It seems that finally the law has caught up with them - they've earned themselves a 'Cease & Desist' for their methods. (Although California seems to call them 'Desist and Refrain' orders instead.) Not much of a penalty - but the Pollyanna part of me would like to think that it will be enough that they'll change their ways.
Mind you - it appears that it was a different project - this one they were offering a return of 150% and five percent (5%) of the net revenue generated from any and all distribution.
I wonder how many 'investors' they've been working with?
Link: http://www.corp.ca.gov/ENF/pdf/2011/CreativeEntertainmentMedia_DR.pdf
And, just for completeness, a similar Halt order from Pensylvania, which contains a few more details about the offenses:
