Scam artist held in contempt
David M. Greene, an alleged Ponzi scheme promoter, is being held in civil contempt for failing to provide documents and information to the SEC.
David M. Greene, an alleged Ponzi scheme promoter, is being held in civil contempt for failing to provide documents and information to the Securities and Exchange Commission.
U.S. District Court Judge Kent J. Dawson of the District of Nevada issued a bench warrant for Mr. Greene’s arrest and sentenced him to 60 days in the custody of the U.S. Marshal’s Service.
Mr. Greene’s sentence will be extended if he does not comply with the court’s orders.
In May, the SEC charged Mr. Greene, one of the three principals of Las Vegas-based Gold-Quest International, with alleged misuse of investor funds in a scheme that promised incentives to investors who recruited “friends and family.”
The SEC alleged that Gold-Quest and its owners misrepresented the use of investor funds, saying they would be pooled and invested in foreign currency exchange trading.
However, less than 5% of investor money was actually invested in foreign currency exchange trading and that money was lost as a result of unprofitable trading, the SEC said.
According to the SEC’s complaint, Mr. Greene and others instead used investor funds to compensate investors who brought in new investors.
The SEC obtained an order to freeze Mr. Greene’s assets, freezing Gold-Quest’s assets and appointing a temporary receiver for them.
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