By Stephanie Sonntag
To some, a company''s promise that an individual can surf the Internet for five minutes a day and receive 12 percent returns on money invested sounded too good to be true.
To others, it sounded like a way to make a lot of money in a short time.
To Daily Universe reporter Jenny Davis, it sounded like a good story. Last week she wrote about an 'autosurf' company called 12daily Pro, never imagining it would elicit angry responses from many investors, including members of BYU''s student body.
Since the Universe printed her article under the headline, 'Students solicited in illegal schemes,' she has received an onslaught of responses.
Of nearly 50 responses, Davis said, only two or three gave positive feedback.
'I had no idea that it was a big deal on campus,' Davis said. 'All I got was a little tip that students are getting involved in what they called a ponzi scheme.'
What outraged people was the headline, which labeled the enterprise 'illegal,' and a line in the article that said the company''s Web site openly admitted the program was a ponzi scheme and that it originates in Singapore. What her story should have said is that an e-mail from a 12daily Pro member, attempting to lure additional participants, included the information about it being a ponzi scheme based in Singapore.
Upon further investigation, the Daily Universe has determined that while 12daily Pro''s incredible return would be explained if it were a ponzi scam - an organization where members are paid off with money from new members - the company has so far not been investigated as an illegal enterprise.
From the responses it is apparent that a number of students at BYU are involved in 12daily Pro and feel the company - while a high-risk investment - is legal, but some are not sure it''s ethical.
One student, in a letter to Davis, asked if she had ever considered the 44 percent return rate was sheer genius and said the reason the company doesn''t give away information is because of the intelligent business plan.
Many other people defended 12daily Pro in e-mails, citing as proof of its legitimacy its perfect track record of making payment, its promise to issue 1099 tax forms to U.S. citizens and the fact that some people turn equally impressive profits in real estate and on the stock market.
As of Thursday, Feb. 2, 2006, 12daily Pro''s payment processor, StormPay, had frozen all members'' accounts. Charis Johnson, administrator of 12daily Pro, issued a statement saying BYU students were a contributing factor to the sudden scrutiny of the company.
'We have received a notice that a group of 12daily Pro members who are students at a Utah university have created and have been promoting a website to fellow students, that falsely claims we are investment opportunity,' the statement said.
The dean of BYU''s Business School, Ned C. Hill, sent out a mass e-mail Tuesday, Jan. 31, 2006, to students in the business school, cautioning them about the risks and possible termination from the school if they are involved in any company with ponzi-like tactics.
Hill wrote the letter in response to a student who came into his office with a 12daily Pro business card.
'It has come to our attention that you may be approached by people wanting you to participate and even distribute information about illegal and unethical ''money making'' schemes,' Hill said. 'Students found to be participating in these schemes, especially those who disseminate them, are in danger of being expelled from the Marriott School and the university.'
Among the many responses, one student told the Daily Universe he had been scammed by the company and asked how he could get the $6,000 back he had invested.
Josh Cowdin, a BYU student in the accounting program, has a brother, Jason, who paid $2500 into 12daily Pro about 10 days before StormPay froze all accounts.
Josh said his brother has received many e-mails from 12daily Pro telling members the company is doing everything it can to refund their money. However, Jason isn''t expecting to receive his money back.
'At this point most people won''t get their money back,' Josh said. 'It''s a good lesson - or I guess I should say it''s a an expensive lesson - to learn.'
(For comments, e-mail Stephanie Sonntag at steph01@nm.byu.edu)