An apparent investment scheme that dupes investors into wiringmoney to Eastern Europe has regulators on high alert in 16 statesand five Canadian provinces.

Cease and desist orders have been issued against Inter ReefLtd., a United Kingdom-based company doing business as ProfitableSunrise, and the firm's owners, brothers Roman and Radoslav Novak,according to the Ohio Department of Commerce Division ofSecurities, which issued a warning to investors.

Investors are promised risk-free returns of 1.6% to 2.7% per dayfor periods ranging from 180 to 240 days, said the Wisconsin Department of Financial Institutions.

Investors are then told to wire money to financial institutionsin Eastern Europe, including one bank located in the CzechRepublic, according to the Wisconsin DFI, adding the sale ofunregistered securities in the state are illegal.

The Ohio agency said Profitable Sunrise's website has aso-called referral program for individuals to become regionalrepresentatives for an investment group. The site also includesBible verses and options for donating investment returns tocharity, which may indicate that the firm is targeting religiousorganizations.

When Credit Union Times attempted to log on toProfitable Sunrise's website on Friday, the site was notaccessible.

Cease and desist orders have also been issued by securitiesregulators in North Carolina and South Dakota against ProfitableSunrise.

CUNA has advised credit union members to contact their state'ssecurities regulators if they have had dealings with thecompany.

Before making any type of investment, members and investors should ask if the brokeragefirm and salesperson is licensed in their state, has the securitybeen properly registered with their state's securities regulator,and if any enforcement action has been taken against the firm, CUNAsuggested.