June 17, 2010 – Milowe Brost, Gary Sorenson, Larry Adair, Ward Capstick, Bradley Regier, and Martin Werner allegedly operated their entities Syndicated Gold Depository, Merendon Mining Corp. Ltd., Merendon Mining (Nevada) Inc., and the Institute for Financial Learning Group of Companies, Inc. as a massive $300 million Ponzi scheme. Last week, the Securities and Exchange Commission (“SEC”) filed a complaint that alleges Brost and Sorenson were the leaders of the alleged Gold mining fraud, which convinced 3,000 investors to cough up large amounts of money.
The SEC claims that Brost led a sales team, called Structurists, which held investment seminars where they claimed to be independent financial professionals. At the seminars, the men allegedly pushed investments in gold mining businesses that could generate annual returns ranging from 18 to 36 percent.
The SEC also alleges that Brost and the Structurists promised that all investments were collateralized by gold.
The complaint claims that Brost and his sales team sold shares in various entities and then through a unique “structuring” process that ultimately led to the transfer of funds from Syndicated Gold Depository to Merendon Mining Corp. Ltd. Apparently, Sorenson claims to be an independent businessman making loans to Merendon, but in reality controlled the company.
However, in reality, the SEC claims that investor funds were used to support various shell companies owned by Brost and Sorenson, a fact that was apparently not disclosed. Allegedly the money was filtered through bank accounts in various countries including the United States, Canada, the Bahamas, and Portugal. The SEC claims that funds were used primarily to make interest payments to investors as well as for personal use of Brost and Sorenson.
The SEC claims that the men misappropriate millions to purchase extravagant homes, property and recereational vehicles. Apparenlty, Sorenson even purchased a luxury fishing resort in South America. Sorenson also apparently gave large sums of money to his wife, Thelma Sorenson, and daughter, Laura Sorenson, both of whom have been named as relief defendants, including financing a film company on behalf of his daughter.
This case is ongoing in the US District Court for the Western District of Washington.
If you invested with Milowe Brost, Gary Sorenson, Larry Adair, Ward Capstick, Bradley Regier, and Martin Werner allegedly operated their entities Syndicated Gold Depository, Merendon Mining Corp. Ltd., Merendon Mining (Nevada) Inc., or are the victim of some other type of investment fraud, the Law Offices of the attorney, and its affiliates, is prepared to review your situation and potential claim(s) without charge, and will consider representing you on a contingent fee basis, which means that you will not have to pay out of pocket for your legal representation. The firm will take a fee only if we are successful in recovering your assets.