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Securities Division cautions investors about possible fraud involving Web-based company

Tuesday, March 19, 2013 | 11:50am

NASHVILLE, TN – The Tennessee Securities Division wants to alert Tennesseans to actions being taken by other states’ securities regulators against an Internet-based company alleged to have promoted unregistered investment plans.

According to a temporary cease-and-desist order filed Feb. 27, 2013, by the Securities Division of the North Carolina Department of the Secretary of State, Roman Novak, Radoslav Novak and their company – Inter Reef Ltd., doing business as Profitable Sunrise – are promoting at least five “investment plans” through a website that offers rates of return ranging from 1.6 percent daily to 2.7 percent daily for 180 to 240 days. The filing ordered the respondents to cease and desist from offering for sale, soliciting offers to purchase or selling, in or from North Carolina, any securities unless and until such securities have been registered and until Roman Novak, Radoslav Novak, and Inter Reef Ltd. d/b/a Profitable Sunrise become registered as dealers or sellers of securities.

The cease-and-desist order found that Roman Novak, Radoslav Novak, and Inter Reef LTD d/b/a Profitable Sunrise offered investment contracts in the form of investment plans, made available through their website, in violation of the North Carolina Securities Act. The Temporary Order to Cease and Desist gives Respondents 30 days in which to request a hearing. If no such request is made during that time, the Temporary Order to Cease and Desist shall become final. To read the Temporary Order, please visit

None of the companies, promoters or investments is registered with Tennessee’s Securities Division. Investor alerts are being issued in other states, as well. Commerce & Insurance Securities Division officials have determined Tennessee addresses listed by the company to be illegitimate.

“These allegations are serious enough that we want to caution Tennesseans to be wary,” Tennessee Securities Assistant Commissioner Daphne D. Smith says. “Regardless of how an investment opportunity comes to you or how attractive it may appear, it should be scrutinized for legitimacy. It always pays to “investigate before you invest.” “This situation illustrates the importance of checking out the licensing statuses of investments and the people who sell them before you invest,” she says. “Before doing business with anyone, check with us to determine the licensing status and to see if there have been complaints or disciplinary problems with the individuals or company.” Complaints and investigations are confidential under the Tennessee Securities Act of 1980. Smith urges any Tennessean who has invested with Profitable Sunrise to contact the Securities Division at 800-863-9117 or to visit

The Securities Division is part of the Department of Commerce and Insurance, which works to protect consumers while ensuring fair competition for industries and professionals who do business in Tennessee., @TNCommerceInsur (Twitter), (Facebook), (YouTube)

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