SEC v. Eric E. Resteiner; Voldemar A. VonStrasdas; Charles G. Dyer; Miles M. Harbur; Resource F, LLC; and Bunker Hill Aviation, LLC, No. LR-18648, District of Massachusetts (Mar. 24, 2004) — Press Release
raw: Eric E. Resteiner, et al.
Eric E. Resteiner, et al., No. LR-18648 (Mar. 24, 2004)
Eric E. Resteiner defrauded approximately 50 investors, mostly from the Christian Science Church, of over $30 million through a fake 'Prime Bank' investment scheme promising 50% annual returns, using new funds to pay fake returns and fund a lavish lifestyle, leading to a 2004 criminal indictment on 60 felony counts and a prior 2002 SEC civil judgment ordering $25.9 million in disgorgement and $4.4 million in penalties.
Eric E. Resteiner was indicted on 60 felony counts including wire fraud, mail fraud, and money laundering for orchestrating a $30 million 'Prime Bank' investment scam targeting about 50 investors, many affiliated with the Christian Science Church. He falsely claimed access to high-yield, off-balance-sheet international trading with guaranteed 50% annual returns and no risk, while knowing he had no trading capability and used investor funds to pay fake returns and finance luxury assets including homes in the Bahamas and Switzerland, a yacht, multiple luxury vehicles, and an airplane. The SEC had previously filed a civil action in 2001, resulting in a 2002 default judgment ordering Resteiner to pay $25,930,895.26 in disgorgement and prejudgment interest, plus a $4.4 million civil penalty, and a permanent injunction from securities law violations.
Eric E. Resteiner orchestrated a $30 million 'Prime Bank' investment fraud targeting approximately 50 investors, many of whom were members of the Christian Science Church, by falsely claiming access to exclusive, high-yield, off-balance-sheet international trading programs offering guaranteed annual returns of at least 50% with no risk to principal. In reality, Resteiner had no trading capability, used new investors' funds to pay fake returns to earlier investors, and siphoned millions to support a lavish lifestyle that included homes in the Bahamas and Switzerland, a yacht, an airplane, a helicopter, two Rolls Royces, two Hummers, a Porsche, and other luxury vehicles. The Securities and Exchange Commission filed a civil complaint against him and others on April 16, 2001, and on August 19, 2002, the court entered default judgments against Resteiner and co-defendant Voldemar A. VonStrasdas, ordering them to pay $25,930,895.26 in disgorgement and prejudgment interest, plus $4.4 million in civil penalties each, and permanently enjoining them from violating federal securities laws. Two other participants, Charles G. Dyer and Miles M. Harbur, along with their controlled entities, had already settled via consent judgments. On March 24, 2004, a federal grand jury in Massachusetts returned a 60-count criminal indictment against Resteiner for the same conduct, charging him with wire fraud, mail fraud, and money laundering. The case underscored the persistent threat of 'Prime Bank' scams and prompted the SEC to issue investor alerts warning the public about such fraudulent schemes.
Extracted insights
- $30.00M $30 million $10M–$100M
- $25.93M $25,930,895 $10M–$100M
- $4.40M $4.4 million $1M–$10M
- organization United States Attorney For The District Of Massachusetts
- United States Attorney for the District of Massachusetts obtained an indictment against Eric E. Resteiner on 60 felony counts including wire fraud, mail fraud, and money laundering charges
- SEC announced indictment against Eric E. Resteiner on March 24, 2004
United States of America v. Eric Edward Resteiner, Criminal Action No. 04-CR-10082 (MLW) U.S. District Court for the District of Massachusetts - Filed March 24, 2004. SEC v. Eric E. Resteiner, et al., Civil Action No. 01-10637(PBS) U. S. District Court for the District of Massachusetts - Filed April 16, 2001. The Securities and Exchange Commission announced today that on March 24, 2004, the United States Attorney for the District of Massachusetts obtained an indictment against Eric E. Resteiner on 60 felony counts including wire fraud, mail fraud, and money laundering charges involving a fictitious investment scheme. Resteiner is a defendant in a previously filed SEC fraud action based on the same conduct. The indictment alleges that Resteiner created and executed a scheme by which he defrauded approximately 50 investors, many of whom were members of the Church of Christ Scientist (Christian Science Church), out of more than $30 million through a purported high-yield, international bank trading program. As part of this scheme, Resteiner, assisted by others, made false representations to prospective investors, including that he was one of only a few people in the world permitted to conduct "off-balance sheet" trading, that his trading program would pay annual returns of no less than 50 percent, and that investors' principal would never be at risk. The indictment further alleges that Resteiner knew that he was not a trader and had no way to generate the promised investment returns, that investors' principal was not safe, and was in fact being used to pay purported "interest" payments to investors to lure more investors into the scheme, and to support his lavish lifestyle. The indictment alleges Resteiner maintained homes in the Bahamas and in Switzerland, a yacht, an airplane, a helicopter, two Rolls Royce motor cars, two Hummer vehicles, a Porsche Carerra sports car, and other assorted vehicles. On April 16, 2001, the Commission filed a complaint in the Massachusetts federal district court against Resteiner and others charging them each with participating in the same investment scheme alleged in the indictment. On August 19, 2002, the Massachusetts federal district court entered default judgments against Resteiner and another defendant, Voldemar A. VonStrasdas, in the Commission's action. The Court ordered Resteiner and VonStrasdas jointly and severally to pay disgorgement plus prejudgment interest of $25,930,895.26. In addition, the Court ordered Resteiner and VonStrasdas each to pay civil penalties of $4.4 million, and permanently enjoined each of them from violating the antifraud and other provisions of the federal securities laws. The court had previously entered judgments by consent against two other individuals involved in Resteiner's fraudulent investment scheme, Charles G. Dyer and Miles M. Harbur, and against two entities controlled by 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 http://www.sec.gov/divisions/enforce/primebank.shtml. For further information, please see Litigation Release No. 18414 (October 16, 2003); Litigation Release No. 18394 (October 4, 2003); Litigation Release No. 17858 (November 22, 2002); Litigation Release No. 17713; (September 5, 2002); Litigation Release No. 16969 (April 18, 2001); and Litigation Release No. 16963 (April 16, 2001).
United States of America v. Eric Edward Resteiner, Criminal Action No. 04-CR-10082 (MLW) U.S. District Court for the District of Massachusetts - Filed March 24, 2004. SEC v. Eric E. Resteiner, et al., Civil Action No. 01-10637(PBS) U. S. District Court for the District of Massachusetts - Filed April 16, 2001. The Securities and Exchange Commission announced today that on March 24, 2004, the United States Attorney for the District of Massachusetts obtained an indictment against Eric E. Resteiner on 60 felony counts including wire fraud, mail fraud, and money laundering charges involving a fictitious investment scheme. Resteiner is a defendant in a previously filed SEC fraud action based on the same conduct. The indictment alleges that Resteiner created and executed a scheme by which he defrauded approximately 50 investors, many of whom were members of the Church of Christ Scientist (Christian Science Church), out of more than $30 million through a purported high-yield, international bank trading program. As part of this scheme, Resteiner, assisted by others, made false representations to prospective investors, including that he was one of only a few people in the world permitted to conduct "off-balance sheet" trading, that his trading program would pay annual returns of no less than 50 percent, and that investors' principal would never be at risk. The indictment further alleges that Resteiner knew that he was not a trader and had no way to generate the promised investment returns, that investors' principal was not safe, and was in fact being used to pay purported "interest" payments to investors to lure more investors into the scheme, and to support his lavish lifestyle. The indictment alleges Resteiner maintained homes in the Bahamas and in Switzerland, a yacht, an airplane, a helicopter, two Rolls Royce motor cars, two Hummer vehicles, a Porsche Carerra sports car, and other assorted vehicles. On April 16, 2001, the Commission filed a complaint in the Massachusetts federal district court against Resteiner and others charging them each with participating in the same investment scheme alleged in the indictment. On August 19, 2002, the Massachusetts federal district court entered default judgments against Resteiner and another defendant, Voldemar A. VonStrasdas, in the Commission's action. The Court ordered Resteiner and VonStrasdas jointly and severally to pay disgorgement plus prejudgment interest of $25,930,895.26. In addition, the Court ordered Resteiner and VonStrasdas each to pay civil penalties of $4.4 million, and permanently enjoined each of them from violating the antifraud and other provisions of the federal securities laws. The court had previously entered judgments by consent against two other individuals involved in Resteiner's fraudulent investment scheme, Charles G. Dyer and Miles M. Harbur, and against two entities controlled by 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 http://www.sec.gov/divisions/enforce/primebank.shtml. For further information, please see Litigation Release No. 18414 (October 16, 2003); Litigation Release No. 18394 (October 4, 2003); Litigation Release No. 17858 (November 22, 2002); Litigation Release No. 17713; (September 5, 2002); Litigation Release No. 16969 (April 18, 2001); and Litigation Release No. 16963 (April 16, 2001).