Global Telelink Services, Inc.
On March 9, 2001, the SEC obtained preliminary injunctions, asset freezes, and other relief against Global Telelink Services, Inc. (GTS), Global Contact Corporation (Global Contact), and Robert Smith III. The SEC alleged that the defendants were illegally selling unregistered securities in a Ponzi scheme that raised over $10 million from more than 300 mostly elderly investors. For more information about the SEC's action, you can read Litigation Release No. 16929 (Mar. 9, 2001).
The Court appointed Lloyd T. Whitaker as Receiver for GTS and Global Contact. To date, the Receiver has collected approximately $195,000. With potential claims amounting to nearly $14 million, the Receiver has cautioned claimants that any distribution will be a very small fraction of the claims.