Category Archives: Profitable Sunrise

Profitable Sunrise: Default Final Judgment Entered


I checked the docket just now and saw this; it’s sort of what I thought would happen. Not sure what it means for the victims of “Roman Novak” or whoever that low life crook actually is.



DEFAULT FINAL JUDGMENT ENTERED against Defendant Inter Reef Ltd. dba Profitable Sunrise and Relief Defendants Melland Company S.R.O., Color Shock S.R.O., Solutions Company S.R.O., and Fortuna-K S.R.O., the Court hereby enters final judgment in favor of the Securities and Exchange Commission and against the Defendant and Relief Defendants.

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Securities Exchange Act of 1934 [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of interstate commerce, or of the mails, or of any facility of any national securities exchange, in connection with the purchase or sale of any security.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant and Relief Defendants are liable, jointly and severally, for disgorgement of all sums raised in the enterprise described in the Commissions Complaint, including, but not limited to, all amounts transmitted from the United States to accounts outside the United States, including to accounts held in the name of the Relief Defendants wherever those accounts are located, together with prejudgment interest thereon. The Commission may move to amend this Final Judgment within 90 days to more precisely quantify the amount of disgorgement and prejudgment interest and defendant and relief defendants shall satisfy the disgorgement obligation within 14 days after entry this Final Judgment.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment. (See judgment for further details) Signed by Judge Thomas W. Thrash, Jr. on 3/16/2016



Here is the Final Judgment Order for those who would like to see the details.

Profitable Sunrise: Judge Grants Default Judgment

ProSunJudge Thomas Thrash issued an Order on February 26th, that is short and sweet:

This is an SEC enforcement action. It is before the Court on the Plaintiff’s Motion for Default Judgment [Doc. 37] which is GRANTED. Counsel for the Plaintiff are directed to present a proposed Order and Final Judgment to the Court in chambers.

This case has dragged on for almost 3 years, and it looks like it might just be winding down. What this means for those victimized by this scam is somewhat nebulous. While monies have been repatriated from the scheme, there is more to be gathered.


ProSun: SEC Files Motion for Default Judgment

ProSunThe SEC has filed a “Motion for Default Judgment and Response to Order to Show Cause”. In this Motion they state,

On March 6, 2015, the SEC requested entry of default against Inter Reef and all relief defendants, the Clerk entered such default on March 9, 2015. The Commission now asks that the Court enter default judgment against Inter Reef and the relief defendants, grant a permanent injunction against Inter Reef, and order that both Inter Reef and relief Defendants pay disgorgement and prejudgment interest in the amounts to be determined by a later hearing.

The SEC also filed a 21 page Brief in Support of this motion. I have uploaded these onto the Files website, documents 37 and 38.

ProSun: Deadline to File is Tomorrow

ProSunFederal District Judge Thomas W. Thrash issued an Order to Show Cause as to why the Profitable Sunrise case (13-cv-1104) should not be dismissed for lack of filings since July of 2015. The Judge gave the Plaintiffs, the SEC, 21 days to reply to this Order.

The deadline to file is on or before February 10, tomorrow.

ProSun: Judge Issues Order for SEC to Show Cause

ProSunThis is the first activity on this Docket for months.


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.

Case Updates, Nov 15, 2015

Achieve Community

  • Kristine Johnson – 15-cr-158 (WDNC) – The majority of docket entries are sealed by the Court. In June 2015, Johnson entered into a Plea Agreement (also sealed), sentencing was set for November 19. Forfeiture of moneys (over $7,301,255 ) and property ordered on November 10th.
  • Troy Barnes – 15-cr-254 (WDNC) – Case filed October 22nd, 4 Felony Counts; Trial was originally set for 30 days following arraignment; Motion to Continue was granted, Trial set for January 19, 2016.
  • SEC v Johnson, et al – 15-cv-299 (Colorado) – Trial set for December 5, 2016, at 8:30 a.m. United States Courthouse Annex, 901 19th Street, Denver, Colorado 80294

DFRF Enterprises, Inc.

  • SEC v DFRF Enterprises, Inc – 15-cv-12857 (Massachusetts) – On October 10, 2015, the SEC filed a ‘Motion to Intervene and Stay Discovery’ pending the resolution of a parallel criminal investigation.  The case was Ordered as Stayed on October 23, 2015.
  • USA v Filho – 15-cr-10214  (Massachusetts) – Case was filed August 5, 2015. Initial appearance was on September 3, 2015. Filho was remanded into custody. At the initial status conference on October 8, 2015, the defendant, represented by counsel, elected to voluntarily consent to detention without prejudice.  (the defendant was committed to the custody of the Attorney General for confinement in a corrections facility separate, to the extent practicable, from persons awaiting or serving sentences or being held in custody pending appeal)

eADGear / GoFunPlaces

  • USA v Wang, et al – 14-cr-488 (NDCal) – Both Wang and Yuen pleaded Guilty, judgement was ordered on October 27th; both men were sentenced to 46 months, and 3 years of supervised release.

Profitable Sunrise / Inter Reef, Ltd

  • SEC v Inter Reef, Ltd. – 13-cv-1104 (Northern Georgia) – This case has been static since July 2015. The last Order issued was for the repatriation of funds from a European Bank


  • USA v. Wanzeler et al – 14-cr-40028 (Massachusetts) – Due to the complexities of this case, things are progressing slowly. So far, 6 status conferences have been held, with another one prior to the scheduled trial date set for April 4, 2016. Carlos Wanzeler is still outside of the USA.
  • SEC v TelexFree, Inc., et al – 14-cv-11858 (Mass.) On October 8th, an Order was issued Granting the USDOJ’s Motion to Intervene and Stay Discovery pending the resolution of a parallel criminal proceeding. Fourth Status report was issued on October 15th.


  • SEC v. Steve Chen et al – 15-cv-7425 – (Central Cal) Preliminary Injunctions, Asset Freezes, Receiver Appointed, Restraining Orders and Required Accounting are issued on October 8th.

Vemma Nutrition Company

  • FTC v. Vemma Nutrition Company et al – 15-cv-1578 (Arizona) On October 28th, an Order was issued Denying defendant’s Motion to Approve Revised Compensation Plan. The FTC is also opposing Vemma from using “Affirmative Defenses”.

Zeek Rewards

  • SEC v Rex ventures, et al – 12-cv-519 (WDNC) – Currently, the receiver, Kenneth Bell is still marshaling funds he has collected from a portion of “net winners”. The claw backs continue. Checks have been issued twice to approved claimants.
  • USA v Olivares, et al – 13-cr-335 *closed* – (WDNC) Dawn Wright-Olivares and Daniel Olivares pleaded guilty. Final judgements entered on February 28, 2014.
  • USA v Burks, et al – 14-cr-208 (WDNC) – After 3 Motions to Continue, a Court for a peremptory trial setting was requested for November 2015. A fourth Continuance was granted, trial is now set for the May 2016 term.
  • Bell v Burks, et al – 14-cv-89 (WDNC)  Default judgement entered against Defendant Darryle Douglas for $2,271,239.20
  • Bell v Disner, et al – 14-cv-0091 (WDNC) –
    • Default judgment entered for Defendants Trudy Gilmond and Trudy Gilmond LLC in the amount of $2,129,522.27.
    • Default Judgment entered against Defendant Sorrells in the amount of $1,197,241.12.
    • Order approving Class Counsel for Net Winners,  Kevin Edmunson .
  • Bell v Nehra, et al – 15-cv-437 (WDNC) – Malpractice lawsuit, Nehra was Zeek’s “Compliance Officer”, also a “prominent MLM attorney”.


USA v Sanderley Rodrigues de Vasconcelos (TelexFree and iFreeX)

  • 15-cr-10227 – (Mass.) – Rodrigues is charged for Visa Fraud, falsifying documents in order to enter the USA. His first lawyer quit for non-payment. Rodrigues has a second attorney now, but for how long?



ProSun: “Ponzi” Jo Frazer, David Frazer and Albert Rosebrock Entered into Settlement with Ohio Department of Commerce


Nanci Jo Frazer

As part of this December 2014 settlement, Nancy Jo Frazer (right), David Frazer and Albert Rosebrock have agreed to pay a total of $ 108,146.61 to the Ohio Attorney General. After releasing some of the frozen assets ($ 6,864.17) they will owe $ 101,282,44 which will be paid at $ 844.02 per month for 120 months (10 years).

That’s $281.34 per month for each of them.

Wow, really??  I can only hope these thieving jerks get a criminal charge in the near future. They knew what they were doing all along, and quoting the Bible does not sanitize a scam.

Profitable Sunrise: Why No Updates?

Profitable-Sunrise-Review1I had a reader email me and ask why there has not been any updates in the ProSun case. Well, here’s what the Docket says:

Securities and Exchange Commission v. Inter Reef Ltd. et al
Thomas W. Thrash, Jr, presiding
Date filed: 04/04/2013
Date of last filing: 10/11/2013

So, there you have it, nothing has been added to the Docket since last October. I check the docket weekly and if there are any changes, I will post them.

ProSun Affiliate Settles With Kansas Securities Commission

I have no idea why these documents are just showing up months after they are filed, but here is another Profitable Sunrise related filing in Kansas.  One ProSun affiliate has struck a deal and neither admitted or denied wrongdoing and has settled with Kansas security authorities.

Here is the filing:

602  David P Cozzocrea Settlement with Kansas Securities  Commissioner

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