Monday, April 9, 2007
The SEC announced today that it filed a complaint on April 5 in the United States District Court for the Northern District of Georgia to halt the sale of unregistered securities by Global Online Direct, Inc., a Nevada corporation headquartered in Union, Ore., and its principals, Bryant E. Behrmann of Las Vegas, Nev., and Larry "Buck" E. Hunter of La Grande, Ore. The SEC charges that, since at least October 2005, Global, Behrmann and Hunter have conducted an unregistered offering of securities through the provision of interests in Global's "Secured Profit Inventory Program" (SPIP). The complaint alleges that Global, Behrmann and Hunter primarily promoted Global's SPIP through the internet and solicited investors to "loan" Global funds for a term of one-year in exchange for promised daily interest payments. The greater the amount of the purported loan, the greater the interest payments Global offered to investors. Global initially offered daily interest rates to investors of 0.20% per day for amounts up to $100, which it referred to as the "Start-Up" plan, and for investors willing to invest $10,000 or more, they could participate in Global's "Big Dawgs Club" and receive 1.00% daily interest. Global further offered investors the ability to lock-up access to their interest payments for one-year in exchange for 100% daily compounding on all interest payments. Global therefore offered investors effective annual rates of return of more than 1,100%. In order to generate revenue sufficient to pay investors their promised returns, Global claimed to pool investor proceeds to purchase discounted and low-cost inventory, which Global then purported to resell through various online auction websites, including Ebay and Yahoo! Auctions, as well as through flea markets, street sales and retail storefronts. From October 2005 through March 2007, the complaint alleges that Global raised approximately $15 million from more than 8,000 investors.