CURRENT NUMBER: [35]: Tally (Unofficial) Of States And Provinces Filing Actions Or Issuing Investor Alerts Against Profitable Sunrise
This disturbing ad for Profitable Sunrise is targeted at residents of South Dakota.
UPDATED 8:52 A.M. EDT (APRIL 16, U.S.A.) See related stories here (April 1) and here (March 25).
EDITOR’S NOTE: These numbers are unofficial. They are culled from media reports and/or news releases from enforcement agencies. As the PP Blog reported yesterday, the Profitable Sunrise website appears to be down. The reason why is unclear, although there are Ponzi-forum reports that the “opportunity” is switching servers, perhaps to Hong Kong.
For background, consider that the Zeek Rewards “program” operating in North Carolina until the SEC filed a Ponzi action last year allegedly planted the seed that it provided a return of about 1.5 percent a day. The bizarrely named “Long Haul” plan of Profitable Sunrise — with its purported Easter payout — purported to pay 2.7 percent a day. Indeed, the HYIP Ponzi universe has served up another doozy. Some of the Stepfordian promoters appear to have no concern at all that such “programs” undermine faith in legitimate markets and raise serious concerns about both national and international security. As noted below, HYIP “programs” are known to trade on themes of religion, patriotism and doing what’s best for a community. Despite all the fluff, the reality is that the “programs” are dangerous. Period.
Current count of state/provincial actions or investor alerts against Profitable Sunrise: 20. (Now 35, with March 15 additions of South Carolina, Alaska, Maryland, Maine, the March 18 addition of New Jersey, the March 19 additions of Louisiana and Tennessee, the March 21 additions of Oregon and Missouri, the March 25 addition of New Hampshire and the March 28 addition of West Virginia. The District of Columbia (Washington, D.C.) issued a warning on March 19. It was added to this list on March 27. Georgia issued a cease-and-desist order on March 14. It was added to this list on March 27. Idaho issued an Investor Alert on April 15. It was added to this list on April 16. Manitoba, in Canada, issued an alert on March 15. It was added to this list on March 21.)
In Canada: New Brunswick, Quebec, Ontario, British Columbia, Alberta, Manitoba.
In the United States: Kentucky, Ohio, Florida, Wisconsin, Nevada, Minnesota, California, Indiana, New Mexico, Texas, Delaware, North Dakota, South Dakota, Alabama, North Carolina, South Carolina, Alaska, Maryland, Maine, New Jersey, Louisiana, Tennessee, Oregon, Missouri, New Hampshire, District of Columbia (Washington, D.C.), Georgia, West Virginia, Idaho.
Regulators in New Zealand (FMA) and the United Kingdom (FSA) also have issued warnings against Profitable Sunrise.
Here’s a sampling of what securities officials are saying:
From the office of David Goodman, director of the Ohio Department of Commerce (italics/bolding added):
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.
From the Florida Office of Financial Regulation (OFR):
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.
From the Division of Securities at the Wisconsin Department of Financial Institutions (DFI):
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.
From the office of Nevada Secretary of State Ross Miller:
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.
From the New Brunswick Securities Commission:
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.
From the office of Indiana Secretary of State Connie Lawson. (Editor’s note: Indiana officials are describing some of the Profitable Sunrise talking points used to disarm skeptical investors. Scams often trade on patriotic themes and claims that investors are helping drive the economy. The AdSurfDaily Ponzi scheme (and many others) have used similar talking points):
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.
From the office of Minnesota Commerce Commissioner Mike Rothman:
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.
(Editor’s Note: When the SEC moved in August against the alleged $600 million Zeek Rewards Ponzi- and pyramid scheme, the state of North Carolina warned about “reload scams.” Chad Nilsson may not have gotten the message, something that’s not unusual in the world of MLM. From WhoIsChadNilsson.com: “Of course we are all waiting patiently for our Zeekler Refunds, but now, in the meanwhile, there is a company out that is better than Zeek Rewards every [sic] was! A six year old company has just launched a new program that is even better. They are paying 2.15 percent daily and you can pull your profit out every day if you want, right from day one. If you were to put $200.00 into this new program, in 170 business days, your money would have grown to $7500.00!)
See this story/comments thread for more info on actions/alerts against Profitable Sunrise.
From the Alaska Division of Banking and Securities, within the Department of Commerce, Community, and Economic Development (DCCED):
The state “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.”
Patrick
From Maryland Attorney General Douglas F. Gansler:
“The [Profitable Sunrise] 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.”
Patrick
Quick note: Here is an ad for Profitable Sunrise that was on a classified-ad site targeted at Alaskans:
“An investment with a certain rate of return and no chance of default. Although various investments (for example, savings accounts or blue chip stocks) meet these requirements, a Treasury bill is the most common example of a riskless investment. Risk-free investments have such a low level of risk that it may be ignored.”
The ad listed the city of “Pavlograd” in the state of “Nebraska.”
Pavlograd actually is a city in Ukraine.
Patrick
You can add Kentucky to your list as well. They issued a cease and desist order.
Thanks, Lynn. My mistake. I wrote about Kentucky yesterday but didn’t add it to today’s list.
It’s there now. :-)
Patrick
[…] With New Jersey’s action, the unofficial total of U.S. states or Canadian provinces issuing Investor Alerts or cease-and-desist orders now stands at 25. (See Current list here.) […]
[…] With Louisiana’s action, the unofficial total of U.S. states or Canadian provinces issuing Investor Alerts or cease-and-desist orders against Profitable Sunrise now stands at 26. (See current list here.) […]
[…] attack is occurring against the backdrop of government actions against the Profitable Sunrise HYIP “program.” RealScam posters have been following Profitable Sunrise developments closely. Forum posters also […]
Quick note: Canada’s Manitoba issued an Investor Alert on March 15. It was added to the list above today:
MSC issues warning on Profitable Sunrise
The Manitoba Securities Commission (MSC) is warning Manitobans about a suspected “high yield investment” offered through a promotional web site for an off shore company called Profitable Sunrise. Profitable Sunrise is not authorized to carry out business in Manitoba.
According to its website Profitable Sunrise offers five different investment plans, with a minimum investment of $10.00 and a “risk free” return of between 1.6 and 2.7 percent per business day on a 180-240 day term.
The Alberta, BC and Quebec Securities Commission have issued alerts against Profitable Sunrise. If you have been contacted by someone claiming to represent Profitable Sunrise, please contact the MSC.
Reminder to investors
As part of Fraud Prevention Month, the MSC reminds consumers that it is important to protect themselves against becoming a victim of investment fraud. Check out the MSC website at http://www.msc.gov.mb.ca/education/index.html for resources on investment scams and what action you can take to protect your hard earned money.
If you have received unsolicited phone calls about investment opportunities please contact the Manitoba Securities Commission at (204) 945-2548 or toll free at 1-800-655-5244 and ask to speak to an investigator.
The Manitoba Securities Commission is an independent agency of the Government of Manitoba that protects investors and promotes fair and efficient capital markets throughout the province.
Source:
http://www.msc.gov.mb.ca/media_events/investor_alerts/sunrise.html
New on March 21 — Oregon:
State warns investors about possible securities fraud
Promoter guarantees high return rates, offers referral program
(Salem) — The Oregon Division of Finance and Corporate Securities (DFCS) is alerting Oregonians about a Birmingham, England-based company known as Profitable Sunrise that may be soliciting Oregon investors in violation of Oregon securities law.
According to the division’s records, neither the company nor its owner, Roman Novak, are licensed in Oregon to sell securities and the offered securities are not registered as required by Oregon law.
Profitable Sunrise, through its website http://www.profitablesunrise.com, tells potential investors that their money will be used to fund short-term, “risk free” loans to businesses and ensures that all deposited funds are “insured against loss by a leading investment bank.” Further, the company boasts that its investment model generates more income than others and guarantees returns of 1.6 percent to 2.7 percent per day for periods from 180 to 240 business days, or the equivalent of approximately 584 percent to 985 percent per year.
The website also notes the owners’ Christian connections and devotion to unspecified charitable causes.
Potential investors can select among five investment plans with the entry level requiring a minimum of a just $10. Profitable Sunrise also touts a “Referral Program” where current investors receive a 5 percent commission and a higher yield of the amount they already have invested by recruiting others – a hallmark of a pyramid scheme.
“This investment opportunity has all the markings of a potential Web-based securities scheme,” said David Tatman, DFCS administrator. “Using the terms “guaranteed” and “risk-free” are red flags and investors should be extremely cautious before committing their money to Profitable Sunrise.”
Tatman urges all investors looking at any opportunities, especially foreign-based ones, to do their research.
Most offerings in Oregon must be registered and the person or company soliciting the offer must be licensed in Oregon. Check the division’s website at http://www.dfcs.oregon.gov/securities/before_you_invest.html or call
toll-free in Oregon 866-814-9710.
###
The Division of Finance and Corporate Securities (DFCS), a division of the Oregon Department of Consumer and Business Services, helps ensure that a wide range of financial products and services are available to Oregonians and protects consumers from financial fraud and abuse. It does that by licensing
financial institutions and service providers, regulating the sale of securities in Oregon, investigating complaints and alleged violations of financial-service laws, and providing education and other resources to consumers.
The Department of Consumer and Business Services is Oregon’s largest business regulatory and consumer protection agency. For more information, visit http://www.dcbs.oregon.gov.
Source:
http://www.cbs.state.or.us/dfcs/news_releases/ProfitableSunrise.pdf
Quick note: After reading the Oregon news release, I did a quick check on how the Profitable Sunrise scheme was advertised in the state.
Turns out that classified ads were at least one of the means.
Headline of Oregon ad:
“Earn Passive Income Online with Profitable Sunrise”
Body copy (in part) of Oregon ad:
YOU SHOULD REALLY TAKE A LOOK AT THIS. NOTHING COMPARES WITH THIS OPPORTUNITY BECAUSE YOU ARE REALLY GUARANTEED TO MAKE MONEY DAILY… YOU HAVE NO CHOICE BUT TO MAKE MONEY EVERYDAY WITH THIS. JUST WATCH THE SECOND SHORT VIDEO ON THIS PAGE GUARANTEED To Make Money EVERYDAY For Doing Absolutely NOTHING! YOU WILL BE VERY HAPPY THAT YOU TOOK THE TIME TO WATCH THIS SHORT VIDEO”
And it also appears that a person or group advertising in Oregon also advertised in Louisiana. See this post:
https://patrickpretty.com/2013/03/19/update-louisiana-joins-growing-list-of-states-that-have-issued-investor-alerts-on-profitable-sunrise/comment-page-1/#comment-48620
Patrick
This phrase also appears in an ad in Tennessee. So, it looks as though an individual or group was posting in classified-ad sites in at least three states: Tennessee, Louisiana and Oregon.
Patrick
Now, Missouri:
Source:
http://www.ktts.com/news/199387111.html
Patrick
Irony?
Pat Robertson warns of ‘scamsters in religious garb quoting the Bible’
http://www.rawstory.com/rs/2013/03/21/pat-robertson-warns-of-scamsters-in-religious-garb-quoting-the-bible/
Reuters has this press release:
Investor Alert: Watch Out for High-Yield Investment Programs
http://www.reuters.com/article/2013/03/22/idUSnCCNfXlXza+1d4+MKW20130322
Thanks for this, Tony.
Patrick
[…] Sunrise also described itself as based in the United Kingdom. It is now the subject of at least 30 Investor Alerts or cease-and-desist orders in the United States and Canada. The United Kingdom and New Zealand also have issued warnings […]
[…] The stories by Behind MLM on the allegations flying between parties in the matters pertaining to eAdGear, GoFunPlaces, Williams and JubiMax aren’t apt to make the trade feel any better about itself, perhaps particularly since at least 30 regulatory agencies have issued cease-and-desist orders or Investor Alerts on the Profit…. […]
[…] the subject of Investor Alerts or cease-and-desist orders in at least 30 states and provinces in the United States and Canada, the Profitable Sunrise HYIP has passed a milestone of sorts: Its […]
[…] Hampshire has joined the list of states or provinces warning about the “Profitable Sunrise” HYIP scheme. The unofficial tally now stands at […]
[…] unofficial tally of U.S. states and provinces on Canada taking action against Profitable Sunrise now stands at 35. The SEC also has taken action, including a notice that it had arranged […]
[…] least 35 U.S. states or provinces in Canada went on to issue Investor Alerts or cease-and-desist orders against Profitable Sunrise. The SEC […]
[…] have described Profitable Sunrise as a form of affinity fraud targeted at people of faith. At least 35 agencies in the United States and Canada have issued cease-and-desist orders or Investor Alerts against the HYIP “program,” […]