WiredSurf 's Answer Regarding Its Program

Here is the post from WiredSurf's Forum:

We received a rather good question through the help desk today, and I thought that perhaps we should share this with our entire community.

Question:

I am sure you are all aware of 12dp and the allegations they are facing from the FBI etc. It has been said that the FBI are clamping down on all the auto-surfs and that it is a matter of days/weeks before everyone is shut down. 12dp's business model was similar to Wired Surf's - and they have charged Charis with securities fraud and frozen $50mill of funds.

What I want to know is do you think you will be affected by this? How safe is it buy membership's right now, and if you are approached by the Feds how will you convince them of you are legit.

Please let me know your thoughts. I look forward to your reply.

Answer:

Our business model isn't anything like that of 12DailyPro.com. We focus on additional products and services outside of the auto surf program itself, and this will separate ourselves and our company from both being called a ponzi scheme, and from actually being one.

Our newest product launch will be our upcoming debit card program that will clearly define how Wired Surf and its network partners plan to create multiple sources of income through established and lucrative offers that genuinely will be utilized by members, and not simply websites or products deployed to simply produce the image that we are larger than we actually are.

We work each day with the pure intention of revolutionizing this industry because it is clearly the time to do so. Regulations set by the SEC will be followed by our network, whatever those regulations may be, but we will be one of the few programs that are not forced to scatter attempting to formulate a legal advertising company that is remodeling itself to fit any particular guidelines, because we are already set up that way.

There is usually a very vivid difference between auto surfs today. Those that appear to be larger than life itself and produce little productivity and far too much hype, and then there are those that are sloppy, disassociated amateur websites that put no real effort into their program, and no real commitment to ensuring the longevity of their opportunity.

With Wired Surf, and with any other website within our network, we will maximize the chances of success because we only focus on producing quality products and services that have been pre-determined to be in demand.

A company like ours or any other that focuses on outside revenue streams are not a ponzi or pyramid structure. The SEC seemed concerned that 12DailyPro was unable to generate outside revenue other than a minimal 5%. With Wired Surf, our debit card program alone will generate a large percentage of our overall revenue, and with additional companies being launched that will include a payment processor, large scale web hosting company and other projects underway, we have no real concern that Wired Surf will be considered anything but reputable and solid.

Thank you for your question, it was a very good one
__________________
Sincerely,

Cameron

DadnDave is back to surf again

DadnDave is back again now. If you are the former member of the auto-surf program, do not forget to surf today. You can surf and earn starting March 1.

US Government Press Release in regard to 12DailyPro

US Government Press Release in regard to 12DailyPro, see news:

SEC Halts “Paid Autosurf” Internet Ponzi Scheme that Raised Over $50 Million from 300,000 Investors Worldwide
FOR IMMEDIATE RELEASE
2006-26

Washington D.C., Feb.27, 2006 — The Securities and Exchange Commission today announced the filing of securities fraud charges against the operators of www.12dailypro.com, a “paid autosurf program” that in fact was a massive Ponzi scheme which raised more than $50 million from over 300,000 investors worldwide by offering a 44% return on investment in just 12 days. As a result of the SEC’s charges, the defendants, Charis Johnson, age 33, of Charlotte, N.C., and her companies, 12daily Pro and LifeClicks, LLC, ceased their solicitation of investors and agreed to a freeze of all their assets and the appointment of a receiver who will take control of the companies’ operations.

According to the Commission’s complaint, which was filed last week in federal district court in Los Angeles, Calif., www.12dailypro.com claimed to be a paid autosurf program — a form of online advertising program that purportedly generates advertising revenue by automatically rotating advertised websites into a viewer’s Internet browser. Advertisers purportedly pay “hosts,” which in turn pay their members to view the rotated websites. The Commission’s complaint alleges that 12daily Pro’s sale of membership units constituted the fraudulent and unregistered sale of securities under the federal securities laws. The Commission also today posted to its Web site an investor alert concerning autosurf programs. The alert can be viewed at www.sec.gov/investor/pubs/autosurf.htm.

Randall R. Lee, Regional Director of the Commission’s Pacific Regional Office, said, “Paid autosurf programs have become an enormous industry on the Internet. When these schemes depend on attracting new members in order to pay returns to current members, they are destined to collapse. The promise of guaranteed, double-digit returns in a matter of days should raise a red flag. We urge the public to be aware that paid memberships in these schemes may be a form of investment, and to exercise extreme caution before investing in any get rich quick scheme.”

According to the Commission’s complaint, the 12daily Pro website, recently ranked as the 352nd most heavily trafficked website, solicited investors to become “upgraded members” by buying “units” for a “fee” of $6 per unit, with a maximum of 1,000 units. 12daily Pro promised to pay each upgraded member 12% of his or her membership fee per day for 12 days. At the end of 12 days, the member purportedly would have earned a total of 144% of his or her original membership fee, 44% of which would be profit on the membership fee. To receive the promised payment, a member purportedly must view at least 12 web pages per day during the 12 day period. The amount of returns that 12daily Pro would pay its members, however, was in fact dependent solely on the amount of each member’s investment, not on the amount of website-viewing or any other services rendered.

The Commission alleges that the defendants defrauded investors by operating 12daily Pro as almost a pure Ponzi scheme — using new investor monies to pay the promised returns to existing investors — in violation of the federal securities laws. The defendants falsely represented that upgraded members’ earnings “are financed not only [by] incoming member fees, but also with multiple income streams including advertising, and off-site investments.” In fact, at least 95% of 12daily Pro’s revenues have come from new investments in the form of membership fees from new or existing members. The other “multiple income streams” from advertising revenues or off-site investments touted by the defendants were either negligible or non-existent. In addition, undisclosed to investors, Johnson transferred more than $1.9 million in investor funds to her personal bank account since mid-2005.

Johnson and her companies have consented to the entry of a court order that permanently enjoins them from future violations of the antifraud provisions of the federal securities laws, imposes a freeze on their assets, prohibits the destruction of documents, and appoints Thomas F. Lennon as permanent receiver over the assets of 12daily Pro and LifeClicks, LLC. The order is subject to approval by United States District Judge Nora M. Manella. Johnson and her companies consented to the order without admitting or denying the allegations in the complaint. The Commission’s complaint also seeks repayment of ill-gotten gains and civil money penalties; the amounts to be sought will be determined at a later date.

The Commission’s complaint alleges that the defendants violated the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and the securities registration provisions of Sections 5(a) and 5(c) of the Securities Act.

This matter was referred to the Commission in early February by several members of the public. Complaints and tips from the public are vital to the Commission’s mission to protect investors, and the Commission staff reviews each and every complaint it receives.

For further information contact:

Randall R. Lee
Regional Director
Pacific Regional Office
(323) 965-3807

Michele Wein Layne
Associate Regional Director
Pacific Regional Office
(323) 965-3850

Kelly Bowers
Assistant Regional Director
Pacific Regional Office
(323) 965-3924

http://www.sec.gov/news/press/2006-26.htm