U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

Megafund Corporation, Stanley A. Leitner, Sardaukar Holdings, IBC, Bradley C. Stark, CIG Ltd., and James A. Rumpf, individually and d/b/a Cilak International, defendants, and Pamela C. Stark, relief defendant

On July 5, 2005, the SEC obtained a temporary restraining order and asset freeze against Megafund Corporation, its president, Stanley A. Leitner, Bradley C. Stark, and Stark's offshore company, Sardaukar Holdings, IBC. On July 19th, the SEC filed an amended complaint alleging that James A. Rumpf, individually, and operating under the assumed name, Cilak International, along with his offshore company, CIG Ltd., participated in the same scheme.

The SEC alleged that the defendants participated in a "High Yield" investment scheme in which at least $15 million was fraudulently raised from investors nationwide. Specifically, the SEC claimed that, from June 2004 through the present, the defendants engaged in a scheme to defraud investors with promises of 120 percent annual investment returns and safety of investment principal. According to the complaint, the defendants targeted Christian ministries and other non-profit organizations stating that a portion of the profits generated would benefit charitable causes. The SEC further alleged that the defendants represented to investors their funds would be placed in an "account at a major U.S. Brokerage firm" where an unnamed "Trader" would engage in "arbitrage" transactions involving, among other things, "Treasury bills" and "certificates of deposits." In truth, the complaint alleges that Megafund and Leitner transferred nearly $11 million of investor funds to a Netherlands Antilles bank account controlled by Rumpf and CIG and, subsequently, Sardaukar and Stark illegally received at least $9.5 million of these funds.

For more information about the SEC's action, you can read Litigation Release No. 19292 (July 5, 2005) and 19307 (July 20, 2005).

The Court appointed Michael J. Quilling, Esq., as Receiver. For the latest information about the Receivership, you can visit the Receiver's website.



Modified: 02/29/200603