butts complaint

7/29/2019 Butts Complaint

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UNITED STATES DISTRICT COURTSOUTHERN DISTRICT OF FLORIDA

seil i:-,Securities and Exchange Commission,Plaintiff,v casexl - z 3 1 1

Bernard H. Butts, Jr.,Fotios Geivelis, Jr., also known as Frank Anastasio,W orldwide Funding 111 Lim ited LLC,Douglas J. Anisky,Sidney Banner,Express Commercial Capital LLC,James Baggs,

Defendants,Bernard H. Butts, Jr. PA,Butts Holding Corporation,M argaret A. Hering,Global W orldwide Funding Ventures, lnc.,PW Consulting Group LLC,

Relief Defendants.

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PLAINTIFF'S CO M PLAINT FOR SECURITIES FRAUD,INJUNCTION AND OTHER RELIEF

Plaintiff Securities and Exchange Commission (ktSEC'') alleges for its complaint againstdefendants Flolida attorney Bernard H. Butts, Jr., Fotios Geivelis Jr., who used the alias FrankAnastasio, and his company W orldwide Funding l1l Limited LLC (W orldwide Fundinf'), andsales agents Douglas J. Anisky, Sidney Banner and his company Express Commercial CapitalLLC (Express Commcrcial''), and James Baggs; and relief defendants Bernard H. Butts, Jr. PA(CtBut'ts PA'') Butts Holding Corporation (tBut'ts Holdinf'), Margaret A. Hering, GlobalW orldwide Funding Ventures, Inc. (EGlobal Ventures''), and PW Consulting Group LLC (TWConsulting''):

SUM M ARYFrom at least Aplil 2012 through the present, Flolida attomey Bernard H. Butts, Jr.,

Fotios Geivelis Jr., who used the alias Frarlk Anastasio, and his company W orldwide Funding,

Case 1:13-cv-23115-JEM Document 1 Entered on FLSD Docket 08/29/2013 Page 1 of 22


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and sales agents Anisky, Balmer and his company Express Commercial, and Baggs obtainedmillions of dollars by defrauding investors tllrough the offer and sale of investments in afictitious prime bank instnzment trading program .

Geivelis and Butts paid sales agents including Aniskys Banner, Express Commercial, andBaggs to lure investors through the Intemet, telephone, and personal contact into the schemewith promises of extraordinmy profits. As part of the scheme, defendants told investors that aninvestment of between USD $60,000 and $90,000 would generate profits of at least :6,660,000(Euro) within 15 to 45 business days and continue to eanz profits of approximately 14% per weekfor 40 to 42 weeks.

Defendants falsely promised that when an investor's ftmds were deposited into Butts'attorney trust account, Butts would not release the funds until he received proof from thereceiving bank that a f 10,000,000 Standby Letter of Credit (fSBLC'') had been deposited into asecurities trading program which was to generate the protits for the investors.

Defendants did not disclose that instead of using the funds to obtain SBLCS, theymisappropliatcd investors' funds with Geivelis and Butts each taking approximately 45% andpaying approximately 10% to the sales agents. Contrary to the defendants' representations, theacquisition of the SBLCS never occurred, no loans were obtained, and no promised returns wercearned in a trading program or paid to investors. Over more than a year, thc defendants obtainedat least $3.5 million from approximately forty-tive investors nationwide and in foreign countriesby making false and m isleading statements or omitting material facts in the offer and sale ofthese unregistered securities.

To keep the scheme going, Geivelis and Butts also made lulling statements to investors,representing that the trading program was successful and that payments to investors wereimminent.

Through these actions, Geivelis, W orldwide Funding, Butts, Anisky, Banner, ExpressCommercial, and Baggs violated, and unless restrained and enjoined will continue to violate, theantifraud provisions of Section 17(a) of the Securities Act of 1933 (isecurities Act''), 15 U.S.C.j 77q(a), Section 10(b) of the Securities Exchange Act of 1934 (sExchange Act''), 15 U.S.C. j78j(b), and Rule 10b-5, 17 C.F.R. j 240.10b-5.

ln addition, Geivelis, W orldwide Funding, Butts, Anisky, Banner, Express Commercial,and Baggs offered and sold securities in the form of investment contracts, which were not



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registered with the SEC at the time they were sold, in violation of the securities registrationprovisions of Section 5(a) and (c) of the Securities Act, 15 U.S.C. j 77e(a) and (c), and unlessrestrained and enjoined will continue to violate these securities registration provisions.8. Geivelis, Butts, Anisky, Express Commercial, Banner, and Baggs also acted as broker-dealers in violation of the registration provisions of Section 15(a)(l) of the Exchange Act, 15U.S.C. j 78o(a)(l), and unless restrained and enjoined will continue to violate the broker-dealerregistration provisions.9. Relief defendants Benmrd H. Butts, Jr. PA, Butts Holding Corporation, GlobalW orldwide Funding Ventures, lnc., M argaret A. Hering, and PW Consulting Group LLCreceived investors' funds to which they had no legitimate claim and were unjustly enriched.

Il. JURISDICTION AND VENUE10. The SEC blings this action under Section 20(b) of the Securities Act, 15 U.S.C. j 77t(b)and Section 21(d) and (e) of the Exchange Act, l 5 U.S.C. j 78u(d) and (e), to restrain and enjointhe defendants from engaging in the acts, practices and courses of business described in thisComplaint, and acts, practices and courses of business of similar purport and object. TheCommission seeks permanent injunctions, disgorgement of ill-gotten gains derived from theconduct alleged in the Complaint plus prejudgment interest, and third-tier civil penalties underSection 20(d) of the Securities Act, 15 U.S.C. j 77t(d) and Section 21(d)(3) of the Exchange Act,15 U.S.C. j 78u(d)(3).11. This Court has jurisdiction under Section 22(a) of the Securities Act, 15 U.S.C. j 77v(a)and Section 27 of the Exchange Act, 15 U.S.C. j 78aa. The defendants, directly or indirectly,made use of the means and instrumentalities of interstate com merce or of the mails, incolmection with the acts, practices and courses of business alleged in the Complaint.

Certain of the acts, practices, and courses of business constituting violations of lawalleged in the Complaint occurred within the Southel'n District of Florida. ln addition, ButtsBanner, and Anisky reside in the Southern District of Florida. Express Commercial conductsbusiness from the Southem District of Florida.

111. DEFEND ANTSDefendant Bernard H. Butts, Jr., bol'n in 1941, is an attorney admitted to practice law in

Florida. He resides and transacted business in M iami, Florida. He entered into numerous escrow3



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agreements with W orldwide Funding, Geivelis and investors from his oftices in M iami, Florida.14. Defendant Fotios Geivelis, Jr., born in 1979, is a resident of Tampa, Florida and used thename ttFrank Anastasio'' in dealing with investors. Geivelis transacted business in M iami?Florida by entering into numerous escrow agreements with Butts and the investors related to thetransactions at issue in this case.

Defendant W orldwide Funding lll Limited LLC is a Florida lim ited liability companyorganized on M arch 1, 2012, with its principal place of business in Fort M yers, Florida.W orldwide Funding transacted business in M iami, Florida by entering into num erous escrowagreements with Butts and the investors related to the transactions at issue in this case. Geivelisis the sole managing m ember and owner of W orldwide Funding LLC.16. Defendant Douglas J. Anisky, born in 1957, is a resident of Delray Beach, Florida. Heis a sales agent that finds investors for W orldwide Funding and receives transaction basedcommissions. He transacted business in M iami, Florida by participating in telephone conferencecalls among investors, Geivelis, Butts and him self, and receiving com missions from Butts' trustaccount in M iami, Florida.

Defendant Sidney Banner, born in 1927, is a resident of Delray Beach, Flolida. He is asales agent that finds investors for W orldwide Funding and other invcstment programs andreceives transaction-based commissions. He transacted business in M iami, Florida by arrangingand participating in telephone conference calls among investors, Geivelis, Butts and himself, andreceiving commissions from Butts' trust accotmt in M iami, Florida.

Defendant Express Comm ercial Capital LLC is a Flolida limited liability company thatconducts business from Delray Beach, Florida. Express Comm ercial is a broker that fndsinvestors for W orldwide Funding and other investm ent programs and receives transaction-basedcommissions from Butts' trtzst account in M iami, Florida. Banner and his wife are managingmembers of Express Commercial. Express Commercial, through Banner, transacted business inM iami, Florida by azranging and participating in telephone conference calls among investors,Geivelis, Butts and himself, and receiving com missions from Butts' trtzst account in M iami,Flolida.

Defendant James Baggs, born in 1942, is a resident of Lake Forest, California. Baggs isa sales agent that finds investors for W orldwide Funding and other investment program s andreceives transaction-based commissions from a bank account held in the name of Bernard H.

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Butts Jr. P.A. in M iam i, Florida.20. Relief defendant Bernard H . Butts Jr. P.A. is a Florida corporation. lt does business asE-l-he Law Oftices of Butts & M ertz'' and its principal place of business is in M iami, Florida.Butts is the owner of Butts PA.Relief defendant Butts Holding Corporation is a Florida corporation with a principalplace of business in M iami, Florida. Butts is the president and only officer of Butts Holding.22. Relief defendant M argaret A. Hering, age 70, is a resident of M iami, Florida and isButts' wife.23. Relief defendant Global W orldwide Funding Ventures, lnc. is a Florida corporationwith a principal place of business in Fort M eyers, Flolida. Geivelis is the president and onlyofticer of Global Venmres.24. Relief defendant PW Consulting Group LLC is a Florida limited liability company withits principal place of business in Delray Beach, Florida. Anisky is the managing member of PWConsulting.

IV. OFFER AND SALE OF UNREGISTERED SECURITIES25. ln M arch 2012, Geivelis form ed W orldwide Funding with its principal office in FortM yers, Florida.26. ln M ay 2012, Geivelis opened a bank account for W orldwide Funding with JpM organChase Bank, N.A. (Worldwide Chase accounf') in Midland Park, New Jersey, with an initialdeposit of $40. The bank account statements were mailed to a house where Geivelis lived inW yckoff, New Jersey until approximately April 2013, when Geivelis moved to Tampa, Florida.Geivelis was the sole signatory on the account and controlled the funds in the W orldwide Chaseaccount.

W orldwide Funding has a website at www.worldwideftmdingiii.com created by Geivelis,which states it is a commercial funding brokerage and consulting 51-r11.5528. From in or about April 2012 and continuing to date, W orldwide Funding, Geivelis, andButts as Geivelis' partner, and their sales agents: Anisky, Express Comm ercial, Balmer andBaggs offered and sold securities in the form of investm ent contracts in a fraudulent prime barlkscheme.29. The investm ents contracts offered by the defendants were securities. The investmentcontracts required investors to invest between $60,000 and $90,000, which was transferred to

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Butts' attorney trtzst account for the benefit of W orldwide Funding. Geivelis and W orldwideFunding were to use the investors' ftmds to pay banking charges to lease Standby Letters ofCredit (ISSBLC'') in the amount of f 10,000,000 from a banking group in Europe. Geivelis andW orldwide were to leverage the SBLC to invest in a securities trading program that was togenerate a rate of ret'urn of approximately 14% per week. lnvestors' profits were to com e fromthe efforts of Geivelis, W orldwide Funding, and the trading program.30. W orldwide Funding through Geivelis as its managing member, Butts, Anisky, ExpressCommercial tllrough its managing m ember Banner, and Baggs communicated with investorstllrough electronic mail Ctemail'') and telephone calls. Worldwide Funding and Geivelis, andExpress Commercial and Banner also have websites that offer the investments.3 1. Since April 2012, W orldwide Funding, Geivelis and Butts also distributed offeringmatelials to investors that desclibed the investment, including W orldwide Funding's Agreement,Escrow Agreement, Financial Senrice Agreement, Trading Agreement and SettlementStatements.

W orldwide Funding, Geivelis, and Butts represented in the offering materials and inconversations with investors that an investor paid $60,000 to $90,000 to Worldwide Funding forbank charges to lease an SBLC in the amount of f 10,000,000 from a banking group in Europe.They also represented that the investor's funds were held in Butts PA's attorney trust account,and would not be released until delivery of the SBLC was confirmed by the receiving bank,Barclays Bank in the United Arab Emirates. ln addition, they represented that they arranged fora third-party to transfer the SBLC to Barclays Bank which would acknowledge receipt of theSBLC. They also represented the SBLC was used to acquire a loan, with the ftmds from the loanplaced in a securities trading program that generated a rettzrn on investment of approximately14% per week for approximately 42 weeks.

W orldwide Funding, Geivelis, and Butts used sales agents to solicit investors for theW orldwide Funding t'ading program and paid them approximately 10% of the investor's ftmdsthat were invested.34. From at least April 2012 to present, Anisky offered W orldwide Funding's investmentcontracts to at least ten investorso communicated with investors and the other defendants throughthe Internet, emails or telephone calls, and received transaction based compensation from thesales made to investors, which was paid into the bank account of PW Consulting.



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35. From at least January 2013 to the present, Express Comm ercial, Banner, and Baggs alsooffered W orldwide Funding's investment contracts to at least eleven investors, communicatedwith investors and the other defendants through the Internet, emails or telephone calls, andreceived transaction based compensation from their sales made to investors.From April 2012 to date, W orldwide Funding, Geivelis, and Butts offered and soldW orldwide Funding's investment contracts to at least forty-five investors and received directlyor indirectly approximately $3,687,701 from the sale of these investment contracts. The saleswere made in M iami Florida when investors transferred their ftmds to Butts' attorney tnzstaccount.

No registration statem ent was filed with the SEC or in effect for the offer or sale ofW orldwide Funding's seculities by the defendants.

V. DEFENDANTS ENGAGED IN A SCHEM E TODEFM UD INVESTORS38. W orldwide Funding, Geivelis, Butts, Anisky, Express Commercial, Banner, and Baggsused an artitke, device or scheme to defraud investors by offering or selling investments in afictitious trading program for prime bank instrum ents. Investors were lured into the scheme withthe promise of f 10 million non-recourse loans to use for their business or humanitarian projectsand extraordinary rate of ret'tzrn of approximately 14% per week from an intemational tradingprogram. ln fact, no W orldwide Funding trading program existed and the defendants did notobtain SBLCS to leverage in an intem ational trading program to produce the trem endous returnsprom ised by the defendants.39. Prim e bank trading programs such as those offered by W orldwide Funding, Geivelis,Butts, Anisky, Express Com mercial, Banner, and Baggs are fictitious. The Securities ExchangeCommission, the Federal Reserve Bank, the lntenzational M onetal'y Fund and numerous otherfederal and international authorities have al1 publicly denounced these bank instrument programfrauds in easily obtainable inform ation.

W orldwide Funding and Geivelis engaged in deceptive acts in furtherance of the schemeby offering and selling investments in a fictitious trading program and by creating falseWorldwide Funding offering materials and ajreements that made it appear they were offering areal investment when they never acquired the SBLCS or participated in the trading program asrepresented. The offering materials were just a device to obtain investor money for defendants'

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personal benefit. W orldwide Funding and Geivelis misappropriated investor ftznds and did notuse them to pay banking fees to acquire SBLC.

Butts engaged in deceptive acts in furtherance of the scheme by offering and sellinginvestments in a fictitious trading program, entering into the Escrow Agreem ents in which heagreed to only release the investors' ftmds after receiving proof that the bank had received theSBLC, and representing that he was not compensated for his work as an escrow agent. Contraryto his agreement, Butts released the investors' ftmds without proof that SBLCS were acquired. Inaddition, Butts misappropriated investors' funds by transferring approximately 45% toW orldwide and Geivelis, 45% to accounts for the benefit of Butts, and 10% to the sales agents asundisclosed compensation.42. Anisky, Express Commercial, Banner, and Baggs engaged in deceptive acts infurtherance of the scheme by offering and selling investments in a fictitious trading program, andreceiving undisclosed compensation of approximately 10% of the investors' funds.43. Although W orldwide Funding, Geivelis and Butts represented that investors' funds wereto be used to pay bank charges to acquire the SBLC, they misappropriated the funds distributingthem to W orldwide Funding's bank account for Geivelis' personal benefit, to various accountscontrolled by Butts, to the sales agents and the relief defendants.44. Butts paid W orldwide Funding and Geivelis approximately $1,883,375 into theW orldwide Chase account ending in 2735 from investors' funds received into the Butts PA trustaccounts.

Butts and Butts PA paid approximately $662,800 of investors' funds received into theButts PA trust account to an account at Sabadell in the name of Bernard H. Butts PA ending in9124.

Butts paid approxim ately $313,500 to Butts Holding's account at W ells Fargo Bankending in 9981 from investors' funds received into the Butts PA trtzst accounts.47. Butts paid approximately $417,000 to his W ells Fargo Bank account ending in 2779 frominvestors' funds received into the Butts PA trust accounts.48. Butts paid approximately $ 104,000 to his JP Morgan Chase checking account ending in9690 from investors' funds received into the Butts PA trtzst accounts.49. Butts paid approximately $100,000 to his and Margaret Hering's Credit Suisse Bankaccounts ending in 1 l39 or 2385.

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50. Butts paid approxim ately $25,000 to his HBSC Bank account ending in 3879 frominvestors' ftmds received into the Butts PA trust accounts.51. Butts paid approximately $40,000 to his account with AETRS Cardmember Depositoryin New Delhi, lndia.Butts paid approximately $24,960 to Global Ventures account at Chase ending in 9900from investors' ftmds received into the Butts PA trust accounts.

Butts paid Anisky approximately $86,768 in investors' funds to Anisky's company PWConsulting's Barlk Atlantic account ending in 8 107 from the Butts PA trust account.54. Butts paid Balmer approximately $91,250 to Banner's company Express Commercial'saccount at Chase ending in 1386 from the Butts PA trust account.55. Butts paid Baggs approximately $4,970 to Baggs' company Capital Express frominvestors' ftmds received into the Butts PA trtlst account.56. Geivelis and Butts acted with scienter because they knew that no W orldwide Fundingtrading program existed, because they misappropriated a1l of the investors' ftmds for their ownpersonal benefit and did not use any investors' funds to obtain any SBLCS. Geivelis and Buttsalso knew that they had never completed a loan transaction or provided either the promised loanproceeds or return on investment back to the investor. Geivelis' knowledge is attributed toW orldwide Funding.57. Anisky, Banner, and Baggs acted with scienter because they each knew, or were recklessin not knowing, that the prim e bank instrum ent trading program did not exist because of theextraordinary and unrealistic rettzm s they claimed were paid, when they had no substantivesupport for their statements. Banner's knowledge is attributed to Express Commercial.58. The defendants used lnternet websites, emails, telephone calls, and wire transfers inconnection with the offer and sale of the investments in the fictitious W orldwide Funding tradingprogram.

VL DEFENDANTS m DE FALSE AND M ISLEADINGSTATEM ENTS OR O M ISSIONS OF M ATERIAL FACT59. From at least Aplil 2012 to thc present, W orldwide Funding, Geivelis, Butts, Anisky,Express Commercial, Balmer and Baggs offered and sold the W orldwide Funding tradingprogram to investors over the Intem et, tllrough cmails and telephone calls, and receivedinvestors' ftmds into the Butts PA trtzst account tltrough wire transfers.

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60. Since April 20 12, W orldwide Funding, Geivelis, Butts, Anisky, Express Commercial,Banner, and Baggs distributed offering materials to investors which described the investment.6 1 . Since April 2012, W orldwide Funding, Geivelis, Butts, Anisky, Express Commercial,Banner, and Baggs made false and misleading statements and om itted material facts in their offeror sale of investment contracts in W orldwide Funding's tictitious trading program.62. Since April 2012, in conversations and emails with investors and offezing materials,W orldwide Funding, Geivelis, Butts, Anisky, Express Commercial, Banner, and Baggs describedthe W orldwide Funding trading program and represented among other things that the investor'sftmds of between $60,000 and $90,000 were used to acquire a SBLC from a banking group inEurope. An investor would receive an initial return of approximately 66.6 million Euros within15 to 45 banking days.63. ln conference calls with investors that occurred since April 2012, W orldwide Funding,Geivelis, and Butts also represented that after the initial payout, an investor would receive aweekly ret'urn on investm ent of approximately 14% over the next 40 to 42 weeks. Geivelisexplained that the returlzs were generated by leveraging the face value of the SBLC and using theleveraged ftmds in a securities trading program. Butts confirmed these representations in theconference calls with investors. These same misrepresentations also appeared in W orldwideFunding's offering materials that Geivelis prepared and signed.64. The defendants' matelial representations about the existence of the W orldwide Fundingtrading program were false and misleading because the trading program did not exist.65. Since April 2012, W orldwide Funding, Geivelis, Butts, Anisky, Express Commercial,Banner, and Baggs represented in emails and conversations with investors that an investor'sfunds were safe and secure because they remained in Butts' attom ey trtzst account until theSBLC was secured and validated.66. Butts, Geivelis and W orldwide Funding also made similar misrepresentations about thesafety and security of investor's funds in the Escrow Agreement they signed with the investor.In the Escrow Agreement, Butts, Geivelis, and W orldwide Funding represented that theinvestor's Funds shall be held in escrow until W orldwide Funding . . . has performed per thecontract between them and ginvestorl, attached hereto and made a part hereof'' They representedthat Butts agreed kto act as escrow agent without compensation under this agreement and todisburse the Funds in accordance with the terms and conditions hereinafter set forth.'' They

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represented that Butts was interested in the transaction as the partner of Geivelis and W orldwideFunding. But they failed to disclose that Butts immediately withdrew approximately 45% of theinvestor's funds as his personal compensation.67. ln the W orldwide Funding Agreement signed by Geivelis on behalf of W orldwideFunding that was made part of the Escrow Agreement, W orldwide Funding, Geivelis and Buttsrepresented that an investor's funds will be used to pay certain bank charges of approximatelyUSD $60,000.00 . . . for acquiring (an) instrument and delivering the instrument to the programproviders trading account.'' They represented, kkupon authentication instnzment provider willissue an M T-760 cash backed SBLC to program providers account in Barclay's UAE. . . . Thereceiving bank will send a responsive SW IFT W ire transmission to sending bank acknowledgingits receipt. . . . ln the event rthe documents arel not authenticated and validated by the receivingbank and its Clienthaccount beneticiary, then such ftmds shall in no event be released by theescrow agent's account. . . . The receiving bank m ust send a responsive SW IFT transmission toacknowledge it receipt of the same.''

Contrry to these representations of W orldwide Funding, Geivelis, Butts, Anisky,Express Commercial, Banner, and Baggs in the W orldwide Funding Agreement and EscrowAgreement, or in conversations with investors, investors' funds were not safe and secure becauseButts immediately released the ftmds to W orldwide Funding and Geivelis, himself, and the salesagents. No ftmds were used to acquire SBLC and But'ts received no acknowledgem ent from thereceiving bank that a SBLC was ever delivered.69. The defendants' material representations about the safety of investors' ftmds to be heldand remain in the escrow account were false and misleading.

W orldwide Funding, Geivelis, Butts, Anisky, Express Comm ercial, Bamzer, and Baggsmade false and misleading statements of matelial fact in conversations with investors and in theoffering materials that investor's ftmds were to be used to acquire a SBLC.

Contrary to their representations, Geivelis, W orldwide Funding, Butts Anisky, ExpressCommercial, Banner, and Baggs did not use investors' funds to pay bank charges to acquire aSBLC.

Geivelis and Butts knew their statements about the use of investors' funds were material,false and misleading. Geivelis' knowledge is attributed to W orldwide Funding. They failed todisclose that they misappropriated all of an investor's funds to pay themselves and the sales

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agents, and that no funds were used to pay bank charges to acquire SBLCS.73. After an investor deposited ftznds into Butts' tnzst account, Butts imm ediately disbursedthe funds as compensation to the defendants. He distlibuted approximately 45% to theW orldwide Chase account for the benetit of Geivelis, 10% to the broker, and 45% to Butts'personal accounts. Butts knew that he used at least 45% of investors' funds for his own personalbenefit and that none of the funds he received were used to pay bank charges to acquire a SBLCas represented to investors.74. As the sole manager and owner of W orldwide Funding and signatory on the W orldwideChase account, Geivelis knew that he used at least 45% of investors' funds for his personalbcnetit and that none of the funds were used to pay bank charges to acquire a SBLC asrepresented to investors. Geivelis used investor f'unds for numerous personal expenses, includinggambling and travel.75. Butts and Geivelis knew that the approximately 10% of investors' ftmds paid to thebrokers was not for payment of bank charges to acquire SBLCS as represented to investors.76. Anisky, Express Commercial, Banner and Baggs knew their statem ents about the use ofan investor's funds were false because they received approxim ately 10% of the investor's ftmds,contrary to their representation that the ftmds would be used to acquire a SBLC. Theirrepresentations that as intermediaries they received a comm ission after the transaction andt'rading was completed were also false because they were compensated out of investors' ftmdsbefore any SBLC was ever purchased.

During at least one of the conference calls with investors, Geivelis and Butts representedthat Geivelis had completed thirty SBLC transactions. Geivelis knew that statement was false ashe had completed no transactions. Butts knew, or was reckless in not knowing, the statementwas false because the agreem ents with investors provided that any eam ings from the tradingprogram were to be paid into his attom ey trust account for distribution to the investors, and thatnever happened.78. Anisky is engaged in the business of inducing investors or attempting to induce investorsto purchase securities, including the investment contracts offered by W orldwide Funding.79. From at least June 2012 lltrough October 2012, Anisky offered investments in theW orldwide Funding trading program through emails sent over the Intem et and telephone calls.80. Anisky offered an investment of $60,000 to obtain a $10,000,000 non-recourse loan

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through W orldwide Funding trading program. Among other things, he represented the $60,000was used to cover the costs to acquire the banking instnzment and that the $60,000 deposit washeld under an Escrow Agreement with Butts PA, which was fully insured and rcfundablc. Herepresented the escrowed funds are released after confirmation of the acquisition of theinstrument from the issuing bank. He represented the process took 15 international banking daysuntil the investor received the funds. W hile the docum ents he sent investors disclosed that, asthe intermediary in the transaction, he would receive 10% of project net funding and 10% of nettrading protits for one year, he failed to disclose the material fact that he received approximatelyl0% of the investor's ftmds immediately from the escrow account.

lf an investor was interested in the W orldwide Funding t'rading program, Anisky arrangedfor a telephone conference call among Geivelis, Butts, Anisky and the investor.82. Anisky offered the investment to at least ten investors who invested approximately$960,000.83. Butts paid Anisky approxim ately 9% of the investor's funds received into the Butts PAtrtzst account. ln total, Butts paid approximately $86,768 to PW Consulting for the benetit ofAnisky.84. Anisky obtained investors' funds by means of false and misleading statements oromissions of material fact made about the investment in the W orldwide Funding tradingprogram .85. Banner and Express Commercial are engaged in the business of inducing investors orattempting to induce investors to purchase securities, including the invcstment contracts offeredby W orldwide Funding.86. From at least January 20 13 through August 2013, Banner and Express Commercialoffered investment contracts in W orldwide Funding's trading program which he named theTA27'' rogram.

Banner, as the managing m ember of Express Commercial, sent emails, newsletters,posted information on the Express Commercial's website at www.expcomcap.com and spokewith investors by telephone about an investment in the Worldwide Funding's FA27 ProjectFunding, Infrastructtzre Humanitarian & Environmental Program.88. Balmer and Express Commercial made false and misleading statem ents of matelial fact intheir emails and newsletlers sent to investors since January 2013, among other things, that in the



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17A27 program :tcrl-he provider group (Worldwide Funding and Geivelis) purchases the ten (10M) SBLCSfrom top major banks for cash in the name of the client. For one year the client controlsthis SBLC for thc monetization & trade portion of this Infrastnlcture Humanitarian &Environmental Program (IHEP). The escrow agent for the FA27 IHEP program is apracticing attomey in M iami, Florida for over 40 years. The attorney is a partner andmanaging director of the trading organization & the 17A27 IHEP funding entity. Thetrader has 23+ years of expelience & is licensed with 27 banks worldwide to do the linesof credit for the trade.'' The SBLC is monetization at 80% providing net proceeds to theclient of $6,660,000 Euros. The SBLC is Sleveraged up 3 to 5 times which maximizesthe trading amount to a minimum of 30M to 50M trade because the 10M SBLC is cashbacked. The trade is normally 40 weeks. The trader's contract states a 50% / 50% splitwith the client. The Trader Contract will state the historical retum s. Each cash-backed10M SBLC has a hard cost of 90K deposited into the Florida attorney's insured EscrowAccount. A11 other client's costs are charged to the monetization & trade funding rettzrns.The 90K is paid after your project is approved & contracts are offered to the client.''

Banner outlined the procedures to get started included to sign and rettlrn to the sender an ExpressCommercial NCND; call or email the sender to answer questions about the IHEP program;request a 17A27 client information form and executive summary and; set up a conference callwith the Escrow attom ey, Funder and the sender. Banner disclosed he received co-broker's feesof '?2.5% of client's 6.6M euros'' after the SBLC was monetized and :12.5% of clients net 40week PPP trade paid to broken'' But he did not disclose he immediately received approximately10% of investor's funds before the SBLC was acquired.

Balmer identified the provider of the 17A27 program as W orldwide Funding and FrankAnastasio; the attorney and escrow agent as Bemard H. Butts Jr.; and that Butts is the partner ofAnastasio the managing director of the trading organization.

W hen an investor contacted Banner about the 17A27 program , Bamzer arranged for aconference call among the investor, Geivelis, Butts, and Banner. Barmer and ExpressCommercial offered the investment to at least ten investors who invested approximately$919,955.91. Butts immediately paid Balmer approximately 10% the investor's ftmds received into theButts PA trust account. ln total, Butts paid approximately $91,250 to Express Commercial forthe benefit of Balmer.



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Banner obtained investors' funds by means of false and misleading statements oromissions of material fact made about the investment in the W orldwide Funding tradingprogram.93. Baggs is engaged in the business of inducing investors or attempting to induce investorsto purchase securities, including the investment contracts offered by W orldwide Funding.94. In or about January 2013, Baggs learned of the W orldwide Funding's investmentprogram from Banner. Banner told Baggs that an investment cost $80,000 and was completelysafe because the funds were paid into Butt's attorney trtzst account in M iami, Florida. Balmertold Baggs the initial payout was approximately $6,600,000 to the investor and thereafter weeklypayments of between $2 million and $4 million would accnze for approximately 40 weeks.Banner said that Anastasio (Geivelis) and Butts were partners; Anastasio (Geivelis) started theprogram and made it work.95. Baggs had several telephone calls and emails with Butts, Geivelis and Balmer who eachconfirmed the details of the program. Geivelis, Butts and Banner told Baggs that the initialmonies from the customer would be used to procure a f 10 million SBLC from a major worldclass bank. That that letter of credit would be leveraged up to f30 million to 650 m illion andthose ftmds would be used to go into a trading program. lnvestors' rettzrns were to be generatedfrom t'rading profits. All three assured Baggs that the investors' money was safe in the attorney'strust account and there would be no losses.96. Balmer and Baggs agreed to split any commissions from Baggs introducing investors tothe program.97. ln or about Febrtzary 5, 2013, Baggs began offering the W orldwide Funding investmentprogram to investors through emails and telephone calls with investors repeating themisrepresentations made to him by Geivelis, Butts and Banner.

Baggs did not have any reasonable basis on which to believe that the W orldwide Fundingtrading program described by Geivelis, Butts, and Banner existed.99. Baggs offered the W orldwide Funding investm ent to at least one investor who invested$80,000, which was wired to Butts PA on or about February l9, 2013.100. Butts paid Baggs and Banner approximately 10% of the investor's funds received into theButts PA trust account. Butts wired $4,970 to Baggs' entity Capital Express Corporation and$4,970 to Banner's entity Express Commercial.



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101 . Geivelis, Butts, Anisky, Bnnner, Express Commercial and Baggs told m ost investors thatthey would receive the initial proceeds from the 610,000,000 Euro loan within fifteen to forty-five working days.102. After the original investments were made and continuing tluough at least August 9, 2013,W orldwide Funding, Geivelis and Butts made false statements to investors to 1u11 them intoremaining in the investment program because payment of the claimed extraordinary rettlrns ontheir investm ents were imminent, but that issues with the various financial institutions werecausing delays.103. For example, on October 30, 2012, W orldwide Funding and Geivelis sent a letter to ttallparticipants in the project funding humanitarian program'' providing an update falselyrepresenting the new exit buyer is contracted. .. and they have provided the necessary bankconfirmations. . . . At this time . . . the 2 parties are completing the final paperwork and arepreparing the trade to the t'inal banking stage prior to disbursing to the first 3 waives of projectowners. W e will have another update tomorrow as to where the payouts stand. . . . W eunderstand time is of the essence and it is unforttznate that after all this time our exit buyerbacked out last minute. . . . gFjunding for waive 1, 2, and 3 then waive 4 and 5 will go intodisbursement state. The anticipated tim e f'rame would be 7-10 days from the day waive 3 isfunded.''

On November l 5, 20 12, W orldwide Funding and Geivelis sent another letter to allparticipants falsely representing, ttthe first 4 wires were being cleared and . . . will be passed onto Benzard Butts P.A. W e cannot advise how long this process is, however from experience ofdom estic transfers usually it is a very quick ttzrll around.''105. On December 19, 2012, W orldwide Funding and Geivelis sent another letter to allparticipants falsely representing, they had fom arded information to the bank for review whichwas 60% complete. -f'he draw request for ftmds will be completed once all files are approved.Once the bankers are complete we will sign the draw request and the Funds will be transferredaccordingly to JP M organ Chase W W F ll1 account in which 1 will t'urll the funds around sameday . . . .''106. Butts also sent various text messages to investors promising that payments wereimminent.107. For example, on M arch 25, 2013, Butts sent a text message falsely stating, d'Fincen has



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released W ells and they have no restrictions on transfening funds to Chase and Frank. It's not ifbut when. . . . Raj and his time estimate is as he outlined. As soon as the funds are transferred hewill communicate to a11.''108. On July 3, 2013, Geivelis em ailed an investor falsely stating the investor's funding wasscheduled for release around July 12, 2013109. On July 9, 2013, Geivelis em ailed an investor falsely stating, 1 was not authorized torelease your payment yet but I was told end of last week that we will process it in the next coupledays and payment will be made to your . . . account''l 10. On Augtzst 1, 2013, Geivelis emailed an investor falsely stating, (dYou will be funded nolater than August 12, 2013.''

Geivelis and Butts continued to 1u11 investors through August 20 l 3.VIl. BROK ER AND DEALER

From at least April 2012, Geivelis, Butts, Anisky, Banner, Express Commercial andBaggs engaged in the business of inducing or attempting to induce the purchase or sale of thesecurities.

Geivelis, Butts, Anisky, Barmer, Express Commercial and Baggs each used interstatecommerce, sending emails and speaking by telephone with investors about the W orldwideFunding trading program.

Geivelis and Butts were partners in the offer and sale of the investment contracts ofW orldwide Funding. Each received transaction-based compensation of approximately 45% ofthe money that investors' invested with W orldwide Funding.

Anisky; Banner and Express Commercial; and Baggs offered the investment contracts ofW orldwide Funding. Each received transaction-based compensation of approximately l0% of aninvestor's funds, with Banner and Baggs sharing the 10% for the investor that Baggs introduced.1 l6. Geivelis, Butts, Anisky, Banner, Express Commercial and Baggs were not registered asbrokers, or associated with a broker-dealer registered with the SEC while they induced orattempted to induce the purchase or sale of securities.



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FIRST CLAIM FOR RELIEFFraud - Violations of Securities Act Section 17(a)I15 U.S.C. j 77q(a))The SEC realleges paragraphs l through 1 16 above.Defendants W orldwide Funding,Geivelis, Butts, Anisky, Express Commercial,Banner,

and Baggs directly and indirectly, with scienter,in the offer or sale of securities, by use of themeans or instruments of transportation or communication in interstate commerce or by use of themails, employed a device, scheme, or artitice to defraud; obtained money or property by m eansof untrtze statements of material fact or omissions to state material facts necessary in order tomake the statements madc, in light of the circumstances under which they were made,notmisleading; or engaged in transactions,practices, or courses of business which have becn or areoperating as a fraud or deceit upon the purchasers of the securities.l 19. re120. Defendants W orldwide Funding,Geivelis, Butts Anisky, Express Commercial,Balmer,and Baggs violated and unless restrained and enjoined will in the future violate Securities ActSection 17(a)(1), (2) and (3).12 1. Alternatively, Butts knowingly aided and abetted the violations by W orldwide Fundingand Geivelis of Securities Act Section 17(a)(1), (2) and (3). He provided substantial assistancein their commission of the primary violation by acting as the escrow agent to receive investors'funds, distributing funds to the defendants and relief defendants although no SBLCS wereacquired, and he and the other defendants were not to be com pensated until after the tradingprogram was complete. He also lulled investors into not terminating their investments,reassuringthem that their retttrns were imminent

SECOND CLAIM FOR RELIEFFM UD - VIOLATIONS OF EXCHANGE ACT SECTION 10(b) AND RULE 10b-5(15 U.S.C. j 78j(b) and 17 C.F.R. j 240.10b-51122. The SEC realleges paragraphs 1 through 1 16 above.123. Defendants W orldwide Funding, Geivelis,Butts, Anisky, Express Commercial, Banner,and Baggs, directly or indirectly, with scienter,in connection with the purchase or sale ofsecurities, by the use of m eans or instrumentalities of interstate commerce,the m ails, or anyfacility of a national securities exchange, employed devices,schemes, or artifices to defraud;

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made untrtze statem ents of material fact or omitted to state material facts necessary in order tomake the statem ents maden in light of the circumstances under which they w ere m ade, notmisleading; or engaged in acts, practices, or courses of business which operated or would operateas a fraud or deceit upon any person; in violation of Exchange Act Section 10(b) and Rule 10b-5.124. Defendants W orldwide Funding, Geivelis, Butts Anisky, Express Commercial, Banner,and Baggs violated and unless restrained and enjoined will in the ftzttlre violate Exchange ActSection l0(b) and Rule 10b-5.

Alternatively, Butts knowingly aided and abetted the violations by W orldwide Fundingand Geivelis of Exchange Act Section 10(b) and Rule 10b-5. He provided substantial assistancein their commission of the primary violation by acting as the escrow agent to receive investors'funds, distributing funds to the defendants and relief defendants although no SBLCS wereacquired, and he and the other defendants were not to be com pensated until after the tradingprogram was complete. He also lulled investors into not terminating their investments, reassuringthem that their rettlrns were imminent.

TH IRD CLAIM FOR RELIEFOFFERS AND SALES OF UNREGISTERED SECURITIES -VIOLATIONS OF SECURITIES ACT SECTIONS 5(a) AND 5(c)I15 U.S.C. jj 77e(a) and 77e(c)1126. The SEC realleges paragraphs 1 tluough 1 16 above.

Defendants W orldwide Funding, Geivelis, Butts Anisky, Express Commercial, Banner,and Baggs, directly or indirectly, have m ade use of the means or instruments of transportation orcommunication in interstate commerce or of the m ails to sell securities, when no registrationstatement was in effect with the Commission as to such securities, and have m ade use of themeans or instruments of transportation or communication in interstate com merce or of the mailsto offer to sell such securities when no registration statem ent had been filed with theComm ission as to such securities.128. There were no applicable exemptions from registration, and Defendants W orldwideFunding, Geivelis, Butts Anisky, Express Commercial, Banner, and Baggs thercfore violated,and unless restrained and enjoined will in the ftzture violate Sections 5(a) and 5(c) of theSecurities Act.

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FOURTH CLAIM FOR RELIEFOFFERS AND SALES OF SECURITIES BY AN UNREGISTERED BROKER-DEALERVIOLATIONS OF EXCHANGE ACT SECTION 15(a)I15 U.S.C. j 78o(a)1129. The SEC realleges paragraphs 1 through l 16 above.130. Defendants Geivelis, Butts Anisky, Express Commercial, Banner, and Baggs, whileengaged in the business of effecting t'ransactions in securities for the account of others, made useof the mails or the means or instrumentalities of interstate commerce to effect transactions in, orto induce or atlempt to induce the purchase or sale of, a security without being registered inaccordance with Section 15(a) of the Exchange Act.13 1. Defendants Geivelis, Butts Anisky, Express Commercial, Banner, and Baggs, haveviolated, and unless restrained and enjoined will in the futtlre violate Section 15(a) of theExchange Act.

FIFTH CLAIM FOR RELIEFUNJUST ENRICHM ENT OF RELIEF DEFENDANTS132. The SEC realleges paragraphs 1 through 1 1 6 above.

Relief defendants Bernard H. Butts Jr. PA, Butts Holding Corporation, GlobalW orldwide Funding Venttzres, lnc., M argaret A. Hering, and PW Consulting Group LLC, eachobtained funds as part, and in furtherance of the securities violations alleged above without alegitimate claim to those funds, and under those circumstances it is not just, equitable orconscionable for them to retain the funds. Bernard H. Butts Jr. PA, Butts Holding Corporation,Global W orldwide Funding Venmres, lnc., M argaret A. Hering, and PW Consulting Group Inc.were unjustly emiched.134. Bernard H. Butts Jr. PA, Butts Holding Cozporation, Global W orldwide FundingVentures, lnc., M argaret A. Hering, and PW Consulting Group lnc. should each be ordered todisgorge the funds they received as a result of the defendants' violations of the federal securitieslaws.

PRAYER FOR RELIEFThe SEC respectfully requests that this Court:

1.Enter an Order finding that Defendants W orldwide Funding, Geivelis, Butts, Anisky,

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Express Commercial, Barmer, and Baggs committed the violations alleged in this complaint, andunless restrained will continue to do so.

ll.Enter an injunction, pursuant to Rule 65(d) of the Federal Rules of Civil Procedure,permanently restraining and enjoining Defendants Worldwide Funding, Geivelis, Butts, Anisky,

Express Commercial, Banner, and Baggs from further violations of the 1aw and rtzles alleged inthis complaint.

111.Enter an Order requiring Defendants W orldwide Funding, Geivelis, Butts, Anisky,

Express Comm ercial, Banner, and Baggs to prepare accountings of all ftmds received frominvestors identifying the name of each investor, the dollar amount received, date of receipt, andhow those funds were spent.

lV.Enter an Order requiring Defendants W orldwide Funding, Geivelis, Butts, Anisky,

Express Comm ercial, Banner, and Baggs to disgorge all ill-gotten gains in the form of anybenefits of any kind derived from the illegal conduct alleged in this complaint, together withprejudgment and post judgment interest and to repatriate to the registl'y of the Court any investorfunds being held in foreignjurisdictions.

Enter an Order requiring Defendants W orldwide Funding, Geivelis, Butts, Anisky,Express Commercial, Banner, and Baggs to pay third tier civil money penalties pursuant toSecurities Act Section 20(d) (15 U.S.C. j 77t(d)) and Exchange Act Section 21(d) (15 U.S.C. j78u(d)).

Vl.Enter an Order requiring Bernard H. Butts, Jr. PA; Butts Holding Corporation; Global

W orldwide Funding Ventures, lnc., M argaret A. Heling; and PW Consulting Group LLC todisgorge funds that they received that were the proceeds of illegal activities of other defendants.



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Vll.Order such other relief as this Court deem s necessary and appropriate.

DATED: August 29, 2013Res tftllly submitted,

eslle J. u sLeslie J. Hugh s, (Special ar No. A5500503)Securities and Exchange Comm ission1801 California Street, Suite 1500Denver, Colorado 80202M ain number 303-844-1000Direct number 303-844-1086Fax number 303-844-1068Email: [email protected]

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butts complaint

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