Secretary of State Securities Division Slaps Profitable Sunrise with Cease and Desist Order; Demands Company to Stop Sale of Unregistered Security
FOR IMMEDIATE RELEASE
Contact: Catherine Lu
(702) 486-6982 / 334-7953
(Carson City, NV; March 15, 2013) — The Nevada Secretary of State’s Securities Division today executed a cease and desist order to Inter Reef Ltd., doing business as Profitable Sunrise, and its principals Roman Novak and Radoslav Novak, and Nevada resident Paul Spaulding. The company and its representatives must stop selling or offering to sell unregistered securities until they are properly registered and licensed pursuant to Nevada law.
Profitable Sunrise promotes a high-yield investment scheme that is not registered in Nevada or with the United States Securities and Exchange Commission (SEC). The company’s website offers a variety of investment plans with a promise of 1.6- to 2.7-percent “risk-free” daily return. According to its website, Profitable Sunrise, claiming to be headquartered in Birmingham, England, purportedly has an unsubstantiated outstanding loan portfolio of more than $400 million.
Profitable Sunrise’s offering is not registered as a security and is not notice-filed as exempt in the State of Nevada. The Novaks and Spaulding are not licensed in Nevada as securities sales representatives.
“Anyone who has made an investment or had contact with Profitable Sunrise should contact my office immediately,” said Secretary of State Ross Miller. “One of the warning signs of fraud is an investment that is sold as ‘risk-free.’ Investing with unregistered companies or agents should only be done with appropriate due diligence to confirm the company is exempt from registration.”
The Secretary of State’s Securities Division can be reached at (702) 486-2440.
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.
Profitable Sunrise and its principals have 45 days upon receiving the cease and desist order to request a hearing on the matters set forth in the order. It the parties fail to request a hearing, the administrator will issue a permanent order.
The Nevada Securities Division, along with multiple jurisdictions in the United States and Canada, issued investor alerts and/or formal cease and desist orders to Profitable Sunrise, principals of the company, and affiliated entities this week.
The issuance of the cease and desist order is part of an ongoing effort to address abuses of Nevada’s securities statutes and regulations. As a former criminal prosecutor, Miller makes it a top priority to combat financial fraud.
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