Litigation Release No. 19976 / January 23, 2007

Securities and Exchange Commission v. International Fiduciary Corp., S.A., et al., U.S. District Court for Eastern District of Virginia (Civil Action No. 1:06CV1354)

Judge Appoints Receiver in International Fiduciary Corporation, S.A. Alleged Prime Bank, Ponzi Scheme Case

On January 19, 2007, acting on the Commission's motion, Judge Gerald Bruce Lee of the United States District Court for the Eastern District of Virginia, appointed Roy M. Terry, Jr., Esq. as Receiver over International Fiduciary Corporation, S.A. (IFC). IFC is one of four defendants in an alleged Prime Bank, pyramid scheme case that the Commission filed on an emergency basis on December 4, 2006. The Court ordered that Mr. Terry shall, among other things, possess the power to take custody, control and possession of all records, assets, funds, or property premises under the direct or indirect control of IFC or that are attributable to funds provided by an investor in an investment contract offered by any of the defendants. Further, the Court ordered that Mr. Terry shall conduct any business operations of IFC and any entities that it controls. In addition, with respect to the existing asset freeze in this matter, the Court ordered that Mr. Terry is authorized to administer, manage, and direct the marshaling, disbursement and/or transfer of monies or other assets held by third parties that are subject to the freeze.

The Commission has alleged that IFC and the three other defendants in the case -- Preston David Pinkett, Daniel Eric Byer, and Malcolm Cameron Boyd Stevenson -- defrauded over 180 investors in a fraudulent "Prime Bank" scheme which appears to have raised at least $18.2 million to date. IFC is a Virginia corporation with offices in Arlington, Virginia. Pinkett, who also lists an Arlington, Virginia address, is IFC's chairman and CEO. Byer and Stevenson are Canadians. For additional information on the SEC's pleadings in this matter, see Litigation Release No. 19934 (December 5, 2006).

On December 4, 2006, the Court issued an order, among other things, temporarily restraining defendants from violating the antifraud provisions of the federal securities laws and freezing' investor funds wherever located and all assets of the defendants. On December 11, 2006, the Court entered a preliminary injunction which extended the temporary restraining order and asset freeze.

Mr. Terry, a partner at the Richmond, Virginia law firm DuretteBradshaw PLC, also serves as Chapter 7 Panel Trustee of the U.S. Bankruptcy Court for the Eastern District of Virginia. Mr. Terry has 28 years of practice experience in representing both businesses and individuals as debtors and creditors.

The Commission has provided information warning investors about Prime Bank investment scams. See http://www.sec.gov/divisions/enforce/primebank.shtml