A U.S. court has entered a preliminary injunction against a UK-based company, Inter Reef Ltd., which has been the subject of investor warnings from Canadian regulators.
The U.S. Securities and Exchange Commission (SEC) announced that a judge in the U.S. District Court for the Northern District of Georgia issued a preliminary injunction against violations of federal securities laws in a civil action brought by the SEC against Inter Reef (doing business as Profitable Sunrise), and four Czech companies that have been named as relief defendants.
In early April, the SEC filed a complaint alleging that Inter Reef has operated a fraudulent securities offering over the internet under the name of Profitable Sunrise. It also named four companies as relief defendants, alleging that they received funds from investors at the direction of Profitable Sunrise.
Initially, the court issued a temporary restraining order and granted other relief. The allegations have not been proven, but the court has found that the SEC has established a prima facie case that Inter Reef has violated securities laws. It also continued its freeze on the assets of Inter Reef and the relief defendants.
Back in March, the Ontario Securities Commission (OSC) issued a warning to investors about Profitable Sunrise, which it said was offering investors “investment plans”, promising abnormally high returns. It said Profitable Sunrise is not registered.
Regulators warn investors of possible scam
Regulators in Alberta, BC, and Manitoba issued warnings, too.