Update: The Williams County Court informed ChristianMoney.com that they prematurely changed the status of the case to 'closed' prior to a final settlement agreement being signed. As a result, there was a window of time of approximately three weeks where the closed status was not accompanied by any public announcement or settlement agreement.
Nancy Jo Frazer and co-defendants admitted to violating Ohio Law and agreed to a financial settlement of $108,000. Details Here.
As a regular reader of this blog, you will know that we have been following the Profitable Sunrise story for two years now. Of course, my book 'Exposing The Ponzi Masters' details the worldwide scheme that bilked Christians out of an estimated $100 million dollars.
Something Is Rotten... Not In Denmark, But In Bryan Ohio
In a routine review of the case docket, ChristianMoney.com became aware this week that the Ohio civil lawsuit against central figure Nancy Jo Frazer was 'settled.' We found it more than a bit odd that the case was closed, the trial was canceled, and all with no press release or public announcement of any details. In July of 2013 the state of Ohio filed a civil lawsuit containing 23 allegations against Nancy Jo Frazer, David Frazer, and Albert Rosebrock. The significance of the Ohio case can not be overstated. First, this is the home state of Nancy Jo Frazer. Secondly, it represents the sole legal action against Frazer. Neither the federal government or any other U.S. state has pursued a lawsuit against Frazer and her associates. As a result, this litigation would appear to be the only legal means for Frazer to be ordered to pay restitution or to disgorge profits realized from her alleged involvement in the scheme.
ChristianMoney.com spoke today with both the Williams County, Court and the Ohio Attorney General's Office. We were unable to receive any explanation as to why the settlement agreement has not been made public, or any court documents detailing the outcome of the case. To make matters even more suspicious, the settlement date of the case is listed as December 31. Yes, as we all sang, 'Should Old Acquaintance Be Forgot...' the state of Ohio settled its lawsuit with Nancy Jo Frazer and 'forgot' to tell anyone about it. Now, 16 days later NO INFORMATION IS AVAILABLE TO THE PUBLIC ON THE SETTLEMENT.
Statute Of Limitations Running Out
Many have speculated that an SEC action against the promoters could be forthcoming in this case, but the time period to bring these charges will soon run out (generally, the government has two years from the date they became aware of a violation of the securities laws to file). The SEC filed a civil case in April of 2013 naming only the various offshore entities behind Profitable Sunrise. The activity in the SEC case has been remarkably sparse. Furthermore, there have been no public updates or press announcements on the case since April of 2013.
Questions That Need To Be Answered:
1. Why is the settlement between the state of Ohio and Nancy Jo Frazer being kept from the public?
2. After nearly two years now, why has there been no communication to the public on the status of the Ohio or SEC litigation, or any update on the millions of dollars frozen in offshore bank accounts?
3. Why has no receiver been appointed to begin the process of accepting claims on behalf of victims?
4. How could a $100 million scam involving the sale of unregistered securities produce no criminal charges and only one civil lawsuit (Ohio)? (other than the Ohio case, we are only aware of a Kansas action that recovered a meager $2,000 and no other legal action taken against any of the other U.S. based promoters).
5. Why has the SEC not taken a deposition of central figure Nancy Jo Frazer?
6. Why has the SEC excluded Frazer and the other significant U.S. based promoters from their civil lawsuit?
To our knowledge, and lacking any documentation to the contrary, neither Nancy Jo Frazer or any other individuals referenced or alluded to in this article, have been convicted of any crime or been found liable for any civil or regulatory infractions.
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