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California Department of Corporations Cracks Down On International Investment Scam

Mar 14, 2013

The Department is highlighting the publication “Financial Tips for Women

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SACRAMENTO, CA (March 14, 2013) – The California Department of Corporations today issued a Desist and
Refrain Order against “InterReef LTD,” which does business as “Profitable Sunrise,” and its principals, Roman
and Radoslav Novak, to bar them from continuing to lure unsuspecting investors into an illegal investment
scheme and lending scam.

“Today, the California Department of Corporations joins regulators around the world in cracking down on this
Internet scam,” said Jan Lynn Owen, Commissioner of the California Department of Corporations. “Profitable
Sunrise is running a massive, international scheme that takes advantage of religious affinity to deprive investors
of their money. We encourage anyone who dealt with this organization to contact the Department of
Corporations or their state regulator immediately.”

Profitable Sunrise uses Biblical themes to lure unsuspecting customers, telling them to “Get Richer With Every
Sunrise.” The company falsely claims to offer “risk free” investments that return 1.5 to 3.0 percent per day.
Profitable Sunrise offers investment contracts in the form of investment plans, through its website, which
advertises short-term “hard money loans” to businesses in the United States and other countries. But the
Department of Corporations has not issued a permit or other form of qualification authorizing any person to
offer and sell securities or lend in California.

Today’s order directs “Profitable Sunrise” to cease all operations in California. The Department issued the
order under state securities law governing the offer and sale of investments in unqualified securities and
pursuant to the Finance Lenders Law restricting unlicensed finance lenders.

Regulators in other states and countries have also taken enforcement action against or warned consumers about
Profitable Sunrise. The states of North Carolina, Kentucky and Minnesota have issued desist orders against
Profitable Sunrise. Recently, the state of Alabama issued an investor alert, as did the Canadian province of
Alberta and the nation of New Zealand.

All California investors in Profitable Sunrise are strongly encouraged to contact the Department of Corporations
to file a formal complaint at (866) ASK-CORP or at www.corp.ca.gov.

Today’s order is available on the Department’s website at http://www.corp.ca.gov/ENF/Default.asp.

California consumers should contact the Department of Corporations to check on the status of the companies, investments or
other services they are considering and the licensing status of individuals at the Department’s toll-free Consumer Services Office
at 1-866-ASK-CORP or at www.corp.ca.gov.

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