BULLETIN: Kentucky Issues Emergency Cease-And-Desist Order To Profitable Sunrise; Order Identifies Possible Pitchwoman Issuing News Releases That Include Link To ‘HYIP Investment Calculator’; [UPDATE: Ohio, Other States Issue Warnings]

breakingnews72EDITOR’S NOTE: Ohio now has issued a warning on Profitable Sunrise, saying 15 other states also have issued warnings. Information from Ohio and other states has been added to the Comments thread below . . .

BULLETIN: (UPDATED 2:01 P.M. EDT (U.S.A.)

The state of Kentucky has issued an emergency cease-and-desist order to the Profitable Sunrise HYIP “program,” amid allegations that the purported “opportunity” is selling unregistered securities to residents of the state and that residents themselves — in turn — are doing the same thing to earn commissions.

Profitable Sunrise is trading on Bible prose, according to the Kentucky order. And some residents of the state appear to be offering the “program” to family members and perhaps even investing in the names of loved ones.

The Profitable Sunrise website is offline this morning. There are Ponzi-forum reports that the “program” is changing servers.

Kentucky’s order is directed at purported Profitable Sunrise operators Roman Novak and Radoslav Novak. The company lists an address in the United Kingdom and does business as Inter Reef LTD.

Kentucky’s order was issued by the Department of Financial Institutions. It is dated today. The order also references Nicole Sanders of Louisville, describing her as a possible Profitable Sunrise pitchwoman operating in the state by issuing press releases through a social-networking site. One release viewed by the PP Blog displayed a link to a purported “HYIP Investment Calculator.”

It is somewhat common for HYIP promoters to try to woo prospects with earnings projections. (It happened in Zeek Rewards and AdSurfDaily, for just two examples. ASD was a $119 million Ponzi scheme. Zeek was accused by the SEC in August 2012 of operating a $600 million Ponzi- and pyramid scheme.)

Sanders may be a purported “private group leader” for Profitable Sunrise, according to the Kentucky order.

One of the claims in a news release attributed to Sanders is this (italics added):

Example: If I invest $200.00, over 170 days of my initial investment date without taking $$$$ out (meaning compound on), my investment matures and my PROFIT will be $7,439.66.

Kentucky now has joined North Carolina, which earlier issued a cease-and-desist order to Profitable Sunrise. Alabama has issued a warning about the “program.” So have the Canadian provinces of Alberta, Ontario, British Columbia and Quebec.

Britain’s Financial Services Authority and New Zealand’s Financial Markets Authority also have issued warnings.

Link to emergency Kentucky order, dated March 14, 2013.

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27 Responses to “BULLETIN: Kentucky Issues Emergency Cease-And-Desist Order To Profitable Sunrise; Order Identifies Possible Pitchwoman Issuing News Releases That Include Link To ‘HYIP Investment Calculator’; [UPDATE: Ohio, Other States Issue Warnings]”

  1. This just in:

    INVESTOR ALERT: OHIOANS WARNED ABOUT POTENTIAL FRAUD TIED TO FOREIGN WEBSITE

    Ohio and 15 Other States Take Action or Issue Warnings About Possible Scam

    The Ohio Department of Commerce Division of Securities today issued a notice order against a United Kingdom company and its operators. The action, which alleges that Ohio securities laws have been violated, joins enforcement actions taken or investor alerts issued by securities regulators in 15 other states and five Canadian provinces.

    The Division’s action involves Inter Reef, Ltd. doing business as Profitable Sunrise, its owner Roman Novak and his brother Radoslav Novak through the website http://www.profitablesunrise.com.

    The Division alleges that they are engaging in securities fraud, selling securities without a license and selling unregistered securities.

    “Ohioans should be on guard and hold onto their wallets any time they hear of a no risk/high return investment. As the old saying goes, if it sounds too good to be true, it probably is,” said David Goodman, Director of the Ohio Department of Commerce.

    The Division is concerned that these businesses could be targeting religious-based organizations. The company’s website includes Bible quotations and options for donating investment returns to charity. The website also describes various investment plans that claim to offer returns between 288% and 648% for investment periods between 180 days and 240 days. The website claims the investments are “risk-free” with “no chance of default” and provides short-term business loans in the United States.

    The website also includes apparent traits of a pyramid scheme. It provides details about a “referral program” where individuals can become regional representatives for an investment group. The regional representatives are offered five percent commissions from those who join the referral program under that representative’s name.

    The Division of Securities is seeking information from Ohioans who may have invested with Profitable Sunrise, Inter Reef, Ltd., Roman Novak, Radoslav Novak or any affiliated individuals or entities.

    Ohioans are encouraged to call the Ohio Division of Securities Investor Protection Hotline toll free at 877-683-7841 or file a complaint with the Division online at http://www.com.ohio.gov/secu

    # # #

    Before investing, the Division of Securities encourages Ohioans to call the Division’s Investor Protection Hotline at 1-877-683-7841 to ask:

    * Is the brokerage firm and salesperson licensed to sell securities in Ohio?
    * Have any enforcement actions been taken against them?
    * Has the security been properly registered with the Division of Securities?

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  2. This just in — Florida:

    Florida Office of Financial Regulation Warns Florida Investors About Possible Fraud with Online, Overseas Investments

    03/14/2013

    TALLAHASSEE, Fla. (March 14, 2013) – The Florida Office of Financial Regulation (OFR) in collaboration with 13 other states is warning consumers to be aware of potential fraud related to investments sold by an international company, Profitable Sunrise.

    Profitable Sunrise is promoting risk-free loans that promise investors a 2.15% daily return on investments. Seven states have issued Cease and Desist orders to the company’s officers, Roman Novak and Radoslav Novak, for selling investments without being properly registered and for omitting or misrepresenting facts on the company’s website. Profitable Sunrise is not registered with the OFR to sell securities.

    To attract interest in its investment offerings, Profitable Sunrise and its sub-companies may be attempting to exploit investors’ religious affinities. The organization is believed to be engaged in a marketing campaign which makes conspicuous use of biblical quotations.

    “The OFR has a mission to protect the citizens of Florida and the financial services industry,“ said OFR Commissioner Drew J. Breakspear. “The OFR provides online tools making it easy for potential investors to do their homework and ensure that they are investing their money with legitimate professionals.”

    Before investing with anyone, the OFR encourages all Floridians to do their homework. All investors are urged to become fully educated on the products in which they are investing, as well as on the individuals and businesses with whom they are investing. Consumers and investors should follow these tips before purchasing any financial product:

    • Verify the license of the company or individual you wish to do business with before investing. Click here to find out whether the person is licensed and registered with the OFR. If they are not, they may be operating illegally.

    • Seek a second or third party opinion. Inquire with multiple professionals and find one who listens and understands your needs. Don’t be afraid to “sleep on it” before making a decision.

    • Keep a paper trail. Write down your financial needs and goals. Determine which products are suitable for your personal situation. Request written information that fully explains the product. The documentation should contain enough clear and accurate information to allow you or your investment adviser to evaluate and verify the particulars of the investment. Ask questions if there is something you don’t fully understand.

    • Be wary of products that sound too good to be true. Does this product guarantee returns? Does the promoter promise “no risk,” “100 percent guaranteed or get your money back,” Or interest rates higher than others? If so, run – don’t walk – the other way. If it sounds too good to be true, it probably is.

    • File a complaint if you have fallen victim to fraud or if you suspect questionable business practices. Consumers can call the OFR at (850) Its-Your Money (850-487-9687) or file a complaint online.

    Source:

    http://www.flofr.com/PressReleaseDetail.aspx?id=4146

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  3. This just in — Wisconsin:

    March 14, 2013

    FOR IMMEDIATE RELEASE
    Contact: George Althoff, Communications Director, 608-261-4504

    Securities agency warns investors:

    Beware of ‘Profitable Sunrise’ scheme

    MADISON – Wisconsin consumers should beware of an investment scheme in which investors are instructed to wire money to Eastern Europe, the head of Wisconsin’s securities agency warned today.

    Inter Reef Ltd., a Birmingham, England-based company doing business as Profitable Sunrise, promises investors risk-free returns of 1.6 percent to 2.7 percent per day for periods ranging from 180 to 240 days, said Patricia Struck, administrator of the Division of Securities at the Wisconsin Department of Financial Institutions (DFI).

    “Wisconsin investors should be extremely wary of any offers to invest from Profitable Sunrise,” Struck said. “The promises being made by this company appear to fall into the ‘too good to be true’ category.”

    Investors in other states were informed that their money would be used to fund short-term loans to businesses and that “all funds deposited with (Profitable Sunrise) are insured against loss” by a leading investment bank. Investors were instructed to wire money to financial institutions in Eastern Europe, including one bank that was located in the Czech Republic.

    The company’s activities could be considered the sale of unregistered securities, which is illegal in Wisconsin, Struck said. Neither the company nor its principals – Roman Novak and Radoslav Novak – are registered with DFI’s Division of Securities.

    Struck said that securities officials in North Carolina and South Dakota have issued Cease and Desist Orders against Profitable Sunrise. In addition, officials in several other states have issued investor alerts about the practices of the company, she said.

    Anyone who has invested with Profitable Sunrise is encouraged to contact the Division of Securities enforcement office at 608-266-1603.
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  4. This just in — Nevada:

    Secretary of State Securities Division Warns Public to Be Wary of Possible Fraud Tied to Unregistered Securities; Overseas Company Offers Alleged ‘Risk-Free’ High-Yield Investment Contracts

    Nevada Secretary of State’s Securities Division Seeking Potential Victims of ‘Profitable Sunrise’

    Posted Date: 3/13/2013 4:00 PM

    FOR IMMEDIATE RELEASE
    Contact: Catherine Lu
    (702) 486-6982 / 334-7953
    clu@sos.nv.gov

    (Carson City, NV; March 13, 2013) — An investor alert to all Nevada residents regarding possible securities fraud is being issued today by Nevada Secretary of State Ross Miller. The unregistered high-yield investment scheme is being promoted by a company using the name Profitable Sunrise and claiming to be headquartered in Birmingham, England.

    The company’s website offers a variety of investment plans with a promise of 1.6- to 2.7-percent “risk-free” daily return on short-term loans to businesses.

    Secretary Miller cautioned Nevada investors that one of the warning signs of fraud is an investment that is sold as “risk-free” and that investing with unregistered companies or agents should only be done with appropriate due diligence. The Nevada Securities Division records indicate that Profitable Sunrise’s securities are not registered securities in Nevada or with the United States Securities and Exchange Commission (SEC).

    Securities officials are also concerned that the company is using a related website for the “Profitable Sunrise Team” to entice people to bring in additional investors for a commission. Secretary Miller cautions Nevada residents that “investment products must be registered or exempt from registration to be sold in Nevada, and generally those selling an investment must be licensed.”

    There have also been reports that Profitable Sunrise has directed investors to wire transfer funds to a bank in the Czech Republic. Secretary Miller warns investors that it can be extremely difficult for an investor to recoup funds invested through banks in foreign countries.

    Residents who have been contacted or solicited by someone claiming to represent Profitable Sunrise or any of its affiliated entities are encouraged to contact the Nevada Securities Division at (702) 486-2440 or by visiting the Securities Center on the Secretary of State’s website at http://www.nvsos.gov.

    Multiple jurisdictions in the United States and Canada have issued either investor alerts regarding or formal cease and desist orders to Profitable Sunrise, principals of the company, and affiliated entities. Those jurisdictions include North Carolina, South Dakota, Alabama, Alberta and Ontario.

    Source:

    http://nvsos.gov/index.aspx?recordid=1283&page=23

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  5. It might be easier to list the states that nave not issued a Cease and Desist Order…….

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  6. Minnesota, too. From the Star Tribune:

    http://www.startribune.com/local/198073351.html

    Snippet:

    “We are taking strong action today to stop Internet fraud from victimizing Minnesotans and duping them into a pyramidlike scheme to lose their life savings,” Commerce Commissioner Mike Rothman said in a statement. “Minnesota investors should not invest any of their money into Profitable Sunrise’s fraud.”

    Patrick

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  7. This just in — from New Brunswick in Canada:

    14 March 2013
    Investor Alert: Profitable Sunrise and other high-yield investment schemes

    SAINT JOHN – Investors are warned not to send money to an offshore company called Profitable Sunrise, an entity that claims to provide high-yield investments through short-term bridge loans to businesses. The New Brunswick Securities Commission is issuing this warning following similar warnings by several Canadian and American securities regulators.

    “Investors need to take a step back if they are pressured to hand over their savings for quick guaranteed profits,” says Rick Hancox, executive director of Commission. “A high return, no-risk investment does not exist. Remember, the higher the returns, the higher the risk.”

    A high-yield investment scheme involves an investment that promises unrealistically high returns while disclosing few details on how such returns are generated.

    The Profitable Sunrise website offers investors various plans to earn daily interest of 1.6 to 2.7 per cent through short-term loans to businesses. New Brunswickers should be aware that Profitable Sunrise and its agents are not registered to sell securities in New Brunswick and have not filed a prospectus with the Commission. The company and its principals appear to be located in the United Kingdom.

    “We want New Brunswickers to be aware that legitimate investment opportunities do not just appear out of the blue in your inbox or from a stranger over the telephone,” said Hancox. “If you have suspicions about a company or person selling investments, contact us.”

    If you have been contacted by someone claiming to represent Profitable Sunrise, please contact the New Brunswick Securities Commission’s investor services coordinator at 506 658 3060 or 1 866 933-2222 (toll-free).

    The Alberta Securities Commission, the British Columbia Securities Commission and the Autorité des marchés financiers have all issued similar warnings earlier this week.

    Refer to the North Carolina Securities Division’s website for more information about the temporary order to cease and desist against Roman Novak, Radoslave Noval and Inter Reef Ltd doing business as Profitable Sunrise.

    Being an informed investor is the best defence against investment fraud. Learn how to protect yourself by taking advantage of the materials available on the New Brunswick Securities Commission’s website at http://www.investinknowingmore.ca.

    The New Brunswick Securities Commission is an independent provincial Crown corporation responsible for regulating trading in securities within the province.

    Source:

    http://www.nbsc-cvmnb.ca/nbsc/news_content_display.jsp?news_id=396&id=24&pid=4

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  8. Has California been mentioned yet?
    http://blog.pe.com/real-estate/2013/03/14/real-estate-sunset-on-alleged-scam-profitable-sunrise/

    The California Department of Corporations today, March 14, ordered InterReef Ltd., the Internet-based company doing business as Profitable Sunrise, to shut down its operation.

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  9. Or Indiana?
    http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventidn=90006&information_id=176811&type=&rss=rss

    INDIANAPOLIS (March 14, 2013) – Secretary of State Connie Lawson is warning investors to beware of a company operating under the name Profitable Sunrise. The Birmingham, England-based company promises investors risk-free and insured investments with high returns. The company is not registered to sell securities in the State of Indiana.

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  10. This just in — from Indiana:

    INDIANAPOLIS (March 14, 2013) – Secretary of State Connie Lawson is warning investors to beware of a company operating under the name Profitable Sunrise. The Birmingham, England-based company promises investors risk-free and insured investments with high returns. The company is not registered to sell securities in the State of Indiana.

    Profitable Sunrise founder, Roman Novak, states that the investment model is based on providing short-term loans to small businesses throughout the United States. Profitable Sunrise makes investments attractive by not only touting risk-free, high returns but also by stating that by helping these United States companies, investors are also helping revitalize the national economy and create more desperately needed jobs in the United States.

    The Profitable Sunrise business model promises investors that they will earn risk-free returns of 1.6 percent to 2.7 percent per day for investment periods ranging from 180 to 240 days. The company offers 5 different investment plans which allow investors an increasing number of investment amounts and percentages of return. The company also offers a referral program that provides an incentive for investors to earn a percentage of returns for all additional investors they refer to the program. Victims in the investment scam are instructed to wire money to financial institutions in Eastern Europe, including banks in the Czech Republic.

    Multiple states are looking into Profitable Sunrise, including North Carolina which has already issued a Cease & Desist Order. Investors should always carefully scrutinize any investment opportunity particularly if the offer comes from a foreign country or appears “too good to be true.” Indiana constituents with questions and/or concerns about investment opportunities should contact the Secretary of State’s office.

    Anyone who has invested in Profitable Sunrise should contact the Secretary of State’s office at 1-800-223-8791 or find us online at http://www.indianainvestmentwatch.com.

    Source:

    http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventidn=90006&information_id=176811&type=&syndicate=syndicate

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  11. Tony H: Has California been mentioned yet?
    http://blog.pe.com/real-estate/2013/03/14/real-estate-sunset-on-alleged-scam-profitable-sunrise/

    Thanks for this, Tony.

    Patrick

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  12. Tony H: Or Indiana?
    http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventidn=90006&information_id=176811&type=&rss=rss

    Looks as though we were posting about Indiana only about a minute apart, Tony.

    Patrick

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  13. This just in — from New Mexico:

    March 12, 2013 Media Contact: S.U. Mahesh (490-0976)

    New Mexico Investors Cautioned About Possible Fraud Tied to Foreign-based Unregistered Investment Contracts

    SANTA FE – New Mexico Regulation and Licensing Superintendent J. Dee Dennis Jr. issued an investor alert to all New Mexico citizens regarding possible securities fraud linked to the attempted sale of unregistered investment contracts being offered by a Birmingham, England-based company known as “Profitable Sunrise.”

    The company has attempted to sell the investment contracts to individuals in at least one other southeastern U.S. state thus far, prompting authorities there to issue a Cease and Desist Order to the company’s officers.

    An investigation of Roman Novak, Radoslav Novak and their company, Inter Reef, Ltd., doing business as Profitable Sunrise, revealed that the men allegedly promoted at least five different “investment plans” through a website that offered rates of return ranging from 1.6% per business day to 2.7% per business day for periods of from between 180 to 240 business days.

    Investors were told that their money would be used to fund short-term, “risk-free” loans to businesses, and that “all funds deposited with us are insured against loss” by a leading investment bank.

    Further investigation revealed that victims had been instructed to wire money to financial institutions in Eastern Europe, including one bank identified as being in the Czech Republic. New Mexico records reveal that neither of the men, nor the company they represent, is registered to conduct securities business in New Mexico, as required by the New Mexico Securities Act.

    “We want to make New Mexicans aware of the potential perils of web-based investment marketing,” said Dennis. “Evaluate every investment opportunity in the virtual world the same way you would in the real world, check before you invest, especially if it comes from a foreign country. This is a critical first step in protecting yourself from con artists and investment fraud.”

    Dennis urged anyone in New Mexico who has invested with Profitable Sunrise to contact the New Mexico Regulation and Licensing Securities Division at 1-800-704-5544.

    The Regulation and Licensing Department’s Securities Division protects New Mexicans from fraud and financial abuse by licensing investment professionals, registering securities offering made in the state, offering anti-fraud and educational programs to the public, and investigating fraud and other violations of the state securities laws. To learn more about investment fraud, visit the division’s website at http://www.RedFlagsNM.com.

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  14. At the time of writing I’m getting:
    “504 Gateway Time-out”
    when accessing profitablesunrise.com

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  15. WOW, Nevada? Forget all the other ones, historically Nevada has been more ponzi friendly than Talk Gold Forum or Solid Trust Pay.

    When Nevada says it’s a scam, turn out the lights.

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  16. This just in — Texas issues emergency cease-and-desist order:

    http://www.ssb.state.tx.us/Enforcement/files/1722.pdf

    Patrick

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  17. North Dakota, too, according to KFYR:

    http://www.kfyrtv.com/News_Stories.asp?news=62627

    Patrick

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  18. Quick note: California is alleging both securities violations AND lending violations, based on Profitable Sunrise’s assertion it is in the hard-money business:

    From California’s desist-and-refrain order:

    Based upon the foregoing findings, the Commissioner of Corporations of the State of California is of the opinion that investment programs offered by Roman Novak, Radoslav Novak and Inter Reef LTD d.b.a. Profitable Sunrise are securities in the form of investment contracts. Those securities have not been qualified under the California Corporate Securities Law of 1968, in violation of section 25110 of the Corporations Code. Pursuant to section 25532 of the Corporate Securities Law of 1968, Roman Novak, Radoslav Novak and Inter Reef LTD, d.b.a. Profitable Sunrise are hereby ordered to desist and refrain from the further offer or sale in the State of California of securities, including but not limited to investment contracts unless and until qualification has been made under the law or unless exempt.

    Further, the Commissioner of Corporations is of the opinion that Roman Novak, Radoslav Novak and Inter Reef LTD, d.b.a. Profitable Sunrise have engaged in the business of a finance lender and/or broker in violation of Financial Code section 22100. Pursuant to Financial Code section 22712, Roman Novak, Radoslav Novak and Inter Reef LTD, d.b.a. Profitable Sunrise are hereby ordered to desist and refrain from engaging in the business of a finance lender or broker in the State of California without first obtaining a license from the Commissioner, or otherwise being exempt.

    Source:

    http://www.corp.ca.gov/ENF/pdf/2013/ProfitableSunrise_dr.pdf

    Patrick

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  19. Quick note: Minnesota calls Profitable Sunrise an “international internet fraud.”

    Full statement from office of Commerce Commissioner Mike Rothman:

    Commerce Commissioner orders “Profitable Sunrise,” to stop selling securities in Minnesota

    Minnesota joins multiple states to take action against the international internet fraud with Minnesota ties

    March 14, 2013
    For Immediate Release:

    SAINT PAUL, MN – Commerce Commissioner Mike Rothman ordered Profitable Sunrise and its operators, Roman Novak and Radoslav Novak, and Minnesotans William Nilsson (a/k/a Chad Nilsson) and Casey Dorian, today to cease and desist from selling securities in the State of Minnesota.

    The Minnesota Department of Commerce, in conjunction with 19 jurisdictions throughout the United States and Canada, took coordinated action against Profitable Sunrise, an international entity allegedly operating an internet scheme to defraud investors. The Commerce Department’s investigation found that two individuals in Minnesota, Chad Nilsson and Casey Dorian, were allegedly participating in the investment scheme, currently soliciting investors but are not licensed to sell securities in the state.

    “We are taking strong action today to stop internet fraud from victimizing Minnesotans and duping them into a pyramid-like scheme to lose their life savings,” said Commissioner Mike Rothman. “Minnesota investors should not invest any of their money into Profitable Sunrise’s fraud.”

    The Commerce Department’s Securities Section investigated Profitable Sunrise and found that while it claims to be registered and located in the United Kingdom, the multiple addresses on the company’s website appear to be false, with one listed as a construction site. The domain name for Profitable Sunrise’s website is registered in the United Kingdom, yet the IP address for the website appears to be located on a server in Los Angeles.

    The investment model of Profitable Sunrise is characterized as the “charitable platform” for a money lending group. This means that Profitable Sunrise claims to raise money from individual investors and in turn, provide short term loans to various businesses that pay three percent interest per day. Investors would then earn a return of two percent “per business day” over an investment period of at minimum, 170 business days. The Commerce Department’s Order illustrates that for example, a $1000 investment would be worth $37,198 at the end of the 170 business days.

    As an incentive for attracting additional investors, a three-tiered referral opportunity is extended to investors making it identical to a pyramid or multi-level sales approach. Groups have formed around the country including one located in Ohio run by an individual named Nanci Jo Frazer who claims to have 1,400 investors in her group known as the “NJF Global Group Community” to help fund her ministry, FocusUp Ministries.

    The Commerce Department Order states that Nillson and Dorian, along with investors like Frazer are utilizing internet marketing through websites, blogs, YouTube, and social media to sell their investment opportunity. Further, the Order states that Dorian solicits investors by running free ads on websites, while Nilsson uses Facebook and other social sites. Additionally, Profitable Sunrise operates its own webpage referencing religious scriptures on each page including a statement on the main page containing a statement implying a spiritual endorsement of the investment program.

    “Consumers need to be very cautious of investment affinity fraud schemes both in person and on the internet that deliberately exploit and manipulate the trust of Minnesotans,” said Commissioner Mike Rothman. “Unfortunately, fraudsters use the internet and other advertising to carry out their schemes, and I urge everyone to use vigilance. When a deal seems ‘too-good-to-be-true,’ then it is. Stop and check it out thoroughly or contact the Commerce Department.”

    On behalf of Minnesota investors, the Commerce Department ordered Profitable Sunrise, Dorion and Nilsson to cease and desist from engaging in unlicensed activity of any kind and offering or selling any securities or other types of investment products.

    If you have questions or want to report suspicious activity, the Commerce Department’s Consumer Help Line can be reached by phone at (651) 296-2488 or (800) 657-3602. Questions or consumer complaints related to securities can be sent by email to securities.commerce@state.mn.us or by mail to the Minnesota Department of Commerce, 85 7th Place East, Suite 500, Saint Paul, MN 55101.

    For more information on investments and securities or how to look up whether your investment advisor is licensed and investments registered with the State of Minnesota, visit the Minnesota Department of Commerce Securities Section online.

    Source:

    http://mn.gov/commerce/media/newsdetail.jsp?id=206-56431

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  20. Tony H:
    At the time of writing I’m getting:
    “504 Gateway Time-out”
    when accessing profitablesunrise.com

    They claim (in scam speak) that it’s a “server upgrade which will take 36-48hours”….

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  21. Delaware:
    http://www.delaware1059.com/story.php?id=2152

    Attorney General’s office has announced it has issued an order prohibiting the operators of an international online investment scheme from selling investments in Delaware.

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  22. March 15 — this just in from South Carolina:

    Attorney General Wilson Cautions South Carolina Investors About Fraud Tied to Foreign-based Unregistered Securities

    (COLUMBIA, S.C.) Attorney General Alan Wilson is alerting South Carolina citizens regarding a securities fraud linked to the sale of unregistered securities. A Birmingham, England-based company known as Profitable Sunrise has offered investment contracts to individuals in South Carolina and across the country.

    A review of Roman Novak, Radoslav Novak and their company, Inter Reef, Ltd. (doing business as Profitable Sunrise) revealed the group allegedly promoted at least five different alleged investment plans through a website that offered rates of return ranging from 1.6% per business day to 2.7% per business day for periods ranging from 180 to 240 business days. Investors were told their money would be used to fund short-term, “risk-free” loans to businesses, and that “all funds deposited with us are insured against loss” by a leading investment bank. Victims were instructed to wire money to financial institutions in Eastern Europe, including one bank in the Czech Republic. Securities Division records revealed that neither of the men, nor the company they represented, are registered to conduct securities business in South Carolina, as required by the South Carolina Uniform Securities Act of 2005.

    “The Internet has made investing easier for many South Carolinians,” Attorney General Alan Wilson said. “Unfortunately, it has also made it easier for unscrupulous agents to reach investors. South Carolinians should be especially wary of investment offers coming from a foreign country. If you have any doubt about making an investment, take the time to research it before you invest, and feel free to contact our office to check on whether the person and the investment are registered.”

    Wilson urged anyone in South Carolina who has invested with Profitable Sunrise to contact the Securities Division of the South Carolina Attorney General’s Office at (803) 734-9916. The Securities Division cautions potential investors to thoroughly scrutinize and research any investment opportunity or offer. Investors and potential investors can contact the Securities Division with inquiries concerning securities broker-dealers, agents, investment advisers, investment adviser representatives, financial planners, the registration status of securities or debt management programs, to report suspected fraud, or to obtain consumer information. The Securities Division also provides free investor education and fraud prevention materials in print, on the South Carolina Attorney General’s website and through educational presentations upon request.

    The Attorney General serves as the South Carolina Securities Commissioner and oversees the South Carolina Securities Division. The Securities Division enforces the South Carolina Uniform Securities Act, which seeks to protect South Carolina investors against fraud and unfair or unethical practices; registers both securities and professionals in the securities industry; develops and implements investor education initiatives; and supports an equitable, competitive, and efficient securities marketplace that contributes to the economic development of South Carolina and the well-being of its citizens.

    Read more: http://www.scag.gov/archives/8089#ixzz2NcpWyNbb

    PP Blog note: SC added to running total in follow-up story here:

    http://patrickpretty.com/2013/03/15/current-number-19-tally-unofficial-of-states-and-provinces-filing-actions-or-issuing-investor-alerts-against-profitable-sunrise/

    Patrick

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  23. This just in from Alaska:

    FOR IMMEDIATE RELEASE No. 13-12
    March 14, 2013
    Contact: Dru Fenster
    Dept. of Commerce, Community, and Economic Development
    (907) 465-2523
    dru.fenster@alaska.gov

    Investor Alert – Profitable Sunrise

    (Anchorage, AK) – The Division of Banking and Securities, within the Department of Commerce, Community, and Economic Development (DCCED), cautions Alaskans regarding a possible fraudulent investment scheme currently advertised through various Alaska-focused websites. Profitable Sunrise, a company purportedly based in Birmingham, England, is offering and attempting to sell unregistered securities in Alaska.

    Profitable Sunrise is offering investors substantial returns on their investments, quoting ‘per day’ returns through supposed short term, ‘risk-free’ loans to businesses, and states that all investments are insured against losses. The division has been unable to verify any of the claims made by Profitable Sunrise or its agents.

    “Guarantees of 1% returns or more per day fall in the realm of too good to be true,” said Director Lorie Hovanec. “Current returns on bank certificates of deposits are generally less than 1% per year, and rates to borrow money are at all-time lows.”

    Profitable Sunrise appears to be making similar offers in other states. With the growth of the internet, there are an ever-increasing number of investment scams that use electronic communications to convince the public to part with their hard-earned money. Persons with information regarding Profitable Sunrise are encouraged to telephone the division at 907-269-8140 or send an email to dbsc@alaska.gov.

    As with any offer of securities, Alaskans should always remember to carefully analyze and review any investment opportunity as well as the firm and agent making the offer.

    Check the national registration information and background of a broker or brokerage firm at http://www.brokercheck.finra.org, and of an investment adviser at http://www.adviserinfo.sec.gov. For detailed Alaska information, please contact the division by phone at 907-269-8140 or toll free at 1-888-925-2521, or via e-mail at dbsc@alaska.gov.

    The Division of Banking and Securities along with the Alcoholic Beverage Control Board, the Regulatory Commission of Alaska, the Division of Insurance, and the Division of Corporations, Business and Professional Licensing are tasked with protecting consumers in Alaska. For additional information about DCCED and its agencies, please visit http://www.commerce.alaska.gov.

    PP Blog note: Added to running total here:

    http://patrickpretty.com/2013/03/15/current-number-19-tally-unofficial-of-states-and-provinces-filing-actions-or-issuing-investor-alerts-against-profitable-sunrise/

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  24. This just in from Maryland:

    AG Gansler: Securities Division Orders Halt to the “Profitable Sunrise” Offshore Internet Investment Scheme
    Brothers Charged with Securities Registration Violations and Investment Fraud
    “Too good to be true” scam intended to “exploit the faithful”

    Baltimore, MD ( March 15, 2013) – Attorney General Douglas F. Gansler announced today that his office’s Securities Division has issued a Summary Order to Cease And Desist against Inter Reef Ltd., an international Internet company doing business as “Profitable Sunrise.” Two brothers, Roman Novak and Radoslav Novak, who operate the company’s investment scheme, have been ordered to halt the offer or sale of fraudulent investments in violation of the Maryland Securities Act.

    “This is a typical ‘too good to be true’ scam that demonstrates the dangers of Internet investments offering incomplete, incorrect or implausible promises,” said Attorney General Gansler. “This illegal ploy has all the earmarks of a typical pyramid or Ponzi scheme. Until we get to a hearing, this order prevents Maryland investors from being duped by the scheme’s use of Bible verses and religious imagery utilized to exploit the faithful.”

    Attorney General Gansler reminds anyone who may have invested in “Profitable Sunrise” to contact the Securities Division of his office at 410-576-7050 if they have questions. Any investor may call the Securities Division to inquire about the status of investment promoters or the securities in which they plan to invest.

    The Division’s investigation revealed that Roman Novak and his brother Radoslav Novak, of the United Kingdom, own and operate Profitable Sunrise, using a website to promote the company and recruit investors. The company claims to use the invested money, from as low as $10 per month to thousands of dollars per month, to provide short-term high-rate loans to unidentified businesses throughout the United States.

    The unregistered and fraudulent investment scheme offered Maryland residents unrealistically high interest rates on what is described as “risk free” investments through multi-month funding contracts. The Order alleges that the investments and the people who offer them are not registered with the Securities Division and that the Novaks committed fraud by making material misrepresentations or omissions on the company’s website. Maryland is one of at least 19 jurisdictions in the U.S. and Canada that are investigating Profitable Sunrise and its agents.

    The website claims the company can use those profits to pay investors “risk free” interest rate of 2% per business day. Investors also are promised commissions for bringing others into the group, pyramid style. Offering the chance to “get richer every sunrise,” the site promises that investors will “thank the Lord” for their investment.

    To read the Securities Division’s Summary Order to Cease And Desist visit: http://www.oag.state.md.us/Securities/Actions/2013/ProfitableSunrise.pdf

    PP Blog note: Added to running total here:

    http://patrickpretty.com/2013/03/15/current-number-19-tally-unofficial-of-states-and-provinces-filing-actions-or-issuing-investor-alerts-against-profitable-sunrise/

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  25. This just in from Maine:

    Maine’s Office of Securities Issues Consumer Alert: “Profitable Sunrise” is Unregistered, Questionable Scheme

    Maine Office of Securities Administrator Judith Shaw has issued an alert to all Maine investors regarding a foreign-based company known as “Profitable Sunrise,” which has attempted to sell unregistered investment contracts through multiple online sources—prompting serious concern and action by securities officials throughout the country.

    Profitable Sunrise claims that their investment model allows consumers to earn up to 2.7% interest per day. Investments are purportedly used to provide short-term loans to companies at 3% interest per day. The company’s website also states that investors may earn money by recruiting others through a referral program that pays 5% of deposits generated from recruits.

    “Like many high-yield investment schemes, this company recruits investors by offering significant returns and claiming that there is no risk,” said Securities Administrator Shaw. “These companies often make promises they have no intention of keeping.” Shaw emphasized that neither Profitable Sunrise, nor its investment products, is registered in Maine as required by the Maine Uniform Securities Act.

    “Increasingly, scams rely on the internet as a forum for perpetuating fraud,” Shaw noted. “Online sources provide a quick way for criminals to access millions of people and to prey upon members of identifiable groups, such as religious communities, retirees, and those who are desperate for quick income.”

    High-yield investment programs often have common red flags of fraud that consumers should be looking for—unusual, unsustainable yields; lack of information regarding the investment operator; unclear methodology for achieving returns; off-shore operations; incentives to recruit new investors; and online advertisements containing typographical errors and grammatical mistakes.

    Consumers who have invested with Profitable Sunrise are encouraged to contact the Office of Securities at (877) 624-8551 (toll free in Maine) or (207) 624-8551. Shaw also urged consumers to contact Maine’s Office of Securities before investing to obtain general information about investment professionals and products, including online investment or business opportunities. More information is available at http://www.investors.maine.gov.

    PP Plog note: Info added to running total here:

    http://patrickpretty.com/2013/03/15/current-number-19-tally-unofficial-of-states-and-provinces-filing-actions-or-issuing-investor-alerts-against-profitable-sunrise/

    Patrick

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  26. Admin test . . .

    Patrick

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