International Law

Gold-Quest International Ponzi

Gold-Quest International, et al.: "SEC stops multi-million dollar Ponzi scheme."

"The Securities and Exchange Commission yesterday obtained a court order halting a $27 million fraudulent scheme involving investors in the United States and Canada.

The SEC sued Las Vegas-based Gold-Quest International and its principals, David M. Greene, age 54, John Jenkins, age 62, and Michael McGee, age 52, all residents of Las Vegas, NV, for allegedly running a Ponzi scheme and misappropriating investor funds.

The Honorable Lloyd D. George, United States District Court Judge for the District of Nevada, issued an order freezing assets and appointing a temporary receiver over Gold-Quest and its affiliates.

The SEC's complaint, filed in federal court in Las Vegas, alleges that since May 2006, the defendants have raised and misappropriated more than $27.9 million from more than 2,100 investors in the United States and Canada.

The complaint further alleges that, undisclosed to investors, the defendants paid more than $19.1 million as returns to other investors in this Ponzi scheme.

According to the SEC's complaint, Gold-Quest and its owners claim they are not subject to the jurisdiction of the United States or Canada because they are members of the Little Shell Nation Indian tribe, purportedly headquartered in North Dakota.

However, the Little Shell Nation is not in fact recognized as a sovereign tribe or nation."

(Via SEC.gov Updates: Litigation Releases.)

Little Shell Nation! That is very good. Somebody has a cruel sense of humour.

Full post as published by Misleading Advertising Law on May 07, 2008 (boomark / email).