SEC SETTLES WITH 2 INDIVIDUALS IN GOLD MINING OFFERING FRAUD CASE

FROM: SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission today announced that it has obtained Final Judgments against defendants Matthew Dale Proudfoot ("Matthew") and Laurie Anne Vrvilo ("Laurie") in district court litigation in which the SEC alleged they participated in a gold mine investment scheme. According to the SEC's Complaint, Matthew and Laurie falsely promised investors whopping returns from a gold mining operation while investors' money was actually spent on family cars, jewelry, vacations, and vitamin supplements.

On July 17, 2012, the SEC filed a Complaint alleging that Harry Dean Proudfoot III of Mt. Vernon, Ohio, and his children Matthew of Colbert, Wash., and Laurie of Tigard, Ore., raised $2.7 million from approximately 140 investors in 23 states through their Portland, Oregon-based company 3 Eagles Research & Development LLC (3 Eagles).

The SEC's complaint charged 3 Eagles, Harry Proudfoot, Matthew Proudfoot and Laurie Vrvilo with violations of Sections 5(a), 5(c) and 17 (a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5(a), (b) or (c) thereunder. The complaint also charges Bukantis with violating Section 15(a)(1) of the Exchange Act by selling securities as a unregistered broker. The complaint seeks permanent injunctions, disgorgement with prejudgment interest and civil monetary penalties.

In their Consents to the Final Judgments, Matthew and Laurie agreed, without admitting or denying the Complaint's allegations to the entry of permanent injunctions prohibiting their future violations of Sections 5(a), 5(c) and 17 (a) of the Securities Act and of Section 10(b) of the Exchange Act and Rule 10b-5(a), (b) or (c) thereunder. Matthew and Laurie also agreed to be jointly and severally liable for the disgorgement of the approximately $2.72 million raised from 3 Eagles investors between September 2009 and October 2011, plus prejudgment interest on that amount. Based upon the financial information submitted by Matthew and Laurie to the Commission, the Final Judgment does not impose any civil monetary penalties against them.

The SEC's case is still pending against 3 Eagles, which has defaulted in the litigation, and against Harry Proudfoot and Dennis Bukantis, who have filed answers in the litigation.

ALLEGEDLY, GOLD COIN DEALER INVESTED MONEY AT A CASINO

The following excerpt is from the Securities and Exchange Commission website:
March 26, 2012
SEC Charges Operator of Gold Coin Firm with Conducting Fraudulent Securities Offering
The Securities and Exchange Commission today announced that it filed a civil injunctive action against David L. Marion of Minneapolis, Minnesota and his company, International Rarities Holdings, Inc. (“IR Holdings”), accusing them of conducting a fraudulent, unregistered offer and sale of approximately $1 million in securities.

The SEC’s complaint, filed in U.S. District Court in Minneapolis, alleges that from at least November 2008 through July 2009, Marion and IR Holdings raised approximately $1 million from at least 26 investors through the offer and sale of IR Holdings securities. According to the complaint, Marion represented to investors that they were purchasing shares of IR Holdings, which he said was the parent company and 100% owner of International Rarities Corporation (“IR Corp.”). The complaint alleges that IR Corp. is a privately held Minneapolis based gold coin and bullion sales and trading firm that Marion also owned and operated. The complaint further alleges that Marion told investors that their investments were to be used to expand IR Holdings’ business and eventually take it public. According to the complaint, Marion’s representations were false because IR Holdings never owned IR Corp. and thus Marion sold investors shares of a worthless shell company. In addition, the complaint alleges that Marion did not use the investors’ funds to expand IR Holdings’ business and instead diverted the majority of the funds for his own personal use, including for casino gambling.

The SEC’s complaint charges Marion and IR Holdings with violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC is seeking a permanent injunction and disgorgement of ill-gotten gains with prejudgment interest, jointly and severally, against Marion and IR Holdings and a civil penalty against Marion.