Oregon warns of British investment scam
Updated On: Mar 21 2013 02:47:26 PM CDT
The Oregon Division of Finance and Corporate Securities alerted Oregonians Thursday about a Birmingham, England-based company known as Profitable Sunrise that may be soliciting Oregon investors in violation of state securities law.
According to the division's records, neither the company nor its owner, Roman Novak, are licensed in Oregon to sell securities, and the offered securities are not registered as required by Oregon law.
Profitable Sunrise, through its website www.profitablesunrise.com, tells potential investors that their money will be used to fund short-term, "risk free" loans to businesses and ensures that all deposited funds are "insured against loss by a leading investment bank."
Also, the company boasts that its investment model generates more income than others and guarantees returns of 1.6 percent to 2.7 percent per day for periods from 180 to 240 business days, or the equivalent of approximately 584 percent to 985 percent per year.
The website also notes the owners' Christian connections and devotion to unspecified charitable causes.
Potential investors can select among five investment plans with the entry level requiring a minimum of a just $10. Profitable Sunrise also touts a "Referral Program" where current investors receive a 5 percent commission and a higher yield of the amount they already have invested by recruiting others - a hallmark of a pyramid scheme.
"This investment opportunity has all the markings of a potential Web-based securities scheme," said David Tatman, DFCS administrator. "Using the terms 'guaranteed' and 'risk-free' are red flags, and investors should be extremely cautious before committing their money to Profitable Sunrise."
Tatman urged all investors looking at any opportunities, especially foreign-based ones, to do their research. Most offerings in Oregon must be registered and the person or company soliciting the offer must be licensed in Oregon.
Check the division's website at www.dfcs.oregon.gov/securities/before_you_invest.html or call toll-free in Oregon 866-814-9710.