Thomas F. Lennon
U. S. District
Court Receiver
For 12daily
Pro et al.
Frequently
Asked Questions Re Web Portal and Claims
These FAQs are presented
as part of the information investors may need in order to understand and utilize
the Investor Web Portal and for changes in contact information.
How do I get
to the Investor Web Portal?
From the Receiver's main webpage (www.tlennonfor12dailypro.com),
click on the link that says "Investor Web Portal – LOGIN HERE".
You will be directed to the login page.
If I haven't
already logged in, how do I set up an account and log into the Investor Web Portal?
Pursuant to the Court's Order Establishing Procedures
for the Administration of Claims, the deadline to log into the Web Portal was January
31, 2008. Accordingly, it is no longer possible to create new accounts or
change your election to Accept or Dispute your claim via the Web Portal.
How do I see
the Receiver's MIMO calculation of my claim?
(For explanation of MIMO, see answer to this question below)
Once you have entered the Web Portal, you will see
a page with two tabs – a "Current Info" tab and a "Transactions" tab.
The "Current Info" tab lists the contact information you have already provided. The "Transactions" tab is where you
will find your 12DP account information and the Receiver's calculation of your claim. By clicking on the "Transactions" tab,
you will see a report of your 12DP transactions listed.
By clicking "view" on the report, you will be directed
to a screen listing your transactions. (Please note: you may need to
adjust the size of the report on your screen in order to see all of the information.
The far right hand column should have
the heading "Net Amount").
"). You can also access the report in Microsoft
Excel or Adobe PDF format by selecting one of these formats from the drop down menu
at the top of the report and clicking on the "export" link. The MIMO Amount is listed at the bottom
of the report. Please review the report carefully, including the explanation of the MIMO
Amount provided at the bottom of the report.
What does it mean if my Net MIMO Amount is a negative
number (shown by parenthesis)?
This means that your investments in 12DP exceeded the distributions from 12DP to you Internet account.
You will have an allowed claim in this amount if you clicked the "Accept"
box for your report(s).
What does it mean if my Net MIMO Amount is a positive
number?
This means that the distributions from 12DP to your
Internet account exceeded your investments in 12DP.
You will not have a claim unless you disputed your report(s) and submitted
a proof of claim and supporting documentation.
The proof of claim form can be downloaded and printed from the Web Portal
and the Receiver's main website. The
proof of claim form has instructions on it regarding what information must be provided
and what additional documentation must be submitted.
If you wish to submit a late claim, please visit the Receiver's website at
www.tlennonfor12dailypro.com, download the investor proof of claim form and follow the instructions regarding filling it out and submitting it.
It is also recommended that you provide an explanation of why
your claim was not submitted prior to the deadline.
The Court will determine whether late claims will be allowed.
If you have any questions you may
contact the Receiver by e-mail at tfl@tlennonfor12dailypro.com
or by facsimile at
(619) 465 9288. You may also record
your message at (619) 464-6691.
If I have more than one report, how is my Net MIMO
Amount calculated?
Your claim amount is the net of the MIMO Amounts on
your reports. This amount is shown
at the bottom of your list of reports on the "Transactions" page as your "Net MIMO
Amount."
For example, if you have two reports, the first one
shows a positive MIMO amount of $1,000.00 (meaning that your distributions exceeded
your investments by that amount) and the second report shows a negative MIMO amount
of ($2,500.00) (meaning that your investments exceeded your distributions by that
amount), your Net MIMO Amount would be ($1,500.00), meaning that you would have
had a claim in that amount if you checked the "Accept" box for both of your reports.
If, on the other hand, you have one report with a positive
MIMO Amount of $5,000.00 and a second report with negative MIMO amount of ($3,000.00),
you would have a Net MIMO Amount of $2,000.00 (meaning that, in the aggregate, the
distributions to your Internet account(s) exceeded your investments in 12DP by that
amount). Therefore, you would have
no claim (other than a possible late claim as discussed above) unless you checked
the "Dispute" box for one or both of the reports and submitted the required proof
of claim form and supporting documentation.
What is the
deadline to either accept or dispute my claim amount?
On December 10, 2007, the Court entered an order approving
the Receiver's proposed procedures for the administration of claims and setting
a deadline (or "bar date") of January 31, 2008.
Investors were given notice of the bar date for accepting or disputing their
MIMO claim amounts in three separate Bar Date Notices.
This Notice was also posted on the Receiver's website.
Accordingly, it is no longer possible to accept or dispute claim amounts
via the web portal.
If I elect to submit a proof of claim, what happens
next?
Once the Receiver has reviewed
all proofs of claim, he will file objections to claims that fail
to show (with supporting documentation) that the claim amount listed on the Web Portal is not the correct MIMO claim amount for that investor. If the Receiver objects to your claim,
you will receive notice of the objection and instructions regarding how to file
a response. The Court will then determine
the appropriate amount of the claims to which the Receiver has objected.
When will I
get my money?
Once all disputes regarding MIMO claim amounts have
been resolved and a Distribution Plan has been approved by the Court, a Pro Rata
distribution (for an explanation of "Pro Rata", please see below) will be made to
investors.
Will I get
all of the money I paid in? How much
will I get?
The amount of funds which will ultimately be distributed
to investors is not known at this time. The Receiver has recovered 12DP funds as
directed by the Court and continues to pursue other sources of funds.
Recovered funds are held in money market accounts with interest accruing
during the case.
What Does MIMO mean?
MIMO (or Money-in,
Money-out) means actual funds invested in 12DP by you and distributions from 12DP
that were frozen in your account at StormPay and reversed back into the 12DP account
at StormPay on or about February 7, 2006 ("Money-in"), less all payments of principal,
interest, commissions or other amounts paid to you (including credit card chargebacks
or reversals of electronic fund transfers) on account of your investment in 12DP
("Money-out").
What does Pro
Rata mean?
A Pro Rata distribution means that all investors with
allowed claims will receive a distribution that is the same percentage of their
allowed claim amount. The percentage
is determined by the amount of funds available to be distributed to investors (after
payment of all administrative costs) divided by the total dollar amount of all allowed
claims.
How will the
claims be paid?
The Receiver is currently investigating various means
of transmitting distributions to investors, including electronically, so that investors
can access their distributions via e-mail.
The Receiver intends to seek approval of a means of transmitting distributions as
part of his Distribution Plan.
How do I recover distributions from 12DP that were in my StormPay account when it was frozen?
The Receiver understands that on or about February 7, 2006, StormPay, without the
authorization or consent of 12DP, Charis Johnson, or any 12DP investors, reversed
investor accounts at StormPay with positive balances back into the 12DP account
at StormPay. Although these reversals
were unauthorized, investors have been given credit for the amounts reversed by
StormPay in the calculation of their respective claim amounts.
Accordingly, the amounts reversed have been treated as "money-in" for the
purposes of the Receiver's "money-in, money-out" (or "MIMO") calculation.
Thus, investors' claim amounts have been increased by the amounts reversed
back into the 12DP account by StormPay.
Therefore, it is not necessary to do anything different
in terms of your MIMO claim amount (other than logging into the Web Portal and following
the normal claims procedures) if you had a positive balance in your account at StormPay
when it was frozen.
The receivership established by the Court covers only 12DP, its subsidiaries and
affiliates. StormPay is not affiliated
with 12DP. Neither the Receiver nor
his counsel can advise investors regarding their legal rights, if any, with respect
to StormPay or other third parties.
Investors should consult their own attorney with respect to these matters.