The Securities and Exchange Commission charged Geoffrey H. Lunn, Darlene A. Bishop and Vincent G. Curry for allegedly making false and misleading statements to investors in connection with a $5.77 million investment scheme and Lunn for misappropriation of funds and for allegedly operating a fictitious financial services company, Dresdner Financial, purportedly located in Chicago, Illinois.
The SEC specifically alleged that from February 2010 through February 2011, Lunn, Bishop and Curry acquired $5.77 million from over 70 domestic and international investors with Lunn soliciting investments by falsely stating he was Vice President of Dresdner Financial.
The SEC claimed that as evidence of this "elaborate Hoax," Lunn additionally portrayed the fictitious Dresdner Financial as a company with connections to Dresdner Bank, a legitimate German bank.
The complaint alleged that the defendants promised investors a 100% guaranteed rate of return with the potential for greater earnings. For instance, the fake Dresdner .44 Magnum Leveraged Financing Program would allegedly pay out $2 million just two weeks after receipt of a $44,000 investment. After the specified time period had passed without a $2 million return, as promised, the defendants allegedly claimed the delays were due to various holds placed by banks or the government.
The SEC determined that instead of investing the funds as promised, Lunn made cash withdrawals, at one point claiming to have withdrawn $1 million-worth of investments to pay "Robert Perello," a one-eyed man who supposedly founded Dresden Financial.
Lunn, according to the SEC withdrew another $3 million to pay for marketers—including Bishop and Curry—as well as Las Vegas call girls and to one investor in a Ponzi scheme-like payment. Lunn claimed he paid the Vegas women at least $848,500 so they could achieve "a better type of life."
Though according to the SEC, Lunn admitted in sworn testimony that the scheme "was a con, basically," and conceded he did not invest funds as promised and did not return funds to non-favored investors, Lunn allegedly stated that "Robert Perello" had forced Lunn's involvement in the scheme and allegedly threatened to kill Lunn's family if he did not comply.
Lunn also testified as to the reason behind the name of the Dresdner leveraged financing program, saying: "when people found out they’d been ripped off, they would buy a .44 Magnum and shoot themselves in the head."
To date, the SEC has not located nor identified any individuals matching Perello's description.