New Jersey Bureau of Securities Issues Investor Alert: "Profitable Sunrise" is Unregistered, Questionable Scheme
NEWARK – State Attorney General Jeffrey S. Chiesa and the Division of Consumer Affairs' Bureau of Securities today issued an alert to all New Jersey investors regarding a foreign-based company known as "Profitable Sunrise," which has allegedly attempted to sell unregistered investment contracts through multiple online sources—prompting serious concern and action by securities officials throughout the country.
Profitable Sunrise allegedly claims that their investment model allows consumers to earn up to 2.7% interest per day. Investments are purportedly used to provide short-term loans to companies at 3% interest per day. The company's website also states that investors may earn money by recruiting others through a referral program that pays them 5% of deposits generated from recruits.
"Like many frauds, this offer sounds too good to be true – and it appears to be just that," Attorney General Chiesa said. "Investors across the country, including here in New Jersey, are reporting this fraud and we're alerting our residents so they can avoid becoming victims."
High-yield investment programs often have common red flags of fraud that consumers should be looking for—unusual, unsustainable yields; lack of information regarding the investment operator; unclear methodology for achieving returns; off-shore operations; incentives to recruit new investors; and online advertisements containing typographical errors and grammatical mistakes. Profitable Sunrise has many of these attributes.
"Those on fixed incomes, such as retirees, are especially at risk since they often depend on investment income and are looking for higher rates of return. Any investment offer that promises guaranteed rates far higher than what banks, government bonds and other low-risk investments offer should be viewed with extreme skepticism and caution," said Eric T. Kanefsky, Acting Director of the State Division of Consumer Affairs.
Abbe R. Tiger, Chief of the New Jersey Bureau of Securities, emphasized that neither Profitable Sunrise, nor its investment products, are registered in New Jersey as required by the New Jersey Uniform Securities Law.
"Increasingly, scams rely on the internet as a forum for perpetrating fraud," Tiger said. "Online sources provide a quick way for criminals to access millions of people and to prey upon members of identifiable groups, such as religious communities, retirees, and those who are desperate for quick income."
The Bureau of Securities can assist investors in determining whether those selling securities, as well as securities offered for sale, are registered or are exempt from registration. The Bureau can be contacted toll-free within New Jersey at
1-866-I-INVEST (1-866-446-8378) or from outside New Jersey at
973-504-3600. The Bureau's website is
www.njcsecurities.gov.
Follow the Division of Consumer Affairs on
Facebook, and check our online calendar of upcoming
Consumer Outreach events.
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