Profitable Sunrise Ponzi Scheme On Authorities Radar - Essay Example

The state of North Caroline, home of the Zeek Rewards Ponzi scheme which was shut down by the secret service last year, has ordered a High Yield Investment Program called Profitable Sunrise to cease and desist from doing business in the state. Profitable Sunrise claims to be operated by Inter Reef LTD, owned by Roman Novak and Radoslav Novak. Profitable Sunrise claims to be a money lender and provides an investment opportunity with unrealistic high returns.

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In its cease and desist order, North Carolina described Profitable Sunrise as “an immediate and significant danger” that is using multiple investment schemes to attract money, including a purported “Long Haul” plan. The offer is mainly targeted at web based Ponzi promoters and religious people. The company itself is advertising “risk free” payouts with “no chance of default”. Profitable Sunrise also claims “investments are insured by a leading investment bank.”

North Carolina’s order names Roman Novak, Radoslav Novak and Inter Reef LTD (doing business as Profitable Sunrise) and accuses Profitable Sunrise of selling unregistered securities as investment contracts. Profitable Sunrise lists a business address in the United Kingdom. Regardless, the enterprise is soliciting funds to be sent to Raiffeisenbank AS in the Czech Republic, according to North Carolina investigators. An entity known as Melland Company SRO was listed in Profitable Sunrise wiring instructions as the beneficiary, according to the order.

Profitable Sunrise investors are promised an interest of 2.7% daily, compounded at 100%, for 240 days in the ”Long Haul plan” and interest rates of between 1.6 percent and 2 percent a day on the other plans, according to the order. As to my information this Ponzi scheme was already close to collapse in late 2012, but was saved thanks to a high number of Zeek Rewards victims who decided to join the scheme. This could become a huge problem for them in case authorities step in another time. Some of these victims already have to pay back their Zeek Earnings and if they lost it in Profitable Sunrise this could bring them into serious financial issues.

Source: North Carolina Secretary of State