Alleges securities fraud, unregistered products and professionals
FRANKFORT, Ky. (March 14, 2013) – The Kentucky Department of Financial Institutions (DFI) issued an emergency cease and desist order Thursday against an international company called Profitable Sunrise and its operators.
The legal document orders brothers Roman and Radoslav Novak and their company to stop selling securities in violation of the Kentucky Securities Act. DFI alleges that the investment products and people selling them are not registered in Kentucky, and that the brothers committed fraud for omitting or misrepresenting facts on the company’s website.
One of the company’s slogans is “Get Richer Every Sunrise.”
“Kentucky investors are being lured into these offers based on incomplete and incorrect information,” said DFI Commissioner Charles Vice. “We strive to protect investors from fraud by requiring full disclosure by professionals who are registered to conduct business in the state.”
Kentucky is one of at least 14 jurisdictions in the United States and Canada that is investigating Profitable Sunrise and its operators. DFI also has referred the case to the Kentucky Attorney General to investigate whether it is a pyramid scheme. DFI’s order may be found online at http://kfi.ky.gov/legal/Pages/securities.aspx.
Roman Novak, of the United Kingdom, is the owner and founder of Profitable Sunrise. His brother, Radoslav, is an associate. They operate the company using a website to promote and send information to potential investors. The website claims the investment options are “risk-free” with “a certain rate of return and no chance of default.”
The company purports to provide short-term loans to businesses throughout the United States. Profitable Sunrise offers unrealistic returns and pay commissions to entice other investors, according to Vice.
“Investors should always be wary of offers that sound ‘too good to be true.’ But this also appears to be promoted through referrals and word-of-mouth, and Bible quotations online indicate that this group is targeting the Christian community in particular,” said Vice. “Always check out the product and person selling it before investing. Even someone you trust may already be a victim.”
Contact DFI to check the registration and complaint history of a securities professional at 800-223-2579, or use links at http://kfi.ky.gov/public/Pages/invest.aspx.
Investors can file a complaint or fraud report with DFI by phone or online at http://kfi.ky.gov/complaint/Pages/securities.aspx.
DFI is an agency in the Public Protection Cabinet. For more than 100 years it has supervised the financial services industry by examining, chartering, licensing and registering various financial institutions, securities firms and professionals operating in Kentucky.