Brothers Charged with Securities Registration Violations and Investment Fraud; "Too good to be true" scam intended to "exploit the faithful"
BALTIMORE (March 15, 2013)—Attorney General Douglas F. Gansler announced today that his office's Securities Division has issued a Summary Order to Cease And Desist against Inter Reef Ltd., an international Internet company doing business as "Profitable Sunrise." Two brothers, Roman Novak and Radoslav Novak, who operate the company's investment scheme, have been ordered to halt the offer or sale of fraudulent investments in violation of the Maryland Securities Act.
"This is a typical 'too good to be true' scam that demonstrates the dangers of Internet investments offering incomplete, incorrect or implausible promises," said Attorney General Gansler. "This illegal ploy has all the earmarks of a typical pyramid or Ponzi scheme. Until we get to a hearing, this order prevents Maryland investors from being duped by the scheme's use of Bible verses and religious imagery utilized to exploit the faithful."
Attorney General Gansler reminds anyone who may have invested in "Profitable Sunrise" to contact the Securities Division of his office at 410-576-7786 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.
The Division's investigation revealed that Roman Novak and his brother Radoslav Novak, of the United Kingdom, own and operate Profitable Sunrise, using a website to promote the company and recruit investors. The company claims to use the invested money, from as low as $10 per month to thousands of dollars per month, to provide short-term high-rate loans to unidentified businesses throughout the United States.
The unregistered and fraudulent investment scheme offered Maryland residents unrealistically high interest rates on what is described as "risk free" investments through multi-month funding contracts. The Order alleges that the investments and the people who offer them are not registered with the Securities Division and that the Novaks committed fraud by making material misrepresentations or omissions on the company's website. Maryland is one of at least 19 jurisdictions in the U.S. and Canada that are investigating Profitable Sunrise and its agents.
The website claims the company can use those profits to pay investors "risk free" interest rate of 2% per business day. Investors also are promised commissions for bringing others into the group, pyramid style. Offering the chance to "get richer every sunrise," the site promises that investors will "thank the Lord" for their investment.
To read the Securities Division's Summary Order to Cease And Desist visit: http://www.oag.state.md.us/Securities/Actions/2013/ProfitableSunrise.pdf
Source: Office of Attorney General Douglas F. Gansler