South Carolina Attorney General Alan Wilson is warning investors in the state about an overseas fraud tied to the sale of unregistered securities.
He said a Birmingham, England-based company called Profitable Sunrise has offered investment contracts to individuals in South Carolina and across the country. The company promises low risks and high returns but isn’t registered to sell securities.
Officials say Profitable Sunrise tells investors they are helping the economy recover and creating jobs by enabling the company to sell short-term loans to small businesses throughout the U.S.
Investors are instructed to wire money to financial institutions in Eastern Europe, including banks in the Czech Republic.
“The Internet has made investing easier for many South Carolinians,” Wilson said in statement today. “Unfortunately, it has also made it easier for unscrupulous agents to reach investors. South Carolinians should be especially wary of investment offers coming from a foreign country.”
Several other states are investigating Profitable Sunrise, including Indiana and North Carolina, which has issued a cease-and-desist order.
Officials say investors should always scrutinize any investment opportunity that comes from a foreign country or seems too good to be true.