ABC4 report on 25th Feb 2006

The noose is tightening around 12 Daily Pro. North Carolina has issued a cease and desist order against 12 Daily Pro. I wonder when the other autosurfs will get their day in the spotlight. Or perhaps they aren't as high profile to be newsworthy.

New Action by State and Federal Regulators Against 12DailyPro

12 Daily Pro now has a cease and desist order against it. The order was handed to an agent of 12 Daily Pro on Friday. A source familiar with the order says it calls for all involved with the internet auto-surf program to cease the sale of unregistered securities by unlicensed individuals. The order is apparently part of a joint investigation by the Secretary of State of North Carolina and the Federal Securities and Exchange Commission.

Details of the order will be made public on Monday, but based on information from the North Carolina Secretary of State’s office, it represents the beginning of an investigation, not the end. According to the state of North Carolina:

“A summary cease & desist order is issued by the Securities Division when it appears that ongoing activity violates the North Carolina Securities Act or the North Carolina Investment Advisers Act and poses the threat of irreparable harm to the investing public. The cease & desist order commands those who receive it to stop any further violations and to comply with the requirements of the securities laws.”

(source: http://www.secstate.state.nc.us/)

ABC 4 has been told that Charis Johnson, Administrator of 12 Daily Pro, has not yet had an opportunity to respond to the order or its allegations.

Deadline Passes in Utah

Also Friday, a deadline came and went in Utah. Today some of the people involved in the 12 Daily Pro debacle had been ordered by administrative subpoenas to appear at the Heber Wells Building for depositions. The Utah Division of Consumer Protection is seeking a comprehensive list of all 12 Daily Pro members in Utah. Although no one appeared, Francine Gianni of the Division says negotiations are underway. She says the list could be turned over by next week.

President Hinckley's Take on Get-Rich Schemes

One other note: Thursday night’s story looked at how 12 Daily Pro spread quickly in religious communities in both Utah and Georgia. A viewer who is also a former 12 Daily Pro member suggested that we look up what has been said on the subject by President Gordon B. Hinckley of the Church of Jesus Christ of Latter-day Saints. We found this quote taken from a talk given by President Hinckley in April of 2003:

“We warn our people against get-rich schemes and other entanglements which are nearly always designed to trap the gullible.”

Since Utah became infamous for financial fraud in the early 1980’s, LDS General Authorities have spoken out on various occasions about “too good to be true” investments. In some instances it has been compared to gambling, which is considered a sin by the Church.

Story by: Brent Hunsaker
brent@abc4.tv

Source: ABC4


There was another ABC4 report on 24th Feb that cited religion as a factor in the spread of the 12DailyPro phenomenon. The report go as far as to say that the zealousness of some 12DailyPro members were akin to being in a cult. An investment cult in this case. Ardent supporters that stick to their beliefs, inspite of a lack of evidence to support it.

So, does that make the religious gullible? :) Perhaps. Faith is a powerful thing. Getting people to believe in invisible beings is no easy task. I don't want to launch into a theological debate about this, so I won't.

I will say this though; people see what they want to see.

My Own Stormpay Horror Story

Well, I was expecting this to happen sooner or later. I finally got a Stormpay chargeback. You'll never guess for what...


Remember Profits4InvestingToo (P4I2)? It's a ponzi. At least, that's what people call it now. When it was paying out, it was 'THE best HYIP ever'. Well, my ONLY Stormpay payment received from P4I2, for a paltry sum of $5.71, was charged back to p4I2's account today. Of course, I only received $4.63 of that $5.71, because of Stormpay's exorbitant fees. But is that considered? No, it isn't. Now, my Stormpay account is in the negative ($-5.36) because I'd already spent most of my Stormpay funds before the HYIP & autosurf account freezings. They haven't charged the $35 chargeback fee yet, but I bet they will do, eventually.

Here's a screenshot of my Stormpay history (click for a larger image):



If you look at the history, I basically used Stormclix earnings to deposit with P4I2, and after a period of about 1 month, P4I2 paid me. Actually, I wasn't expecting any money from P4I2, since towards the end of January, P4I2 was having serious server and payment issues - code for 'no more money, goodbye, pffttttt'.

As I mentioned before, the chargeback doesn't consider the transaction fees (in the case of my small $5.71 payment, it's approx 19%!). Now, if Stormpay is doing this for everyone else involved with autosurfs and HYIPs, think of all the transaction fees and chargebacks involved. If and when this thing is resolved, no doubt Stormpay will charge the transaction fees again when redistributing the money. Let's say the average transaction fee is 5%. Now, count it both ways. That's 10%. Remember the claim that Stormpay had $50 million of 12DailyPro funds? Well, Stormpay just made a cool $5 million on paper from this little chargeback exercise, and that EXCLUDES the chargeback fees.

Now, I am SO glad I decided NOT to link a bank account or credit card to Stormpay. My Stormpay story is nothing compared to the many who put their money and trust in Stormpay. I really sympathise with those who have had thousands of dollars worth of chargebacks in the last month.

For more Stormpay horror stories, try stormpayfraud.blogspot.com, visit the forum at boycottstormpay.com.


In other news:

12DailyPro have cancelled their GPT Convention. Frankly speaking, I would have be surprised if it DID go ahead as scheduled.

Autosurfers are raving about WiredSurf, a new autosurf program. Transactions are done via e-gold or EMO. The site looks professionally done. Also, the more upgrades you purchase, the more ad credits you receive - the emphasis seems to be that you're actually paying for advertising, with an opportunity to earn by surfing 16 sites, 8% daily for 16 days. This works out to 128% return, so 28% profit in 16 days. That's 1.75% daily. Comparable to some HYIPs. Still, with all the problems going on, it's risky.


Now, if you'll excuse me, I've got a nasty email to write.

Auto-Surf-Money.com Payment Processor

The recent problems with Stormpay has created a vacuum for other payment processors to replace.

One of the more highly anticipated processors, Auto-surf-money.com, officially opened its doors on 15th Feb 2006. Alexa shows a web traffic reaching a peak of about 150 million hits somewhere around Feb 16-17, though this has since dropped significantly. Strangely enough, there is a review on Alexa, but it appears to be outdated - the domain was previously an autosurf.

The creators of auto-surf-money.com appear to be owners of 2 other autosurfs, recently merged into one, eprofitsurf.com and autosurf.biz. The idea of using an in-house payment processor is not a new concept. Studiotraffic.com, another autosurf program that has been operating for over 2 years, created their own processor, StudioPay.com. The stability of Studiotraffic has been under scrutiny for the last few months, but that is a separate issue.

These are the current fees for Auto-surf-money.com, as stated on their website 21/2/2006:

Open an account: FREE

Send Money: FREE

Receive Money: 2.0% plus $0.25 USD per transaction

Withdraw Funds
Check from Auto-Surf-Money = $8.00
Electronic Wire Transfer $35.00
Withdraw to Atm/Debit Card $3.50 (coming soon)

Deposit Funds
Fund by Credit Card = 3.5% +0.39 Per Transaction
Fund by Online E-Check = $ 2.00
Fund by Money Order = $2.00

The transaction fees are comparable to other payment processors, although withdrawal fees appear to be relatively high.

Although not listed, there is a funding option via e-gold, with a fee of 3.5% + $ 0.50.
Minimum deposit is $10.

You can also withdraw your money via e-gold, and strangely enough, via Paypal. The fee (for both) is 3 % + $0.39.

There is also an affiliate program. The current commission is 1% on a single level referral system - no doubt, the aim of this is to steer away from the stigma of the multi-level referral commission system (Stormpay being a famous example).

It is still uncertain whether the autosurf industry will embrace this new processor, although the initial response looks promising. At the moment, there appears to be over 9700 members signed up. Auto-surf-money.com is obviously aimed at the autosurf industry, but it has the potential to be so much more.

EarningAtHome Free Membership Upgrade

EarningAtHome.net is offering free membership upgrades until 500 members. Currently, there are about 300 members. To get the upgrade, you will need to register at the forum, reply in the thread 'Nest upgrade', and post your username.

What do you get with the membership upgrade?

• Free Referrals x1
• 1000 Banner Impressions Monthly
• 100 Contest PTC's Monthly
• 1/10 cent PTP email monthly

The free upgrade is valid for ONE year.

Sign up now!

ABC4 report on 17th Feb 2006

The latest ABC4 report echoed what many of us already suspected about Stormpay. They appear to be more dependent on 12DailyPro and other autosurfs than they have led on. Read on.

The FBI's Probe Into 12 Daily Pro and Storm Pay Heats Up; Utah Issues Subpoenas

The FBI in North Carolina is now leading the investigation of Charis Johnson and 12 Daily Pro.

The Special Agent in Charge is asking for information and victim stories. Reports can be submitted in two ways: 1) calling this toll free number 1-800-876-7060 or, 2) fill out a form on the Internet. The website is www.ic3.gov.

Agents have gotten a head start from the Charlotte Better Business Bureau. Tom Bartholomy, BBB President, has handed them his complaint files.

Then again, FBI agents may simply want to be at the Airport Embassy Suites in Charlotte next weekend. A reported 500 12 Daily Pro members are holding a 3-day convention there. Charis herself is expected to be the headliner. According to sources that have seen the itinerary, she promises to conduct a Question and Answer session. Despite the troubles of the past couple weeks, hotel managers confirmed the convention is still on.

Meanwhile, the BBB in Nashville, Tennessee rolled out a new report on Storm Pay, the online payment service that froze the 12 Daily Pro account, precipitating this mess. The report is not flattering, highlighting a history of unresolved complaints. With the consent of the people who submitted complaints, the BBB of Middle Tennessee has also shared its information with the FBI’s resident agent in Nashville.

One other thing: When ABC 4 talked with Storm Pay executives on Monday, they claimed that 12 Daily Pro was just a small portion of their overall business; 3 to 10 percent, they said. But a graphic from Alexa.com of web traffic for the two companies seems to indicate a different story. The tracks are almost identical. Both rise sharply through January, and then plummet in February. It would appear that Storm Pay’s fate is more closely tied to 12 Daily Pro than its executives care to admit.

Meanwhile back in Utah, the state division of consumer protection has issued four subpoenas, three to 12 daily pro, and one to Storm Pay. The state is asking all those subpoenaed to come to Salt Lake City, because the state now wants to get their testimony on the record.

The subpoenas began going out several days ago, and one was issued just Friday afternoon.

According to the state's top consumer watchdog, it's time to find out how many Utah "victims" are involved.

As to how many Utahns are involved in 12 Daily Pro and Storm Pay, Francine Giani, of Utah's Commerce Department suggested, "Hundreds? Hopefully not thousands, but it could be thousands easily, but we don't know that information. That's what we're hoping the subpoenas will uncover."

The subpoenas "command" the companies and individuals to appear in Utah for depositions. If they don't comply, the subpoenas warn they may be considered in contempt and referred to court.

These are tough measures, Giani admits, because according to the state, "It looks like a pyramid, its acting like a pyramid, its smelling like a pyramid scheme." Giani also added, "It's a corny thing, but if it sounds to good to be true it probably is. I think we need to think before we send in our money."

Giani says so far, there have been lots of phone calls but only one official complaint in Utah, She also added that if more people file paperwork with the state, that could help the two other states which now have official investigations underway.

The Utah State Division of Consumer Protection has also asked ABC 4 to remind Utahns of where to find its online complaint form.

Here is the link to that site:

www.consumerprotection.utah.gov


Story by: Brent Hunsaker and Chris Vanocur

Source: ABC4 (watch video)

The graphs in the video can be found on Alexa.
(Graph 12DailyPro.com)
(Graph Stormpay.com)

p.s. Try this with the other autosurfs that use Stormpay. The same correlation in web traffic can be found. The theory is, the higher the web traffic, the more transactions taking place.

Stormpay had an average of about 200m DAILY pageviews in January, before the fiasco. Now, the average appears to be about 50m daily pageviews. That is indeed a tremendous drop in traffic (and transactions). We can account for the drop in traffic partly due to the DDOS attacks and recent downtime, not to mention the public backlash and boycott of Stormpay by the GPT and autosurf community.

However, 3-10% seems like a pretty low figure, when we consider the graphs. But, let's assume Stormpay is telling the truth (LOL, I know, I know). If 12DailyPro represents 10% of their business, how about the autosurf (& HYIP) industry as a whole? 30%? 40%? 50%? More?

Whatever the case, the damage is done. Confidence in Stormpay is shattered. The online community have already switched to alternative payment processors.


Other sites of interest:
FBI (Charlotte) Press Release
Funny pic of Charis, as Charispatra
Psychology of Compliance: 12DailyPro Investigation