Virginia Man Asks For The Return Of More Than $57,000 Wired To Profitable Sunrise In Series Of Transactions

ponzinews1UPDATED 8:52 P.M. EDT (U.S.A.) A Virginia man has asked for the return of $57,300 wired to Profitable Sunrise in a series of transfers from Bank of America between Jan. 17 and Feb 28. It was unclear from the filing whether the man was a simple investor in Profitable Sunrise, an individual who also was promoting the scheme for commissions or an interested party of a different sort.

The request was made in the form of a self-filed petition to U.S. District Judge Thomas W. Thrash Jr. in Atlanta. Thrash is overseeing the SEC’s April 4 fraud action against Profitable Sunrise.

Two of the transfers appeared to have occurred on Feb. 28. Just a day earlier, the state of North Carolina filed a cease-and-desist order against the Profitable Sunrise “program” and purported operators Roman and Radoslav Novak. One of the Feb. 28 transactions was for $18,000 and marked the largest sum among the series of transfers, based on the Virginia’s man’s motion for the court to release the funds.

The document did not say which of the five Profitable Sunrise “plans” to which the money was directed. Although the SEC obtained an asset freeze after accusing Profitable Sunrise of fraud last month, it is far from clear whether Thrash can order the money returned consistent with the man’s wishes. No receiver has been appointed in the Profitable Sunrise case, and the investigations of the purported “opportunity” by the SEC and other regulators continue.

One of the five Profitable Sunrise “plans” was known as the “Long Haul,” which had a purported deadline of March 1 for accepting deposits and purported to pay an absurd 2.7 percent daily.

Based on the man’s filing, it appears as though all of the transfers were directed at entities named relief defendants in the SEC’s action, including Melland Company SRO, Color Shock SRO and Fortuna-K SRO. These Czech entities apparently were receiving money for Profitable Sunrise, which operated through a British entity known as Inter Reef LTD and was conducting an offering fraud through a “mail drop,” according to the SEC’s Profitable Sunrise complaint.

Like other HYIPs, Profitable Sunrise was flogged online, a situation that potentially puts pitchmen in legal jeopardy. Profitable Sunrise has been accused of selling unregistered securities as investment contracts. The SEC said the Profitable Sunrise referral program operated as a “pyramid scheme” and raised questions about whether the purported Novak brothers actually exist.

Here are the amounts and dates of the wire transfers, according to the man’s filing:

  • $1,500 on Jan. 17.
  • $6,300 on Feb. 1. (Two transactions; one for $1,800 and another for $4,500.)
  • $9,000 on Feb. 12. (Two transactions; one for $3,000 and another for $6,000.)
  • $8,500 on Feb. 15. (Two transactions; one for $1,000 and another for $7,500.)
  • $10,000 on Feb. 20.
  • $18,000 on Feb. 28.
  • $4,000 on Feb. 28.

Profitable Sunrise may have gathered tens of millions of dollars, the SEC said last month.

 

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5 Responses to “Virginia Man Asks For The Return Of More Than $57,000 Wired To Profitable Sunrise In Series Of Transactions”

  1. http://fortwaynehomepage.net/fulltext?nxd_id=87172

    According to the local paper,The Bryan Times, NJF Global Group has over 71,000 members with an investment balance of over $33,000,000.
    As a plan representative for profitable sunrise, Frazer’s 5% commission on those initial investments would total over 1.5 million dollars.

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  2. Does not sound like it was general recruitment process. To fork over that amount of money he had to have somebody close to him hitting him with pitches one after another.

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  3. While NC had filed C&D against PS, that only applies to NC, right?

    Virginia and B of A had no obligation until the Feds stepped in. And that’s like a week or two later.

    He can petition all he wants, but he won’t get a penny until receiver was appointed and all that.

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  4. What’s more, if the court granted “asset freeze” finds no recoverable assets to “freeze” the requested action is moot anyway

    The harsh realities of dealing with the offshore based Profitable Sunrise fraud, as opposed to a US based “Zeek Rewards” type fraud are:

    * no one yet has proven “Roman Novak” actually exists

    * money was sent to Czech bank accounts. No one has yet shown whether the companies behind those accounts are anything more than fiction, much less shown whether or not the accounts hold anything worth “freezing”

    * The chances of ANY agency mounting any sort of costly international investigation over such a comparatively “minor” fraud are remote.

    “IF” as has been theorized since its’ inception, Profitable Sunrise is just “another” HYIP ponzi fraud among literally hundreds of thousands similar HYIPs on the ‘net today, the perpetrators AND the money are long gone.

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