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ND Securities Department
600 East Boulevard Avenue
State Capitol, 5th Floor
Bismarck, ND 58505-0510
Phone: (701)-328-2910
Toll Free: (800)-297-5124
Fax: (701)-328-2946

Jennifer Kurtz

Investigator
600 East Boulevard Avenue
State Capitol, 5th Floor
Bismarck, ND 58505-0510
Phone: (701) 328-2926
Toll Free: (800) 297-5124
Fax: (701) 328-0148
Email: jkurtz@nd.gov
Grafton Office
701 W 6th Street, #312
Grafton, ND 58237
Phone: 701-352-4592

SECURITIES COMMISSIONER ORDERS "PROFITABLE SUNRISE" TO CEASE AND DESIST FROM SELLING SECURITIES IN NORTH DAKOTA

Karen Tyler, North Dakota Securities Commissioner, ordered "Profitable Sunrise" and its operators, Roman Novak and Radoslav Novak, today to cease and desist from selling unregistered investment contracts or other securities in the State of North Dakota.

An investigation of Roman Novak, Radoslav Novak and their company, Inter Reef, Ltd., doing business as "Profitable Sunrise," revealed that the men allegedly promoted at least five different "investment plans" through a website that offered rates of return ranging from 1.6% per business day to 2.7% per business day for periods of from between 180 to 240 business days. Investors were told that their money would be used to fund short-term, "risk-free" loans to businesses, and that "all funds deposited with us are insured against loss" by a leading investment bank. Further investigation revealed that victims had been instructed to wire money to financial institutions in Eastern Europe, including one bank identified as being in the Czech Republic.

Neither of the men identified, nor the company they represent, are registered to conduct securities business in North Dakota, as required by the North Dakota Securities Act. "We want to make our residents aware of the potential perils of web-based investment marketing," said Tyler. "As with all investment opportunities, investors should thoroughly scrutinize any offer, especially if it comes over the internet from a foreign country."

The Securities Department investigation has revealed that there is at least one Bismarck resident who has invested in Profitable Sunrise and who has allegedly solicited others to invest. In pyramid scheme fashion, solicitors are supposedly paid a commission of 5% on investments made by their down line. Anyone who solicits others to invest in Profitable Sunrise would be required to be registered as a securities agent with the Department. The Bismarck investor is also not registered to offer to sell or sell securities in North Dakota.

Profitable Sunrise, and its referral groups in the United States, have been the subject of enforcement actions and investor alerts by regulators in at least nineteen other jurisdictions in the United States and Canada in recent days and on March 8, 2013, the Financial Services Authority of the United Kingdom put out a warning on Profitable Sunrise.

"Most investment offerings, as well as the person making an investment offering, must be registered with the North Dakota Securities Department. This is a critical first step in protecting the public from con artists and investment fraud." Tyler 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.

The North Dakota Securities Department cautions potential investors to thoroughly scrutinize and research any investment opportunity or offer. Contact the NDSD with inquiries concerning securities broker-dealers, agents, investment advisers, investment adviser representatives, financial planners, registration status of securities, to report suspected fraud or to obtain consumer information.