Gold-Quest International, et al.
On May 6, 2008, the SEC obtained a temporary restraining order and asset freeze against Gold-Quest International and its principals, David M. Greene, John Jenkins and Michael McGee, in connection with an alleged Ponzi scheme. According to the complaint, since May 2006, the defendants fraudulently raised over $27.9 million from more than 2,100 investors in the United States and Canada by guaranteeing investors annual returns of 87.5% through proprietary asset management and hedging strategies in foreign currency trading.
Contrary to their representations, the SEC alleged that the defendants did not use investor funds for trading in foreign currencies, paid more than $19.1 million of investor funds as “distributions” to other investors, and misappropriated investor funds for their personal use.
According to the 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. The SEC alleges, however, the Little Shell Nation is not in fact recognized as a sovereign tribe or nation.
For more information about the SEC’s action, you can read Litigation Release No. 20557 (May 7, 2008).
The Court also appointed Larry Cook as Temporary Receiver over Gold-Quest and its affiliates. For the latest information about the Receivership, you can visit the Receiver’s website.