SECURITIES AND EXCHANGE COMMISSION
Litigation Release No.16969 / April 18, 2001
SEC v. ERIC E. RESTEINER, ET AL., Civil Action No. 01-CV-10637 (PBS)
(D. Mass.) (U.S. District Court for the District of Massachusetts -
Filed April 16, 2001)
SEC Obtains Emergency Relief To Halt Fraudulent Trading Scheme That
Victimized Members of the Christian Science Church
The Securities and Exchange Commission announced today that the United
States District Court for the District of Massachusetts issued
temporary restraining orders against two individuals and two
Massachusetts-based companies relating to a fraudulent trading scheme
that raised approximately $22 million from at least 50 investors, many
of whom were members of the Christian Science Church. The Commission
sought the emergency relief in a civil fraud action it filed April 16,
2001, against Voldemar A. VonStrasdas of Nassau, the Bahamas, Charles
G. Dyer of Manchester, Massachusetts, and two Danvers,
Massachusetts-based companies controlled by Dyer, Resource F, LLC and
Bunker Hill Aviation, LLC. The Commission's complaint also charged two
other individuals, Eric E. Resteiner, most recently of Nassau, the
Bahamas, and Miles M. Harbur of Jupiter, Florida, for their
participation in the fraudulent trading scheme. In its ruling, the
Court prohibited VonStrasdas, Dyer, Resource F and Bunker Hill from
engaging in further fraudulent activity related to the trading scheme
and froze the assets of all Defendants.
According to the complaint, the Defendants fraudulently offered and
sold unregistered securities in an international bank-related
financial instrument trading program that was completely fictitious.
The Defendants promoted their trading program under various names,
including Swiss Asset Management, Wall Street South, and Resource F.
The Commission alleged that Resteiner, Harbur, VonStrasdas, and Dyer
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).
During the initial stages of the fraud, investors received monthly
payments that the Defendants represented were "profits" on their
investment. However, monthly payments to investors ceased by May 2000.
Despite numerous requests, no known investors have received the return
of their investment. Furthermore, since the cessation of monthly
payments, VonStrasdas has regularly sent lulling letters to investors
SNIPPETS:
SEC v. ERIC E. RESTEINER, ET AL., Civil Action No. 01-CV-10637 (D.
District Court for the District of Massachusetts Filed April 16,
The Securities and Exchange Commission announced today that the United States District Court
The Commission sought the emergency relief in a civil fraud action it filed April 16, 2001,
In its ruling, the Court prohibited VonStrasdas, Dyer, Resource F and Bunker Hill from
According to the complaint, the Defendants fraudulently offered and sold unregistered
The Defendants promoted their trading program under various names, including Swiss Asset
hat investors would receive profits of approximately 4-5% every month.
During the initial stages of the fraud, investors received monthly payments that the
Furthermore, since the cessation of monthly payments, VonStrasdas has regularly sent lulling
VonStrasdas and Dyer have each solicited investors to contribute money to purported legal
The Court entered the temporary restraining orders against Defendants VonStrasdas, Dyer,
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