12DailyPro Receiver recovers $6M funds, hints at going after investors who made profit

More than $6 million worth of funds previously held by the scam autosurf program 12DailyPro (12DP) have been recovered and although refunds are being planned, how and when this will be done are still not finalized.

This is the gist of the Second Interim Report filed by Thomas F. Lennon, Court-appointed Receiver of 12DailyPro, in June 2007.

More funds to be recovered

According to the report, a total of $6,230,797.19 are currently in the Receiver’s accounts as of March 31, 2007. More funds are expected to be retrieved from Stormpay and other payment and credit card processors, but the total will be reduced by investigation-related expenses incurred by the Receiver.

Refunds only for those who lost

The Receiver is also set to recommend to the Court that the total recovered funds be refunded only to those who suffered a net loss. These are investors who placed more money in the program compared to the total amount of profit and/or chargebacks that they got. As per the Receiver's report:

[A]llowed claims should be calculated by aggregating all monies invested with 12DP by a particular investor, and subtracting from that amount all funds received from 12DP, and all funds recovered by the investor by way of chargeback or EFT return.

Receiver to go after those who made profit?

In the same report, the Receiver hinted that he may continue the investigation “in an effort to identify and, to the extent possible, recover ill-gotten gains from investors, and other third parties.”

The Receiver noted that most of the investors who placed money in 12DailyPro were aware that 12DP was a Ponzi and “invested with the intent of maximizing their investment early in the scheme and withdrawing their funds before it collapsed.”

How exactly this will be pursued and whether the Receiver will actually pursue this remains to be seen. 

12DailyPro Background

An overview of the 12DailyPro autosurf program can be found here. According to the Receiver, 12DP had around 175,000 investors at the time the case was filed. Approximately 87,000 of those investors reside in the United States while the remainder are located outside the United States, with the largest group in Malaysia.  

Copies of the Receiver's reports and official updates on the 12DailyPro investigation can be found in the Receiver's website at www.tlennonfor12dailypro.com.

Discuss this autosurf program-turned-scam in the 12DailyPro Board in the PMT Forum.