12DailyPro, a website that paid people to click, is being nailed by the SEC. Allegedly a Ponzi scheme.
“Started last spring, 12DailyPro promised “members” that they could earn 44% returns on their money in just 12 days simply by viewing Web advertisements. Thousands of people from all over the world put up membership fees of as much as $6,000 every dozen days. For a while, some got the profits promised. But early this month, 12DailyPro essentially shut down after its primary online-payment processor, StormPay Inc., froze the company’s funds, saying it had been alerted that 12DailyPro may have been conducting a fraud.”
WSJ story (may require subscription, I’m looking for a better link)
A curious side story: Remember Barry Minkow, who started the ZZZZ Best Co carpet cleaning company that was subsequently busted as a massive fraud? It was was a classic story of 80’s greed. Barry served some hard-core time in prison and subsequently wrote a couple of self-redemption books, including one entitled Cleansweep. (I only know this as I was given the book as a gag gift years ago because I launched a product by that name at Quarterdeck.)
Well, Barry helped bust this site:
“A key figure in the shutdown of 12DailyPro was Barry Minkow, a former carpet-cleaning executive who was convicted of securities fraud in the 1980s before he turned to helping regulators and investigators detect other frauds.”
Good for him.
(Hat tip to Richard)