Tracking Down The Real Internet Crooks Capital Enhancement Club (CEC) Final

May 10, 2007 the SEC and the Receiver jointly move to modify the Agreed Order of Permanent Injunction and Order of Disgorgement Against David Tanner which was originally created almost two years earlier in September 2005.

Enough detailed information was now a part of the court records to establish that “David Tanner” and “James Tucker” were both aliases of Scott Fraiser Klion, formerly of Copperas Cove, Texas. He was also now being labeled “a recidivist securities law violator.”

Court document show that modifying the injunction to reflect Klion’s true identity and ordering him, not Tanner or Tucker, to pay back all that money would, “… promote justice, serve the best interests of the investing public and improve the Receiver’s ability to collect and preserve receivership assets.”

A full two years after the start of the original case, the SEC and the Receiver were now filing evidence demonstrating Klion’s use of various aliases, including the names “David Tanner” and “James Tucker,”

1. The photo of Tucker matches the expired Texas driver’s license photo of Klion
2. Multiple witnesses who met with Tucker in the Antilles reported meeting a female companion named Liz or Elizabeth who has a daughter named Patricia Alaniz. A woman named Elizabeth Alaniz was identified as Klion’s co-defendant girlfriend
3. When the Cen-Tex receiver took possession of Klion’s house in 1998, he found information on obtaining “economic citizenship” from the Lesser Antilles Island of Dominica. Tucker purportedly holds a passport from the Island of Dominica
4. Multiple witnesses who met Tucker described that he wore a distinctive Virginia Military Institute (“VMI”) ring and discussed being a VMI graduate. Klion is a VMI graduate and the Cen-Tex receiver identified the VMI ring from the Tucker photograph.
5. An individual who personally met the person going by the name James Tucker identified him as Scott Klion.

As of today’s date[10-24-07], no one has disputed the new Scott Klion identity claim and ALL of Tanner’s three prior attorneys, for unspecified reasons, have all withdrawn from the case.

Klion has been involved in at least three cases initiated by the Commission.

In the Receiver’s eighth status report fill with the court on May 10, 2007 we find out exactly where they stand with their recovery and collection efforts.

“…the Receiver has recovered approximately $6.1 million in investor funds. The Receiver has also identified and obtained orders directing the return of an additional $8 million in investor funds deposited in US and European Banks. Furthermore, the Receiver has pending motions for the turnover of approximately $1.4 million in investor funds transferred to a foreign bank. The Receiver has also recovered two properties in Dayton, Nevada which have been listed for sale with a Nevada real estate agent.”

The orders directing the return of $8 million in US and European Banks includes a balance of $4.9 million still owed by Seaforth Meridian. Seaforth Meridian is a defendant in a separate, similar and somewhat connected securities fraud receivership.

Klion was also named as the primary defendant in SEC v. Scott Klion, d/b/a Cen-Tex Alchemy Guild, et al. No. 6:98-CV-186, USDC. Another civil case.

According to the Commission’s complaint, Klion and his fiancee, Alaniz(now also residing in St.Maarten), raised approximately $2.7 million from at least 1,400 investors in several states through the offer and sale of interests in a fraudulent Pure Contract Trust investment program. Klion and Alaniz represented to investors that their money was pooled and then used to make a variety of foreign or offshore investments that Klion and Alaniz claimed were not subject to the jurisdiction of any Agent or Agency of the U. S. Government. The complaint alleges that Klion and Alaniz told investors that these secret investments would generate gross returns of 400% or more, that virtually all of the investments were guaranteed by Top 100 banks, and that the remainder were backed by either unidentified wealthy individuals or the governments of foreign countries. The complaint further states that the trading programs do not exist and that, in fact, the defendants used funds obtained from current investors to pay purported profits in the form of monthly dividends to prior investors, in an obvious Ponzi scheme, and for their own personal expenses, including a $30,000 engagement ring that Klion purchased for Alaniz.*lawhost.com

After the SEC began the Cen-Tex case, Klion fled to St. Maarten. Despite being enjoined from further securities laws violations in the Cen-Tex case, Klion, under the alias David Tanner, formed Capital Enhancement Club, the ponzi scheme.

The Receiver has subpoenaed thousands of pages of bank records and other documents related to the e-currency firms in order to trace the flow of investor funds into CEC and back out to various individuals and companies. The Receiver has deposed several e-currency firms and payment processors related to CEC, several of whom have asserted a Fifth Amendment right not to answer any of the Receiver’s questions.*ceclubreceiver.com

Tanner/Klion enticed at least 1146 investors into the CEC scheme and received net investor funds totaling $19,800,974

As of today, Mr. Klion has refused to engage in meaningful settlement discussions or provide any information needed for the Receiver to recover additional investor funds.

However, a modified copy of this new court order was sent via email to Scott Klion aka James Tucker aka David Tanner at: jtucker52@hotmail.com, 1234mnbv@safe-mail.net and fjejhw@mail2world.com

Wow.

All the authorities can do is send him an angry email!

Parts 1, 2, 3, 4

Sources:

1. ceclubreceiver.com…SuppOfPlaintiffsAppForExParteTempRestrainOrder.pdf
2. ceclubreceiver.com…DavidTannerAnswertoComplaint.pdf
3. ceclubreceiver.com/…ModifyTannerJudgment.pdf