U.S. regulators last week charged the owner of 12dailypro.com and her two companies with fraud for running a $50 million Ponzi scheme, according to a statement released on Monday.
The U.S. Securities and Exchange Commission alleged that Charis Johnson, 33, raised more than $50 million from more than 300,000 investors by convincing visitors to the Web site that they could earn a 44 percent return on their investments in 12 days by looking at Internet advertisements.
The scheme, which the SEC calls “paid auto-surf,” required users to buy $6 “units” — up to a maximum of 1,000 units — and to view advertisements from what were described as paying advertisers.
While investors were led to believe that their returns would be generated by advertising revenue, payments were made almost entirely from cash generated by other unit buyers in a classic Ponzi scheme, the SEC alleged.
For those that don’t know what Ponzi is..
A Ponzi scheme is a fraudulent investment operation that involves paying abnormally high returns (“profits”) to investors out of the money paid in by subsequent investors, rather than from net revenues generated by any real business. In fact, a Ponzi scheme must have abnormally high short-term returns in order to entice new investors. The high returns that a Ponzi scheme advertises (and pays) require an ever-increasing flow of money from investors in order to keep the scheme going.
Like 12DP, it has no business model, the returns you get are just other peoples money that joined the scheme, eventually it will collapse and your money will disappear.
Some people would actually say the Malaysian EPF is just a giant Ponzi scheme, much like the UK and US social security systems.
The SEC also released a general warning on paid auto-surf schemes on Monday HERE.
12dailypro.com was the 352nd most highly visited site on the Internet, according to the SEC.
Gives me indeed the 346th most popular site on the Internerd..OMG how many gullible people are there online.
Please note, investing in a Ponzi scheme is also ILLEGAL.
I remember trying a couple of these get paid to surf things about 8 years ago, they were shite then too, I never got paid (Was in with Spedia and AllAdvantage).
Alladvantage was the pioneer for the whole thing. You can read more HERE.
12Daily Pro has been growing at over 10k members each day, and is now standing at over 300k members.