SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16963 / April 16, 2001
SEC v. ERIC E. RESTEINER, ET AL., Civil Action No. 01-10637 (PBS) (D.
Mass.) (U.S. District Court for the District of Massachusetts - Filed
April 16, 2001)
SEC FILES EMERGENCY ENFORCEMENT ACTION TO HALT FRAUDULENT TRADING
SCHEME THAT TARGETED MANY CHRISTIAN SCIENTISTS.
The Securities and Exchange Commission announced today that it filed
an emergency civil fraud action against four individuals and two
Massachusetts-based companies involved 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. The Commission
has asked the court to enter an immediate temporary restraining order
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, to prohibit them from engaging in further
fraudulent activity or continuing to accept or deposit additional
investor funds. The Commission's complaint also charges 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, and seeks to immediately freeze the
assets of all the Defendants.
According to the complaint, the Defendants fraudulently offered and
sold 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). The Commission further alleged that
Dyer and Resource F funneled investor funds to bank accounts in the
Bahamas controlled by one or more of the Defendants, and Bunker Hill
Aviation received payments for administering the investment scheme. In
addition, the Commission alleged that Dyer misappropriated at least
$795,000 of investor funds, and used those funds to, among other
things, buy a golf course in Georgia, finance the purchase of an
airplane by one of his creditors, and purchase an interest in a
restaurant in Boston, Massachusetts.
SNIPPETS:
SEC v. ERIC E. RESTEINER, ET AL., Civil Action No. 01-10637 (D.
District Court for the District of Massachusetts - Filed April 16,
The Securities and Exchange Commission announced today that it filed an emergency civil fraud
The Commission has asked the court to enter an immediate temporary restraining order against
According to the complaint, the Defendants fraudulently offered and sold securities in an
The Defendants promoted their trading program under various names, including Swiss Asset
hat investors would receive profits of approximately 4-5% every month.
The Commission further alleged that Dyer and Resource F funneled investor funds to bank
In addition, the Commission alleged that Dyer misappropriated at least $795,000 of investor
During the initial stages of the fraud, investors received monthly payments that the
VonStrasdas and Dyer have each solicited investors to contribute money to purported legal
The Commission further seeks to freeze assets of each of the Defendants to ensure that they
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