...The Securities and Exchange Commission (SEC) has filed fraud charges against the owner of an "autosurf" Web site, accusing Charis Johnson, 33, of operating a $50 million Ponzi scam from which she snagged some $2 million to fill her own coffers.

Filed in Los Angeles federal court, the suit alleges that Johnson, a resident of Charlotte, North Carolina, operated a Ponzi scheme via www.12dailypro.com. The scheme, according to the SEC complaint, netted Johnson a whopping $50 million from the more than 300,000 members who joined up since the middle of 2005.

"The defendants falsely represented that upgraded members earnings 'are financed not only [by] incoming member fees, but also with multiple income streams including advertising and off-site investments,'" the SEC alleges. "In fact, at least 95 percent of 12daily Pro's revenues have come from new investments in the form of membership fees from new or existing members."

The SEC has frozen $1.9 million that Johnson transferred to her personal bank account along with other 12daily Pro assets...

Read more of the article here.

-- MDT

Labels: ponzi scheme