South Dakota Orders International Company to Stop Selling Securities
An international company that's accused of committing fraud has been issued a "cease and desist" order by a state agency in South Dakota.
The Division of Securities announced the issuance of the order to Profitable Sunrise on Tuesday.
The Department of Labor and Regulation says Profitable Sunrise and its operators, Roman Novak and Radoslav Novak, are accused of committing fraud.
Department officials say Profitable Sunrise sold securities without a license and sold unregistered investment contracts through its website profitablesunrise.com, and that at least five different investment plans were promoted.
State Securities Division Director Mike Youngberg says investors were told their money would be used to fund short-term, risk-free loans to businesses, and that all funds deposited were insured against loss by a leading investment bank.
Youngberg says South Dakotans need to be cautious any time they hear of a no-risk, high-return investment.