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U.S. Securities and Exchange Commission


Litigation Release No. 19035 / January 14, 2005

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 that, on January 13, 2005, it filed civil contempt charges against Charles G. Dyer and two entities controlled by him, Resource F, LLC, and Bunker Hill Aviation, LLC, concerning their failure to comply with a final judgment entered against them in September 2003 by the United States District Court for the District of Massachusetts that ordered payment of disgorgement, interest, and a civil penalty.

In its original complaint filed against Dyer, his entities, and others on April 16, 2001, the Commission alleged that, between 1997 and 2000, Dyer and his entities 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, Dyer helped promote and administer the trading scheme through his entities and solicited investors using misrepresentations typical of Prime Bank-type investment frauds, including that the investment involved high-quality debt instruments and that investors' principal was never at risk and could be returned after one year. According to the complaint, during the initial stages of the fraud, investors received monthly payments that the defendants represented were "profits" on their investment. The complaint alleged, however, that monthly payments to investors ceased around May 2000, and no investors are known to have received the return of their investment, as promised by the defendants.

The Commission's contempt motion alleges that on September 15, 2003, the court entered a final judgment by consent against Dyer, Resource F, and Bunker Hill Aviation that held them jointly and severally liable for disgorgement and interest of over $570,000. Dyer was also ordered to pay a civil penalty of $110,000. The final judgment provided that the disgorgement, interest, and penalty would be paid on a payment plan over the course of 11 months after entry of the judgment. In its contempt motion, the Commission alleges that, other than releasing $100,000 that they were required to place in escrow prior to issuance of the final judgment, the defendants have made no further payments to satisfy the final judgment.

For further information, please see Litigation Release No. 18414 (October 16, 2003)[final judgment against Dyer, Resource F, and Bunker Hill Aviation]; and Litigation Release No. 16963 (April 16, 2001) [SEC files emergency enforcement action against Dyer and others].


Modified: 01/14/2005