The Securities and Exchange Commission has filed an emergency action against a firm in Arlington, Va., and three individuals, alleging they netted $18.2 million through a “prime bank” scam that defrauded more than 180 investors.
Those under investigation are Daniel Eric Byer, Malcolm Cameron Boyd Stevenson, Preston David Pinkett II and the International Fiduciary Corp. The SEC alleges they solicited investors in British Columbia and the Pacific Northwest by requesting they send investments to a bank in Arlington. The defendants may have also violated registration and antifraud provisions.
Upon request from the SEC, the court froze all assets of the defendants and the investors’ funds. The court order also prohibits the defendants from accepting or depositing additional funds from investors. The British Columbia Securities Commission ordered the defendants to cease trading IFC investments to British Columbia residents on 1 November.