Securities and Exchange Commission v. Geoffrey H. Lunn, Darlene A. Bishop and Vincent G. Curry, Case No. 12-cv-02767 (D. Colo.).  On October 18 2012, the SEC announced charges against Geoffrey H. Lunn, Darlene A. Bishop and Vincent G. Curry for their roles in making false and misleading statements to investors and misappropriating investors’ money in connection with a $5.77 million investment scheme under the name of Dresdner Financial, a fictitious financial services company.  Lunn solicited investors by telling them that he was the Vice-President of Dresdner and that Dresdner’s principals had connections to Dresdner Bank (formerly one of Germany’s largest banks).  They solicited and lulled investors while receiving payments from the investors’ money.  They offered 100% guaranteed rates of return through a process involving the lease and monetization of bank instruments.  When Defendants were unable to repay investors the promised returns, they perpetuated the scheme by repeatedly postponing the payout dates and claiming that the delays were due to holds placed by banks or the government.  Lunn did not invest any of the investors’ funds as promised.  Rather, he took their money withdrawing more than $1 million in cash and used it to pay Las Vegas call girls, marketers and favored investors in Ponzi-like payments.

The SEC charged Lunn, Bishop and Curry violating Sections 5(a), (c) and 17(a) of the Securities Act, and Sections 10(b) and 15(a) of the Exchange Act Rule 10b-5 thereunder.  The SEC seeks injunctive relief, disgorgement of ill-gotten gains with prejudgment interest and civil monetary penalties against all three defendants.