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Tag: Radoslav Novak

  • Is Profitable Sunrise Pyramid Case At Risk? SEC Declines Comment

    profitablesunriseimage1The SEC this afternoon declined comment on an order by a federal judge in Atlanta that could lead to the dismissal of the agency’s 2013 case against Profitable Sunrise, an alleged international pyramid scheme and offering fraud targeted at U.S. residents by one or more murky figures.

    Such a dismissal almost certainly would embolden overseas HYIP scammers who reach into the United States over the Internet to steal hundreds of millions of dollars. Profitable Sunrise targeted Christians.

    In April 2013, the PP Blog reported that the SEC alleged the “program” was using a “mail drop” in England and that “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.”

    Two days ago, on Jan. 19, Judge Thomas W. Thrash Jr. ordered the SEC to show cause within 21 days why the case should not be dismissed — apparently for lack of prosecution.

    “Decline comment beyond what we say in court filings,” the agency told the PP Blog today.

    How the agency would proceed in the next three weeks was unclear.

    Thrash’s order says there has been no action in the case since July 15, 2015, a period of more than six months.

    From the judge’s order (italics added):

    The above complaint was filed on April 4, 2013, on April 4, 2013 the Court granted plaintiff’s Motion for Temporary Restraining Order; on April 15, 2013 the Court granted plaintiff’s Motion for Preliminary Injunction; Clerk’s Entries of Default have been entered as to various defendants; on July 15, 2015 the Court directed the Clerk of Court to Receive Repatriated Funds. Since that date no further action has occurred; IS THEREFORE ORDERED that the plaintiff show cause in writing within twenty (21) days why the case should not be dismissed. The Clerk is DIRECTED to submit the case to the Court for further action at the expiration of the 21 days. SO ORDERED, this 19th day of January 2016.

    One of the claimed “plans” of Profitable Sunrise was bizarrely dubbed the “Long Haul” and purported to pay 2.7 percent a day. At least 34 U.S. states and provinces in Canada issued Investor Alerts or cease-and-desist orders against Profitable Sunrise.

    Among other things, the scheme demonstrated the dangers of doing business with exceptionally murky enterprises making claims that fabulous wealth would flow to investors. U.S. promoters working for commissions apparently believed the “program” was operated by “Roman Novak” and his brother “Radoslav,” a purported attorney.

    Whether the brothers actually exist is unclear. So is the final sum gathered by the “program,” which had a presence on well-known Ponzi-scheme forums such as TalkGold and MoneyMakerGroup.

    No receiver has been appointed to date in the Profitable Sunrise case. How victims would go about filing claims is unclear. So, too, is the amount of money available to victims from actions such as asset freezes.

    Hungary is reported to have suspected Profitable Sunrise of money-laundering.

    In May 2013, the PP Blog reported a Virginia man had petitioned the U.S. court for return of more than $57,000 wired to Profitable Sunrise. The SEC later objected to the petition, arguing it could open the floodgates to similar petitions while the agency was working to repatriate assets that one day could be distributed to victims.

    Christian author James Paris has said he feared for his safety and the safety of his family when writing about Profitable Sunrise. (See PP Blog October 2013 comment on the matter at the RealScam.com antiscam forum.)

    See PP Blog’s tag archive on references to Profitable Sunrise or use the Blog’s search function near the upper-right corner.

    NOTE: Our thanks to the ASD Updates Blog.




  • PROFITABLE SUNRISE CASE: Did Fake Reporter Use Photo Of Real Reporter In ‘Story’ Titled ‘Nanci Jo Frazer WINS in Court – A Case Of Innocent Ignorance?’

    “The judge ruled in Nanci & David Frazer’s favor along with Albert Rosebrock (ministry board members) . . . to release frozen funds. The FBI and the Federal government is categorizing Frazer as having suffered from a case of ‘innocent ignorance’ as she worked for nine months doing customer support for a UK Collateral Loan company.” — Lede from “story” on Topix.com, Oct. 5, 2013

    Is a photo of a real reporter being used by a fake reporter in the aftermath of the Profitable Sunrise scheme.
    Is a photo of a real reporter being used by a fake reporter in the aftermath of the Profitable Sunrise scheme? (Screen shot brushed by PP Blog.)

    This is what is known from the publicly accessible court docket in Ohio’s July 8 fraud case against alleged Profitable Sunrise promoter Nancy Jo Frazer (also known as Nanci Jo Frazer), Focus Up Ministries and others: On Sept. 24, the docket of the case noted that the judge had ordered the release of $20,000 to Frazer and her husband (David Frazer) to pay legal bills. Another $8,000 was made accessible to Albert Rosebrock, another defendant, to pay legal bills.

    The $20,000 ordered returned to the Frazers was in the form of a cashier’s check David Frazer had surrendered to the court after Ohio’s July action. Rosebrock’s money came from a bank account the judge ordered frozen after the Ohio action was filed. The docket shows that the judge authorized $8,000 from this frozen account to be made accessible to Rosebrock, but the freeze remains on any other money in the account. Freezes also remain on seven other accounts Ohio authorities have associated with the defendants. (Of the eight accounts originally ordered frozen in July, all eight remain frozen.)

    Importantly, Ohio’s civil case remains ongoing. So does a civil case by the SEC at the federal level. The SEC action does not name the Frazers or Rosebrock defendants, but suggests that pitchmen could have promoted Profitable Sunrise without even knowing who was running the purported “opportunity.”

    Purported Profitable Sunrise operator “Roman Novak” and his brother “Radoslav Novak,” a purported attorney associated with Profitable Sunrise, may be fictitious, according to the SEC, which has described Profitable Sunrise as a murky and massive international pyramid scheme that potentially gathered tens of millions of dollars.

    “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 in April.

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

    Enter ‘scampoliceinsider’

    On Oct. 5, 11 days after the Sept. 24 Ohio docket entry, someone using the handle “scampoliceinsider” and a photo of a news reporter posted something that resembles a news story on the Topix.com site for Ogdensburg, NY., near the Saint Lawrence Seaway and the border with Canada.

    Gregg Evans, a poster and occasional guest columnist at the PP Blog and a regular poster at the RealScam.com antiscam forum, posted a link to the Topix story at RealScam.com on Oct. 13.

    Among other things, “scampoliceinsider” asserts on Topix that “I WILL GIVE YOU THE INSIDE SCOOP YOU DID NOT KNOW” and that “I am investigating a fraud within a fraud. I am the one who does what others won’t bother to do.” Moreover, “scampoliceinsider” asserts that he or she believes in “The truth backed by facts.”

    Here is the headline on the Topix “scampoliceinsider” story: “Nanci Jo Frazer WINS in Court – a Case of Innocent Ignorance.” The headline stressed the word “WINS” in uppercase. Nowhere does the story mention that Ohio’s case is ongoing and that any money ordered unfrozen was further ordered to be used for the express purpose of paying legal bills. Instead, the story contends that Ohio authorities had known since October 2012 that Profitable Sunrise was a fraud and that the authorities “failed to inform the public and especially Nanci Frazer.”

    It further positions Frazer as a victim of harassment from “A tight group of online individuals [who] have been targeted to be running their own bitcoin scheme” and claims the purported bitcoin schemers “stole Frazer’s image, identity and training videos while she was on vacation” in a bid to drive traffic to their own websites “and cash in on their own fraud.”

    Meanwhile, a strangely worded passage in the story contends that “The FBI and the Federal government is categorizing Frazer as having suffered from a case of ‘innocent ignorance’” while she “worked for nine months doing customer support for a UK Collateral Loan company.” (This would be Profitable Sunrise, which perhaps would be better described as a purported collateral-lending company.)

    Like the bitcoin and associated claims, the story does not substantiate the “innocent ignorance” claim. At the same time,  the story ventures that “The last straw was watching Toledo 11 Fox News put her children in harms way by airing a hateful and false, damaging, home made video story from one of the online stalkers- James L Paris is was a convicted criminal for Securities fraud(they never checked out his background).” (Unedited by PP Blog.)

    The Fox Toledo outlet now is “in position to be turned in to be put under regulators [sic] scrutiny and to be liable for a full investigation which connects them to another scam,” according to the Topix story.

    Paris is the editor of ChristianMoney.com and recently published an ebook on what he describes as his pressure-packed, nerve-racking experience writing about Profitable Sunrise and the enmity directed at him from certain members of the Christian community. Paris denies he is a convicted criminal, saying that he once was named in a civil securities action in Maine after his brother embezzled money from a Paris company and hid the act from Paris and accountants.

    (DISCLOSURE: The PP Blog is referenced in the Paris ebook. The Blog does not personally know Jim Paris, has no business association with him and does not benefit from the book, which was offered by Paris for free online for several days earlier this month and now costs $4.99 at Amazon.com. The book is titled, “Exposing The Ponzi Masters – The Profitable Sunrise Scam: How I Exposed It, How They Tried To Stop Me.” The Blog obtained the book free on Oct. 9 through a link supplied by Paris at RealScam.com. On Oct. 11, the Blog posted to RealScam.com about the book, opining that it believed the Paris book would “serve his intended audience in the Christian community well.” In its RealScam.com post, the Blog also drew some comparisons to the AdSurfDaily Ponzi scheme. ASD, like Profitable Sunrise, was targeted at people of faith.)

    Now, back to the Topix story referenced above . . .

    The photo of the reporter that appeared alongside the Frazer story on Topix in Ogdensburg, near the Canadian border, appears to be a low-resolution copy of a professional portrait/publicity still of a real reporter, a broadcast journalist who started her career at a California TV station in 2010 and accepted a job in 2012 at a station in Nevada, where she works as a weekend anchor. The photo does not identify the reporter by name and appears to have been taken while the reporter was working for the California TV station prior to moving on to the Nevada station.

    It may be the case that a fake reporter posting at Topix found an image of the real reporter online and used it as an avatar to add credibility to the story on Frazer published at the site. The PP Blog believes it has established the identity of the real reporter and emailed her yesterday to determine if the image on Topix was being used without her knowledge and consent and to rule out that she was the author of the Topix post. As of the time of this post, the Blog has not heard back from the reporter, which is not unusual. Media people have busy schedules. (For the purposes of this post, the Blog is not identifying the real reporter by name and has brushed the screen shot above to obscure her face and the identity of a TV station that, like the reporter, may have no knowledge of Frazer or Profitable Sunrise or the Ohio case.)

    In the Blog’s view,  the Topix story does not read like one prepared by a trained, working journalist. Rather, the story on Topix reads like fractured marketing and PR fluff of the type often seen in the HYIP sphere. At least part of it seeks to demonize both the media and the government. Similar situations occurred after the action by the United States against ASD in 2008. Online scammers have been known to pose as legitimate members of the media to add presumptive authority to a scheme.

    In 2011, the famous brand of Consumer Reports was appropriated by scammers to drive dollars to an acai-berry scheme, the FTC said. Meanwhile, “fake” news sites in the United States using the image of a real reporter from France were used in the acai  scheme.

    The PP Blog would be very surprised if the Topix story was authored by a real reporter, especially one using the handle “scampoliceinsider” and trying to stick it to a TV station in Toledo, other media outlets and Ohio authorities in this bizarre fashion.

     

  • Virginia Man Asks For The Return Of More Than $57,000 Wired To Profitable Sunrise In Series Of Transactions

    ponzinews1UPDATED 8:52 P.M. EDT (U.S.A.) A Virginia man has asked for the return of $57,300 wired to Profitable Sunrise in a series of transfers from Bank of America between Jan. 17 and Feb 28. It was unclear from the filing whether the man was a simple investor in Profitable Sunrise, an individual who also was promoting the scheme for commissions or an interested party of a different sort.

    The request was made in the form of a self-filed petition to U.S. District Judge Thomas W. Thrash Jr. in Atlanta. Thrash is overseeing the SEC’s April 4 fraud action against Profitable Sunrise.

    Two of the transfers appeared to have occurred on Feb. 28. Just a day earlier, the state of North Carolina filed a cease-and-desist order against the Profitable Sunrise “program” and purported operators Roman and Radoslav Novak. One of the Feb. 28 transactions was for $18,000 and marked the largest sum among the series of transfers, based on the Virginia’s man’s motion for the court to release the funds.

    The document did not say which of the five Profitable Sunrise “plans” to which the money was directed. Although the SEC obtained an asset freeze after accusing Profitable Sunrise of fraud last month, it is far from clear whether Thrash can order the money returned consistent with the man’s wishes. No receiver has been appointed in the Profitable Sunrise case, and the investigations of the purported “opportunity” by the SEC and other regulators continue.

    One of the five Profitable Sunrise “plans” was known as the “Long Haul,” which had a purported deadline of March 1 for accepting deposits and purported to pay an absurd 2.7 percent daily.

    Based on the man’s filing, it appears as though all of the transfers were directed at entities named relief defendants in the SEC’s action, including Melland Company SRO, Color Shock SRO and Fortuna-K SRO. These Czech entities apparently were receiving money for Profitable Sunrise, which operated through a British entity known as Inter Reef LTD and was conducting an offering fraud through a “mail drop,” according to the SEC’s Profitable Sunrise complaint.

    Like other HYIPs, Profitable Sunrise was flogged online, a situation that potentially puts pitchmen in legal jeopardy. Profitable Sunrise has been accused of selling unregistered securities as investment contracts. The SEC said the Profitable Sunrise referral program operated as a “pyramid scheme” and raised questions about whether the purported Novak brothers actually exist.

    Here are the amounts and dates of the wire transfers, according to the man’s filing:

    • $1,500 on Jan. 17.
    • $6,300 on Feb. 1. (Two transactions; one for $1,800 and another for $4,500.)
    • $9,000 on Feb. 12. (Two transactions; one for $3,000 and another for $6,000.)
    • $8,500 on Feb. 15. (Two transactions; one for $1,000 and another for $7,500.)
    • $10,000 on Feb. 20.
    • $18,000 on Feb. 28.
    • $4,000 on Feb. 28.

    Profitable Sunrise may have gathered tens of millions of dollars, the SEC said last month.

     

  • UPDATE: North Carolina Says Profitable Sunrise Investors Have Been Targeted In ‘Reload Scams’ Like Zeek Rewards Investors Before Them

    From a warning by North Carolina that Profitable Sunrise investors are being targeted in reload scams.
    From a warning by North Carolina that Profitable Sunrise investors are being targeted in reload scams.

    UPDATED 11:28 A.M. EDT (U.S.A.) The Securities Division of North Carolina Secretary of State Elaine F. Marshall has issued a warning that Profitable Sunrise investors are being targeted in “reload scams.”

    North Carolina issued a similar warning in August 2012, saying then that members of the Zeek Rewards “program” — an alleged $600 million Ponzi- and pyramid scheme operating online — also were being targeted in reload scams.

    From a statement by Marshall’s office (italics added):

    The NC Securities Division has learned that Profitable Sunrise investors are being contacted with promises of help in getting their money back for them. The Securities Division is issuing this alert to warn investors that such promises may be yet another attempt to scam them again through a “reload scam”.

    Reload scams hit consumers when they’re down, offering to help them make back money they lost to a previous scam or bad business decision. These scams have been popular for years with telemarketing fraud rings but can also follow other types of fraud, including investment fraud.

    Such reload scams were aimed at victims of the Zeek Rewards Ponzi scheme last year. Reload scammers used social media sites and online news releases to tout opportunities to help investors replace the income they were receiving from Zeek Rewards. Similar opportunities are being touted in the case involving Profitable Sunrise. Investors are warned to stay away from such “opportunities”.

    On Feb. 27, North Carolina issued a cease-and-desist order against the Profitable Sunrise “program” and purported operators Roman Novak and Radoslav Novak. Profitable Sunrise operated through a British entity known as Inter Reef LTD.

    At 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 filed an action on April 4, alleging that Profitable Sunrise was an online pyramid scheme that may have gathered tens of millions of dollars.

    Promoters of Profitable Sunrise may have pushed the program without even knowing for whom they were working, the SEC said.

    On April 1, the PP Blog observed an online pitch for an entity that appeared to be using the name and address of a U.S. government agency while promising “to recover” funds lost through Profitable Sunrise. The fake agency claimed it could recover losses for a sum of less than $50 and encouraged Profitable Sunrise members to send money to purported accounts at the Liberty Reserve and Solid Trust Pay payment processors.

    Profitable Sunrise members also have been targeted by boat-sharks hoping to glean commissions for other HYIP “programs” and purported MLM “opportunities.”

    On March 31 — Easter Sunday — the PP Blog reported that a Facebook pitch aimed at Profitable Sunrise members sought to recruit them into a “program” known as TelexFree.

    A video for TelexFree claimed members could purchase an income by sending the “program” specific sums of money.

    The TelexFree pitch was similar to pitches for the infamous World Marketing Direct Selling (WMDS) and OneUniverseOnline (1UOL) pyramid schemes, which were exposed in 2005 and operated by James Bunchan and Seng Tan. Those scams resulted in federal prison sentences for both Bunchan and Tan and also sparked follow-up probes by the government because a federal prosecutor and witnesses were subjected to death threats by Bunchan.

    Like Profitable Sunrise, the WMDS and 1UOL scams traded on references to religion. And like TelexFree and Profitable Sunrise, WMDS and 1UOL prospects were told they could purchase an income.

    WMDS and 1UOL members — like Profitable Sunrise members — also may not have been sure of who they were working for. Here is a snippet from an appeals-court ruling upholding the 20-year-prison sentence of Tan (italics added):

    “A high-school graduate, [Christian] Rochon became president (in name only, though) for one reason, and one reason only: Bunchan wanted an ‘American face’ for his companies, and his neighbor Rochon (a Caucasian of Canadian decent) apparently fit the bill,” the footnote reads. “And after renting Rochon a suit jacket and taking him to a professional photographer, Bunchan had Rochon’s photo plastered all over the companies’ promotional pamphlets.”

    Tan told WMDS and 1UOL members that she’d been sent by the “Gods” to make them millionaires.

    Also see April 16 PP Blog story: Idaho Says Profitable Sunrise Pitchmen May Have Exposure ‘For Soliciting Other Investors’

     

  • Joe Borg Of Alabama Securities Commission Tells WSFA That Profitable Sunrise Worked Because People ‘Kind Of Glossed Over The Mathematics’

    Joe Borg of the Alabama Securities Commission. From: WSFA news report.
    Joe Borg of the Alabama Securities Commission. From: WSFA news report.

    EDITOR’S NOTE: Alabama was one of the first U.S. states to take action against the Profitable Sunrise HYIP “program,” issuing both an Investor Alert and a cease-and-desist order last month. The C&D lists two alleged “agents” of Profitable Sunrise, demonstrating that a “program” can create problems for pitchmen, perhaps even as the “program” operators make a getaway or disappear into the darkest corners of the Internet.

    Profitable Sunrise had at least five purported investment plans, including one dubbed the “Long Haul” that promised a payout of 2.7 percent a day.

    Whether the bizarrely named “Long Haul” plan was a deliberate taunt at regulators and possibly even the pitchmen who helped the scheme gain a head of steam remains unclear.

    Listed as agents in the Alabama order were Melton McClanahan and Adam York. “An investigation of the company’s actions revealed that the men allegedly promoted at least five different ‘investment plans’ through a website used to promote Profitable Sunrise investment program and disseminate information to potential investors regarding the company’s various investment opportunities,” the Alabama Securities Commission said in the order.

    Also listed in the order were purported Profitable Sunrise operators Roman Novak and Radoslav Novak. In a complaint last week, the SEC said that “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.”

    ____________________________________

    Joe Borg of the Alabama Securities Commission (ASC) has dealt with massive fraud schemes that traded on faith, including the Greater Ministries International Church caper in the 1990s that led to criminal convictions against five individuals.

    Back in 1999, ASC and the Ohio Division of Securities filed a joint complaint in federal court in Florida to shut GMI down. The purported “opportunity” took in more than $550 million by touting “divinely-inspired investments in the foreign currency market and gold, silver and diamond mines in Africa and the Caribbean,” ASC said at the time.

    Now, Borg and other state and provincial regulators are tacking the Profitable Sunrise scheme, which traded on faith and promised absurd returns.

    “I think because they used a per-day percentage, people kind of glossed over the mathematics,” Borg told WSFA.

    WSFA.com: News Weather and Sports for Montgomery, AL.

  • 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.

  • 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.

  • 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.
    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.

     

  • BULLETIN: Kentucky Issues Emergency Cease-And-Desist Order To Profitable Sunrise; Order Identifies Possible Pitchwoman Issuing News Releases That Include Link To ‘HYIP Investment Calculator’; [UPDATE: Ohio, Other States Issue Warnings]

    breakingnews72EDITOR’S NOTE: Ohio now has issued a warning on Profitable Sunrise, saying 15 other states also have issued warnings. Information from Ohio and other states has been added to the Comments thread below . . .

    BULLETIN: (UPDATED 2:01 P.M. EDT (U.S.A.)

    The state of Kentucky has issued an emergency cease-and-desist order to the Profitable Sunrise HYIP “program,” amid allegations that the purported “opportunity” is selling unregistered securities to residents of the state and that residents themselves — in turn — are doing the same thing to earn commissions.

    Profitable Sunrise is trading on Bible prose, according to the Kentucky order. And some residents of the state appear to be offering the “program” to family members and perhaps even investing in the names of loved ones.

    The Profitable Sunrise website is offline this morning. There are Ponzi-forum reports that the “program” is changing servers.

    Kentucky’s order is directed at purported Profitable Sunrise operators Roman Novak and Radoslav Novak. The company lists an address in the United Kingdom and does business as Inter Reef LTD.

    Kentucky’s order was issued by the Department of Financial Institutions. It is dated today. The order also references Nicole Sanders of Louisville, describing her as a possible Profitable Sunrise pitchwoman operating in the state by issuing press releases through a social-networking site. One release viewed by the PP Blog displayed a link to a purported “HYIP Investment Calculator.”

    It is somewhat common for HYIP promoters to try to woo prospects with earnings projections. (It happened in Zeek Rewards and AdSurfDaily, for just two examples. ASD was a $119 million Ponzi scheme. Zeek was accused by the SEC in August 2012 of operating a $600 million Ponzi- and pyramid scheme.)

    Sanders may be a purported “private group leader” for Profitable Sunrise, according to the Kentucky order.

    One of the claims in a news release attributed to Sanders is this (italics added):

    Example: If I invest $200.00, over 170 days of my initial investment date without taking $$$$ out (meaning compound on), my investment matures and my PROFIT will be $7,439.66.

    Kentucky now has joined North Carolina, which earlier issued a cease-and-desist order to Profitable Sunrise. Alabama has issued a warning about the “program.” So have the Canadian provinces of Alberta, Ontario, British Columbia and Quebec.

    Britain’s Financial Services Authority and New Zealand’s Financial Markets Authority also have issued warnings.

    Link to emergency Kentucky order, dated March 14, 2013.

  • UPDATE: Canada’s Ontario And Quebec Join Alberta In Issuing Warning On ‘ProfitableSunrise’; [UPDATE: British Columbia, Too]

    breakingnews72UPDATED 4:48 PM EDT (U.S.A.) British Columbia now also has issued a warning against Profitable Sunrise. See Comments thread below . . .

    First it was North Carolina in the United States. Alabama quickly followed.

    And the United Kingdom’s Financial Services Authority also issued a warning about the Profitable Sunrise “program.”

    Canada’s province of Alberta published a Profitable Sunrise warning yesterday. Ontario and Quebec followed today.

    Here is Ontario’s warning in its entirety (italics added):

    ___________________________________________________________

    OSC INVESTOR ALERT: Inter Reef Ltd., Roman Novak and Radoslav Novak (doing business as Profitable Sunrise)

    TORONTO – The Ontario Securities Commission (OSC) is warning Ontario investors not to invest with Profitable Sunrise, which claims to be located in the United Kingdom while representing that its banking facilities are in the Czech Republic. Profitable Sunrise is offering investors “investment plans”, but Profitable Sunrise is not registered in Ontario to engage in the business of trading in securities or advising anyone with respect to investing in, buying or selling securities.

    Profitable Sunrise is representing that its “investment plans” earn abnormal returns, “risk-free”, of 1.5 per cent – 2.7 per cent per business day, which translates into an annual return of over 300 per cent. On January 11, 2013, the OSC issued a warning to investors entitled “Beware: High-yield Investment Programs are Ponzi Schemes” that explains the risks of investing with companies like Profitable Sunrise. You can find the warning on the “OSC Investor News” section of the OSC’s website at www.osc.gov.on.ca.

    The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices and to foster fair and efficient capital markets and confidence in capital markets. Investors are urged to check the registration of any person or company offering an investment opportunity and to review the OSC’s investor materials available at www.osc.gov.on.ca.

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

    ___________________________________________________________

    And here, through the Autorité des marchés financiers, is Quebec’s warning (italics added):

    March is Fraud Prevention Month – Caution to be used when solicited by Profitable Sunrise

    Tuesday, March 12, 2013

    Montréal – The Autorité des marchés financiers (the “AMF”) is warning Quebeckers about investment contracts offered by Inter Reef LTD, also known as Profitable Sunrise on the Internet, which purports to be a British company and is not authorized to carry on business in Québec.

    The North Carolina Department of the Secretary of State recently issued an order warning investors about offers published by Profitable Sunrise and its officer, Roman Novak, on the Internet. Investigators with the North Carolina Department of the Secretary of State say that Profitable Sunrise and its officer promoted five different investment plans through a website that offered rates of return ranging from 1.6% to 2.7% per business day. Investors were told their money would be used to fund short-term loans to businesses, “risk-free”.  Secretary of State investigators have also discovered that victims were asked to make wire transfers of money to financial institutions in Eastern European countries, including the Czech Republic.

    This week, the Alberta Securities Commission warned investors after it received reports from a Calgary-based banking institution that several of its customers have attempted to withdraw significant amounts of funds from their accounts for wire transfers to the Czech Republic.

    Although there is no proof that Quebeckers invested in the scheme, the AMF urges great caution in dealing with offers by Profitable Sunrise. No person or company named Roman Novak, Inter Reef LTD or Profitable Sunrise is registered with the AMF. Since they are not registered with the AMF, solicitations by Roman Novak, Inter Reef LTD and Profitable Sunrise of Québec investors could contravene the laws administered by the AMF.

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

    Reminder to investors
    As part of Fraud Prevention Month, the AMF reminds consumers that it is important to ask questions (5 bonnes questions — in French only) before entrusting their savings to a person who solicits them, especially when promised a return that is too good to be true such as in this case.

    The Autorité des marchés financiers (the “AMF”) is the regulatory and oversight body for Québec’s financial sector.