12DailyPro update: StormPay to settle $11.7 million
April 5, 2008
Thomas Lennon, Court-appointed Receiver for the 12DailyPro (12DP) autosurf investment program, recently announced that the 12DP receivership estate will receive as much as $11,750,000 from the online payment processor StormPay.
This is in accordance with the Settlement Agreement signed by both parties which also provides that StormPay’s claims against 12DP in excess of $16 million will be waived.
Lennon believes the Settlement Agreement is a better option that pursuing a case against StormPay because it can further delay the distributions of funds back to investors and litigation costs alone could exceed $750,000.
Investor refund coming soon
The $11.7 million funds from the settlement will be added to the more than $5 million funds currently held by the estate. After receivership fees and expenses have been deducted, the remaining balance will be distributed pro-rata to investors who lost in the 12DP program.
Read the article How to file a 12DailyPro refund claim to know if you are eligible for a refund.
Background on the 12DailyPro scam
12DP was an autosurf program that promised investors 12% return on their invested funds every day for twelve days. As an autosurf program, members were to run a program on their computer that would automatically view certain websites and thereby purportedly generate advertising revenue.
In early 2006, 12DP had approximately 175,000 investors with aggregate account balances of between $50 and $60 million. The majority of 12DP investors were using StormPay to process payments at that time.
In February that year, StormPay withheld several millions of dollars worth of 12DP funds making the program unable to pay maturing investments. The delay in payments caused massive investor panic with a majority of investors requesting a chargeback from their credit card issuer.
In March, the Court stepped in and appointed a Receiver who secured the premises of 12DP, made arrangements to enforce the injunction and asset freeze, and began the investigation.
Learn more about 12DailyPro
Read the story behind the scam: Overview of an autosurf investment program turned scam
Find out the overwhelming stats related to this investment program: $500 million scammed by 12DP from 175,000 people
Discuss this scam in the 12DailyPro board of the PMT Forum.
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