International Fiduciary Corp., S.A., et al.
On December 4, 2006, the SEC obtained a temporary restraining order and asset freeze against Daniel Eric Byer, Malcolm Cameron Boyd Stevenson, Preston David Pinkett II, and International Fiduciary Corp., S.A. (IFC) in connection with an alleged “Prime Bank” scheme.
According to the complaint, which was amended in April 2007, the defendants fraudulently raised at least $40 million from more than 140 investors in the United States and Canada by offering investment in a trading program in which the defendants would purportedly trade in “first-tier medium-term bank notes.” The SEC further alleged that investors were promised a guaranteed monthly return of 4-6% on their investment.
Among other things, the SEC alleged that no trading occurred in first-tier medium notes, or in any other legitimate investment activity. Rather, the SEC alleged that the defendants used the money raised to make “Ponzi” payments to each of the investors, and to pay themselves and others who introduced investors to the investment program. Defendants Pinkett and IFC have settled their actions with the SEC, while default judgments were entered against defendants Byer and Stevenson.
For more information about the SEC’s action, you can read the numerous litigation releases we have posted on our website.
On January 19, 2007, the Court appointed Roy M. Terry, Jr., Esq. as Receiver over IFC. For the latest information about the Receivership, you can visit the Receiver’s website.