Posted by Hardy Leemann on November 08, 1998 at 08:13:52:
In Reply to: I HATE TO SAY I TOLD YOU SO BUT HERE THEY ARE INDICTED BY THE SEC FOR SELLING HIP, SECURITIES WITHOUT SEC BROKER/DEALER STATUS HOPE YOU HONEST GUYS GET A CLUE, 8 INDICTMENTS LOOKS LIKE 20 YEARS IN JAIL... posted by RAYMOND SHAW on September 24, 1998 at 15:22:38:
:
Eight people were indicted in the United States District Court for the Southern District of West Virginia last week. The names and related companies are: Stephen D. Oles, residing in Nevada and California, associated with Exodus International, BCI Corp. HDV Corp. USA, Executive Properties Group and Bayshore Foundation Fund. Stephen D. Oles purported to be a program manager of high yield investment programs that promised to generate extraordinary profits to participants and investors trading in foreign debentures, including the Exodus International High Yield Funding Program No. 39. James Gormley was an Atlanta attorney and facilitated investments of trading programs under the guise of legal work. Ramona Holcombe, aka, Mona Holcombe, was a resident of Santa Ana, CA., involved with the Exodus International High Yield Funding Program No. 39 and Straight Ahead Enterprises, Super Achievers and Gateway. Stanie M. Benz was a resident of Ojai, CA who offered and facilitated investments in Offshore Trading Programs using various business names including The Channel Island Group. Gary D. Bollin was a resident of Riverdale, GA and Flat Rock, IL, also involved with Exodus No. 39 and Jennsher Ltd. or Jennsher Trust. David A. Raimer and Jennifer Raimer were residents of Florida, were facilitators of investments in trading programs using names including Exodus International, BCI International Inc. International Christian Business, Inc. and Tri-Span corp. David Raimer was the founder and self-styled Public Relations Rep. of the Coalition for Financial Justice and Accountability a fictitious entity which purportedly investigated Offshore Trading Programs. Ernst N. Tietjen was a Utah resident and the purported founder of a church known as the Apostolic Order of the Remnant House of Israel, also known as AORHI, and an arm of AORHI General Securities Ltd, aka GSL Trust. Roger A. Damron, not a named defendant, did business through the names of Gold Eagle Club and Network Developers. The Defendants were indicted for wire fraud, money laundering, securities fraud and obstruction of justice. It was a part of this conspiracy that the trading programs would generate extraordinary profits in just a few months and that they were only available for humanitarian or Christian projects. The defendants further layered their participation through a system of contacts and referrals in which their individual role in the offering and sale of the investments was above or below that of another defendant or co-conspirator. A broker would introduce the person capable of making the investment to the person who could actually place the investment; a project director or program manager would oversee the program and work with the trusts or trustees in Europe and a trader whose identity was confidential and who would actually execute the trades on behalf of the European trust(the big secret guy) were all part of the conspiracy. It was a part of the conspiracy that through this system of contacts and referrals, each defendant was able to deny, or claim limited, knowledge concerning the exact status and whereabouts of an investor's money, and thereby shift responsibility or accountability for the loss of an investor's money to some unknown person up the line. It was a part of the conspiracy that defendants would create, use and execute various legal-sounding documents such as joint venture agreements, mutual agreements of non-disclosure and non-circumvention, letters of intent, funds confirmations and so on which were intended to give the appearance of sophistication and legitimacy to these sham investments. Other legal sounding phrases used were that the joint venture is deemed to be a private placement and is considered to be in compliance with all banking laws and is exempt from regulations under the Securities and Exchange Act, etc. Defendants failed to file registration statements with the SEC for the Offshore Trading Programs, even though investments in trading programs constitute the purchase and sale of securities, Defendants failed to register with the SEC as brokers even though they offered, touted and sold securities for the account of others, that is, investment contracts for participation in the trading programs; they opened or used bank accounts in names of other individuals or entities; they funneled and laundered investors' monies from account to account, commingled these monies and then disbursed and distributed the funds in such a way that the original character of an investor's money could not be traced, and then skimmed monies for themselves and families and others, failing to file and pay taxed or to accurately report their income. They engaged in a scheme of delaying tactics designed to lull investors into inaction when the promised payouts failed to occur, including that the trading program had closed but that they could enter into another similar program, trading in Europe was postphoned due to the holidays, the investor's account was receiving their personal attention in Europe and that if they got the government involved, the government would lock up the funds and the investor would never see them again. In order to appease and keep quiet certain investors, long after the date of scheduled payout, they repaid those complaining investors through indirect means.
Does any of this sound familiar? Of course an indictment does not mean they are guilty, only that they have been accused. Is this a specific enough example of fraud in this area?
The indictment was filed in the Southern District of W. Va. on September 9, 1998.
21
550,1039>
Hardy Leemann>
hleemann@swissonline.ch>
Re: I HATE TO SAY I TOLD YOU SO BUT HERE THEY ARE INDICTED BY THE SEC FOR SELLING HIP, SECURITIES WITHOUT SEC BROKER/DEALER STATUS HOPE YOU HONEST GUYS GET A CLUE, 8 INDICTMENTS LOOKS LIKE 20 YEARS IN JAIL...>
November 08, 1998 at 08:13:52>
Re: I HATE TO SAY I TOLD YOU SO BUT HERE THEY ARE INDICTED BY THE SEC FOR SELLING HIP, SECURITIES WITHOUT SEC BROKER/DEALER STATUS HOPE YOU HONEST GUYS GET A CLUE, 8 INDICTMENTS LOOKS LIKE 20 YEARS IN JAIL... size=50>
: :
Eight people were indicted in the United States District Court for the Southern District of West Virginia last week. The names and related companies are: Stephen D. Oles, residing in Nevada and California, associated with Exodus International, BCI Corp. HDV Corp. USA, Executive Properties Group and Bayshore Foundation Fund. Stephen D. Oles purported to be a program manager of high yield investment programs that promised to generate extraordinary profits to participants and investors trading in foreign debentures, including the Exodus International High Yield Funding Program No. 39. James Gormley was an Atlanta attorney and facilitated investments of trading programs under the guise of legal work. Ramona Holcombe, aka, Mona Holcombe, was a resident of Santa Ana, CA., involved with the Exodus International High Yield Funding Program No. 39 and Straight Ahead Enterprises, Super Achievers and Gateway. Stanie M. Benz was a resident of Ojai, CA who offered and facilitated investments in Offshore Trading Programs using various business names including The Channel Island Group. Gary D. Bollin was a resident of Riverdale, GA and Flat Rock, IL, also involved with Exodus No. 39 and Jennsher Ltd. or Jennsher Trust. David A. Raimer and Jennifer Raimer were residents of Florida, were facilitators of investments in trading programs using names including Exodus International, BCI International Inc. International Christian Business, Inc. and Tri-Span corp. David Raimer was the founder and self-styled Public Relations Rep. of the Coalition for Financial Justice and Accountability a fictitious entity which purportedly investigated Offshore Trading Programs. Ernst N. Tietjen was a Utah resident and the purported founder of a church known as the Apostolic Order of the Remnant House of Israel, also known as AORHI, and an arm of AORHI General Securities Ltd, aka GSL Trust. Roger A. Damron, not a named defendant, did business through the names of Gold Eagle Club and Network Developers. The Defendants were indicted for wire fraud, money laundering, securities fraud and obstruction of justice. It was a part of this conspiracy that the trading programs would generate extraordinary profits in just a few months and that they were only available for humanitarian or Christian projects. The defendants further layered their participation through a system of contacts and referrals in which their individual role in the offering and sale of the investments was above or below that of another defendant or co-conspirator. A broker would introduce the person capable of making the investment to the person who could actually place the investment; a project director or program manager would oversee the program and work with the trusts or trustees in Europe and a trader whose identity was confidential and who would actually execute the trades on behalf of the European trust(the big secret guy) were all part of the conspiracy. It was a part of the conspiracy that through this system of contacts and referrals, each defendant was able to deny, or claim limited, knowledge concerning the exact status and whereabouts of an investor's money, and thereby shift responsibility or accountability for the loss of an investor's money to some unknown person up the line. It was a part of the conspiracy that defendants would create, use and execute various legal-sounding documents such as joint venture agreements, mutual agreements of non-disclosure and non-circumvention, letters of intent, funds confirmations and so on which were intended to give the appearance of sophistication and legitimacy to these sham investments. Other legal sounding phrases used were that the joint venture is deemed to be a private placement and is considered to be in compliance with all banking laws and is exempt from regulations under the Securities and Exchange Act, etc. Defendants failed to file registration statements with the SEC for the Offshore Trading Programs, even though investments in trading programs constitute the purchase and sale of securities, Defendants failed to register with the SEC as brokers even though they offered, touted and sold securities for the account of others, that is, investment contracts for participation in the trading programs; they opened or used bank accounts in names of other individuals or entities; they funneled and laundered investors' monies from account to account, commingled these monies and then disbursed and distributed the funds in such a way that the original character of an investor's money could not be traced, and then skimmed monies for themselves and families and others, failing to file and pay taxed or to accurately report their income. They engaged in a scheme of delaying tactics designed to lull investors into inaction when the promised payouts failed to occur, including that the trading program had closed but that they could enter into another similar program, trading in Europe was postphoned due to the holidays, the investor's account was receiving their personal attention in Europe and that if they got the government involved, the government would lock up the funds and the investor would never see them again. In order to appease and keep quiet certain investors, long after the date of scheduled payout, they repaid those complaining investors through indirect means.
Does any of this sound familiar? Of course an indictment does not mean they are guilty, only that they have been accused. Is this a specific enough example of fraud in this area?
The indictment was filed in the Southern District of W. Va. on September 9, 1998.