Saturday, February 25, 2006

Cease & Desist Order Issued Against 12DailyPro

ABC4 is reporting that authorities in North Carolina and the SEC have issued a cease and desist order against 12DailyPro to stop it from selling unlicensed securities. This action comes a little too late for most, since 12DailyPro has already stopped opening new accounts and allowing people to upgrade since the debacle with StormPay. From ABC4's article:

"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."
Although no information has been posted on the NC Attorney General or SEC's website (it should be posted Monday), Charis Johnson, the operator of 12DailyPro has responded with the following statement:

Please be aware that Monday, 12dp will release a statement regarding a compromise that has been reached between 12dp with authorities that will lead to the resolution of this matter and the beginngings of an accounting and refund process.

You may hear news this weekend regarding a legal pleading that contains much misleading information provided to authorieties primarily by StormPay. Our attorneys have already proven to the authorities the most outstanding allegation made to be false, which likely will not be reported on the news. One issue to be cleared up is the fact that StormPay does not have an option for creating merchant accounts and linked merchant bank accounts. If any business signs up for a StormPay account, they have to use someone's individual name and StormPay insists that any bank account added must match that same individual name.

But a full statement addressing such issues will be made to that affect early next week.

Thank you for your patience and we are glad that we have been able to take steps that will help bring this ordeal to a close soon.
So what happens next will be anyones guess. Obviously 12DailyPro doesn't need to take any further action to comply with the C&D order, unless there are more specifics in them that haven't been published yet. We will have to wait and see if there are going to be refunds for the many customers of 12DP who invested in the service, as well as for those who lost money due to the canceled GPT convention that was canceled.

New Action by State and Federal Regulators Against 12 Daily Pro

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