UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.

LITIGATION RELEASE NO. 16977/ April 26, 2001

SEC V. ELFINDEPAN, S.A., SOUTHERN FINANCIAL GROUP, TRACY CALVIN DUNLAP, JR., BARRY LOWE, JAMES L. McCALL, STRATEGIC ASSET FUNDS, S.A., EDMUND MENDEN, MICHAEL MENDEN and MICHAEL ZIEGLMEIER, defendants, and C.R.C.C. LLC and PATRICK WILSON, relief defendants.1:00CV00742 (August 10, 2000)

COURT OF APPEALS AFFIRMS TRIAL COURT'S ORDER INCARCERATING DUNLAP FOR CONTEMPT

On March 15, 2001, the U.S. District Court for the Middle District of North Carolina adjudged defendants Elfindepan, S.A., Southern Financial Group and Tracy Calvin Dunlap, Jr. to be in civil contempt of court based on their refusal to obey court orders requiring them to produce documents, and account for and repatriate investor funds, related to their allegedly fraudulent investment schemes. The U.S. District Court ordered defendants to comply with its orders by March 20, 2001, or face the imposition of a contempt sanction designed to compel their compliance.

Defendants refused to comply as ordered based on their assertion of Dunlap's personal Fifth Amendment privilege against self-incrimination. Accordingly, on March 23, 2001, the U.S. District Court ordered that Dunlap, in his representative capacity as the agent and control person of Elfindepan and Southern Financial, be taken into custody and incarcerated until such time as he causes Elfindepan and Southern Financial to comply with the relevant orders.

Dunlap appealed the order of incarceration. On April 23, 2001, the U.S. Court of Appeals for the Fourth Circuit affirmed the order incarcerating Dunlap in his representative capacity as the agent and control person of Elfindepan and Southern Financial (case nos. 01-1382 and 01-1391). Recognizing that artificial entities like Elfindepan and Southern Financial Group have no privilege against self-incrimination, the U.S. Court of Appeals ruled that Dunlap could not assert his personal privilege to avoid his representative obligation to cause Elfindepan and Southern Financial Group to comply with the U.S. District Court's orders. Dunlap remains incarcerated.

Prior Litigation Releases:
http://www.sec.gov/litigation/litreleases/lr16649.htm
http://www.sec.gov/litigation/litreleases/lr16892.htm

from: http://www.sec.gov/litigation/litreleases/lr16977.htm

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.

LITIGATION RELEASE NO. 16892 / February 8, 2001

SEC V. ELFINDEPAN, S.A., SOUTHERN FINANCIAL GROUP, TRACY CALVIN DUNLAP, JR., BARRY LOWE, JAMES L. McCALL, STRATEGIC ASSET FUNDS, S.A., EDMUND MENDEN, MICHAEL MENDEN and MICHAEL ZIEGLMEIER, defendants, and C.R.C.C. LLC and PATRICK WILSON, relief defendants. (USDC Middle District of North Carolina, 1:00CV00742)

COMMISSION AMENDS ELFINDEPAN COMPLAINT TO INCLUDE
ADDITIONAL PARTIES AND FRAUDULENT ACTIVITIES

The Securities and Exchange Commission on February 6, 2001 filed an amended complaint in the United States District Court for the Middle District of North Carolina naming additional defendants and relief defendants, alleging violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

James L. McCall, Strategic Asset Funds, S.A., Edmund Menden, Michael Menden and Michael Zieglmeier join Tracy Calvin Dunlap, Jr., Elfindepan, S.A., Southern Financial Group and Barry Lowe as defendants in the action. C.R.C.C. LLC and Patrick Wilson were named as relief defendants.

The amended complaint alleges that McCall, age 67, a retired chiropractor and self-styled "tax consultant" from Lafayette, Indiana, acting on his own and with Dunlap and Elfindepan, misappropriated millions of dollars from innocent investors through a fraudulent investment scheme commonly referred to as a "Prime Bank" scheme.

The amended complaint also alleges that Edmund Menden, age 66, an insurance salesman and registered securities broker, his son Michael Menden, age 42, a former insurance salesman and network/multi-level marketing salesman, and Zieglmeier, age 50, Michael Menden's business partner in their network/multi-level marketing activities, all three from the Minneapolis, Minnesota area, sold the fraudulent investment products of McCall, Dunlap and Elfindepan.

The amended complaint also alleges that Dunlap, acting through Strategic Asset Funds, S.A., incorporated by Dunlap in Panama in May 2000 but with a business address in Statesville, North Carolina, perpetrated over the Internet a variation of his Elfindepan scam. The Commission alleges that Dunlap and Strategic Asset Funds misappropriated over $6.5 million dollars from more than 860 investors across the United States by means of a fraudulent solicitation (guaranteed returns up to 30% monthly for a 12 month return of 360%) offered to the public through an investment website.

The amended complaint also alleges that relief defendants C.R.C.C., a limited liability company registered in Wyoming, with its office in San Diego, California, and Wilson, the control person of C.R.C.C., based in Duluth, Georgia, received $7 million in proceeds of Dunlap and Elfindepan's fraudulent activities and will be unjustly enriched at the expense of innocent investors if allowed to keep these funds.

For more information, please contact Eric N. Miller, Assistant Chief Litigation Counsel, telephone number (202) 942-7275.

Prior Litigation Release: http://www.sec.gov/litigation/admin/lr16649.htm

from: http://www.sec.gov/litigation/admin/lr16893.htm

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.

LITIGATION RELEASE NO. 16649 / August 10, 2000

SEC V. ELFINDEPAN, S.A., SOUTHERN FINANCIAL GROUP, TRACY CALVIN DUNLAP, JR. AND BARRY LOWE, 1:00CV00742 (August 10, 2000)

COMMISSION SEEKS TEMPORARY RESTRAINING ORDER AND ASSET FREEZE ENTERED AGAINST ELFINDEPAN, S.A. AND THREE OTHERS

The Securities and Exchange Commission today filed a fraud case in the United States District Court for the Middle District of North Carolina against Elfindepan, S.A., Southern Financial Group, Tracy Calvin Dunlap, Jr. and Barry Lowe. The Commission's complaint alleges that from as early as March 1999 to the present, the defendants defrauded investors nationwide in an apparent Ponzi or pyramid scheme in connection with the unregistered offer and sale of the securities of Elfindepan, a supposed Costa Rican financial company with offices in Greensboro, North Carolina. Defendants allegedly raised at least $13.5 million from the investing public in at least nine states. The Commission seeks a temporary restraining order that, among other things, would freeze the assets of defendants, including $2.7 million in a South Carolina bank account and prohibit defendants from accepting or depositing additional funds from investors. The Commission also seeks to temporarily restrain defendants from violations of the antifraud and registration provisions of the federal securities laws.

The complaint alleges that in connection with these offerings, defendants knowingly and recklessly made, and caused others to make, numerous materially false and misleading statements to investors. Among other things, defendants promised investors highly favorable returns on investments (as much as 40-50% per month), without any reasonable basis for such claims, and falsely stated that the investments were secure, including false claims that Elfindepan investments were associated with the International Monetary Fund and the World Bank. Investors were told that Elfindepan had been in business for 23 years, when in fact the company was less than a year and a half old.

The complaint also alleges that defendants knowingly or recklessly failed to disclose certain material facts to investors regarding Elfindepan. Defendants have omitted to disclose that funds are in fact being disbursed inconsistent with Elfindepan's supposed business purpose. Investors have not been told that proceeds from later investors are being used to pay early investors and distributors, in classic Ponzi or pyramid scheme fashion. Investors have not been told that Dunlap has complete control of Elfindepan's finances, and has paid substantial amounts of investor money to his family members, and to support his personal living expenses. While defendants claim Elfindepan provides loans to businesses and individuals, and engages in factoring for companies with large receivables and cashflow problems, defendants failed to disclose any of the risks inherent in such activities and therefore in investing in Elfindepan. Defendants have failed to provide investors any detailed information about Elfindepan and its business, including any financial information.

The complaint further alleges that the defendants have publicly solicited investors through a website posted on the internet, through organized investor meetings, and through personal contacts by individuals acting as agents or "distributors" of Elfindepan. Investors were solicited and encouraged to invest moneys from their IRA and other retirement accounts. Defendants Southern Financial and Lowe, of Greensboro, North Carolina, and Dunlap facilitated these transfers, and failed to disclose to investors that monies were not held in IRA custodial accounts.

from: http://www.sec.gov/litigation/litreleases/lr16649.htm