Profitable Sunrise Filed ‘No Answer Or Other Responsive Document,’ Colorado Securities Officials Say; HYIP Scheme Was Pitched On Classified-Ad Sites, Research Shows

Caption from Colorado's Final Cease and Desist Order dated April 2, 20-13, against Profitable Sunrise

Caption from Colorado’s Final Cease and Desist Order dated April 2, 2013, against Profitable Sunrise

Profitable Sunrise had come under investigation in Colorado at least by March 8 and was officially notified March 11 that the state suspected it was breaking securities laws, the state Securities Board says in filings this week.

Colorado scheduled a hearing for March 25 after learning that Profitable Sunrise also was under investigation in North Carolina, but the firm filed “no answer or other responsive document,” the Securities Board said.

In short, the filings suggest that Profitable Sunrise did not even ask for more time to respond to the state’s allegations that it had reached out from England to sell unregistered securities unlawfully to residents of Colorado.

And, according to the filings, no answer was received even though ProfitableSunrise claimed on its website that “RADOSLAV [Novak] is identified as ROMAN’s brother, as well as the attorney and the person responsible for marketing PROFITABLE SUNRISE.”

Roman Novak, Profitable Sunrise members claim, was the operator of the scheme.

In a series of devastating filings, the state revealed that at least three Colorado investors sent money via wire to Profitable Sunrise in February. All of the transactions were for the purported Profitable Sunrise “Regular Plan,” which required “a minimum of $500” and offered “an interest rate of 1.8% per business day,” the state alleged.

Profitable Sunrise offered five plans, including the bizarrely named “Long Haul” that purported to pay 2.7 percent a day with a purported Easter payout that has not materialized

Two of the “Regular Plan” transactions in Colorado occurred on Feb. 6. Another occurred on Feb. 8, according to the filings. The senders of the funds are identified in the filings only by their initials.

The Profitable Sunrise website has been offline at least since March 14.

“Profitable Sunrise is running a massive, international scheme, based in England, which takes advantage of religious affinity to lure investors into sending them money,” Colorado Securities Commissioner Fred Joseph said. “We encourage anyone who dealt with this organization to contact the Division of Securities.”

And, Joseph said in a news release, Profitable Sunrise is an “Internet scam” and the subject of crackdowns by multiple states. (See list here.)

Colorado’s filings allege that the scheme was spread at least in part through promos placed on classified-advertising sites.

Among the exhibits investigators viewed were “Printouts of online solicitations at []denver.backpage.com.” Precisely who made the solicitations in Colorado was not revealed.

One Denver ad viewed by the PP Blog made this claim: “Changing lives together: We Believe in a Better Living Every Day. As a Non Profit Christian Community, We put our Resources to Work to Rebuild the American Dream, One Day at a Time!”

Elsewhere in the ad, this claim was made (italics added):

Our Invited Members Save for a New CAR, Pay College Tuition, or Donate to their favorite Non-Profit, Charity, or Church!
Example 1: Invest $200 Returns $1356.70in 90 days, Returns: $7439.69 in 170 days
Example 2: Invest $500 Returns $3391.75in 90 days, Returns: $18599.22 in 170 days
Example 3: Invest $1000 Returns $6783.50in 90 days, Returns: $37198.44 in 170 days

A specific URL for a free Blogspot Blog (wealthwithchrystal.blogspot) that appeared in the Denver ad viewed by the PP Blog also appears in ads in many other American cities, including New York, Los Angeles, Chicago, Boston, Atlanta, Miami, Fort Lauderdale, Houston, Dallas, Las Vegas and many more.

Visitors were encouraged to click on a link in the ads “To see my payment Proofs!!!”

View the Colorado filings.

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One Response to “Profitable Sunrise Filed ‘No Answer Or Other Responsive Document,’ Colorado Securities Officials Say; HYIP Scheme Was Pitched On Classified-Ad Sites, Research Shows”

  1. The SEC filed their complaint yesterday against Profitable Sunrise – http://www.courthousenews.com/2013/04/05/SECvSunrise.pdf

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