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U.S. Securities and Exchange Commission

Resource Development International LLC, et al.

On March 25, 2002, the SEC obtained a temporary restraining order, asset freezes, and other relief in connection with a prime bank scheme masterminded by James and David Edwards. The SEC alleged that the Edwards, along with Gerald J. Stock, Kevin Lynds and William Whelan, marketed the Resource Development International, LLC trading program by telling investors that their funds would be used overseas to trade financial instruments with the "top world banks" and that the Federal Reserve monitored the program. The defendants promised investors annual returns of 48 to 120 percent and guaranteed the safety of their principal. In reality, the prime bank program did not exist and investor funds were misappropriated for personal and unauthorized uses, including making Ponzi payments. For more information about the SEC's action, you can read Litigation Release No. 17438 (Mar. 26, 2002).

The Court also appointed Lawrence J. Warfield as Receiver. You can find the latest information on the Receiver's website.


Modified: 06/03/2002