law suits. That there are two independently operated and
    owned Companies. They requested it be transferred to the Northern
    District of Georgia, a venue where Golden Panda's principles and
    assets are residence.
 
*Third Motion Filed - Claimants Reply to opposition for return of seized
    funds and request for motion to dismiss and evidentiary hearing.
    That ASD did in fact comply with procedural requirements before filing
    an Emergency motion. Also, that if they are to survive as a business than
    they need the funds released. They are not seeking unfettered release 
    of the funds, but rather are seeking a compromise that will allow ASD to
    continue doing business during litigation with oversight of a court appointed
    monitor. This assures that the seized funds are being properly used.
    The computers are critical, as they are an Internet Business, and so they
    request them back to operate. They also request a guarantee that the
    funds that would be brought back from the account in Antigua would not
    be seized. ASD Asserts that the affidavit and complaint were put together
    on pure conjecture and lacks any validation or substance. ASD also
    contends that the nature of HOW the complaint was signed by the Secret
    Service agent, by adding a qualifier, instead of "Under penalty of perjury
    what is stated is true and correct",..instead it says "To the best of his
    knowledge and belief",...makes it inappropriate verification to file the
    initial complaint.
 
Those are the three pleadings that were filed as of August 29th, and as of this
afternoon there are no other motions filed.
 
Q - What is the deal with the Grand Jury Subpoena?
A - This was entered by the US Attorney issued to ASD, which is a request
    for documents, or to produce documents that it has in its possession. It's
    issued for the grand jury as part of an official criminal investigation if a
    suspected felony.
 
Q - Can you give a brief overview of the status of appearance in our case
    against the government and what is your best guess as to when we will
    be able to file our notice for Appearance?
A - The local rules for the United States District Court is that 'local counsel' be
    retained, in other words, attorneys that are already admitted and practicing
    before that particular court. Lead counsel, Friedman, would remain lead counsel
    but they are required on behalf of the trust to retain local counsel. They are in
    the process of interviewing several Law firms in the area. We are looking at one
    firm in particular and if we retain them we could be filing something as early
    as Friday or early next week.
 
Q - In simple terms, going back to the motions filed by Golden Panda, what are
    they trying to accomplish and what are they trying to establish by filing.
A - They are trying to separate themselves from ADS, they are asserting that at
    least 5 accounts that were seized are their funds, and they have no affiliation
    with ASD and are not associated with them. They are trying to do it because they
    believe that the false connection is not to their best interest.
 
Q - Since Andy didn't say anything about the Subpoena on the call the other
    night, a lot of people are asking if it is real, is it a factual document?
A - Yes,..it is definitely a real subpoena, issued to testify before a Grand Jury in a
    criminal investigation.
 
Q - What is the purpose of the Subpoena, and would could be the outcome
   after the grand jury hears the evidence?
A - I don't know what the grand jury is even investigating, this is the first inkling that
    we even got that there was a grand jury convened. The subpoena is seeking to
    secure is documents in ASD's possession...and there is a list of items on it.
    The US Attorney is requesting these documents be produced and the custodian of
    the documents to fill out the paperwork. And that the documents are current and
    correct.
 
Q - A lot of people think the two things kind of run hand in hand, but in the
    real world these two things, the Civil Case against ASD and the Grand Jury
    Case are two totally different things, correct?
A - They are two separate things, there is a Civil Lawsuit filed by the department of
    justice and the US Attorney, and there is a Criminal Investigation that appears
    to be related, but it is a separate thing all together. It is a Criminal proceeding as
    opposed to a Civil proceeding. And they have two different penalties associated
    with them.
 
That wrapped up the call with the Attorney and the floor was opened to anyone
who had questions. The call was recorded, there was a lot of information
shared,  make sure you plug into it.