SEC Shuts Down Ponzi Scheme

The SEC announced the filing of a settled civil injunctive action in the United States District Court for the Eastern District of Virginia against Ralph Gregory Gibbs, who operated an offering fraud and "Ponzi" scheme. The Complaint alleges that since at least April 2005 through February 2007, Gibbs, doing business as Golden Summit Group, raised approximately $21 million from at least 150 investors in at least 25 states, many of whom were elderly, retired or otherwise living on limited incomes, through the offer and sale of securities. The Commission's Complaint further alleges that in exchange for their investments in Golden Summit Group, Gibbs promised to pay investors interest of 3-5% monthly (up to 60% annually) and guaranteed that investors would not lose their principal.