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U.S. Securities and Exchange Commission

Safevest, LLC, et al.

On May 1, 2008, the SEC obtained a temporary restraining order and asset freeze against Safevest, LLC and its principals, Jon G. Ervin, Sr. and John V. Slye, in connection with operating an alleged Ponzi-like scheme. According to the complaint, since at least May 2007, the defendants fraudulently raised at least $25 million from approximately 500 investors, particularly targeting Christian communities nationwide, by representing that their funds would be pooled for investing in futures commodities trading, daily profits would be between 1.5% to 1.9%, and investors could get their money back within 72 hours of requesting it.

In fact, the SEC alleged the defendants never invested any of the funds in futures trading and requests for withdrawals were not honored or only partially honored. According to the complaint, the defendants used more than $18 million of investor funds to pay off other investors, and misappropriated investor funds for their personal benefit.

For more information about the SEC's action, you can read Litigation Release No. 20552 (May 2, 2008).

The Court appointed Thomas Seaman as Temporary Receiver over Safevest and its affiliates. For information about the Receivership, you can visit the Receiverís website.


http://www.sec.gov/divisions/enforce/claims/safevest.htm


Modified: 06/09/2008