SEC Halts “Paid Autosurf” Internet Ponzi Scheme that Raised Over $50 Million from 300,000 Investors Worldwide

FOR IMMEDIATE RELEASE
2006-26
Washington D.C., Feb.27, 2006 — The Securities and Exchange Commission today announced the filing of securities fraud charges against the operators of www.12dailypro.com, a “paid autosurf program” that in fact was a massive Ponzi scheme which raised more than $50 million from over 300,000 investors worldwide by offering a 44% return on investment in just 12 days. As a result of the SEC’s charges, the defendants, Charis Johnson, age 33, of Charlotte, N.C., and her companies, 12daily Pro and LifeClicks, LLC, ceased their solicitation of investors and agreed to a freeze of all their assets and the appointment of a receiver who will take control of the companies’ operations.

According to the Commission’s complaint, which was filed last week in federal district court in Los Angeles, Calif., www.12dailypro.com claimed to be a paid autosurf program — a form of online advertising program that purportedly generates advertising revenue by automatically rotating advertised websites into a viewer’s Internet browser. Advertisers purportedly pay “hosts,” which in turn pay their members to view the rotated websites. The Commission’s complaint alleges that 12daily Pro’s sale of membership units constituted the fraudulent and unregistered sale of securities under the federal securities laws. The Commission also today posted to its Web site an investor alert concerning autosurf programs. The alert can be viewed at www.sec.gov/investor/pubs/autosurf.htm.

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LOS ANGELES (CN) – Charis Johnson, 33, of North Carolina, has raised more than $50 million from more than 300,000 investors an Internet Ponzi scheme, and has skimmed $1.9 million from it since the summer of 2005, the SEC claims in Federal Court. The agency claims that Johnson, of Charlotte, got the money through her Web-based businesses, LifeClicks and 12daily Pro.

CourthouseNews.com publishes a quick summary on the SEC’s investigation of 12DailyPro.

In addition, a cease and desist order has been issued to 12DailyPro by the Secretary of State of North Carolina and the Federal Securities and Exchange Commission. Read more about it here.

Looks like the beginning of the end of 12DailyPro’s lucrative career. Federal investigations are now underway, so the truth will be out soon. It is about time that we get the truth, instead of bouncing back and forth between Stormpay and 12Dailypro, not knowing who’s doing the lying and who’s telling the truth. I’ll keep you posted.

Check at MoneyAndProfit forums, a new message board at which I’m actively participating. It’s just gaining some ground, but the administrators have big plans for it. Come spread your knowledge, ask questions, or just read about the latest money-making programs.

Check out the hilarious auto-surf and HYIP-related merchandise you can buy at ThreadBlock.

My favorites:

even AlienTrust postage stamps!

saw this over at Autosurf & Investments Log

12DailyPro is making some progress on the Stormpay issue, as well as focusing its attention on other projects. It’s new site is scheduled to be live tomorrow afternoon, and I am very anxious to see what it’s going to be all about. They have also worked out their attorney situation and will seek legal action to get their money from Stormpay.

Here’s the full story…

I wanted to take this time to update you on our progress with the StormPay issue and few other items.

StormPay
I am sure you are all under stably anxious to hear updates on our progress toward recovering our funds. Today, we made significant progress with the attorney who will be representing us in this matter. He has outlined a strategy for attempting to get our funds released by StormPay by whatever means at our disposal. We hope for swift action in the matter and will keep you as informed as things unfold, to the extent that we can without compromising the case.

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A local news station in Utah, affiliated with ABC news, has recently published a misleading report on 12DailyPro, an high yield investment program. Using biased, unfounded information, this report has attempted to denigrate the program’s success by labeling it loosely as a “get rich quick” scam.

Instead of placing the blame of 12DailyPro’s recent problems on Stormpay’s blackmailing of internet programs and illegal actions, they post pictures of Charis Johnson, the operator of 12DailyPro, alleging that she is a fraud. Not only does this news report breach her privacy by putting a picture of her (which looks like its from her driver’s license), it also neglects to mention the months of 12DailyPro’s prosperity and success, as well as Charis’ dedication to her program.

Click here to watch the video (you may need to use Internet Explorer), or here to read the article.

In reaction to this new report, I personally sent an e-mail to Brent from this Utah ABC4 station, pointing out the problems and biases in his poorly researched report.