BREAKING NEWS: Security Exchange Commission declared Profitable Sunrise "international pyramid scheme"

English: Mug shot of  Charles Ponzi
(March 3, 1882 – January 18, 1949).
(Photo credit: Wikipedia)

SEC has filed lawsuit against Profitable Sunrise, making a FEDERAL fraud case, joining 34 states / provinces in US and Canada, and various other countries declaring this HYIP internet Ponzi scheme to be illegal.

What's more, SEC has also requested international help in freezing over 11 million dollars of assets in Hungary and is getting help from UK Scotland Yard in their investigation of Profitable Sunrise UK maildrop. Accounts linked to this illegal enterprise are scattered throughout Czech, China, Latvia, and Hungary.

The SEC complaint is quite detailed, as it related all the different versions of stories related by various "promoters" of PS on the web and Youtube videos. Some claimed PS had been around for six years even though the alleged company, Inter Reef DBA Profitable Sunrise, was only registered 19 months ago. It was also registered in the Seychelles, a known tax haven / shell company registrar. There are at least 4 other companies also linked to this scam.


High Yield Investment Program, or HYIP, are internet Ponzi schemes where the early joiners are paid by money supplied from the late joiners. HYIPs often promise impossible rates, such as 1% PER HOUR. Profitable Sunrise had promised rates as high as 3670% in 170 days, claimed to have yielded such profits through "bridge financing".

Using a legitimate term to cover up fraud is a common tactic among frauds. The Zeek Rewards Ponzi used "penny auction" business Zeekler to cover up the Ponzi scheme, leading its members to believe that the penny auction can yield such profits to pay outrageous returns that varies between 0.7 to 1.8% daily.


Courthouse News Service, via PatrickPretty.com