Securities and Exchange Commission
Litigation Release No. 17858 / November 22, 2002
Commission Settles Fraud Charges Against Miles Harbur
in Connection with $22 Million Trading Scheme
SEC v. Eric E. Resteiner, et al., ., (United States District Court for the District of Massachusetts, C.A. No. 01-10637(PBS))
The Commission announced today that, on November 18, 2002, a Massachusetts federal court entered a final judgment, by consent, against Miles M. Harbur of Jupiter, Florida in connection with a $22 million fraudulent trading scheme. The final judgment enjoined him from further violations of the antifraud and securities and broker-dealer registration provisions of the federal securities laws. In its complaint, filed on April 16, 2001, the Commission alleged that, between 1997 and 2000, Harbur and others participated in a fraudulent trading scheme that raised approximately $22 million from at least 50 investors, many of whom were members of the Christian Science Church. According to the complaint, Harbur helped promote the trading scheme under the names Swiss Asset Management and Resource F, and solicited investors using misrepresentations typical of Prime Bank-type investment frauds, including that the investment involved high-quality debt instruments of very large international banks, that the investors' principal was never at risk and could be returned after one year, and that investors would receive profits of approximately 4-5% every month (or 48-60% annually).
Without admitting or denying the allegations in the Commission's complaint, Harbur consented to the judgment entered by the U.S. District Court for the District of Massachusetts (Saris, J.), which permanently enjoins him from future violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Harbur was also held liable for disgorgement of $1.1 million, plus prejudgment interest thereon, but payment was waived based on Harbur's financial condition. The remaining defendants in the case are Charles G. Dyer, Resource F, LLC, and Bunker Hill Aviation, LLC.
Unscrupulous promoters continue to victimize the public with Prime Bank schemes. Accordingly, investors are advised to access the Commission's "Prime Bank" Investor Alert that provides tips on how to avoid being a victim of these scams. The investor alert can be found on the Commission's web site, at www.sec.gov/divisions/enforce/primebank.shtml.
For further information, please see Litigation Release No. 16963 (April 16, 2001), Litigation Release No. 16969 (April 18, 2001) and Litigation Release No. 17713 (Sept. 5, 2002).