SEC Obtains Temporary Restraining Order against British Internet Investment Scheme

SEC v. Inter Reef, Ltd. dba Profitable Sunrise, Melland Company S.R.O., Color Shock S.R.O., Solutions Company S.R.O. and Fortuna-K S.R.O., Case No. 1:13-cv-1104
(D. Ga.).  On April 4, 2013, the SEC announced it filed an emergency enforcement action against Inter Reef Ltd.  According to the SEC, UK-based Inter Reef offered securities over the internet under the name of Profitable Sunrise.  Profitable Sunrise promised investors returns of between 1.6% and 2.7% per business day on funds invested in programs giving loans to businesses at higher interest rates.  In addition to promising undeliverable returns, Profitable Sunrise also misled investors by telling them that investments were insured by an investment bank.  The SEC charged Inter Reef with violating Sections 5(a),   5(c), and 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Exchange Act Rule 10b-5.  The SEC obtained a temporary restraining order and asset freeze.  The SEC seeks permanent injunctive relief, civil monetary penalties and disgorgement.

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