4NExchange, LLC, Paul R. Grant and Ronald Bassett
On May 2, 2002, the SEC obtained temporary restraining orders and asset freezes against 4NExchange, LLC, Paul R. Grant, and Ronald K. Bassett in connection with a Ponzi scheme. The SEC alleged that the defendants fraudulently told at least 200 investors nationwide they could expect returns of 5 to 10 percent per month through investments in currency trading. In actuality, the defendants used only a small amount of investor funds for currency trading and paid investors with funds from new investors. The defendants used the remaining funds for undisclosed personal benefit. For more information about the SEC's action, you can read Litigation Release No. 17500 (May 2, 2002).
The Court appointed Robert G. Wing as Receiver. The 4NExchange receivership estate made a partial distribution in March 2005 in the amount of $542,126.46. The estate also made a distribution to "eleventh hour" investors (those investors whose money came into 4NExchange and had cleared the bank, but where the banking process had not been completed) in October 2005 in the amount of $4,533,044.43.
The principals of 4NExchange invested part of the money they raised in an entity called the United States Reservation Bank & Trust. USRB&T is itself in receivership. The 4NExchange Receiver has made a recovery from the USRB&T receivership estate. Mr. Wing expects to make one final distribution in the amount of approximately $1.7 million to eligible claimants in 2008.
If you have a question, you can contact the Receiver at:
Holland & Hart LLP