International Fiduciary Corp., S.A., et al.

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 20158 / June 20, 2007

Securities and Exchange Commission v. International Fiduciary Corp., S.A., et al., Civil Action No. 1:06CV1354 (E.D. Va.)

Court Enters Default Judgments Against Daniel Eric Byer and Malcolm Cameron Boyd Stevenson

The Securities and Exchange Commission announced today that on June 19, 2007, the United States District Court for the Eastern District of Virginia entered default judgments against Daniel Eric Byer and Malcolm Cameron Boyd Stevenson, defendants in an action that was filed by the Commission in December 2006. The Court's default judgments include factual findings that defendants Byer and Stevenson have "not appeared in this matter," despite having had "actual notice that these proceedings are ongoing." The Court's judgments permanently enjoin both defendants from future violations of the antifraud provisions, Section 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, as well as the securities registration provisions, Section 5 of the Securities Act. The Court's judgments also provide that disgorgement, prejudgment interest thereon, and a civil penalty "should be assessed" against both Byer and Stevenson; and direct the Commission to make application, supported by affidavit or declaration, for an order setting forth those amounts. The Court's judgments further provide that it will retain jurisdiction for all purposes, including entertaining an application by the Commission for additional relief.

The Commission filed its complaint against Byer, Stevenson and two other defendants-Preston David Pinkett II and International Fiduciary Corp., S.A.-on December 4, 2006, alleging that they defrauded investors through a fraudulent "asset growth program" purportedly involving risk-free participation in the trading of "1st tier medium-term bank notes." On December 4, 2006, the Court issued an order that, among other things, temporarily restrained the defendants from violating the antifraud provisions of the federal securities laws, and freezing investor funds wherever located and all assets of the defendants. On December 11, 2006, the Court entered a preliminary injunction which extended the temporary restraining order and asset freeze. On January 19, 2007, on the Commission's motion, the Court appointed Roy M. Terry, Jr., Esq. as Receiver over defendant International Fiduciary Corporation, S.A.; and on April 19, 2007, the Commission filed an amended complaint alleging, among other things, that the defendants raised at least $40 million from at least 140 investors, and added two individuals and four Washington State-based companies as relief defendants.

The Commission wishes to acknowledge the continuing assistance of the British Columbia Securities Commission. For further information, see Litigation Release Nos. 19934 (December 5, 2006); 19976 (January 23, 2007); and 20087 (April 24, 2007).