A U.S. District Court Judge Lee West has issued orders, including a temporary restraining order and asset freeze, against an alleged internet investment swindler, based in B.C.

The Securities and Exchange Commission alleges that Garry Stroud, who operates from B.C. and Washington state, has been conducting an ongoing internet investment scheme involving investment-contract securities that has defrauded over 2,200 investors worldwide of approximately US$1 million since 1998.

According to the SEC, Stroud operated the scheme using several fictitious businesses, including Angelic International, Diamond Global Holding Trust, and Euro Credit & Exchange Bank Ltd. Stroud offered. He is alleged to have sold seven spurious investments under these names using internet websites and e-mail. The offerings included interests in so-called “Morgenthau Gold Bond Certificates,” foreign gold-mining projects, and phony “prime-bank” trading programs and promised investors extraordinary returns with little or no risk, the complaint said.

The SEC is also alleging that these investments were pure shams. The complaint also named Adele Louros, a Canadian citizen, claiming that she possessed proceeds from the fraudulent offerings.

The SEC is seeking permanent injunctions restraining future, an order requiring the defendant to disgorge all wrongfully obtained profits plus prejudgment interest, and civil penalties.