NJ Scam Alert: Beware of a Company Called Profitable Sunrise
Today, New Jersey’s top law enforcement official and the Division of Consumer Affairs’ Bureau of Securities 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. This has prompted 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 claims 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,” says State Attorney General Jeff Chiesa. “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.”
Abbe R. Tiger, Chief of the New Jersey Bureau of Securities, emphasizes 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,” explains Tiger. “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.”
According to Chiesa, 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;
- 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,” says Eric Kanefsky, Acting Director of the State Division of Consumer Affairs. “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.”