BULLETIN: Kansas Issues Cease-And-Desist Order To Profitable Sunrise; Document Names 2 Alleged Promoters, Including Nanci Jo Frazer; State Urges Investors To Contact Securities Commissioner

BULLETIN: The state of Kansas has issued a cease-and-desist order against the alleged Profitable Sunrise HYIP scheme, saying the “program” offered “gaudy” returns “of 1.6% to 2.7% on a daily basis.”

In a statement, Kansas securities officials say the order names Florida resident David P. Cozzocrea as a Profitable Sunrise pitchman. Cozzocrea’s promo appeared on a website styled KTFAlways.com. (The site appears to be offering an Iraqi Dinars scheme at the time of this post.)

“Two Kansas investors learned about Profitable Sunrise through KTFAlways.com and contacted Cozzocrea directly. Cozzocrea provided the investors with instructions for setting up an account with Profitable Sunrise and directly funded their accounts with Profitable Sunrise,” the office of Josh Ney, Kansas interim securities commissioner, said.

Meanwhile, the Kansas order also identifies Ohio resident Nanci Jo Frazer of NJF Global Group as a Profitable Sunrise pitchwoman.

“Two other Kansas residents invested in Profitable Sunrise through an organization known as the NJF Global Group Community,” Ney’s office said. “The NJF Global Group Community was operated by Focus Up Ministries, Inc. and its founder, Nanci Jo Frazer. The NJF Global Group Community promoted Profitable Sunrise as a fundraising opportunity for religious-based and charitable organizations.”

Kansas now has become at least the third U.S. state to identify Frazer or NJF Global Group Community in a securities action. The others include Ohio and Minnesota. NJF Global Group also is referenced in an alert by the Financial Markets Authority of New Zealand.

Kansas urged “any Kansas residents” who may have invested money with Profitable Sunrise or had contact with persons promoting Profitable Sunrise to contact Ney’s office immediately.

“Considering the extent of this scheme, it is likely that several other Kansas residents have funds at risk with Profitable Sunrise,” Ney said.  “Our office needs information from such people in order to stop this type of activity.”

A website tied to the NJF Global Group, however, appears to be encouraging investors not to contact state regulators.

“If you file a claim in your State, be prepared to prove yourself and allow access to your bank accounts, personal info and emails as a part validating you,” NJFGlobalGroup.com says. “Some states are saying that all who participated are considered to have purchased an unregistered security.”

In 2008 (and later), pitchmen for the AdSurfDaily Ponzi scheme also discouraged recruits from filing complaints with regulators.

Read the statement by the Office of the Kansas Securities Commissioner.

In April, the SEC described Profitable Sunrise as a pyramid scheme that may have gathered tens of millions of dollars through offshore entities.

Kansas now has become one of at least 36 U.S. states or provinces in Canada to issue cease-and-desist orders or Investor Alerts against Profitable Sunrise. At least four Kansas residents invested a total of at least $22,000 in Profitable Sunrise, the state said.

Whether purported Profitable Sunrise operator “Roman Novak” has any plans to help pitchmen address potential legal bills is unknown.

The Kansas investigation is ongoing, the state said.