U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19115 / March 3, 2005
Securities and Exchange Commission v. Premium Income Corp., InForex Ltd., Tri-Forex International Ltd., also known as Tri-Forex, Ltd. and International Forex Company, Gerald Leo Rogers, also known as Jay Rogers and Jay Rodgers, and Alexander Igor Shevchenko, Civil Action No. 3-05-CV-0415-M (U.S.D.C./N.D. Texas, Dallas Division)
SEC FILES EMERGENCY ACTION TO HALT FRAUDULENT FOREIGN CURRENCY OPTION SCHEME AND FREEZE ASSETS FOR INVESTORS
The Securities and Exchange Commission ("Commission") announced today that it filed an emergency civil action in the United States District Court for the Northern District of Texas, alleging an ongoing investment fraud targeting older investors. The Commission's complaint alleges that the scheme was orchestrated by Gerald Leo Rogers ("Rogers"), a twice-convicted felon, whose criminal and securities fraud history spans nearly four decades. Rogers started this scheme shortly after being paroled from a 25-year prison sentence for mail and securities fraud, and has transferred approximately $7 million of investor funds to Swiss and Danish bank accounts. Also named in the Commission's action is Alexander Igor Shevchenko ("Shevchenko"), and three companies controlled by Rogers and Shevchenko - Premium Investment Corp. ("PIC"), TriForex International Ltd., and InForex Ltd. United States District Judge Jane J. Boyle has entered a temporary restraining order and asset freezes against the defendants, appointed a receiver to preserve assets, ordered the repatriation of all funds in offshore accounts, and directed Rogers and Shevchenko to immediately surrender their passports.
The Commission's complaint alleges that, from January 2004 through the present, Rogers and the other defendants engaged in a deliberate scheme to defraud investors with promises of "guaranteed profits" and "safety of principal." The complaint alleges that the defendants made false and misleading statements, wherein PIC claimed it would use "100% of investor funds" to write covered call options in the foreign currency market. In fact, according to the complaint, the defendants have been operating a "Ponzi" scheme, using new investor funds to pay "interest" to earlier investors, and have made undisclosed payments to Rogers and PIC salesmen. To date, the defendants have raised over $8.5 million from more than 100 investors located throughout the United States.
The complaint charges the defendants with violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In addition to the emergency relief listed above, the complaint seeks preliminary and permanent injunctive relief, an accounting, disgorgement of profits, and the imposition of civil penalties.
The defendants were also named in a companion emergency enforcement action filed by the Commodity Futures Trading Commission ("CFTC"). CA3-05-CV-0415-M (U.S.D.C./N.D. Texas, Dallas Division)
The Commission acknowledges the assistance and cooperation of the Texas State Securities Board and the CFTC in this matter.