New Action by State and Federal Regulators Against 12 Daily Pro by ABC4

Interesting news coming from ABC4 regarding 12DailyPro, video (required IE), here is the new:

12 Daily Pro now has a cease and desist order against it. The order was handed to an agent of 12 Daily Pro on Friday. A source familiar with the order says it calls for all involved with the internet auto-surf program to cease the sale of unregistered securities by unlicensed individuals. The order is apparently part of a joint investigation by the Secretary of State of North Carolina and the Federal Securities and Exchange Commission.

Details of the order will be made public on Monday, but based on information from the North Carolina Secretary of State’s office, it represents the beginning of an investigation, not the end. According to the state of North Carolina:

“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.”

(source: http://www.secstate.state.nc.us/)

ABC 4 has been told that Charis Johnson, Administrator of 12 Daily Pro, has not yet had an opportunity to respond to the order or its allegations.

Deadline Passes in Utah

Also Friday, a deadline came and went in Utah. Today some of the people involved in the 12 Daily Pro debacle had been ordered by administrative subpoenas to appear at the Heber Wells Building for depositions. The Utah Division of Consumer Protection is seeking a comprehensive list of all 12 Daily Pro members in Utah. Although no one appeared, Francine Gianni of the Division says negotiations are underway. She says the list could be turned over by next week.

President Hinckley's Take on Get-Rich Schemes

One other note: Thursday night’s story looked at how 12 Daily Pro spread quickly in religious communities in both Utah and Georgia. A viewer who is also a former 12 Daily Pro member suggested that we look up what has been said on the subject by President Gordon B. Hinckley of the Church of Jesus Christ of Latter-day Saints. We found this quote taken from a talk given by President Hinckley in April of 2003:

“We warn our people against get-rich schemes and other entanglements which are nearly always designed to trap the gullible.”

Since Utah became infamous for financial fraud in the early 1980’s, LDS General Authorities have spoken out on various occasions about “too good to be true” investments. In some instances it has been compared to gambling, which is considered a sin by the Church.

Story by: Brent Hunsaker
brent@abc4.tv