SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 17853 / November 21, 2002
SECURITIES AND EXCHANGE COMMISSION v. GARRY W. STROUD, INDIVIDUALLY AND D/B/A DIAMOND GLOBAL HOLDING TRUST, EURO CREDIT AND EXCHANGE BANK LTD., AND ANGELIC INTERNATIONAL, et al. (U.S.D.C. Western District of Oklahoma, Civil Action No. CIV-01-999-W)
On November 18, 2002, Judge Lee R. West, United States District Judge for the Western District of Oklahoma, held John Collins in civil contempt and ordered him to pay $187,000 to the Court appointed receiver in the case. The Court found that Collins had directly violated and aided and abetted Garry W. Stroud in violating the Court's orders.
Previously, Judge West issued emergency orders, including a temporary restraining order, preliminary injunction, asset freeze and the appointment of a temporary receiver against Garry W. Stroud, an alleged Internet investment swindler operating from British Columbia, Canada, and Lynden, Washington. The Commission's complaint charged Stroud with conducting an ongoing Internet investment scheme that fleeced over 2,200 investors worldwide of approximately $1 million since 1998.
During the course of pursuing its claims against Stroud, the Commission learned that Stroud, prior to suit, had caused in excess of $200,000 of investor funds to be diverted to Collins for the purpose of promoting a professional wrestling enterprise named "Main Event Championship Wrestling." Immediately after the Court issued its preliminary injunction, Collins was served with a copy of the Court's orders, which, among other things, continued to freeze Stroud's assets. The Court found that after Collins became aware of the Court's orders, Collins accepted $162,000 in wire transfers from Stroud and then spent the money in violation of the asset freeze order. The Court also found that Collins had refused to turnover receivership property in his possession, worth approximately $25,000, despite the receiver's repeated demands for possession of the property.
Collins has thirty days to remit the money to the receiver or face further coercive sanctions.