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

U NI TED STATES DISTRI CT COURT SOUTHERN DI STRI CT OF FLORI DA

Secur i t i esa nd Excha nge Com m i ss i on,

se i l i : ,

Pl ai nt i f f ,

v
Ber na r d H.But t s ,J r. , Fot i osGei vel i s,J r. ,a l s o know n asFr a nk Anas t as i o, W or l dwi deFundi ng 1 1 1Li mi t ed LLC, Dougl asJ.Ani s ky, Si dney Ba nner , Expr essCom m er ci alCapi t alLLC, Ja m esBaggs, Def e ndant s ,
Ber nar d H .But t s ,Jr .PA , But t sHol di ng Cor por at i on, Ma rgar e tA .H e r i ng, Gl obalW or l dwi deFundi ng Vent ur es,l nc. , PW Cons ul t i ng Gr oup LLC,

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UND ER SEA L

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Q x . ' ? j ' L C f ' / k C : h ' 1$ R , J .; . . . r % s D i . ' i 1 : ' C . . ' X 7 ' . 0 r l t J t , ' k '' t 1 C 7 . ' h t . l L . : -o ; ' . ( k . I x . . 2. t . # ' ' . '. x . 'i . . x . . s;t , . , .
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Rel i efD ef e nda nt s .

PLA I N TIFF' S CO M PLAINT FOR SECU RITIES FRAU D, I N JUN CTI O N A ND O TH ER R ELIEF

Pl a i nt i f fSe c ur i t i e sa ndEx c ha ng eCommi s s i o n( k t SEC' ' )a l l e g e sf ori t sc o mpl a i n ta ga i ns t

def endant sFl ol i da a t t or ney Ber nar d H .But t s,J r. ,Fot i osG ei vel i sJ r. ,who used t heal i asFr a nk

An as t a s i o,a n dhi sc o mpa nyW o r l dwi deFu ndi ngl 1 lLi mi t e dLLC ( Wo r l dwi deFundi nf' ) , a nd
s al esagent sDougl asJ. A ni s ky,Si dney Ba nnerand hi scompany Expr es sCom m e r ci alCa pi t al

LLC ( Exp r e s sCo mmc r c i a l ' ' ) , a ndJ a me sBa g gs ;a n dr e l i e fde f e n da nt sBe r na r dH. But t s , J r . PA ( C t Bu t ' t sPA' ' ) 7 But t sHo l di ngCor por a t i o n( t But ' t sHol di n f' ) , Ma r ga r e tA. He r i ng, Gl o bal Wo r l dwi deFund i ng Ve nt u r e s , I nc .( E Gl o ba lVe nt u r e s ' ' ) ,a ndPW Co ns ul t i ng Gr ou p LLC ( TW

Cons ul t i ng ' ' ) :

SUM M AR Y

Fr om atl eas tApl i l201 2t hr ough t hepr es ent ,Fl ol i da a t t om ey Ber nar d H .But t s,Jr . ,
Fot i osG e i vel i sJ r . ,w ho used t heal i asFr a r l k Anas t as i o,and hi scom pa ny W or l dwi deFundi ng,

Case 1:13-cv-23115-JEM Document 1 Entered on FLSD Docket 08/29/2013 Page 2 of 22

and s al esagent sAni s ky,Bal m era nd hi sc ompany Expr essCom m e r ci al ,and Baggsobt ai ned mi l l i onsofdol l a rsby def r a udi ng i nves t or st l l r ough t he of f erand s al e ofi nves t m ent si na

f i ct i t i ouspr i m e ba nk i ns t nz m entt r adi ng pr ogr a m. Ge i vel i sand But t spai ds al esage nt si ncl udi ngAni s kysBanne r ,Expr es sCom m er ci al ,and Baggst ol ur ei nves t or st hr ough t he I nt e m et ,t el e phone,a nd per s onalc ont acti nt ot he s chem e wi t h pr om i sesofext r a or di nmy pr of i t s . Aspar toft he s che m e,def endant st ol di nves t or st hata n

i nve s t me nto fb e t wee n USD $ 60, 000a nd$9 0, 0 00woul dge ne r a t ep r of i t sofa tl e a s t :6, 6 60, 00 0

( Eu r o)wi t hi n1 5t o 45b us i nes sda y sa ndc on t i nuet oe a nzpr o f i t so fa ppr o xi ma t e l y1 4% pe rwe e k

f or40 t o 42 weeks. D ef enda nt sf al sel y pr om i s ed t hatwhe n an i nves t or' sf t m dswer e deposi t ed i nt o But t s'

at t or ney t r us taccount ,But t swoul d notr el eas et hef undsunt i lhe r e ce i ved pr ooff r om t he

r e c e i vi ngba nkt ha taf1 0, 000 , 00 0 St a nd by Le t t e rofCr e di t( f SBLC' ' )ha dbe e nde p os i t e di nt oa
s ecuri t i est r adi ng pr ogr am whi ch wast o ge ner at et hepr ot i t sf ort he i nves t or s.

D ef e nda nt sdi d notdi sc l os et hati ns t e ad ofus i ng t hefundst o obt ai n SBLCS ,t he y mi s appr opl i at cd i nves t or s'f undswi t h Gei ve l i sand But t seach t aki ng appr oxi m at el y 45% and
payi ng appr oxi m at el y 10% t ot he s al esagent s. Cont r ar yt ot hedef endant s'r e pr es ent at i ons ,t he

acqui s i t i on oft he SBLCSneveroccur r ed,no l oansw e reobt a i ne d,a nd no pr om i s ed r et ur nsw e r c ea r ned i n at r adi ng pr ogr am orpai dt oi nvest or s. Ove rm or et han a yea r,t hcdef e ndant sobt ai ned

a tl e a s t$ 3. 5mi l l i on f r o ma p pr oxi ma t e l yf o r t yt i vei nv e s t o r sna t i on wi d ea ndi nf or e i g nc o unt r i e s

by m a ki ng f al se a nd m i s l eadi ng st a t em e nt sorom i t t i ng m at er i alf ac t si nt he of f era nd s al e of
t heseunr egi s t er ed s ecuri t i es. To kee pt he s che m e goi ng,Gei vel i sand But t sal s o m ade l ul l i ng s t at e m ent st oi nves t or s,

r e pre se nt i ng t hatt he t r adi ng pr ogr am wass uccess f uland t hatpaym e nt st oi nves t orsw e re
i mmi ne nt . Thr ough t hes e act i ons ,G ei ve l i s ,W or l dwi de Fundi ng,But t s,Ani s ky,Banner ,Expr e ss

Co mme r c i a l , a ndBa ggsv i o l a t e d ,a n du nl e s sr e s t r ai ne da nd e n j oi ne dwi l lc o nt i n uet ov i ol a t e ,t he a nt i f r a udpr ov i s i onso fSe c t i o n1 7 ( a )oft h eS e c ur i t i e sAc tof1 93 3( i se c ur i t i e sAc t ' ' ) ,1 5U. S. C. j77 q( a ) ,Se c t i on1 0( b)oft heSe c u r i t i e sEx c ha ng eAc to f1 9 3 4( s Exc ha ngeAc t ' ' ) ,1 5U. S. C. j

78 j ( b ) ,a ndRul e1 0b5 ,1 7C. F. R. j24 0. 1 0b5.

l n addi t i on,Gei vel i s,W or l dwi de Fundi ng,But t s,Ani s ky,Ba nner ,Expr essCom m er ci al , and Baggsof f e red and sol d se cur i t i esi nt he f or m ofi nves t me ntcont r act s ,whi ch w er enot

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r egi s t e r ed w i t ht he SEC att he t i m et he y wer esol d,i n vi ol at i on oft he s ecur i t i esr egi s t r at i on

p r ov i s i onso fSe c t i on5( a )a nd( c )oft heSec ur i t i e sAc t ,1 5U. S. C.j77 e ( a )a nd ( c ) , a ndunl e s s r e s t r a i ne da n de n j o i ne dwi l lc o nt i nuet ovi o l a t et he s es e c ur i t i e sr e g i s t r a t i onpr o vi s i o ns .
8. Gei vel i s ,But t s,Ani s ky,Expr essCom m er ci al ,Banner ,a nd Baggsal s o ac t ed asbr oker -

de a l e r si nvi ol a t i o no ft her e gi s t r a t i o npr o vi s i o nsofSe c t i o n1 5 ( a ) ( l )oft h eExc ha ngeAc t ,1 5 U. S. C. j78 o( a ) ( l ) ,a ndunl e s sr e s t r a i n e da n de n j oi ne dwi l lc ont i nuet ovi o l a t et hebr oke r de a l e r
r egi s t r at i on pr ovi s i ons .

9.

Rel i efdef e nda nt sBenmr d H.But t s ,J r .PA,But t sHol di ng Cor por a t i on,Gl obal

W or l dwi de Fundi ng V e nt ur es ,l nc. ,M a rgar etA .H e r i ng,and PW Cons ul t i ng Gr oup LLC

r e c e i ve di nve s t or s 'f u ndst owh i c ht he yha dnol e gi t i ma t ec l a i ma ndwe r eun j us t l ye nr i c he d.

I l. JURISDICTION AND VENUE

1 0. TheSEC bl i ng st hi sa c t i o nu nde rSe c t i o n2 0( b)oft heSe c ur i t i e sAc t ,1 5 U. S. C. j7 7t ( b) a n dSe c t i on21 ( d)a nd( e )o ft heExc ha ngeAc t ,l 5U. S. C.j78 u( d)a nd( e ) ,t or e s t r a i na nde n j o i n
t he def e nda nt sf r om engagi ng i nt heact s ,pr ac t i cesand cour s esofbus i nessdes cr i bed i nt hi s

Compl a i nt , a n da c t s , pr a c t i c e sa nd c o ur s e sofbus i ne s sofs i mi l a rpu r por t a nd o b j e c t .The Comm i s s i on s e e kspe r ma ne nti n j unc t i o ns , di s gor ge me n tofi l l got t e nga i nsde r i ve df r o mt he c ond uc ta l l e ge di nt heCo mpl a i n tpl uspr e j udg me nti nt e r e s t , a ndt hi r dt i e rc i vi lpe n a l t i e sunde r Se c t i o n 20 ( d )oft heSe c ur i t i e sAc t ,1 5U. S. C.j7 7 t ( d )a nd Se c t i on21 ( d) ( 3 )oft heExc ha ngeAc t , 1 5U. S. C. j78 u( d ) ( 3 ) . 11 . Th i sCou r t ha sj ur i s di c t i onund e rSe c t i o n22 ( a )oft heSe c ur i t i e sAc t ,1 5U. S. C. j77 v( a ) a nd Se c t i on27oft heExc ha ngeAc t ,1 5U. S. C.j78 a a .Thede f e nd a nt s , di r e c t l yori ndi r e c t l y,
m ade useoft he m eansa nd i ns t rument al i t i esofi nt e rs t at e com m er ceoroft he mai l s ,i n c ol mect i on w i t ht he act s,pr ac t i cesand cour sesofbus i nessal l eged i nt he Com pl ai nt .
Ce rt ai n oft he act s,pr ac t i ces,a nd cour s esofbus i nes scons t i t ut i ng vi ol at i onsofl aw al l eged i nt he Com pl ai ntoccur r e d wi t hi nt he Sout hel ' n Di s t r i ctofFl or i da. l n addi t i on,But t s

Banner ,and A ni s ky r es i de i nt he Sout her nD i s t r i ctofFl or i da. Expr es sComm er ci alconduct s

busi nes sf r om t he Sout he m Di s t r i ctofFl or i da. 11 1. DEFEND ANTS

D ef enda ntBernard H .But t s ,Jr. , bol ' ni n 1941,i sa n at t or ne y adm i t t ed t o pr act i ce l aw i n Fl or i da. Heres i desand t r a nsact ed bus i nes si nM i ami ,Fl or i da. He ent er ed i nt o num e r ouses cr ow
3

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agr eem e nt sw i t h W or l dwi de Fundi ng,Gei vel i sand i nves t or sf r om hi sof t i cesi nM i am i ,Fl or i da.
1 4. D ef enda ntFot i osG ei vel i s ,Jr. ,bor ni n 1979,i sa r es i dentofTa m pa,Fl or i da and us ed t he

nam e t t Fr a nk Anas t as i o' 'i n deal i ng w i t hi nves t or s. Gei vel i st r ans act ed busi nessi nM i ami ?
Fl or i da by ent er i ng i nt o num er ousesc r ow agr eem ent swi t h But t sand t he i nves t orsr el at ed t ot he t r ans act i onsati ss uei nt hi scas e.

Def endantW orl dwi de Fundi ng ll lLi mi t ed LLC i sa Fl or i da l i mi t ed l i a bi l i t y com pany or gani zed on M ar c h 1,2012,w i t hi t spr i nci palpl ace ofbusi nes si n FortM yer s ,Fl or i da.
W or l dwi deFundi ng t r ans act edbusi nessi nM i am i ,Fl or i da by ent er i ng i nt o num e r ouses cr ow

agr ee m ent swi t h But t sand t he i nvest or sr el at ed t ot he t r ans ac t i onsati ss ue i nt hi sc as e. G e i vel i s i st hesol e m anagi ng m e m bera nd ownerofW or l dw i de Fundi ng LLC. 1 6. Def endantDougl asJ.Ani s ky,bor ni n 1957,i sar es i dentofDel r ay Beach,Fl or i da. He i sa s al esage ntt hatf i ndsi nvest or sf orW or l dwi de Fundi ng and r ecei vest r ans act i on bas ed c om m i s s i ons. Het r ans act ed bus i nessi nM i am i ,Fl or i daby pa rt i ci pat i ng i nt el e phone conf er ence
c al l sam ong i nves t or s,Gei vel i s ,But t sand hi ms el f ,and r ecei vi ng com m i ss i onsf r om But t s't r us t ac counti nM i ami ,Fl or i da.

D ef enda ntSi dne y Banner,bor ni n 1927,i sar esi dentofDel r ay Beach,Fl ol i da.H ei sa s al esage ntt hatf i ndsi nve st orsf orW or l dwi de Fundi ng and ot he ri nvcs t m entpr ogr am sand r e ce i vest r ans act i onbas ed com m i s si ons. He t r a ns act e d bus i nessi nM i a mi ,Fl or i daby ar r angi ng a nd part i ci pat i ng i nt el e phoneconf er encecal l sam ong i nves t ors ,G ei vel i s ,But t sand hi m se l f ,and
r ece i vi ng comm i s s i ons f r om But t s't r ustaccot mti nM i am i ,Fl or i da.

D ef enda ntExpres s Com m e rci alCapi t alLLC i saFl ol i da l i mi t ed l i a bi l i t y com pany t ha t conduct s bus i nes sf r om Del r ay Beach,Fl or i da. Expr essComm e r ci ali sabr okert hatfnds
i nvest or sf orW or l dwi deFundi ng and ot heri nvest me ntpr ogr am sand re cei ves t r ans act i onbased

com m i ss i onsf r om But t s't r t z s taccounti nM i a mi ,Fl or i da. Bannerand hi sw i f ear e m anagi ng

me m ber sofExpr es sCom m er ci al .Expres sCom m e r ci al ,t hr ough Ba nner ,t r ans act e d bus i nessi n Mi am i ,Fl ori da by a z r angi ng a nd pa rt i c i pat i ng i nt el e phone c onf e re ncecal l sam ong i nves t or s, Gei vel i s,But t sa nd hi ms el f ,and r ecei vi ng com m i ss i onsf r om But t s 't rt z s tac counti nM i am i ,
Fl ol ida. Def e ndantJam esBaggs ,bor ni n 1942,i sa r es i dentofLake For es t ,Cal i f or ni a. Baggsi s

as al esagentt hatf i ndsi nvest or sf orW or l dwi deFundi ng a nd ot he ri nves t me ntpr ogr a m sa nd r ecei vest r a nsact i onbased com m i s si onsf r om abank accounthel di nt henam e ofBer nar dH.
4

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But t sJr .P. A .i nM i am i ,Fl or i da.

20.

Rel i efdef endantBernard H .But t sJr.P. A.i sa Fl or i da cor por at i on. l tdoesbusi nes sas

E l heLaw Of t icesofBut t s& M ert z' 'and i t spr i nci palpl ace ofbusi nes si si nM i am i ,Fl or i da.
But t si st he ownerofBut t sPA .

Rel i efdef endantBut tsH ol di ng Corporat i on i sa Fl or i dacor por at i on wi t h a pr i nci pal

pl aceofbus i nes si nM i am i ,Fl or i da. But t si st he pr es i de ntand onl y of f i ce rofBut t sHol di ng.

22.
23.

Rel i e fdef endantM argaretA .H eri ng,age 70,i sares i de ntofM i a mi ,Fl or i daand i s
Re l i efdef endantG l obalW or l dwi de Fundi ng Vent ures ,lnc.i sa Fl or i da cor por at i on

But t s'wi f e. wi t h apr i nci palpl aceofbus i nessi n FortM eye r s,Fl ol i da. Gei vel i si st hepr es i denta nd onl y of t i cerofGl obalVenmr es.

24.

Rel i efdef endantPW Cons ul t i ng Group LLC i sa Fl or i da l i mi t ed l i a bi l i t y company wi t h

i t spr i nci palpl ace ofbus i nessi n D el r a y Bea ch,Fl or i da. Ani sky i st he managi ng m emberofPW Cons ul t i ng. IV. 25. O FFER AND SA LE OF UNREGISTERED SECURITI ES

l n M ar ch 2012,Gei vel i sf or me d W or l dwi deFundi ng w i t hi t spr i nci palof f i ce i n Fort

M yer s,Fl or i da.

26.

l n M ay 2012,Gei vel i sope ne d abank accountf orW or l dwi de Fundi ng wi t hJ pM or ga n

Cha s eBa nk, N. A. ( Wo r l dwi deCha s ea c c o un f' )i nM i dl a nd Pa r k, Ne wJ e r s e y, wi t ha ni ni t i a l

de pos i tof$ 40.Theba nka cc o un ts t a t e me nt swe r ema i l e dt oaho us ewhe r eGe i ve l i sl i ve di n
W yckof f ,New Je r sey unt i la ppr oxi m at el y Apr i l2013,when G e i ve l i sm oved t o Tam pa,Fl or i da. Gei ve l i swast he s ol es i gnat or y on t he accountand cont r ol l ed t he f undsi nt heW or l dwi de Chase
account .

W or l dwi deFundi ng hasa webs i t e atww w. wor l dw i def t mdi ngi i i . com cr eat ed by Gei vel i s ,

whi ch s t at e si ti sa com m er ci alf undi ngbr oke r ageand cons ul t i ng 51 r 1 1 . 5 5 28. Fr om i n oraboutApr i l2012 and cont i nui ng t o dat e,W or l dwi de Fundi ng,G e i vel i s ,and But t sasGei vel i s'pa rt ner,and t hei rs al esagent s:Ani s ky,Expr es sComm e r ci al ,Ba l m erand Baggsof f e r ed a nd s ol ds ec ur i t i esi nt he f or m ofi nvest me ntcont r act si n af r a udul e ntpr i m ebar l k
s c hem e.

29.

The i nves t me nt scont r act sof f er ed by t he def endant sw e r e sec ur i t i es . The i nvest me nt

c on t r a c t sr e qui r e di nve s t or st oi nve s tbe t we e n$ 60, 00 0a n d$ 90, 000, whi c h wa st r a ns f e r r e dt o

5

Case 1:13-cv-23115-JEM Document 1 Entered on FLSD Docket 08/29/2013 Page 6 of 22

But t s'at t or ney t rt z s taccountf ort he be nef i tofW or l dwi deFundi ng. Gei vel i sand W or l dwi de Fundi ng w e ret o us et hei nves t or s'f t m dst o pay ba nki ng char gest ol ease St andby Let t er sof

Cr e d i t( I S SBLC' ' )i nt hea mo un to ff1 0, 0 00, 000f r om aba nk i ng g r o up i nEur o pe .Ge i ve l i sa nd

W orl dwi de wer et ol eve r age t he SBLC t oi nves ti n asec ur i t i est r adi ng pr ogr am t hatwast o ge ner at ea r at e ofr e t ' ur n ofa ppr oxi m at el y1 4% perw e ek. l nves t or s'pr of i t swer et o com ef r om t he ef f ort sofGei vel i s,W or l dwi de Fundi ng,and t he t r a di ng pr ogr am . 30. W or l dw i deFundi ng t hr ough Gei vel i sasi t sm anagi ng m e m ber ,But t s,Ani s ky,Expr es s

Com m er ci alt l l r ough i t sm anagi ng m emberBanne r,a nd Baggscomm uni cat ed wi t hi nves t or s

t l l r o ug he l e c t r o ni cma i lCt e ma i l ' ' )a ndt e l e pho nec a l l s .W o r l dwi deFu ndi nga n d Ge i ve l i s , a n d
Expr essComm er ci ala nd Banne ral s o havew e bsi t est ha tof f ert he i nves t m ent s . 31. Si nceApr i l2012,W or l dwi de Fundi ng,Gei vel i sand But t sal s o di s t r i but ed of f er i ng

m at el ial st oi nves t or st hatdes c l i bed t hei nves t m ent ,i ncl udi ngW or l dw i deFundi ng' sA gr eem e nt ,
Es cr ow A gr eem e nt ,Fi nanci alSenr i ceA gr eem e nt ,Tr adi ng Agr eem enta nd Set t l em ent St at e m ent s.

W or l dwi de Fundi ng,Gei vel i s ,and But t sr e pr ese nt e di nt he of f er i ng m at er i al sand i n

c o nve r s a t i o nswi t hi n ve s t o r st h a ta ni n ves t o rpa i d$ 60 , 00 0t o$9 0, 00 0t o W or l d wi deFu ndi ngf o r

bank char gest ol eas e an SBLC i nt he am ountoff10, 000, 000 f r om abanki ng gr oup i n Eur ope. They al s or epr es e nt e dt hatt hei nves t or ' sf undsw er ehel di n But t sPA ' sat t or ney t r us tacc ount , and w oul d notbe r e l eas ed unt i ldel i ver y oft he SBLC wasconf i r m ed by t he r ecei vi ng bank, Bar cl aysBank i nt he Uni t ed Ar a b Em i r at es. l n addi t i on,t he y re pr es ent ed t hatt hey ar r anged f or

at hi r d pa r t yt ot r a ns f e rt heSBLC t oBa r c l ay sBa n k wh i c h wo ul da c kn owl e dger e c e i pto ft he

SBLC. They a l s or epr es ent ed t he SBLC wasuse dt o ac qui r ea l oan,w i t ht he f t m dsf r om t he l oa n
pl aced i n as ecur i t i est r adi ng pr ogr am t ha tgener a t ed a r e t t z r n on i nves t m entofappr oxi ma t el y

1 4% perw eek f orappr oxi mat el y 42 w ee ks. W or l dw i de Fundi ng,Gei vel i s,and But t suse ds al esage nt st o sol i ci ti nves t or sf ort he W or l dwi deFundi ng t radi ' ng pr ogr am a nd pai dt hem appr oxi m at el y 10% oft he i nves t or' sf t m ds t ha tw e r ei nves t ed.

34.

Fr om a tl eas tApr i l2012 t o pr esent ,Ani s ky of f e r ed W or l dwi de Fundi ng' si nvest me nt

cont r act st o atl eas tt en i nvest or s ocom muni cat ed wi t hi nves t or sand t he ot herdef endant st hr ough

t heI nt er net ,em ai l sort el e phonecal l s ,a nd r ece i ved t r ans act i on bas ed c om pe ns a t i on f r om t he s al esm ade t oi nves t ors ,w hi c h waspai di nt ot he bank accountofPW Cons ul t i ng.

Case 1:13-cv-23115-JEM Document 1 Entered on FLSD Docket 08/29/2013 Page 7 of 22

35.

Fr om atl eas tJanuar y 2013 t ot hepr es ent ,Expr essComm e r ci al ,Ba nner ,and Baggsal s o

of f e r ed W or l dw i de Fundi ng' si nves t me ntcont r act st o atl eas tel e ven i nves t or s,com m uni cat ed

wi t hi nves t or sand t heot herdef endant st hr ough t he I nt er net ,em ai l sort el e phone cal l s,and
r ecei ved t r ans ac t i on based com pens at i on f r om t hei rs al esm adet oi nves t or s.

Fr om Apr i l2012 t o da t e,W orl dw i de Fundi ng,Gei vel i s,and But t sof f er e d and s ol d
W or l dw i deFundi ng' si nves t m entcont r act st o atl eas tf ort yf i vei nves t orsand r ecei ved di r ect l y

o ri nd i r e c t l ya ppr o xi ma t e l y$ 3, 68 7, 7 01f r o mt hes a l eoft he s ei n ves t me ntc on t r a c t s .Thes al e s

wer em ade i nM i am iFl or i daw hen i nves t or st r ans f er r ed t he i rf t m dst o But t s'at t or ney t nz s t
account .

N or egi s t r at i on s t at e me ntwasf i l ed wi t ht he SEC ori n ef f ectf ort heof f erors al e of W or l dw i de Fundi ng' ssecul i t i esby t he def endant s. V. D EFENDANTS EN GA GED IN A SCH EM E TO DEFM U D I NVESTO RS

38.

W or l dwi deFundi ng,Gei vel i s ,But t s ,Ani s ky,Expr es sCom m e rc i al ,Banner ,and Baggs

us ed an a rt i t k e,de vi ce orsche m et o def r a ud i nves t or sby of f er i ng ors el l i ng i nves t m ent si na f i ct i t i oust r adi ng pr ogr a m f orpr i m ebank i ns t rum e nt s. I nves t or swer el ure di nt ot heschem ew i t h

t hepr o mi s eoff1 0 mi l l i onnonr e c o ur s el oa nst ous ef o rt he i rbus i ne s sorhuma ni t a r i a npr o j e c t s

a nd e xt r aor di na ry r a t e ofr e t ' t z r n ofappr oxi m at el y1 4% pe rwee kf r om a ni nt em at i onalt r adi ng pr ogr am . l nf act ,no W or l dwi de Fundi ng t r adi ng pr ogr am e xi st ed and t he def endant sdi d not obt ai n SBLCSt ol ever age i n an i nt e m at i onalt r adi ngpr ogr am t o pr oducet he t r e me ndousr et ur ns pr om i s ed by t he def endant s. 39. Pr i m ebank t r a di ng pr ogr am ss uch ast hoseof f er ed by W or l dw i de Fundi ng,Gei vel i s ,
But t s,Ani s ky,Expr es sCom m er ci al ,Ba nne r,and Ba ggsar ef i ct i t i ous . The Se cur i t i esExc hange

Com m i ss i on,t he Feder alRes erveBank,t he l nt enz at i onalM onet al ' y Fund and num er ousot he r
f eder aland i nt e r nat i onala ut hor i t i eshaveal 1publ i cl y de nounced t he sebank i ns t r um entpr ogr a m f r audsi n eas i l y obt ai nabl ei nf or ma t i on. W or l dwi de Fundi ng and Gei vel i sengaged i n decept i ve act si nf ur t her ance oft hesc hem e by of f er i ng a nd s el l i ng i nvest m ent si naf i ct i t i oust r adi ng pr ogr a m and by cr eat i ng f al se

Wo r l dwi deFu ndi ngof f e r i ngma t e r i a l sa nda j r e e me n t st ha tma dei ta ppe a rt he ywe r eof f e r i nga
r eali nvest me ntwhen t he y ne ve racqui r ed t he SBLCSorpar t i ci pat ed i nt het r adi ng pr ogr am as

r e pr e s e nt e d.Theof f e r i ngma t e r i a l swe r ej us tade v i c et oo bt a i ni nv e s t o rmo ne yf o rde f e nda nt s '

7

Case 1:13-cv-23115-JEM Document 1 Entered on FLSD Docket 08/29/2013 Page 8 of 22

per s onalbe nef i t . W or l dw i deFundi ng a nd Gei ve l i sm i s appr opr i at ed i nves t orf t z ndsand di d not
us et he m t o pa y ba nki ng f eest o acqui r e SBLC.

But t se ngaged i n dece pt i veact si nf urt her a nce oft he s che m e by of f e r i ng and s el l i ng
i nves t m ent si naf i ct i t i oust r adi ng pr ogr am ,e nt er i ng i nt ot he Es cr ow A gr ee me nt si n whi ch he agre ed t o onl yr el easet he i nve s t ors 'f t m dsaf t err ecei vi ngpr ooft ha tt hebank ha dr ecei ved t he

SBLC,a nd r e pr es ent i ng t hathew asnotcom pens at ed f orhi swor k asan es cr ow agent . Cont r ar y t o hi sagr ee me nt ,But t sr el eased t hei nves t or s'f t m dsw i t houtpr ooft ha tSBLCSw e r e acqui r ed. I n
addi t i on,But t sm i s appr opr i at e di nvest or s'f undsby t r a nsf er r i ng appr oxi m at el y 45% t o

W or l dwi deand Gei vel i s,45% t o ac count sf ort he be nef i tofBut t s ,a nd 1 0% t ot he s al esagent sas
undi scl osed com pens at i on. 42. Ani s ky,Expr es sCom m er ci al ,Banner ,a nd Baggse ngaged i n dece pt i ve act si n

f urt her a nce oft he s che m eby of f er i ng and s el l i ng i nves t m ent si naf i ct i t i oust r adi ng pr ogr am ,and
r ecei vi ng undi s cl os ed c om pe ns a t i on ofappr oxi m at el y1 0% oft he i nves t or s'f unds . 43. Al t hough W or l dw i deFundi ng,Gei vel i sand But t sr epr e sent ed t hati nves t or s'f undsw e r e

t o be us ed t o pay ba nk char gest o acqui r et he SBLC,t hey m i s appr opr i at ed t he f undsdi s t r i but i ng t he mt o W or l dwi de Fundi ng' sbank accountf orGei vel i s'per s onalbenef i t ,t o var i ousaccount s
cont r ol l ed by But t s ,t ot he s al esagent sand t here l i efdef e ndant s.

44.

But t spa i dW o r l dwi deFun di nga ndGe i ve l i sa ppr oxi ma t e l y$1 , 8 83 , 375i n t ot he

W or l dwi de Chas e acc ountendi ng i n 2735 f r om i nves t or s 'f undsr ecei ved i nt ot he But t sPA t rus t
account s .

Bu t t sa ndBut t sPA pa i da p pr ox i ma t e l y$6 6 2, 80 0 ofi n ve s t o r s 'f u ndsr e c e i ve di n t ot he

But t sPA t rus taccountt o an accountatSabadel li nt henam eofBer na r d H.But t sPA e ndi ng i n
91 24.

Bu t t spa i da p pr o xi ma t e l y$ 31 3, 5 00 t oBut t sHol di n g' sa c c o unta tW e l l sFa r g o Ba nk

e ndi ng i n 9981 f r om i nves t or s'f undsr ece i ved i nt ot heBut t sPA t rt z s taccount s.

47. 48.

But t spai da p pr ox i ma t e l y $41 7, 000t ohi sW e l l sFa r goBa n ka c c o unte ndi ngi n 27 79f r om Bu t t spa i da p pr oxi ma t e l y$1 0 4, 0 00t ohi sJ PM o r ga n Ch a s ec he c ki nga c c ou nte nd i ngi n

i nves t or s'f undsrece i ved i nt ot he But t sPA t rus taccount s.

9690 f r om i nves t or s'f undsr ece i ved i nt ot he But t sPA t r t z s taccount s.

49.

But t spai da p pr ox i ma t e l y$1 00, 000t ohi sa ndM a r g ar e tHe r i ng' sCr e d i tSu i s s eBa nk

a ccount se ndi ng i n 1l 39 or2385. 8

Case 1:13-cv-23115-JEM Document 1 Entered on FLSD Docket 08/29/2013 Page 9 of 22

5 0. 51 .

But t spa i da pp r oxi ma t e l y $25 , 00 0t o hi sHBSC Ba nk a c c oun te ndi ng i n3 879 f r o m But t spa i da ppr o xi ma t e l y$ 40, 000 t o hi sa c c o untwi t h AETRS Ca r dm e mbe rDe po s i t o r y

i nves t ors 'f t m dsr ecei ve di nt ot he But t sPA t r us taccount s.

i n N ew Del hi ,l ndi a.

But t spa i da pp r oxi ma t e l y$2 4, 96 0t oGl oba l Ve nt u r e sa c c o un ta tCha s ee n di ngi n9 90 0

f r om i nve st ors 'f t mdsr ecei ve di nt ot heBut t sPA t r us taccount s.

But t spa i d Ani s k ya ppr o xi ma t e l y $8 6, 768 i ni nve s t or s 'f u n dst o Ani s ky' sc o m pa ny PW
Cons ul t i ng' sBar l k At l ant i c accounte ndi ng i n 8107 f r om t he But t sPA t r us ta ccount .

5 4. 5 5.
56.

But t spa i d Ba l me ra p pr ox i ma t e l y $91 , 250t o Ba n ne r ' sc o mpa nyExp r e s sCo mme r c i a l ' s But t spa i dBa gg sa pp r oxi ma t e l y$4, 97 0t oBa gg s 'c ompa nyCa pi t a l Exp r es sf r om
G ei vel i sand But t sact ed w i t hs ci ent e rbeca uset hey knew t hatno W or l dwi de Fundi ng

a ccountatChaseendi ng i n 1386 f r om t he But t sPA t rus taccount .

i nves t or s'f t mdsr ecei ve di nt ot heBut t sPA t r t l s taccount .

t r adi ng pr ogr am exi s t ed,beca us et hey m i s appr opr i at ed a1 loft he i nves t or s 'f t m ds f ort hei rown

per s onalbene f i tand di d notuseany i nves t or s'f undst o obt ai n any SBLCS. Gei vel i sand But t s
al s o knew t hatt hey had neve rcom pl et e d al oan t r ans ac t i on orpr ovi de d ei t hert hepr om i s ed l oan

pr oceedsorr et u r n on i nves t m entbac kt ot he i nves t or . Gei vel i s'know l edge i sat t r i but ed t o
W or l dwi de Fundi ng. 57. Ani s ky,Banner ,and Baggsact e d wi t hs ci ent erbecaus et he y each kne w ,orwe rer eckl es s

i n notknowi ng,t ha tt hepr i m ebank i ns t r um e ntt r adi ng pr ogr a m di d notexi s tbeca useoft he
ext r aor di na ry a nd unr eal i s t i cr e t t z m st hey cl ai m ed w e r epai d,when t hey had no s ubs t a nt i ve
s upportf ort hei rs t a t em e nt s .Ba nner ' sknow l edge i sat t r i but e dt o Expr es sCom m er ci al .

58.

Thedef e ndant sus ed l nt e r netwebs i t es ,e m ai l s,t el e phone cal l s,and wi r et r ans f er si n

conne ct i on wi t ht he of f erand s al e oft he i nves t me nt si nt he f i ct i t i ousW or l dwi de Fundi ng t r adi ng

pr ogr am .

VL DEFEND ANTS m D E FA LSE AND M ISLEAD I NG STA TEM ENTS OR O M I SSI O NS O F M ATERI A L FACT

59.

Fr om atl eas tApl i l2012 t ot hcpr es ent ,W or l dw i de Fundi ng,Gei vel i s ,But t s ,Ani s ky,

Expr es sCom m er ci al ,Bal m era nd Baggsof f er e d and s ol dt he W or l dwi de Fundi ng t r adi ng

pr ogr am t oi nves t or sove rt he I nt em et ,t l l r ough cm ai l sand t e l e phone cal l s,and r ecei ved i nves t or s'f t m dsi nt ot heBut t sPA t rt z s taccountt l t r ough wi r et r ans f er s .
9

Case 1:13-cv-23115-JEM Document 1 Entered on FLSD Docket 08/29/2013 Page 10 of 22

60.

Si nce Apr i l2012,W or l dwi de Fundi ng,Gei vel i s ,But t s,Ani s ky,Expr essCom m er c i al ,

Banner ,and Baggsdi s t r i but ed of f er i ng m at er i al st oi nves t or swhi ch des cr i bed t he i nves t m ent .

61.

Si nce Apr i l201 2,W or l dwi de Fundi ng,Gei vel i s,But t s ,Ani sky,Expr es sCom m er ci al ,

Banner ,and Baggsm ade f al s ea nd m i s l eadi ng s t at e m ent sand om i t t ed m at er i alf act si nt hei rof f er ors al e ofi nves t me ntcont r act si n W or l dwi deFundi ng' st i ct i t i oust r adi ng pr ogr am .

62.

Si nceApri l201 2,i n conver s at i onsa nd emai l swi t hi nves t or sand of f e z i ng m at e r i al s,

W or l dw i de Fundi ng,Gei vel i s,But t s ,Ani s ky,Expr es sCom m e r ci al ,Banner ,and Baggsdes cr i bed t heW or l dw i de Fundi ng t r adi ng pr ogr am a nd r e pr es ent ed am ong ot hert hi ngst hatt hei nves t or ' s

f t mdso fbe t we e n$ 60, 000a nd $ 90 , 0 00we r eus e dt oa c qui r eaSBLC f r om aba nk i ng g r o up i n

Eur ope. An i nves t orwoul dr ecei vean i ni t i alr et ur n ofa ppr oxi m at el y 66. 6m i l l i on Eur osw i t hi n
15 t o 45 banki ng days.

63.

l n conf er e ncecal l swi t hi nve st orst hatoccur r ed s i nce Apr i l2012,W or l dwi deFundi ng,

Gei vel i s,and But t sal s or epr es ent ed t hataf t ert he i ni t i alpayout ,an i nves t orwoul dr e cei ve a weekl yr et ' ur n on i nvest me ntofappr oxi m at el y 14% ove rt henext40 t o 42 weeks . Gei vel i s expl ai ned t hatt he r e t ur l z s wer egene r at e d by l ever agi ng t he f aceval ueoft he SBLC and us i ng t he
l ever aged f t m dsi n as ecur i t i est r adi ng pr ogr am . But t sconf i r m ed t hes er e pr es ent at i onsi nt he conf er e nce cal l sw i t hi nves t or s . Thes es am e m i s r epr ese nt at i onsal s o appear ed i n W or l dwi de

Fundi ng' sof f e r i ng m at er i al st hatGei vel i spr e par ed a nd s i gned. 64. The def e nda nt s 'm at e l i alr e pr ese nt at i onsaboutt he e xi st e nce oft heW or l dwi deFundi ng t r adi ng pr ogr am w e r ef al seand m i s l eadi ng becaus et het r adi ng progr am di d notexi s t . 65. Si nceApr i l201 2,W or l dwi de Fundi ng,Gei vel i s,But t s ,Ani s ky,Expr es sCom m er ci al , Banne r ,and Baggsr e pr es ent e di ne m ai l sa nd conve r sa t i onswi t hi nves t orst hatan i nves t or' s
f undswer es af eand s ecur ebecaus et hey r e m ai ned i n But t s 'at t om ey t r t z s taccountunt i lt he

SBLC wassec ur ed and val i dat ed.

66.

But t s,Gei vel i sand W or l dw i de Fundi ng a l s o m ade s i mi l arm i s r e pr es ent at i onsaboutt he

s af et y and s ecur i t y ofi nves t or' sf undsi nt he Es cr ow A gr eem e ntt hey si gned wi t ht hei nves t or. I nt he Es cr ow Agr ee me nt ,But t s ,Gei ve l i s ,and W or l dw i de Fundi ng r epres ent ed t hatt he

i nves t or ' s Fundss hal lbehel di n esc r ow unt i lW or l dwi deFundi ng ...haspe r f ormed pert he

c o nt r a c tbe t we e nt he ma ndg i nv e s t o r l ,a t t a c he d he r e t oa ndma deapa r the r e of' 'The yr e p r e s e nt e d

t hatBut t sagr eed k t o actases cr ow agentwi t houtcom pens at i on undert hi sagr eem enta nd t o di s bur s et heFundsi n accor dance wi t ht het ermsand condi t i onshe r ei naf t ers etf or t h. ' ' They
1 0

Case 1:13-cv-23115-JEM Document 1 Entered on FLSD Docket 08/29/2013 Page 11 of 22

r e pr ese nt ed t hatBut t swasi nt er es t ed i nt he t r a nsact i on ast he pa rt nerofGei vel i sand W or l dwi de Fundi ng. Butt hey f ai l ed t o di s cl os et hatBut t si m m edi at el y wi t hdre w approxi m at el y 45% oft he

i nves t or ' sf undsashi sper s onalcom pens at i on. 67. l nt he W or l dwi de Fundi ng A gr eem e nts i gned by Gei vel i son be hal fofW orl dw i de Fundi ng t hatwasm adepar toft heEs cr ow Agr eem e nt ,W or l dwi deFundi ng,G ei ve l i sand But t s r epr es ent ed t hatan i nves t or ' sf undswi l lbe us ed t o pay cer t ai n bank char gesofappr oxi m at el y

USD $6 0, 000. 00 . ..f ora c q ui r i ng( a n)i ns t r u me nta n d de l i ve r i ngt hei ns t r u me ntt ot hepr ogr a m
pr ovi der st r adi ng ac count . ' ' They r e pr es ent ed,k k upon aut he nt i cat i on i ns t nz m entpr ovi derwi l l

i s s ue an M T760 c as h backe d SBLC t o pr ogr am pr ovi de rsaccounti n Bar c l ay' sUAE....The

r e cei vi ng bank wi l lse nd ar es ponsi ve SW I FT W i r et r ans mi s si on t os endi ng bank acknowl e dgi ng

i t sr e c e i pt .. .. l nt hee ve ntr t hed oc u me nt sa r e lnota ut he n t i c a t e da ndva l i d a t e dby t her e c e i vi ng

ba nk a nd i t sCl i e nt h accountbene t i ci ar y,t hen s uc hf t mdss hal li n no eventber el eased by t he
es cr ow agent ' saccount ....Ther ecei vi ng bank m us ts end a r es pons i ve SW I FT t r ans mi s s i on t o acknow l edge i tr e cei ptoft he sa m e. ' '

Cont r r yt ot hes er epr es ent at i onsofW or l dwi deFundi ng,G ei vel i s ,But t s,Ani s ky,
Expr es sCom m er ci al ,Banner ,a nd Baggsi nt he W or l dw i deFundi ng Agr eem enta nd Es cr ow Agr eem ent ,ori n conver s at i onswi t hi nves t or s,i nves t or s'f undswer e nots af ea nd s ecur e becaus e

But t si m m edi at el yr el eased t he f t m dst o W or l dwi de Fundi ng and Gei vel i s,hi ms el f,a nd t hesa l es
age nt s . No f t m dsw e r e us ed t o acqui r e SBLC and But ' t sr e ce i ve d no acknowl edge me ntf r om t he r e cei vi ng bank t hata SBLC w aseve rdel i ver e d.

69.

The de f enda nt s'm at er i alr e pr ese nt at i onsaboutt he s af et y ofi nves t or s'f t m dst o behel d
W or l dw i de Fundi ng,G ei vel i s ,But t s,Ani s ky,Expr es sComm e r ci al ,Ba mz er ,and Baggs

and r e m ai ni nt he esc r ow accountwer ef al se a nd m i s l eadi ng.

m ade f al s e and m i s l eadi ng s t at e m ent sofm at el i alf acti n conver s at i onswi t hi nves t orsa nd i nt he of f er i ng m a t er i al st hati nvest or' sf t m dswer et o beus ed t oa cqui r e a SBLC. Cont r a r yt ot hei rr epr es ent at i ons,Gei ve l i s ,W or l dwi de Fundi ng,But t sAni s ky,Expr es s
Com m er ci al ,Ba nner ,a nd Baggsdi d notus ei nves t ors 'f undst o paybank c har gest o acqui r ea SBLC . Gei vel i sand But t skne wt hei rs t at e m ent saboutt heuseofi nves t or s'f undswer em at e r i al ,

f al s e and m i sl eadi ng. Gei vel i s 'knowl edge i sat t r i but ed t o W or l dwi deFundi ng. They f ai l ed t o

di s cl oset hatt hey m i s appr opr i at ed al lofan i nves t or ' sf undst o pay t hem s el vesand t he s al es
11

Case 1:13-cv-23115-JEM Document 1 Entered on FLSD Docket 08/29/2013 Page 12 of 22

age nt s ,and t hatno f undswer euse dt o pay bank char gest o acqui reSBLCS . 73. Af t eran i nvest orde pos i t e df t z ndsi nt o But t s't nz s tacc ount ,But t si mm edi at el y di s bur s ed

t he f undsascom pens a t i on t ot he def endant s.H edi st l i but ed appr oxi m at el y 45% t ot he W orl dwi de Chas e accountf ort hebenet itofGe i ve l i s ,1 0% t ot hebr oker ,a nd 45% t o But t s' per s onalac count s. But t sknew t hatheus ed atl eas t45% ofi nve st or s'f undsf orhi sow n pe rs onal benef i tand t hatnone oft he f undshe r ecei ved wer eus ed t o pay bank c har gest o acqui r ea SBLC asr e pr es ent ed t oi nves t ors . 74. A st he s ol em a nagera nd ownerofW or l dw i deFundi ng and s i gnat or y on t heW or l dwi de Chas e account ,G ei vel i sknew t hatheuse d atl eas t45% ofi nvest ors 'f undsf orhi spe r sonal

bc net i tand t ha tnone oft he f undswer eused t o pay bank char gest o acqui rea SBLC as r epres e nt e dt oi nves t ors . Ge i vel i sus ed i nves t orf ' undsf ornum er ousper s onalexpe nses ,i ncl udi ng
gambl i ng and t r avel . 75. But t sand G e i vel i sknew t hatt heappr oxi mat el y 10% ofi nves t or s'f t m dspai dt ot he br oker swasnotf orpaym entofbank c har gest o acqui r e SBLCSasr e pre se nt e dt oi nves t or s. 76. Ani s ky,Expr essCom m er ci al ,Banne rand Baggskne wt hei rs t at e me nt saboutt heus e of a ni nvest or' sf undswer ef al s ebecaus et hey r ecei ved appr oxi ma t el y 10% oft hei nves t or' sf t m ds , c ont r a r yt ot hei rr epr es ent at i on t hatt he f t m dsw oul d beus ed t o acqui r e a SBLC. Thei r
r epr es ent a t i onst hatasi nt er m edi ar i est he yr ec ei ved a comm i ss i on af t e rt he t r a nsact i on and

t ' r adi ng w ascom pl e t ed w e r e al so f al sebecaus et he y wer e com pe nsa t ed outofi nves t or s'f t m ds be f or e any SBLC was e verpur c has ed. Dur i ng atl eastone oft he conf e re nce cal l swi t hi nves t or s ,G e i ve l i sand But t sr epr es ent e d t ha tG e i vel i shad com pl et ed t hi rt y SBLC t r ans ac t i ons. Gei vel i sknew t hats t at em entw asf al s e as
hehad compl e t e d no t r ans act i ons.But t skne w ,orwasre ckl essi n notknow i ng,t he s t at em e nt

wasf al sebeca uset he agr ee me nt sw i t hi nves t or spr ovi ded t hata ny ea mi ngsf r om t he t r adi ng pr ogr am wer et o bepai di nt o hi sat t om ey t r us taccountf ordi s t r i but i on t ot he i nves t or s,and t hat
ne verhappened. 78. Ani s ky i sengaged i nt he busi nes sofi nduci ng i nves t or sorat t e m pt i ng t oi nduce i nvest or s

t o pur c has es ec ur i t i es ,i nc l udi ng t he i nves t me ntcont r act sof f er e d by W or l dwi deFundi ng.
79. Fr om atl eas tJune 2012 l l t r ough Oct ober201 2,A ni s ky of f er ed i nves t m ent si nt he W or l dwi de Fundi ng t r adi ng pr ogr a mt hr ough em ai l ss e ntove rt he I nt em e tand t el e phonecal l s .

8 0.

Ani s kyof f e r e da ni nve s t me nto f$ 60, 0 00t oo bt a i n a$1 0, 00 0, 00 0n onr e c ou r s el o a n

12

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

t hr o ugh W o r l dwi deFundi n gt r a d i ng pr og r a m . Am on go t he rt hi ngs ,her e pr e s e n t e dt he $ 60, 00 0 wa sus e dt oc o ve rt hec os t st oa c qu i r et heba nk i ng i ns t nz me n ta nd t h a tt he $ 60, 0 00 de pos i twas
hel d unde ran Escr ow Agr ee m entwi t h But t sPA ,whi ch wasf ul l yi ns ur e d and r cf undabl c. He

r epr es ent ed t he es cr ow ed f undsar er el e ased af t erconf i r m at i on oft heacqui s i t i on oft he i nst r um entf r om t he i s s ui ng bank. He r e pr es ent ed t he proces st ook 15 i nt e r nat i onalba nki ng days unt i lt he i nve st orr e ce i ved t hefunds. W hi l et he docum e nt she s enti nves t or sdi s cl ose dt ha t ,as

t hei nt e r me d i a r yi nt het r a ns a c t i o n, hewoul dr e c e i ve1 0% ofp r o j e c tne tf u nd i nga nd 1 0% ofne t

t r adi ng pr ot i t sf orone year,hef ai l e dt o di scl os et hem at er i alf actt hather ecei ved appr oxi mat el y
l0% oft hei nves t or ' sft mdsi m m edi at el yf r om t he es cr ow account .

l fan i nves t orwasi nt er e st ed i nt heW or l dwi de Fundi ng t ' r adi ng pr ogr am ,Ani s ky ar r anged
f ora t el ephoneconf er encecal la m ong Gei vel i s ,But t s ,Ani s ky and t hei nves t or .

82.

Ani s ky of f er ed t he i nve st me ntt o atl eas tt e ni nvest or swho i nves t ed a ppr oxi m at el y

$96 0, 0 00. 83. But t spai d A ni s ky appr oxi ma t el y 9% oft he i nves t or ' sf undsr ecei ved i nt ot heBut t sPA t r t z s ta c c o unt .l nt ot a l ,But t spa i da pp r o xi ma t e l y$8 6, 7 68t o PW Con s ul t i ng f ort hebe net i tof
Ani s ky.

84.

Ani s ky obt ai ne di nves t ors 'f undsby m eansoff al s e and m i s l e adi ng s t a t em e nt sor

om i s s i onsofm at er i alf actm ade aboutt he i nves t me nti nt he W or l dwi de Fundi ng t r adi ng
pr ogr am . 85. Bannerand Expr essCom m e r ci alar e engaged i nt hebus i nes sofi nduci ng i nves t or sor at t em pt i ng t oi nducei nvest or st o pur c has es ecur i t i es ,i ncl udi ng t hei nvcs t m entcont r act sof f er ed by W or l dwi de Fundi ng.

86.

Fr om atl eas tJanuar y 2013 t hr ough A ugus t2013,Ba nnerand Expr essCom m e r ci al

of f er ed i nves t m entcont r act si n W or l dwi de Fundi ng' st r adi ng pr ogr am w hi c h henam ed t he TA27' 'Pr ogr am .

Banne r,ast he m anagi ng m e m berofExpre ssCom m e r ci al ,se ntem ai l s,news l e t t e rs ,

post ed i nf ormat i on on t he Expr essCom m er ci a l ' sw e bsi t e atw ww. expcom cap. com and s poke

wi t hi nve s t o r sbyt e l e p honea bo uta ni n ve s t me nti nt heW o r l dwi deFundi ng' sFA27Pr o j e c t
Fundi ng,I nf ras t r uct t z r e Hum a ni t a r i an & Envi r onm e nt alPr ogr am .
88. Bal me rand Expr es sCom m er c i almade f al s e and m i s l e adi ng s t a t e me nt sofm at el i alf acti n t hei rem ai l sand news l et l er sse ntt oi nves t or ss i nce Ja nua r y 2013,am ong ot hert hi ngs,t hati nt he

Case 1:13-cv-23115-JEM Document 1 Entered on FLSD Docket 08/29/2013 Page 14 of 22

1 7 A27pr ogr am :

t c r l hepr o vi de rg r ou p( Wo r l dwi deFund i nga nd Ge i ve l i s )pur c has e st het e n( 1 0M )SBLCS f r o mt opma j o rba nksf o rc a s hi nt hena meoft hec l i e n t .Foroneye a rt hec l i e ntc on t r ol s
t hi s SBLC f ort hcm one t i zat i on & t r adepor t i on oft hi sI nf r ast nl ct ureHum ani t ar i a n&

En vi r o nme n t a lPr o gr a m( I HEP) .Thee s c r o wa ge ntf o rt heFA27I HEP p r og r a mi sa

pr act i ci ng at t om ey i nM i a mi ,Fl or i da f orover40 year s. Theat t or ne yi sa par t nerand m anagi ng di r ect oroft he t r adi ng or ga ni zat i on & t he1 7 A27 I HEP f undi ng e nt i t y. The t r aderhas23+ year sofexpel ie nce & i sl i cens ed wi t h 27 bankswor l dwi de t o do t hel i nes ofcr edi tf ort het r ade. ' ' The SBLC i sm onet i zat i on at80% pr ovi di ng ne tpr ocee dst ot he

c l i e n tof$ 6, 66 0, 00 0 Eur os .TheSBLC i sS l e ve r a ge du p 3t o 5t i me swhi c hma xi mi z e s

t het r adi ng amountt o am i ni m um of30M t o 50M t r adebecaus et he 10M SBLC i scas h backed. The t r adei snor mal l y 40 weeks.The t r ade r ' scont r acts t at esa 50% /50% s pl i t wi t ht he cl i e nt . TheTr aderCont r actwi l ls t a t et hehi s t or i calr e t um s.Each cas hbacke d 1 0M SBLC hasa har d cos tof90K de pos i t ed i nt ot he Fl or i da at t or ney' si ns ur ed Es cr ow A ccount .A1 1ot hercl i e nt ' scost sar echar ged t ot he m onet i zat i on & t r ade f undi ng r e t t z r ns.

Th e90 Ki spa i da f t e ryo urpr o j e c ti sa p pr o ve d& c on t r a c t sa r eof f e r e dt ot hec l i e n t . ' '

Ba nnerout l i ned t hepr oce dur est o gets t ar t ed i ncl uded t os i gn and r et t l r nt ot he s ende ran Expr es s Comm er c i alN CND ;c al lorem a i lt he se ndert o ans werques t i onsa boutt he I HEP pr ogr am ; r eques ta 1 7 A27 c l i e nti nf ormat i on f or m and exec ut i ve s um mar ya nd;s etup a conf er e nce cal l

wi t ht heEs cr ow at t om ey,Fundera nd t he s ender . Banne rdi s cl os ed he r ecei ve d cobr oker ' sf e es

of' ? 2. 5% ofcl i e nt ' s6. 6M euros' ' af t ert he SBLC wasm one t i zed and : 1 2. 5% ofc l i e nt snet40 w ee k PPP t r adepai dt o br oken' ' Buthe di d notdi s cl os e he i m m edi at el yr ecei ved appr oxi m at el y

1 0% ofi nvest or' sf undsbef or et he SBLC wasacqui r ed. Ba l m eri dent i f i ed t he pr ovi de roft he1 7 A27 pr ogr am asW or l dwi deFundi ng and Fr ank
Anas t as i o;t he a t t or ney and es c row age ntasBem ar d H .But t sJr . ;and t hatBut t si st hepart ne rof Anas t as i ot hem anagi ng di r ect oroft he t r adi ng or ga ni za t i on. W hen an i nves t orcont act ed Bannera boutt he 1 7 A27 pr ogr a m ,Ba mz erar r anged f ora
conf e r ence cal lam ong t hei nves t or ,Gei vel i s,But t s ,and Ba nner . Ba r mera nd Expr es s

Comm er ci alof f er ed t he i nves t m entt o atl eas tt en i nves t or swho i nves t ed appr oxi m at el y

$91 9 , 955. 91. But t si m m edi a t el y pai d Bal m era ppr oxi m at el y 10% t hei nves t or ' sft m dsr ecei ved i nt ot he

But t sPA t r u s ta c c oun t .l nt o t a l , But t spa i da ppr o xi ma t e l y$91 , 25 0t oEx pr es sComm e r c i a lf o r

t he be nef i tofBal me r.

Case 1:13-cv-23115-JEM Document 1 Entered on FLSD Docket 08/29/2013 Page 15 of 22

Bannerobt ai ned i nves t or s 'f undsby m eansoff al s e and m i s l ea di ng st at em e nt sor

om i s s i onsofm a t er i alf actm ade aboutt he i nves t m enti nt he W or l dw i deFundi ng t r adi ng pr ogr am . 93. Baggsi se ngage di nt he busi nes sofi nduci ng i nves t orsorat t empt i ng t oi nduce i nves t ors

t o pur chasesec ur i t i es ,i ncl udi ng t he i nves t mentcont r act sof f e r ed by W or l dw i de Fundi ng. 94. I n ora boutJanuar y 2013,Baggsl e ar ned oft heW or l dw i deFundi ng' si nves t m ent

p r og r a mf r o m Ba nne r .Ba nne rt ol d Ba ggst ha ta ni nve s t me ntc o s t$8 0, 000a n d wa sc o mpl e t e l y

s af ebecaus et he f undswer epai di nt o But t ' sa t t or ney t r t z s taccounti nM i am i ,Fl or i da. Bal me r

t ol dBag gst hei ni t i a lpa y ou twa sa p pr o xi ma t e l y$ 6, 6 00, 0 00t ot hei nve s t o ra ndt he r e a f t e rwe e kl y p a yme nt so fbe t we e n$ 2 mi l l i ona nd $ 4mi l l i o n wo ul dac c nz ef ora ppr oxi ma t e l y40wee ks .

Ba nne rs a i dt h a tAna s t a s i o( Ge i ve l i s )a n d But t swe r epa r t ne r s ; Ana s t a s i o( Ge i ve l i s )s t a r t e dt he

pr ogr am and m adei tw or k. 95. Baggsha d se ve ralt el e phone cal l sand e m ai l swi t h But t s,Gei vel i sand Ba l m erwho each c onf i rmed t he de t ai l soft he pr ogr am . Gei vel i s,But t sand Banne rt ol d Baggst hatt he i ni t i al

mo ni e sf r om t hec us t o me rwo ul dbeus e dt op r o c ur eaf1 0 mi l l i o n SBLC f r o m ama j orwo r l d

c l assba nk. Thatt hatl et t e rofcr edi tw oul d be l ever aged up t o f30 m i l l i on t o 650 m i l l i on and t hos ef t m dswoul d beus ed t o go i nt oat r adi ng pr ogr am . l nves t or s'r e t t z r nswer et o be gener at ed f r om t ' r adi ng pr of i t s . Al lt hr ee as s ur ed Baggst hatt he i nves t or s'm oney was s af ei nt heat t or ney' s t r us taccounta nd t he r e woul d beno l oss es. 96. 97. Bal merand Baggsagr eed t o spl i ta ny com m i s si onsf r om Baggsi nt r oduci ng i nves t or st o l n oraboutFebr t z ar y 5,201 3,Baggsbega n of f er i ng t heW or l dw i deFundi ng i nves t m ent
t hepr ogr am . pr ogr am t oi nves t or st hr ough emai l sa nd t el ephone cal l sw i t hi nves t or sr e pe at i ng t he

mi s r epr ese nt at i onsm ade t o hi m by Gei vel i s,But t sand Banner. Baggsdi d nothave any r eas onabl e bas i son whi ch t o bel i evet hatt heW orl dwi de Fundi ng
t r adi ng pr ogr a m des cr i bed by G e i vel i s ,But t s ,a nd Banne rexi s t ed.

99.

Baggsof f e r ed t heW or l dwi deFundi ng i nvest me ntt o atl eas tone i nves t orwho i nves t ed

$8 0, 000, whi c hwa swi r e dt o Bu t t sPA onora bo utFe br ua r yl 9, 201 3.

1 00. But t spai d Baggsand Bannerappr oxi ma t el y 10% oft hei nves t or ' sf undsr ecei ved i nt ot he

But t sPA t r u s ta c c o unt .But t swi r e d$ 4, 9 70t oBag gs 'e nt i t yCa pi t a lEx pr es sCo r por a t i o na nd
$ 4, 9 70t oBa nne r ' se nt i t yEx pr e s sCo mme r c i a l .

Case 1:13-cv-23115-JEM Document 1 Entered on FLSD Docket 08/29/2013 Page 16 of 22

101. Gei vel i s,But t s,Ani s ky,Bnnner ,Expres sCom m e r ci aland Baggst ol d m osti nves t or st hat

t hey woul dr ecei vet he i ni t i alpr oceedsf r om t he61 0, 000, 000 Eur ol oa n wi t hi nf i f t ee nt of or t y-

f i vew or ki ng days.
1 02. Af t ert he or i gi nali nves t me nt sw e r e m adeand cont i nui ng t l uough atl eas tAugus t9,2013, W or l dwi de Fundi ng,Gei ve l i sand But t sm ade f al s es t at em ent st oi nves t or st o1 u1 1t hem i nt o

r em ai ni ng i nt hei nves t m entpr ogr am becaus e paym entoft hecl ai m ed ext r aor di nar yr et t l r nson t hei ri nves t me nt swer ei m mi nent ,butt hati ss ueswi t ht hevar i ous f i nanc i ali ns t i t ut i onswer e
ca usi ng de l ays.

103. Forexampl e,on Oct obe r30,2012,W or l dwi de Fundi ng and Gei vel i sse nta l et t ert ot t a l l

pa r t i c i pa nt si nt hepr o j e c tf u n di nghu ma ni t a r i a npr o gr a m' ' pr o vi di nga nupd a t ef a l s e l y

r epres e nt i ng t henew e xi tbuyeri scont r act ed. . .and t hey have pr ovi de dt henecess ar y ba nk

conf i r m at i ons .... Att hi st i m e ...t he 2 pa rt i esar ecompl e t i ng t he f i nalpaper wor ka nd a re

pr e pa r i ngt het r a det ot het ' i n al ba nk i ngs t a gepr i o rt od i s b ur s i ngt ot hef i r s t3wa i ve sofp r o j e c t
owne r s. W ew i l lhave anot herupdat et om or r ow ast o wher et hepayout ss t and.... W e

unde r s t a nd t i m ei soft he es s ence a nd i ti sunf or t t z nat et ha taft eral lt hi st i m e ourexi tbuyer

ba c ke do utl as tm i nut e ... .g Fj und i ngf orwa i ve 1 , 2,a nd 3t he n wa i ve4a nd 5wi l lgoi nt o
di s bur s em e nts t at e. The ant i ci pat ed t i m ef ' r am ewoul d be 7-10 daysf r om t he day wai ve 3 i s

f unded. ' ' On N ovembe r l5,2012,W or l dwi de Fundi ng a nd Gei vel i sse ntanot herl et t ert o al l par t i ci pa nt sf al s el yr epr es ent i ng,t t t he f i r s t4 w i r eswer ebei ng cl ear ed a nd ...w i l lbepass ed on
t o Benz ar d But t sP. A. W e ca nnota dvi s e how l ong t hi spr ocessi s ,howeve rf r om exper i enceof dom es t i ct r ans f e r sus ual l yi ti sa ve r y qui ck t t z r l lar ound. ' ' 105. On December 1 9,2012,W or l dw i deFundi ng a nd Gei ve l i ss entanot herl e t t ert o al l

par t i ci pa nt sf al s el yr epr es ent i ng,t heyhad f om ar de di nf or ma t i on t ot he ba nk f orr evi ew whi ch was60% compl et e. f ' he dr aw r eques tf orf t m dswi l lbecom pl e t ed once al lf i l esa r ea ppr oved.
Oncet hebanke r sar e com pl e t ewe wi l ls i gn t he dr a w re ques tand t heFundswi l lbe t r a nsf e r r ed
a ccor di ngl yt oJ P M or gan ChaseW W F l l 1accounti n whi ch 1w i l lt ' ur l lt he f unds a r ound same day .... ' '

106. But t sal s os entvar i oust extm ess agest oi nves t or spr om i si ng t ha tpaym e nt swer e
i mmi ne nt .

1 07. Fore xam pl e,on M ar ch 25,2013,But t ss entat extm es s age f al s el ys t at i ng,d ' Fi nce n has

Case 1:13-cv-23115-JEM Document 1 Entered on FLSD Docket 08/29/2013 Page 17 of 22

r el eas ed W el l sa nd t he y haveno r es t r i ct i onson t r a ns f e ni ng f undst o Chas e and Fr ank. I t ' snoti f

bu twhe n.. .. Ra ja ndhi st i m ee s t i ma t ei sa sheo ut l i ne d.Ass o onast h ef u ndsa r et r a ns f e r r e dhe

wi l lcom muni cat et o a1 1 . ' ' 108. On Jul y 3,2013,Gei vel i sem ai l ed a ni nves t orf al sel ys t at i ng t he i nves t or ' sf undi ng w as

s chedul e df orr el easear ound J ul y 12,2013

109. On J ul y 9,2013,Gei vel i sem ai l ed a ni nves t orf al sel ys t at i ng, 1wasnota ut hor i zed t o

r el eas e yourpaym entyetbutIwast ol d end ofl as tw ee kt hatw e wi l lpr ocessi ti nt he nextcoupl e days a nd paym entwi l lbem ade t o your...account ' '
l1 0. On Augt z s t1,201 3,Gei vel i sem ai l ed a ni nves t orf al s el ys t at i ng,( d Y ou wi l lbe f unded no
l at ert han Augus t1 2,2013. ' '

Gei vel i sand But t scont i nued t o1 u1 1i nves t or st hr ough Augus t20l3. VIl . BR OK ER A ND DEA LER Fr om atl eas tApr i l2012,Gei vel i s ,But t s,Ani s ky,Ba nner ,Expr essCom m e r ci a land Baggs e ngaged i nt hebusi nessofi nduci ng orat t empt i ng t oi nduce t hepur chas e ors al e oft he
s ecuri t i es.

Ge i vel i s ,But t s ,Ani s ky,Bar m er ,Expr essComm er ci aland Baggseach used i nt er s t at e com m e r ce,s endi ng e m ai l sand s peaki ng by t el ephonew i t hi nves t or sa boutt heW or l dwi de
Fundi ng t r adi ng pr ogr am . Gei vel i sand But t swer e par t ner si nt heof f erand s al eoft he i nves t me ntcont r act sof

W or l dwi de Fundi ng.Eac hr ecei ved t r ans act i onbas ed compe ns at i on ofappr oxi m at el y 45% of t he m oney t hati nvest or s'i nves t e d wi t h W or l dw i de Fundi ng. Ani s ky;Banne rand Expr essComm er ci al ;and Baggsof f er ed t he i nves t m entc ont r ac t sof W or l dw i de Fundi ng. Eac hr ecei ved t r ans act i onbase d com pens at i on ofa ppr oxi m at el y l0% ofan
i nves t or ' sf unds,wi t h Bannera nd Baggss ha ri ng t he 10% f ort hei nves t ort hatBaggsi nt r oduced. 1l6. G e i vel i s ,But t s ,A ni s ky,Banne r,Expr essComm er ci aland Baggswer e notr egi s t er ed as br oker s ,orass oci a t e d wi t h abr oker deal e rr egi s t er ed w i t ht he SEC w hi l et hey i nduced or at t e m pt ed t oi nduce t hepur c has e ors al e ofsec ur i t i es .

Case 1:13-cv-23115-JEM Document 1 Entered on FLSD Docket 08/29/2013 Page 18 of 22

FI R ST CLAI M FOR RELIEF

Fr a ud -Vi o l a t i onsofSe c ur i t i e sAc tSe c t i on 1 7( a ) I 1 5U. S. C.j77q( a ) )

The SEC r eal l egespar agr aphs lt hr ough 116 above.
De f endant sW or l dwi de Fundi ng, Gei vel i s,But t s ,A ni s ky,Expr es sCom m e r ci al , , Banner

a nd Baggsdi r ect l ya nd i ndi r ect l y,w i t hs ci ent er nt heof f erorsal eofs ecur i t i es ,by us e oft he ,i m eansori ns t rum ent soft r ans port at i on orcom m uni c at i on i ni nt er s t at ec om m e r ce orby useoft he m ai l s ,e m pl oyed a de vi ce,sc hem e,ora rt i t icet o def r aud;obt ai ned m oney orpr oper t y by m e ans ofunt rt z es t at em e nt s ofm at er i alf a ctorom i ss i onst o st a t em at e r i alf act sneces sa r yi n or dert o m aket he s t at em e nt sm adc,i nl i ghtoft he ci r c um s t ancesunderwhi c ht hey w e r em ade, not
mi s l eadi ng;ore ngage di nt r a nsact i ons, pr ac t i ces ,orcour s esofbusi nesswhi ch have becn orar e

oper a t i ng asa f r a ud ordecei tupon t he pur chas er soft he s ecur i t i es.

l19. re

120. Def e nda nt sW or l dwi deFundi ng, G ei ve l i s ,But t sAni s ky,Expres sCom m e r ci a l m er , , Bal

a ndBa gg svi ol a t e da ndunl e s sr es t r a i ne da n de n j oi ne dwi l li nt hef u t u r ev i o l a t eSe c ur i t i esAc t Se c t i o n1 7 ( a ) ( 1 ) , ( 2 )a nd( 3) .

121. Al t er nat i vel y,But t sknow i ngl y ai ded a nd a be t t ed t he vi ol at i onsby W or l dwi de Fundi ng

a ndGe i ve l i sofSe c ur i t i e sAc tSe c t i o n1 7( a ) ( 1 ) , ( 2 )a nd( 3 ) .Hepr o vi de ds u bs t a nt i a las s i s t a nc e

i nt he i rcom m i ss i on oft he pr i m ar y vi ol at i on by act i ng ast he es cr ow agentt or ecei vei nves t or s' f unds ,di s t r i but i ng f undst ot he def e nda nt sa nd r el i efdef e ndant sal t hough no SBLCSwer e a cqui r ed,and heand t he ot he rdef e nda nt sw e renott o be com pe nsa t ed unt i laf t e rt het radi ng
pr ogr a m wascompl et e.H eal s ol ul l e di nves t or si nt o nott er mi nat i ng t hei ri nves t m ent s eas s uri ng ,r
t hem t hatt hei rr et t t r nsw e r ei mmi nent .

SECOND CLAI M FOR R ELI EF

FM UD -VI OLATI ONS OF EXCHANGE ACT SECTI ON 1 0( b)AND RULE 1 0b5 ( 1 5 U. S. C.j78 j ( b)a nd 1 7 C. F. R. j2 40. 1 0b5 1
122. The SEC r eal l e gespar agr aphs 1t hr ough 11 6a bove. 123. Def e ndant sW or l dwi deFundi ng,Gei vel i s t s,Ani s ky,Expr es sCom m e r ci a l ,Banner , , But and Baggs,di r ect l y ori ndi r ect l y,wi t hs ci ent er n connect i on wi t ht he pur c haseors al e of ,i

s ecuri t i es ,by t heuseofm e ansori ns t r um ent a l i t i esofi nt er s t at e com m er ce, t hem ai l s ,orany
f aci l i t y ofa na t i onals ecur i t i esexc hange,empl oyed devi ces che m es,ora rt i f i cest o def r aud; ,s
1 8

Case 1:13-cv-23115-JEM Document 1 Entered on FLSD Docket 08/29/2013 Page 19 of 22

m adeunt rt z es t at em ent sofm at er i alf actorom i t t ed t os t at em at er i alf ac t sneces s ar yi n or dert o

m aket he s t a t e me nt sm adeni nl i ghtoft heci r cumst ancesunde rwhi ch t hey w e r e m ade,not

mi s l eadi ng;orengage di n act s ,pr ac t i ces ,orcour s esofbus i nesswhi ch oper at ed orwoul d oper at e

a saf r a ud o rde c ei tupo na n y pe r s o n; i nv i ol a t i onofExc ha ngeAc tSe c t i on 1 0( b)a ndRul e1 0b 5.

1 24. D ef endant sW or l dwi de Fundi ng,Gei vel i s,But t sA ni s ky,Expr es sCom m er ci al ,Banner ,

a ndBa gg svi o l a t e da ndunl e s sr e s t r a i ne da nde n j oi ne dwi l li nt hef t z t t l r evi ol a t eExc ha ngeAc t Se c t i o nl 0 ( b )a n d Rul e1 0 b5.
Al t e r na t i ve l y, But t skno wi n gl ya i d e da n da be t t e dt hev i o l a t i o nsby W o r l d wi deFund i ng

a n d Ge i ve l i sofEx c ha n geAc tSe c t i o n1 0( b )a ndRul e1 0 b5.Hep r ovi d e ds u bs t a n t i a la s s i s t a nc e

i nt hei rcom m i s s i on oft hepr i ma ry vi ol at i on by act i ng ast he es cr ow agentt or ecei vei nves t or s' f unds ,di s t r i but i ng f undst ot he def e nda nt sand re l i efdef e nda nt sal t hough no SBLCSw e r e acqui r ed,and he and t he ot he rdef e nda nt sw er enott o be c om pe nsa t ed unt i laf t ert he t r adi ng pr ogr am wascom pl e t e. H e al so l ul l ed i nves t orsi nt o nott er mi nat i ngt he i ri nves t me nt s,r eass ur i ng
t he m t hatt he i rr et t l r nswer ei m mi nent .

TH I RD CLA I M FO R RELIEF OFFER S A ND SALES OF UNREGISTERED SECURI TI ES -

VI OLATI ONS OF SECURI TI ES ACT SECTI ONS 5( a )AND 5( c ) I 1 5 U. S. C.j j7 7e ( a)and 7 7e ( c ) 1

126. The SEC r eal l egespar agr aphs 1t l uough 116 above. D ef enda nt sW orl dw i de Fundi ng,G ei vel i s,But t sAni s ky,Expr essCom m er ci al ,Banner , and Baggs ,di r ect l y ori ndi r e ct l y,have m adeus e oft he m e ansori nst r um ent soft r ans por t at i on or com m uni c at i on i ni nt er s t at ecom m er ce oroft he m ai l st os el ls ec ur i t i es ,when no r egi s t r at i on s t a t e me ntwasi n ef f ectwi t ht he Com mi s s i on ast os uch s ec ur i t i es ,a nd havem a de us e oft he
m eansori ns t r um ent soft r ans por t at i on orcom m uni c at i on i ni nt e r s t at e com m e rceoroft he m a i l s

t o of f e rt os el ls uch secur i t i eswhen no r egi s t r at i on s t at em enthad been f i l e d wi t ht he

Comm i s si on ast os uch s ecur i t i es.

128. Ther ew er eno a ppl i cabl e exempt i onsf r om r egi s t r at i on,and D e f endant sW or l dwi de Fundi ng,Gei vel i s,But t sAni s ky,Expre ssCom m e r ci al ,Banne r ,and Baggst her c f orevi ol at ed,

a n du nl e s sr e s t r a i ne da nde n j oi ne dwi l li nt hef t z t u r evi o l a t eSe c t i o ns5 ( a )a nd5 ( c )oft he

Secur i t i esAct .

1 9

Case 1:13-cv-23115-JEM Document 1 Entered on FLSD Docket 08/29/2013 Page 20 of 22

FOUR TH CLAIM FO R R ELI EF OFFER S A ND SALES O F SECURI TI ES BY AN UNREG I STERED BRO K ER DEALER

VI OLATI ONS OF EXCHANGE ACT SECTI ON 1 5( a ) I 1 5U. S. C. j78o ( a ) 1

1 29. The SEC r eal l egespar agr aphs 1t hr ough l16 above. 1 30. D e f enda nt sG e i vel i s ,But t sAni s ky,Expr es sCom m er ci al ,Banne r ,a nd Baggs ,whi l e e ngaged i nt hebus i nessofef f e ct i ng t ' r a nsac t i onsi ns ecur i t i esf ort heacc ountofot her s ,m adeus e oft hem ai l sort hem eansori ns t rum e nt al i t i esofi nt er s t at e com m er ce t o ef f ec tt r ans act i onsi n,or t oi nduce orat le m ptt oi nduce t hepur c haseors al e of ,a s ecur i t y wi t houtbei ng r egi s t er e di n

a c c o r da nc ewi t hSe c t i on 1 5( a )oft heExc ha n geAc t .

131. D ef enda nt sG e i ve l i s ,But t sAni s ky,Expr essComm er ci al ,Banne r ,and Baggs ,have

vi ol a t e d, a n du nl e s sr e s t r a i n e da nde n j o i ne d wi l li nt hef u t t l r ev i ol a t eSe c t i on 1 5( a )oft he

Exchange Act .

FIFTH CLA I M FO R RELI EF UNJUST ENRICHM ENT O F RELIEF DEFENDANTS

1 32. The SEC r eal l egespar agr aphs 1t hr ough 116 above. Re l i efdef e nda nt sBer nar d H .But t sJr .PA ,But t sHol di ng Cor por at i on,Gl obal
W or l dwi de Fundi ng Vent t z r es ,l nc. ,M ar ga re tA .Her i ng,a nd PW Consul t i ng Group LLC,each

obt ai ned f undsaspart ,and i nf urt her ance oft hesec ur i t i esvi ol at i onsal l eged abovew i t houta

l e g i t i ma t ec l a i mt ot h os ef u n ds , a ndun de rt hos ec i r c ums t a nc e si ti sn ot j us t ,e q ui t a bl eo r

cons ci onabl ef ort he m t or e t ai nt he f unds . Ber nar d H .But t sJr .PA ,But t sHol di ng Cor por at i on,

Gl obalW or l dw i deFundi ng Venmr es,l nc. ,M ar gar etA.H e ri ng,a nd PW Cons ul t i ng Gr oup I nc.

we r eu n j us t l ye mi c he d.
1 34. Be r nar d H .But t sJ r .PA,But t sHol di ng Coz por at i on,Gl obalW or l dwi de Fundi ng Vent ur es ,l nc. ,M a r gar etA.Her i ng,and PW Cons ul t i ng Gr oup l nc.s houl de ac h be or de re dt o di s gor ge t he f undst hey r ecei ve d asa r es ul toft hedef e ndant s'vi ol at i onsoft he f eder als ec ur i t i es
l aws.

PR AYER FOR R ELIEF The SEC r es pect ful l y re ques t st hatt hi sCour t :
1.

Ent er an Or de rf i ndi ng t hat Def endant s W or l dwi de Fundi ng, Gei vel i s,But t s,A ni s ky,
20

Case 1:13-cv-23115-JEM Document 1 Entered on FLSD Docket 08/29/2013 Page 21 of 22

Expr essCom m e r ci al ,Ba r m er ,and Baggscom m i t t ed t he vi ol at i onsal l ege di nt hi sc om pl ai nt ,a nd

unl essr es t r ai ned wi l lc ont i nue t o do s o. ll .

En t e ra ni n j u nc t i on,pu r s ua ntt o Rul e65( d)o ft he Fe de r a lRul e sofCi vi lPr oc e d ur e , pe r ma ne nt l yr e s t r a i ni nga nd e n j oi n i ngDe f e nd a nt sW o r l dwi deFund i ng,Ge i ve l i s ,But t s ,Ani s ky ,
Expr es s Comm er ci al ,Banner ,and Baggs f r om f urt hervi ol at i ons oft he 1 aw and r t z l esal l eged i n t hi scom pl ai nt .
1 1 1.

Ent e r an Or der r e qui r i ng Def e ndant s W or l dwi de Fundi ng, Gei vel i s, But t s , Ani s ky,

Expr ess Comm e r ci al , Banner ,a nd Baggs t o pr e par e account i ngs of al lf t mds r ec ei ved f r om i nves t orsi dent i f yi ng t he na m e of eac hi nve s t or ,t he dol l aram ountr ece i ved,da t e ofr ecei pt ,and
how t hos ef undswer es pent .
lV.

Ent e ra n Or der r equi r i ng Def endant s W or l dwi de Fundi ng, G ei vel i s , But t s , Ani s ky,

Expr ess Comm e r ci al , Banner ,and Baggs t o di s gor ge al li l l got t en gai ns i nt he f or m of any

benef i t s of any ki nd der i ved f r om t he i l l e galconductal l eged i nt hi s compl ai nt ,t oget he r wi t h

pr e j udg me nta n dpos tj ud gme nti nt e r e s ta n dt or e pa t r i a t et ot her e gi s t l ' yoft heCo ur ta nyi nve s t or f u n dsbe i nghe l di nf or e i g nj u r i s d i c t i o ns .
Ent e ra n Or der r equi r i ng Def endant s W or l dw i de Fundi ng, Gei vel i s , But t s , Ani s ky, Expr es s Com m er ci a l ,Banner , and Baggs t o pay t hi r dt i er ci vi l m oney penal t i es pur s uant t o

Se c ur i t i e sAc tSe c t i o n2 0( d )( 1 5U. S. C.j77 t ( d) )a ndExc h a ngeAc tSe c t i on21 ( d)( 1 5U. S. C.j
78 u( d) ) .
Vl .

Ent eran Or derr equi r i ng Be r nar d H .But t s,J r.PA ;But t sH ol di ng Cor por at i on;Gl obal
W or l dw i de Fundi ng Vent ur es ,l nc. , 'M a r gar e tA .H e l i ng;and PW Cons ul t i ng Gr oup LLC t o

di s gor ge f undst hatt hey r ecei ve dt ha tw er et hepr ocee dsofi l l egala ct i vi t i esofot he rdef e ndant s.

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

Vll . Or ders uc h ot herr el i efast hi sCourtdeem snecess ar y and appr opri at e.

DATED : Augus t29,2013

Res

t f t l l l ys ubm i t t ed,
s

es l l e J. u

Le s l i eJ . Hug hs ,( Spe c i a la rNo. A55 005 03 )

Sec ur i t i esa nd Exchange Comm i s si on 1801Cal i f or ni a St r ee t ,Sui t e 1500 Denver ,Col or ado 80202 M ai n num be r3038441000 Di r ectnumber3038441086 Fax number303844-1068

Ema i l : Hug he s t l@ s e c. go v

22