New Hampshire Joins Many Other States Or Provinces In Issuing ‘Profitable Sunrise’ Warning; [UPDATE: District Of Columbia, Georgia And West Virginia Now On List Of 34, Too]
UPDATED 6:11 P.M. EDT (MARCH 28, U.S.A.) The District of Columbia has issued a warning about Profitable Sunrise. So has West Virginia. Georgia has issued a cease-and-desist order. A majority of U.S. states now have taken action in one form or another against Profitable Sunrise. See the info in the Comments thread below . . .
New Hampshire has joined the list of states or provinces warning about the “Profitable Sunrise” HYIP scheme. The unofficial tally now stands at 34.
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 (federal district), Georgia, West Virginia.
Regulators in New Zealand (FMA) and the United Kingdom (FSA) also have issued warnings against Profitable Sunrise.
The website of Profitable Sunrise has been offline for nearly two weeks. Boat-sharks have been using Facebook to suck Profitable Sunrise members into other HYIP scams, some of which purported to pay more than Profitable Sunrise’s bizarrely named “Long Haul” plan, which advertised 2.7 percent a day with a purported Easter holiday payout.
Here is what New Hampshire has to say about Profitable Sunrise.
From the District of Columbia:
Tuesday, March 19, 2013
Department Warns Residents About Possible Fraudulent Investment Group Profitable Sunrise
The DC Department of Insurance, Securities and Banking warns District residents against a company called Profitable Sunrise that several states and Canadian provinces have accused of marketing fraudulent investments over the Internet.
The Minnesota Department of Commerce has banned the company from selling in that state and says 19 other jurisdictions in Canada and the US have taken coordinated action against the company.
Profitable Sunrise markets itself as making short-term loans to businesses at 3 percent per business day and returning at least 2 percent a day to investors risk-free, an extraordinarily profitable return. Minnesota and the other jurisdictions allege the operation is a pyramid scheme, in which the managers never actually turn a profit on the ostensible business but instead rely on investors constantly recruiting new investors in order to generate cash.
“As with any investment, the old saying is always right,” said Theodore (Tony) Miles, associate commissioner for securities of the District regulatory agency. “If it looks too good to be true, it probably is.”
Profitable Sunrise markets itself through YouTube, FaceBook and its own website, which appeals to religious people – a ploy called “affinity marketing” – by putting religious scriptures on each page. Minnesota and the other jurisdictions say the company is not properly registered to sell investments and misrepresents facts on its website.
Profitable Sunrise is not registered to sell investments in the District of Columbia, either. Nor is the investment offering registered with the Department of Insurance, Securities and Banking; and the department has not received a filing asserting the company is exempt from registration.
If you’re a District resident and have questions about Profitable Sunrise, email the Department of Insurance, Securities and Banking at disbcomplaints@dc.gov or disb@dc.gov; or call (202) 727-8000.
Source: http://disb.dc.gov/release/department-warns-residents-about-possible-fraudulent-investment-group-profitable-sunrise
Link to Georgia cease-and-desist order:
http://www.sos.ga.gov/securities/GAProfitableSunriseCD_ENSC_130293.pdf
Patrick
Just added — West Virginia:
State Auditor Glen B. Gainer III Warns West Virginians of “Profitable Sunrise,” an Internet Investment Scam
(CHARLESTON) – State Auditor Glen B. Gainer III, through his office’s Securities Division, is cautioning West Virginia citizens regarding a potentially fraudulent investment scheme being advertised and offered for sale through the internet. The scheme is being offered by an offshore company that has an alleged office location in the United Kingdom and owners/operators located out of Eastern Europe.
The offshore company, Inter Reef Inc. doing business as “Profitable Sunrise,” and the owners/operators, Roman and Radoslav Novak, have offered various investment models via multiple websites, which include highly suspicious offers of a “risk free” investment opportunity that would yield 1.5 – 3 percent returns per day. In addition, Profitable Sunrise has offered a multi-tiered “referral option” which encourages individuals to participate in the marketing and sale of Profitable Sunrise’s investments. These types of unsustainable, high yield returns and “referral options” are often red-flags consistent with Ponzi or Pyramid-like schemes.
West Virginia citizens should be aware that neither Profitable Sunrise, the investments it sold, nor the alleged owners and operators of the company are properly registered with the West Virginia Securities Division.
In issuing this alert, West Virginia is joining a regulatory and informational effort which includes over fifteen States, three Canadian Provinces, and at least two foreign nations.
The website in question appears to have gone off-line on Thursday, March 14. The Securities Division encourages any investors in Profitable Sunrise to contact the Securities Division Enforcement Section at (304) 558-2251 or toll free at (877) 982-9148. Auditor Gainer also encourages West Virginians to contact the Securities Division at the above number before investing to obtain general information about investment professionals and products, including online investments or business opportunities.
Source:
http://www.wvsao.gov/Communications/prDetail.aspx?rID=378
Quick note: The MAJORITY of the 50 U.S. states now have issued either Investor Alerts or cease-and-desist orders against Profitable Sunrise.
The unofficial math right now is 27/50.
This may be unprecedented. The toxicity level of the Profitable Sunrise scam also may be unprecedented.
Because we’re talking about HYIP Ponzi Land, it it not outside of the realm of possibility that the most bereft of HYIP pitchmen will try to claim that 23 states remain off the list, suggesting that Profitable Sunrise somehow is “legal” in those states.
That would be BS, of course. But they can, do and WILL say anything.
Hell, some of them might even invite the troops to a pitchfest for a new “opportunity.”
See this:
http://www.realscam.com/f9/profitable-sunrise-hyip-has-anybody-dug-through-yet-1795/index74.html#post50626
For context, consider that the U.S. Secret Service seized more than $80 million in the AdSurfDaily Ponzi case in August 2008. An active criminal investigation was under way and it was well-known.
Despite that — and while it was waiting for a key court ruling on the Ponzi allegations — ASD announced it had a $200 million deal with Praebius Communications, a penny-stock company. The troops cheered to the high heavens, never bothering to check a single fact.
Here’s what happened after that:
https://patrickpretty.com/2010/07/16/remember-praebius-penny-stock-firm-asd-claimed-would-pump-200-million-into-its-coffers-was-flogged-by-california-man-in-fraudulent-touting-scheme-during-month-asd-announced-joint-advertising-v/
Over time, ASD’s Andy Bowdoin tried to sell the troops into other “programs.” He actually became a spokesman for an entity known as Paperless Access, which apparently lacked the good sense not to be schmoozing with an already-convicted felon accused of new and even greater felonies.
Bowdoin also tried to sell the troops a VOIP phone service, positioning that “opportunity” as a gift. Then in 2011, while under indictment, Bowdoin became a pitchman for a scheme known as “OneX.”
There was some indirect news about that today:
https://patrickpretty.com/2013/03/28/bulletin-adsurfdailyonex-pitchwoman-rayda-roundy-faces-proposed-fine-of-81250-in-utah-for-alleged-unlawful-sale-of-safevest-llc-securities-in-ponzi-scheme-targeted-at-christians/
Patrick