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  • BULLETIN: Docket In Federal Court Shows That SEC Has Scheduled Deposition For At Least 1 Profitable Sunrise Pitchman

    breakingnews72BULLETIN: (UPDATED 1:56 P.M. EDT (APRIL 8, U.S.A.) In a move that may rattle promoters of HYIP fraud schemes, the SEC has scheduled a deposition for at least one individual known to have pitched the Profitable Sunrise “program.”

    Pitchman Anthony M. Infante will be deposed April 11 at a location in Florida, according to the docket of the case.

    Martin Sipe will be deposed April 9  [moved to April 19] at a location in Utah, according to the docket. Sipe’s tie to the ProfitableSunrise case was not immediately clear.

    Whether the SEC plans other depositions has not been disclosed in early filings.

    The filings disclosing the depositions of Infante and Sipe are expected to appear later today on the ASD Updates Blog.

    In filings in federal court in Atlanta this week, the SEC described Profitable Sunrise as an international pyramid scheme that had used a “mail drop” in England while conducting an “offering fraud” targeted at U.S. citizens.

    “Profitable Sunrise operates for the benefit of unknown individuals and/or organizations doing businesses through companies formed in the Czech Republic and using bank accounts in the Czech Republic, Hungary, Latvia, and China, among other places,” the SEC alleged.

    See April 5 PP Blog story.

  • URGENT >> BULLETIN >> MOVING: SEC Files Complaint Against Profitable Sunrise; Purported ‘Opportunity’ Called An International ‘Pyramid Scheme’

    breakingnews72URGENT >> BULLETIN >> MOVING: (17th update 4:02 p.m.) The SEC has filed a complaint against the ProfitableSunrise HYIP “program” in federal court in Atlanta. The story first was reported by CourthouseNewsService this morning.

    At the same time, the PP Blog has learned that the agency applied for an emergency asset freeze, explaining that Profitable Sunrise was using a “mail drop” in England and that “Hungarian law enforcement authorities” had had frozen an account holding $11.3 million connected to the scheme as part of an “investigation of suspected money laundering.” U.S. District Judge Thomas W. Thrash Jr. granted the freeze, which applies to multiple bank accounts.

    The Profitable Sunrise “referral program” operated as a “pyramid scheme,” the SEC said in its filings. Moreover, the SEC charged, Profitable Sunrise was conducting an “offering fraud” targeted at U.S. citizens and selling unregistered securities.

    And people pushing the “program” for commissions may not even know who they’re working for, the SEC said.

    “Profitable Sunrise operates for the benefit of unknown individuals and/or organizations doing businesses through companies formed in the Czech Republic and using bank accounts in the Czech Republic, Hungary, Latvia, and China, among other places,” the SEC alleged.

    The complaint names Inter Reef Ltd. (DBA Profitable Sunrise) as defendants. Four relief defendants also are named:

    Melland Company SRO, Color Shock SRO, Solutions Company SRO, and Fortuna-K SRO.

    Absent from the list of defendants are both “Roman Novak” and “Radoslav Novak.” Although many Profitable Sunrise pitchmen have claimed that “Roman Novak” operates the company and that “Roman’s” brother “Radoslav” is its attorney, that information has not been confirmed.

    “There is more than a slight possibility, as with many offering frauds, that the people described in the website, including the Novak brothers, do not exist,” the SEC said.

    InterReef’s registered agent is based in Seychelles, an island chain in the western Indian Ocean, the SEC said.

    “Tens of thousands of investors” may have invested “at least tens of millions of dollars in Profitable Sunrise,” the SEC said.

    At least 34 U.S. states and provinces in Canada have issued Investor Alerts or cease-and-desist orders against Profitable Sunrise.

    Assertions online that Profitable Sunrise “generates profits by making loans to businesses at higher rates” are “false,” the SEC charged.

    The scheme spread in part through “social media” and “numerous promoters in the United States,” the SEC said in its complaint.

    Incongruities dotted Profitable Sunrise, the SEC alleged.

    Although Profitable Sunrise claimed it had been operating for six years, “the United Kingdom Companies House reports that Inter Reef has been in existence for only 19 months,” the SEC alleged.

    Meanwhile, the SEC said, a YouTube promo for Profitable Sunrise positioned the “opportunity” as a “ministry” and included a discussion of why Profitable Sunrise “is not a Ponzi or pyramid scheme.”

    From the SEC complaint filed in federal court in Atlanta April 4.
    From the SEC complaint filed in federal court in Atlanta April 4.
    XX
    From the SEC complaint.

    See filings courtesy of the ASDUpdates Blog.

  • 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.

  • UPDATE: WordPress Boots Alleged Profitable Sunrise Pitchman Named In CONSOB Action

    vdprojectitalyWordPress has booted a Blogger named in an April 2 order by CONSOB, the Italian securities regulator.

    The Blog of Daniele Verzari now carries this message:

    “vdprojectitaly.wordpress.com is no longer available.

    “This blog has been archived or suspended for a violation of our Terms of Service . . .”

    HYIP schemes spread in part through Blog pitches and pitches on social-media sites such as Facebook, YouTube and Twitter. In 2010, the Financial Industry Regulatory Authority (FINRA) said HYIP purveyors create “the illusion of social consensus, which is a common persuasion tactic fraudsters use to suggest that ‘everyone is investing in HYIPs, so they must be legitimate.’”

  • URGENT >> BULLETIN >> MOVING: Mingo County (W. Va.) Sheriff Eugene Crum Reportedly Shot And Killed

    URGENT >> BULLETIN >> MOVING: In yet another disturbing attack against the law-enforcement community, the sheriff of West Virginia’s Mingo County has been shot and killed near the Mingo County Courthouse, multiple media outlets are reporting.

    A suspect is in custody in the shooting death of newly elected Sheriff Eugene Crum, the Charleston Daily Mail is reporting.

    Also see CoalValleyNews.

    From the Officer Down Memorial Page (italics added):

    The suspect fled the scene and crashed during the pursuit near Hell Creek. He was shot during an exchange of gunfire with a Mingo County deputy and was apprehended.

    Sheriff Crum has served as sheriff of Mingo County since January. He had previously served as a magistrate . . .  and with the Delbarton Police Department. He is survived by his children and grandchildren.

  • CNN’s Anderson Cooper 360 Expected To Air Segment On Zeek Rewards Tonight; [UPDATE: Report Apparently Delayed]

    acteaser040313UPDATE 8:07 A.M. EDT (APRIL 4, U.S.A.) The report did not air during the 8 p.m. or 11 p.m. broadcasts, possibly because developments in other stories took precedence. Our April 3 story is below . . .

    The Blog of CNN’s Anderson Cooper 360 is carrying this teaser today: “360 Wednesday[:] One of the biggest financial schemes in U.S. history went down in a small North Carolina town with many losing their life savings. Watch AC360 at 8 and 11 p.m. ET.”

    In August 2012, the SEC called Zeek Rewards a $600 million Ponzi- and pyramid scheme that had defrauded people by the hundreds of thousands. Zeek was operated by Paul R. Burks and Rex Venture Group LLC of Lexington, N.C.

    CNN’s apparent airing of a segment on Zeek will occur against the backdrop of mysterious disappearance of the Profitable Sunrise “program,” which purported to pay out more on a daily basis than even Zeek.  Zeek planted the seed that it paid out an average of 1.5 percent a day; the bizarrely named Profitable Sunrise “Long Haul” plan claimed it paid out 2.7 percent a day.

    Payouts from the Long Haul were dubbed an “Easter Gift” and were due April 1, April Fool’s Day. The Profitable Sunrise website, however, has been offline since at least March 14. At least 34 regulators in the United States and Canada have issued Investor Alerts or cease-and-desist orders against Profitable Sunrise.

    New Zealand and the United Kingdom also have issued warnings.

    CONSOB, the Italian securities regulator, yesterday issued a suspension order against an alleged Profitable Sunrise promoter.

    Some Zeek promoters also promoted ProfitableSunrise, which traded on Bible verse

    Zeek also has promoters’ ties to the $119 million, 1-percent-a-day AdSurfDaily Ponzi scheme, which operated from the small town of Quincy, Fla., and purported to be a Christian enterprise.  ASD collapsed after the U.S. Secret Service filed Ponzi allegations in 2008.

     

  • URGENT >> BULLETIN >> MOVING: CONSOB, Italian Securities Regulator, Takes Action Against Alleged Profitable Sunrise Promoter

    breakingnews72URGENT >> BULLETIN >> MOVING: The Italian securities regulator CONSOB has filed a suspension order that names an alleged promoter of Profitable Sunrise, amid allegations that Profitable Sunrise is an investment program.

    The agency said it observed pitches for ProfitableSunrise on a WordPress Blog under the control of “Daniele Verzari, who presents himself to users of the website as the ‘founder’ of the Vdproject Italy team.”

    Verzari, according to CONSOB, now is banned from promoting Profitable Sunrise and programs known as “Vityazi” and “Bestforinvest.” In a separate order, the agency said Bestforinvest operated at the domain bestforinvest.org.

    Promos for Bestforinvest were “carried out in the absence of the prescribed authorizations,” CONSOB said.

    In the past, CONSOB has acted against promoters of HYIP schemes such as Club Asteria and JSSTripler/JustBeenPaid.

    Profitable Sunrise had at least five investment programs, according to Investor Alerts or cease-and-desist orders filed by securities regulators in the United States. One of the purported “plans” was known as the “Long Haul,” which purported to pay interest of 2.7 percent a day. Payouts from the bizarrely named “Long Haul” plan were touted as an “Easter Gift” and were due yesterday.

    Profitable Sunrise members are complaining about not getting paid. The “opportunity’s” website has been offline for nearly three weeks.

    Both the United Kingdrom and Zew Zealand have issued alerts about Profitable Sunrise. So have at at least 34 state and provincial regulators in the United States and Canada.

    Here is the text of the April 2 CONSOB order, as presented in English on the agency’s website:

    Under the terms of Art. 101, section 4, lett. b), of the Consolidated Law on Finance, Consob has suspended, for a period of 90 days, the advertising activity relating to offering to the public the investment programmes entitled Vityazi, Profitable Sunrise and Bestforinvest carried out, through the website www.vdprojectitaly.wordpress.com by Daniele Verzari, who presents himself to users of the website as the “founder” of the Vdproject Italy team (Resolution No. 18510 of 27 March 2013).

    In relation to the three investment programmes, on the basis of the descriptions provided on the website www.vdprojectitaly.wordpress.com and, in relation to the programmes Profitable Sunrise and Bestforinvest, on the basis of the descriptions on the “official” websites, there seem to be the characteristics of an investment of a financial nature, the notion of which implies the presence together of the three elements: (i) an investment of capital; (ii) an expectation of a return of a financial nature; (iii) the assumption of a risk associated with the investment of capital. Indeed, all three investment programmes require investment of an initial capital of an indeterminate amount, with the exception of the programme entitled Bestforinvest which provides for a minimum and maximum investible capital of between 100 and 9,000 US dollars.

    The activity carried out through the website www.vdprojectitaly.wordpress.com leads to the well-grounded suspicion that the advertising activity performed in relation to the public offering of financial products breaches Art. 101, section 2, of the Consolidated Law on Finance which states that “before publication of the prospectus it is forbidden to make any advertising announcement regarding the public offering of financial products other than community financial instruments”, and that the said activity is still being performed. Hence the urgency of the measure, adopted in accordance with Art. 101, section 4, letter b, of the Consolidated Law on Finance.

    CONSOB’s issuance of the order is important because it demonstrates that individual promoters can be held accountable for schemes that push unregistered securities even if they are not the operator of a “program.”

    Whether Verzari will defend against the CONSOB action and receive any help with potential legal bills from “Roman Novak” and Profitable Sunrise is unclear. “Roman Novak” is the purported operator of Profitable Sunrise.

  • ZEEK RECEIVER TO NET WINNERS: ‘The Time For Court Action Is Drawing Closer’

    UPDATED 1:20 P.M. EDT (APRIL 4, U.S.A.) The court-appointed receiver in the Zeek Rewards Ponzi scheme case has warned net winners that “the time for court action is drawing closer” and that “there is an opportunity for settlement.”

    Receiver Kenneth D. Bell published a letter to winners today on the website of the receivership.

    A snippet from the letter (italics added):

    The time for court action is drawing closer. I am sending this message to make sure that net-winners understand that there is an opportunity for settlement, but that the window for the opportunity is closing. To allow a reasonable time for all those who would like to pursue a settlement to do so, I am going to continue to make my team available to negotiate settlements for at least 60 more days. Therefore, if net winners want to pursue a settlement they should contact us by no later than May 31, 2013. After that date, I will assume that all net-winners that want to avoid the legal process by discussing settlement have done so, and I will move forward with court action, likely in June 2013, against the remaining net-winners.

    breakingnews72In August 2012, the SEC descibed Zeek as a $600 million Ponzi- and pyramid scheme operated by Paul R. Burks through Rex Venture Group LLC. Based on the number of victims, Zeek may be the largest Ponzi scheme in U.S. history.

    Bell noted in the letter that he already has discussed settlements with a “number of net-winners” and that “we have successfully negotiated payments which will, subject to Court approval, result in the release of the Receiver’s claims against those winners.”

    Some winners have received significant discounts, Bell said. But he noted that settlements depend on circumstances and that not all winners will get the same deal.

    “The settlements take into account the amount of the affiliate’s winnings, the nature of their involvement and their involvement of others, their cooperation, their ability to repay the money (and the time period in which the repayment can reasonably be made) and other individual factors and circumstances,” Bell said in the letter.  “The amounts of the settlements have ranged from approximately 40% to 80% of the affiliate’s net winnings. However, not all net winners have been or will be offered discounted settlements and the amounts of future settlements may vary from this range. The amount of the settlement offered to each net-winner will be based on the affiliate’s particular circumstances and ultimately must – in both my and the Court’s opinion – be in the overall best interests of the victims, considering the costs associated with the legal process.”

    Senior U.S. District Judge Graham C. Mullen of the Western District of North Carolina is presiding over the Zeek case.

    Mullen’s name also was in the news last week as a result of a different government action that alleged fraud.

    On March 27, the CFTC sought an asset freeze against James Harvey Mason of Graham, N.C., The JHM Forex Only Pool (JHM) and Forex Trading at Home (FTAH).

    Mullen granted the freeze, amid CFTC allegations that Mason fraudulently solicited “at least $1.1 million from at least 60 individuals to participate in off-exchange foreign currency (forex) commodity pools and misappropriat[ed] at least $600,000 of participant funds.”

     

  • NO EASTER PAYOUT: How To Contact State Securities Regulators About Profitable Sunrise HYIP SCHEME; [UPDATED WITH INFO FOR PROVINCES IN CANADA]

    recommendedreading1UPDATED 8:49 A.M. EDT (APRIL 16, U.S.A.) Today is the day payouts were due on the bizarrely named Profitable Sunrise “Long Haul” 2.7-percent-a-day plan. The Profitable Sunrise website has been offline for 18 days, leaving investors in the lurch. All of the U.S. states and provinces in Canada listed below have issued Investor Alerts or cease-and-desist orders against Profitable Sunrise. The number may grow.

    The link at the bottom of this post is from the North American Securities Administrators Association. It provides info on how to contact each of the state and provincial securities regulators in the United States and Canada.

    ALABAMA: Joe Borg, director of the Alabama Securities Commission, urged anyone in Alabama who has invested with Profitable Sunrise to contact the ASC’s Enforcement Division at 1-800-222-1253.

    Link to cease-and-desist order:

    http://www.asc.state.al.us/News/2013%20News/3-14-13%20C&D%20Profitable%20Sunrise.pdf

    ALASKA: Persons with information regarding Profitable Sunrise are encouraged to telephone the division at 907-269-8140 or send an email to dbsc@alaska.gov.

    Source:

    http://www.commerce.state.ak.us/bsc/pub/PR-13-12-ProfitableSunriseAlert.pdf

    CALIFORNIA: All California investors in Profitable Sunrise are strongly encouraged to contact the Department of Corporations to file a formal complaint at (866) ASK-CORP or at www.corp.ca.gov.

    [March 14] order is available on the Department’s website at http://www.corp.ca.gov/ENF/Default.asp.

    COLORADO: (Added April 2.) As reported by the Denver Post. Colorado Division of Securities website is here.

    DELAWARE: “This scam is a reminder to be alert and skeptical of money-making claims that are simply too good to be true,” Attorney General Beau Biden said. “I urge investors who believe they have been the victims of this or other schemes to immediately contact our Investor Hotline at 302-577-8424.”

    Source:

    http://news.delaware.gov/2013/03/14/biden-orders-halt-to-profitable-sunrise-investment-scheme-in-delaware/

    DISTRICT OF COLUMBIA: (Washington, DC): 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

    FLORIDA: File a complaint if you have fallen victim to fraud or if you suspect questionable business practices. Consumers can call the OFR at (850) Its-Your Money (850-487-9687) or file a complaint online.

    Source:

    http://www.flofr.com/PressReleaseDetail.aspx?id=4146

    GEORGIA: See online complaint form on right ride of this page:

    http://www.sos.ga.gov/securities/

    Link to Georgia cease-and-desist order:

    http://www.sos.ga.gov/securities/GAProfitableSunriseCD_ENSC_130293.pdf

    IDAHO: “Those investors who receive compensation for soliciting other investors may themselves be subject to the licensing and anti-fraud provisions of state and federal securities laws,” said Gavin Gee, director of the Department of Finance.

    Source:

    http://finance.idaho.gov/PR/2013/PressRel-ProfitableSunrise.pdf

    INDIANA: Anyone who has invested in Profitable Sunrise should contact the Secretary of State’s office at 1-800-223-8791 or find us online at www.indianainvestmentwatch.com.

    Source:

    http://www.in.gov/activecalendar/EventList.aspx?fromdate=3/1/2013&todate=3/31/2013&display=Month&type=public&eventidn=90006&view=EventDetails&information_id=176811

    KENTUCKY: Investors can file a complaint or fraud report with DFI by phone or online at http://kfi.ky.gov/complaint/Pages/securities.aspx.

    Source: http://migration.kentucky.gov/Newsroom/eppc_ofi/031413profitable.htm

    LOUISIANA: Consumers who have invested with Profitable Sunrise are encouraged to contact the Securities Division of the Office of Financial Institutions at (225) 925-4512.

    Source:

    http://www.ofi.state.la.us/Sec%20ProfitableSunrise.htm

    MAINE: Consumers who have invested with Profitable Sunrise are encouraged to contact the Office of Securities at (877) 624-8551 (toll free in Maine) or (207) 624-8551. Shaw also urged consumers to contact Maine’s Office of Securities before investing to obtain general information about investment professionals and products, including online investment or business opportunities. More information is available at www.investors.maine.gov.

    Source:

    http://www.maine.gov/tools/whatsnew/index.php?topic=SEC-PressReleases&id=513802&v=Default

    MARYLAND: Attorney General Gansler reminds anyone who may have invested in “Profitable Sunrise” to contact the Securities Division of his office at 410-576-7050 if they have questions. Any investor may call the Securities Division to inquire about the status of investment promoters or the securities in which they plan to invest.

    See Maryland cease-and-desist order:

    http://www.oag.state.md.us/Securities/Actions/2013/ProfitableSunrise.pdf

    MINNESOTA: If you have questions or want to report suspicious activity, the Commerce Department’s Consumer Help Line can be reached by phone at (651) 296-2488 or (800) 657-3602. Questions or consumer complaints related to securities can be sent by email to securities.commerce@state.mn.us or by mail to the Minnesota Department of Commerce, 85 7th Place East, Suite 500, Saint Paul, MN 55101.

    Link to Minnesota case-and-desist order:

    http://mn.gov/commerce/images/ProfitableSunriseCeaseandDesist.pdf

    MISSOURI: “File a Complaint” link is on left side of this page:

    http://www.sos.mo.gov/securities/enforcement.asp

    NEVADA: Residents who have been contacted or solicited by someone claiming to represent Profitable Sunrise or any of its affiliated entities are encouraged to contact the Nevada Securities Division at (702) 486-2440 or by visiting the Securities Center on the Secretary of State’s website at http://www.nvsos.gov.

    Source:

    http://nvsos.gov/index.aspx?recordid=1285&page=23

    NEW HAMPSHIRE: Bureau of Securities: 603-271-1463.

    Source:

    http://www.sos.nh.gov/securities/Press_Releases/PRESSR_2013-03-25.pdf

    NEW JERSEY: Individuals who have invested with Profitable Sunrise are encouraged to contact the New Jersey Bureau of Securities at (866) 446-8378 and to file a complaint.

    Source:

    http://nj.gov/oag/newsreleases13/pr20130318b.html

    NEW MEXICO: New Mexico Regulation and Licensing Superintendent J. Dee Dennis Jr. urged anyone in New Mexico who has invested with Profitable Sunrise to contact the New Mexico Regulation and Licensing Securities Division at New Mexico Regulation and Licensing Department at 1-800-704-5533.

    Source:

    http://www.rld.state.nm.us/uploads/PressRelease/b88957513a09474898000e52177885b3/Investor_Alert___Press_Release.pdf

    NORTH CAROLINA: Secretary of State Elaine Marshall urged anyone in North Carolina who has invested with Profitable Sunrise to contact the Secretary of State’s Securities Division at 1-800-688-4507.

    Link to cease-and-desist order:

    https://patrickpretty.com/wp-content/uploads/2013/03/NorthCarolinaProfitableSunrise21209608.pdf

    NORTH DAKOTA: Karen Tyler, North Dakota Securities Commissioner, urged anyone in North Dakota who has invested with Profitable Sunrise to contact the North Dakota Securities Department’s Enforcement Division at 701-328-2910 or 1-800-297-5124.

    OHIO: Ohioans are encouraged to call the Ohio Division of Securities Investor Protection Hotline toll free at 877-683-7841 or file a complaint with the Division online at http://www.com.ohio.gov/secu

    OREGON: See news release:

    http://www.cbs.state.or.us/dfcs/news_releases/ProfitableSunrise.pdf

    SOUTH CAROLINA: Attorney General Alan Wilson urged anyone in South Carolina who has invested with Profitable Sunrise to contact the Securities Division of the South Carolina Attorney General’s Office at (803) 734-9916.

    Read more: http://www.scag.gov/archives/8089

    SOUTH DAKOTA: If you or someone you know invested with Profitable Sunrise, Inter Reef, Ltd., Roman Novak, Radoslav Novak or any affiliated individuals or entities, please contact the Division of Securities at 605-773-4823.

    Source:

    http://www.sdjobs.org/news/releases13/nr032613_profitable_sunrise.pdf

    TENNESSEE: Tennessee Securities Assistant Commissioner Daphne D. Smith urges any Tennessean who has invested with Profitable Sunrise to contact the Securities Division at 800-863-9117 or to visit www.tn.gov/commerce/securities.

    Source:

    http://news.tn.gov/node/10426

    TEXAS: Texas State Securities Board website:

    http://www.ssb.state.tx.us/

    See cease-and-desist order here:

    http://www.ssb.state.tx.us/Enforcement/files/1722.pdf

    WEST VIRGINIA: The Securities Division encourages any West Virginia residents who have invested in Profitable Sunrise to contact the Securities Division Enforcement Section at (304) 558-2251 or toll free at (877) 982-9148.

    Source:

    http://www.wvsao.gov/communications/prDetail.aspx?rID=378

    WISCONSIN: Anyone who has invested with Profitable Sunrise is encouraged to contact the Division of Securities enforcement office at 608-266-1603.

    Source:

    http://www.wdfi.org/newsroom/press/2013/ProfitableSunriseAlert20130314.pdf

    In Canada

    ALBERTA: The ASC urges investors to familiarize themselves with some common red flags of investing and offers the Red Flags of Investing factsheet.  If you unsure about an investment opportunity, consult a registered financial adviser or obtain independent legal advice before making a decision or handing over any money.  Do more research using the resources of the Alberta Securities Commission by visiting www.albertasecurities.com or contacting ASC Public Inquiries at 1-877-355-4488 or inquiries@asc.ca.

    Source:

    http://www.albertasecurities.com/news/Lists/ASC%20News/DispForm.aspx?ID=1151

    BRITISH COLUMBIA: The BCSC urges investors, agents or members of the public who have been approached by or have information about Profitable Sunrise to contact the BCSC inquiries line at 604-899-6854 or 1-800-373-6393 (toll free).

    Source:

    http://www.bcsc.bc.ca/release.aspx?id=16782

    MANITOBA: 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.

    Source:

    http://www.msc.gov.mb.ca/media_events/investor_alerts/sunrise.html

    NEW BRUNSWICK: Being an informed investor is the best defence against investment fraud. Learn how to protect yourself by taking advantage of the materials available on the New Brunswick Securities Commission’s website at www.investinknowingmore.ca.

    Source:

    http://www.nbsc-cvmnb.ca/nbsc/news_content_display.jsp?news_id=396&id=24&pid=4

    ONTARIO: If you have any questions or information relating to this matter, please contact the OSC Contact Centre at 1-877-785-1555.

    Source:

    http://www.osc.gov.on.ca/en/NewsEvents_nr_20130312_osc-ia-inter-reef-novak.htm

    QUEBEC: If you have responded to solicitations from Profitable Sunrise or any similar type of solicitation, please contact an officer at our Information Centre.

    Source:

    http://www.lautorite.qc.ca/en/press-releases-2013-corpo.html_2013_profitable-sunrise-2013-03-12.html

     

    NASAA list of state and provincial regulators

    http://www.nasaa.org/about-us/contact-us/contact-your-regulator/

    Also see March 25 PP Blog post.

  • Profitable Sunrise Members Targeted In Easter Sunday Boat-Sharking For ‘TelexFree’ On Facebook; Viewers Told They Can Plunk Down More Than $15,000 For A ‘Contract’ That Provides Earnings Of At Least $1,100 A Week

    Old Aunt Ethel will join the masses paying to join TelexFree after she notices the success affiliates are having, according to a video playing on Facebook at Profitable Sunrise site.
    Old Aunt Ethel will join the masses paying to join TelexFree after she notices the success affiliates are having, according to a video playing on Facebook at a Profitable Sunrise site.

    UPDATED 12:42 P.M. EDT (U.S.A.) An apparent affiliate for an MLM “program” known as “TelexFree” is trying to recruit Profitable Sunrise members on Facebook on Easter Sunday morning. In yet another stunning example of disconnect within the MLM sphere, a poster left a link to a video titled, “Telex Free — Earn Weekly Posting Ads.”

    Here’s the Facebook text pitch: “Finally! A program the GUARANTEES YOU a WEEKLY INCOME! Takes Minutes Per Day – No Sponsoring – No Sales!”

    The name of TelexFree is not mentioned in the video, which plays on a page styled “EarnWeeklyPostingAds.com” and also within a frame on Facebook itself. The EarnWeeklyPostingAds site appears to be hosted in Utah. Meanwhile, the video playing on the page includes a representation of an artist’s hand making stylistic drawings, including one that represents an old woman dubbed “Aunt Ethel.”

    In the past, according to the video’s male narrator, “Aunt Ethel” was turned off when approached by MLMers. But because TelexFree is a different kind of program that pays people based on their purchase of a “contract,” “Aunt Ethel” will note the success and follow the masses who join the “program” by plunking down sums up to $15,125.

    For the $15,125 sum, recruits will earn a minimum of “never less than $1,100 a week for an entire year.” Lesser sums for the purchase of a “contract” result in lesser earnings, according to the video.

    Everyone — “Aunt Ethel” included — will say the same thing: “I WANT IN,” according to the 7:48 video.

    “And again,” the narrator intones, “if they want to make more money, they can just buy more contracts.”

    The video asserts that TelexFree has a business relationship with the Best Western hotel chain “to build 500 hotels.”

    Profitable Sunrise has been offline for 17 days. In recent days, various boat sharks on FaceBook have been hawking other “programs.” Profitable Sunrise purported to have a “Long Haul” plan that paid 2.7 percent a day. Members purportedly were due an “Easter Gift” to be paid out tomorrow, April Fool’s Day.

    At least 34 regulators in the United States and Canada have issued warnings about the Profitable Sunrise “program.”

    Read the TelexFree review on BehindMLM.com.

  • URGENT >> BULLETIN >> MOVING: Kaufman County (Texas) District Attorney, Wife Found Shot And Killed In Their Home 2 Months After Assistant DA Was Gunned Down

    Mike McLelland. Source: Website of Kaufman County District Attorney.
    Mike McLelland. Source: Website of Kaufman County District Attorney.

    URGENT >> BULLETIN >> MOVING: Mike and Cynthia McLelland were found shot dead in their home on Easter Eve. The McLellands lived in Forney, Texas. Mike McLelland is the district attorney of Kaufman County. The murders,  WFAA.com is reporting, may have involved a 223-caliber assault rifle, similar to an AR-15.

    WFAA is reporting that law enforcement agencies across Texas are on high alert and that the crime “shook prosecutors, defense attorneys and others in legal circles around North Texas.”

    The murders of the McLellands follow by two months the shooting death of Mark Hasse. Hasse, 57, was an assistant district attorney in Kaufman County. He was gunned down in broad daylight on Jan. 31, a short distance from the courthouse.

    Read early coverage in the Star-Telegram.

    Read early coverage on CNN, which is reporting that “authorities aren’t sure whether their killings are part of a broader scheme targeting criminal justice officials.”