North Carolina Warns Of Profitable Sunrise “Reload Scams”
To read the complete Warning, click here. ProfitableSunriseInvestorAlert04112013
To read the complete Warning, click here. ProfitableSunriseInvestorAlert04112013
Along with everyone else, I have been awaiting the approval of the Zeek Rewards Claim Process, as well as the Motions to “Intervene and Dissolve the Receivership” and to “Release Third Party Funds”. So far, nothing is happening, at least on the Docket files.
In the ProSun case, no activity in a few days; I was looking forward to a Notice of Deposition for “Ponzi” Jo Frazer and FUMI organization. it may yet appear on the docket, Frazer has a lot of explaining to do.
I will continue to monitor the Docket files and will let you all know as soon as something happens.
STATE FINANCE DEPARTMENT WARNS INVESTORS TO BEWARE
OF FOREIGN INVESTMENT PROGRAM
–Profitable Sunrise uses Idaho investors to recruit others–
Boise, Idaho . . . The Idaho Department of Finance is warning Idaho investors to be wary of a British company offering high-yield investments in the United States. Inter-Reef, Ltd. of Birmingham, England, doing business as Profitable Sunrise, has offered and sold investment interests to U.S. residents in multiple states, including Idaho. The investments are not registered in Idaho and the owners, Roman Novak and Radoslav Novak, are not licensed to sell investments in Idaho. Numerous securities regulators around the country have taken action or expressed concern about the offerings.
Information about the Profitable Sunrise investment program was provided to investors via an Internet Web site, which recently was taken down. Existing investors were urged to recruit friends and relatives into the program and would receive a fee for the referral. Investors were encouraged to develop online businesses to market the program and to develop presentations on social Web sites such as Facebook and YouTube.
Profitable Sunrise offered investors five different programs promising returns of 1.6 percent to 2.7 percent interest per day. The investments were represented to investors to be “risk free” with no chance of default. Investors were told that funds would be used to finance short-term business loans at 3-percent interest per day.
(Emphasis added below)
Department of Finance Director Gavin Gee warned that, “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.” For this reason, he encourages anyone interested in such activity to check with the department before beginning solicitations.
Department of Finance press releases, a copy of the complaint and other information are available on the Internet at http://finance.state.id.us and may be obtained by contacting the Department at (208) 332-8000, or toll-free in Idaho at 1-888-346-3378. PressRel-ProfitableSunrise
Judge Thomas Thrash has issued an “ORDER Granting Preliminary Injunction, Continuing Asset Freeze, and Granting Other Relief”, filed just today. Here is part of the ORDER:
IT IS FURTHER ORDERED that all banks, brokerage and other financial institutions and other persons or entities which receive actual notice of this Order by personal service or otherwise, including facsimile transmissions, electronic mail, or overnight delivery service, holding any funds or other assets in the name, for the direct or indirect benefit, or under the direct or indirect control of Defendant or Relief Defendants or over which Defendant or Relief Defendants exercise actual or apparent investment or other authority (including assets in the name of Defendant or Relief Defendants or assets paid into such accounts by investors in the scheme at the direction of Defendant or Relief Defendants), shall hold and retain within their control and prohibit the withdrawal, removal, transfer or other disposal of any such funds or other assets except as otherwise ordered by this Court. This Order applies to assets in whatever form such assets may presently exist and wherever located, including but not limited to all such funds held in the name of, for the benefit of, or under the control of Defendant or Relief Defendants, their agents, servants, employees, attorneys-in-fact, and those persons in active concert or participation with them.
This Order is a result of the Hearing Scheduled today at 10:00 AM, EDT. As expected (at least by me) no Defendant or Attorney acting for any Defendant bothered to show up for the Hearing. Here is part of the Minute Entry for the Hearing:
PROCEEDING CATEGORY: Motion Hearing (PI or TRO Hearing-Evidentiary);
PLEADINGS FILED IN COURT: Order GRANTING Preliminary Injunction.
MINUTE TEXT: No one appearing for the defendants, the Court had Mr. Huddleston put on the record the attempts of service and notification as to this case and hearing. The Court heard from counsel on the plaintiff’s Motion for
Preliminary Injunction. Portions of deposition of A.M. Infante read.
EXHIBITS ADMITTED. The Court granted the Motion for Preliminary Injunction and signed the presented order. A copy of the order given to counsel for plaintiff.
During the recent, and perhaps final, conference call hosted by Mike Rothermel, he indicated he is suspending his calls; he also mentioned people were “listening in”. I hate to tell him, but “people” have been listening in for much longer than he realizes; they always do. Rothermel also said he had heard the FBI is investigating. I guess he means investigating ProSun, or perhaps they are investigating him?
Since all of his calls were recorded and, as far as I know, still available for playback, they could still run up and bite him someday. Ask Andy Bowdoin about how conference calls get you convicted. What Rothermel may not realize is many people recorded his calls, probably Law Enforcement among their numbers. Time will tell.
MONTGOMERY, AL (WSFA) – With interest rates as low as they are, it’s a great time to buy a house, but a lousy time to invest. Rates on many 5-year CDs, for example, are below 1%.
That’s why it’s easy to get suckered into amazing investment deals. But sometimes the deals are scams. And they’re cropping up more often.
Joseph Borg and his team at the Alabama Securities Commission discovered outlandish investment claims made by an England-based website called ‘Profitable Sunrise.’ Its slogan was “get richer with every sunrise.”
The website was promising investment returns of 2.15% per day. That’s an outrageous 700% per year!
“I think because they used a per-day percentage, people kind of glossed over the mathematics,” Borg explained.
Borg says some Alabamians fell victim to the scam. His office issued a cease and desist order and ‘Profitable Sunrise’ is no longer online.
But there are others still out there.
“And some of the websites are really slick,” Borg warned. “They look professional. They sound professional. If you read them carefully though, you go, ‘what’s that all about?'”
So if anything sounds suspicious, think twice. And before making any investment, Borg advises asking if the company is licensed to do business in Alabama.
“We have a grate statute here. It says if you want to do business in Alabama, no matter where you are, get a license.”
To find out if an investment company is licensed in Alabama, it’s as easy as calling the Alabama Securities Commission. The number is 1-800-222-1253.
Copyright 2013. WSFA 12 News. All Rights Reserved.
From the Complaint for Injunctive Relief (Doc1):
From the Emergency Motion (Doc3):
These are but a few points made in this Civil Action. You can find full documentation on the Files Website.
The newest filings in the Civil case between the SEC and Inter Reef, LTD/Profitable Sunrise are two Notices of Depositions. One Deposition Notice is for someone named Martin Sipe to be held in SLC, Utah. While this is not that world-shattering, the second name is a highly notable proponent and purveyor of ProSun, Anthony M. Infante. He’s the guy that has told people on the recent conference calls that, in his opinion on ProSun, ALL IS GOOD. Apparently, the SEC does not agree with him. Infante’s Deposition will be on Thursday, April 11th, 2013 at a location on Florida.
Documents related to this SEC Civil Suit are located here> https://sites.google.com/a/asdupdates.com/files-website/sec-v-profitable-sunrise
On April 4, 2013, the U.S. Securities and Exchange Commission filed an enforcement action against Inter Reef Ltd., doing business as Profitable Sunrise, as a defendant and Melland Company S.R.O., Color Shock S.R.O., Solutions Company S.R.O. and Fortuna-K S.R.O. as relief defendants. The Commission’s complaint was filed in the United States District Court for the Northern District of Georgia.
The Commission’s complaint alleges that Inter Reef, located in the United Kingdom, has operated a fraudulent securities offering over the internet under the name of “Profitable Sunrise” that has been targeted towards investors in the United States. Through its website, promoters and social media, Profitable Sunrise promised investors returns of between 1.6% and 2.7% per business day, compounded daily, on funds invested in various programs that were purportedly to be used to provide loans to businesses at even higher rates. Investors have been encouraged to recruit others for the scheme with promises of percentages of the amounts put in by the new investors. Among other things, the Commission’s complaint alleges that the Profitable Sunrise has promised impossibly high rates of return and misrepresented that investments in the program were insured by a leading investment bank. The fraud appears to have been targeted at religious investors, as Profitable Sunrise’s website contained several Bible verses and the company purported to make frequent charitable donations.
Melland, Color Shock, Solutions Company and Fortuna-K are Czech companies that the Commission alleges have received funds from investors in the United States through transfers at the direction of Profitable Sunrise. At present, a bank account in the name of Color Shock in Hungary has been frozen by authorities there. The Commission has named these Czech companies as relief defendants because they have no right to retain the funds sent to their accounts by investors.
Shortly after the Commission filed its complaint, the Honorable Thomas W. Thrash issued an order granting a temporary restraining order against Inter Reef along with an order directing an accounting, allowing expedited discovery, preventing the destruction of documents and providing for an asset freeze. The Commission may seek additional relief, such as preliminary and permanent injunctions, disgorgement of any ill-gotten gains with prejudgment interest and civil penalties, at a later time. The court’s order also freezes the assets of the relief defendants.
Despite a multitude of unfounded rumors that the SEC was responsible for the Profitable Sunrise shutdown, but as of April 4th, it has actually come true. The SEC filed against Inter Reef/Profitable Sunrise in the Northern District of Georgia.
Here’s a blurb from the Docket File:
Securities and Exchange Commission v. Inter Reef Ltd. et al
Assigned to: Judge Thomas W. Thrash, Jr
Cause: 15:77 Securities Fraud
|Date Filed||#||Docket Text|
|04/04/2013||1||COMPLAINT for Injunctive Relief with Jury Demand filed by Securities and Exchange Commission. Consent form to proceed before U.S. Magistrate and pretrial instructions provided. (Attachments: # 1 Civil Cover Sheet)(dr) Please visit our website at http://www.gand.uscourts.gov to obtain Pretrial Instructions. (Entered: 04/04/2013)|
|04/04/2013||2||Summons Issued as to Color Shock S.R.O., Fortuna-K S.R.O., Inter Reef Ltd., Melland Company S.R.O., Solutions Company S.R.O. (dr) (Entered: 04/04/2013)|
|04/04/2013||3||EMERGENCY MOTION for Temporary Restraining Order, Asset Freeze, and Other Equitable Relief by Securities and Exchange Commission. (Attachments: # 1 Memorandum in Support, # 2 Certificate)(dr) (Entered: 04/04/2013)|
|04/04/2013||4||ORDER granting 3 Motion for Temporary Restraining Order and Other Emergency Relief and Order to Show Cause. Signed by Judge Thomas W. Thrash, Jr on 4/4/13. (dr) (Entered: 04/04/2013)|
|04/04/2013||ORDER TO SHOW CAUSE contained within 4 TRO by Judge Thomas W. Thrash, Jr.; Show Cause Hearing set for 4/15/2013 at 10:00 AM in ATLA Courtroom 2108. (dr) (Entered: 04/04/2013)|
|04/04/2013||5||Minute Entry for proceedings held before Judge Thomas W. Thrash, Jr: Motion Hearing held on 4/4/2013 re 3 MOTION for Temporary Restraining Order filed by Securities and Exchange Commission. The Court heard from counsel for plaintiff and granted the motion. Preliminary Injunction set for 4/15/13 at 10:00am. (Court Reporter Andy Ashley)(dr) (Entered: 04/04/2013)|
All documents are on the Files website.