Auto Surf Programs Put on Notice After 12 Daily Pro Debacle

The federal regulators that took away control of 12 Daily Pro from it's administrator, Charis Johnson, have a warning for all autosurf programs now advertising on the net.

Randall Lee, the regional director of the Securities and Exchange Commission and a former U.S. attorney says, "One of our hopes is that as a result of this case ... it will send a message to owners of autosurf programs out there. If you cross the line and operate a fraudulent business, we will prosecute you."

On Wednesday, a federal judge in Los Angeles signed an order turning over 12 Daily Pro -- all of it's records and assets -- to a receiver. That order was signed by attorneys for both the SEC and Charis Johnson. Lee says Johnson admitted that 95% of the money paid out came from new investors. He says, "There were no outside investments, no business... it was a nearly pure Ponzi."

Lee also had a word of advice for people looking around for big money -- fast and easy. "It's critical that we help people understand how to make smart investments." He says incredible returns on investment for little or no work is a recipe for financial disaster.

Even though a court-appointed receiver is now taking control of 12 Daily Pro and some $50,000,000 has been preserved , those experienced with these types of investigations say 12 Daily Pro investors will likely get back very little.
"Hundreds of thousands of investors. Millions of Dollars," says Jake Given, a forensic accountant who now works for Price Waterhouse Coopers. "Most likely they're not going to get much money back. The average is only a few cents on the dollar." What's more, there's very little those investors can do but wait.

Lee says the receiver will be "reaching out" to those who have lost money. He advises people to watch for updates on both the www.sec.gov web site, as well as the 12 Daily Pro web site. He expects the receiver will eventually post updates for investors on those sites.

For those wishing to file a complaint in the on-going criminal investigation being conducted by the FBI, you can do so at www.ic3.gov.

Story by: Brent Hunsaker
brent@abc4.tv