12DailyPro is an online advertising firm that helpfully automatically rotates advertiser-sponsored websites in one's Internet browser. Advertisers pay money to 12DailyPro for brokering the eyes on ads. 12DailyPro then, in turn, pays the viewers a certain percentage commission to view the rotated websites." For web surfers who take 12DailyPro up on their product, the company promises an astounding 12% return on the daily contribution provided (I DID mention that there is a daily contribution required, right?).

Now despite the fact that this set-up sounds entirely like a ponzi scheme, 12DailyPro president, Charis Johnson, insists her company is nothing of the sort. The company homepage, however, does offer this word of warning about participating in 12DailyPro's pyramid scheme -STRIKE THAT - home business opportunity:

The Risks:

Just like any other type of contribution, participating in autosurf programs has its own risk. The autosurf industry today is full of scams. Many individuals have taken autosurfing as an opportunity to create modern pyramid schemes. They design their sites to look like professional autosurf companies, offer high interest rates (in return for high contributions), and run away with the members' money when the programs start to collapse.

12DailyPro has never missed a payment to anyone! Additionally every single member has been paid on time. See for yourself here. You can make up to $220 profit a day without ever having to recruit anyone, advertise, or sell anything. This paid Auto-Surf program is the real deal, and you will soon see this for yourself once you join.

A word of warning when contributing:

• Don't contribute money that you can't afford to lose
• Investigate before you contribute. Research the various programs.
• Diversify money into several autosurf programs in order to reduce your exposure to one program and reduce your risk

Sounds totally legit right? Right...? Well 12DailyPro's financial transaction processor, Stormpay doesn't think so and reported 12DailyPro to the FBI who is now investigating. Via Informationweek.com:

FBI Probes Site, Ponzi Scam Alleged

By Gregg Keizer
TechWeb News
February 17, 2006

The Federal Bureau of Investigation announced this week that it has begun an inquiry into 12dailypro.com, a so-called "auto-surfing" marketing company that's been accused of running a Ponzi scam...12dailypro is one of several "auto-surf" sites on the Web that promise large returns to members who agree to view their ads. More than two weeks ago, its payment processor, StormPay, suspended payments to 12dailypro members, claiming that the site was an illegal Ponzi scheme...

...12dailypro.com members, including the company's president, Charis Johnson, continued to rail against StormPay on message forums, at times taking a conspiratorial view of the Ponzi allegations. "The fact is that kind of media in this world are only pawns for a larger enemy, who will eventually lose his battle. Yesterday I lost sight of that," wrote Johnson Thursday. "I am under fire right now and my faith is being tested. I will continue to pray that I will not act as the world does and I will remember who's ultimately in control."

She was confident, however, that the FBI investigation would exonerate 12dailypro. "We have been completely up front with investigators and have answered all questions posed to us and cooperated fully," she wrote on Wednesday. "Let me assure you, had they deemed this to be a scam, I would not be chatting with you right now. I would be in custody."

For its part, StormPay is under investigation by Tennessee authorities who are conducting an audit of the 30,000 to 35,000 frozen 12dailypro accounts...

Read the full article here. And check out this (South African?) 12DailyPro page for details on how the company has responded publicly to the charges againse them. A snippet:

12dp Site Update - Feb 6 - by Charis - 12DP Admin at 2006-02-06 22:22:52

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.

More here. And an UPDATE. 12Daily cancels planned convention

And even more details on the conflagration from the "Fair Trade Authority."

-- MDT

Labels: ponzi scheme