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Tag: Profitable Sunrise Easter Gift

  • 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.

  • 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.

  • AP (VIA YAHOO NEWS): Zeek’s Paul Burks Says Participants At Fault For Losing Money In Alleged $600 Million Ponzi Scheme

    The Associated Press is reporting that Zeek Rewards operator Paul R. Burks claims that he is not at fault and that Zeek participants are to blame if they lost money.

    From the AP (via Yahoo News/italics added):

    “I never told anyone to invest more money than they could afford,” Burks snapped. “I didn’t tell them to do that. Never.”

    He said if they lost money, “it’s their fault. Not mine. Don’t blame me.”

    Read the full story.

    recommendedreading1Zeek rose in part through promotions on well-known Ponzi scheme forums such as TalkGold and MoneyMakerGroup. In August, the SEC alleged that Zeek was a $600 million Ponzi- and pyramid scheme operating from Lexington, N.C.  Court records suggest the SEC’s Zeek probe began at least in April 2012.

    Serial hucksters on the Ponzi boards often rationalize Ponzi train wrecks by claiming that no one advised participants to spend more than they could afford to lose.

    Convicted Ponzi schemer Dennis Bolze — one of the original so-called “mini-Madoffs” — tried a version of the “don’t invest more than you can afford to lose” rationalization in an unsuccessful bid to reduce his 27-year prison sentence for his brick-and-mortar scheme. A judge applied a sentencing enhancement in the Bolze case because senior citizens were among the victims.

    As the PP Blog reported on Jan. 12, 2012 (italics added):

    Bolze used a similar argument for a sentencing reduction, asserting that his victims invested only “discretionary money.”

    He further argued that age alone was  not sufficient to justify the enhancement “and that the present poor financial condition of his victims is not relevant to whether they were unusually vulnerable at the time they invested their money with him,” according to the 6th Circuit.

    Meanwhile, Bolze “denied that he forced anyone to invest” and claimed “that he did not know” certain investors “because his associate dealt with them.”

    The panel rejected each of those arguments.

    Burks, 66, has not been charged criminally. The SEC sued Burks and Zeek parent Rex Venture Group LLC last year.

    Ponzi-board hucksters have promoted numerous Internet-aided scams. AdSurfDaily, a $119 million Ponzi scheme opearting from Florida, had a presence on the boards. So did Legisi, a $72 million Ponzi scheme operating from Michigan. So did Pathway to Prosperity, a $70 million scam alleged to have penetrated 120 countries. So did Imperia Invest IBC, a shadowy entity that stole millions of dollars by targeting people with hearing impairments.

    The most recent Ponzi-board scam to make major news is Profitable Sunrise, another shadowy entity purportedly operated by “Roman Novak.” Profitable Sunrise purported to pay interest of 2.7 percent a day through its bizarrely named “Long Haul” plan targeted at Christians. Members were due a purported “Easter gift” on Monday, April Fool’s Day.

    The Profitable Sunrise website has been missing for more than two weeks. At least 34 U.S. states or provinces in Canada have issued Investor Alerts or cease-and-desist orders against Profitable Sunrise. The United Kingdom and New Zealand also have issued warnings.

    Research shows that Profitable Sunrise had members in common with ASD and Zeek.