Bryan Cohen Mar. 18, 2013, 4:49pm

BALTIMORE (Legal Newsline) - Maryland Attorney General Douglas Gansler announced Friday that his office's Securities Division issued a summary order to cease and desist against an international internet company that allegedly offered fraudulent investments.

The U.K.-based Roman Novak and Radoslav Novak, the company's operators, were ordered to stop the operation of Inter Reef Ltd., doing business as Profitable Sunrise. Profitable Sunrise allegedly offered or sold fraudulent investments in violation of the Maryland Securities Act.

"This is a typical 'too good to be true' scam that demonstrates the dangers of Internet investments offering incomplete, incorrect or implausible promises," Gansler said. "This illegal ploy has all the earmarks of a typical pyramid or Ponzi scheme. Until we get to a hearing, this order prevents Maryland investors from being duped by the scheme's use of Bible verses and religious imagery utilized to exploit the faithful."

Profitable Sunrise uses a website to promote the company and recruit investors, claiming to use invested money ranging from $10 per month to thousands of dollars per month to provide short-term high-rate loans to unidentified U.S. businesses. The unregistered investment scheme allegedly offered Maryland residents unrealistically high interest rates of two percent per business day on purportedly risk-free investments.

The order alleges that the investments and the people who offer them are not registered with the Securities Division and that the Novaks committed fraud by making material omissions or misrepresentations on the company's website.

Maryland is one of at least 19 U.S. and Canadian jurisdictions currently looking into Profitable Sunrise and its agents.

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