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

Litigation Release No. 16915 / February 28, 2001

SEC v. John E. Brinker, Jr., Gary J. Bentz, Castlerock Consulting, LLC, Guardian First Limited, Inc. (a Nevada corporation), Guardian First Limited, Inc. (a Grenada corporation), Wellington Bank and Trust, Ltd., Wellington Capital Holdings Ltd., Inc., Wellington Capital Holdings, Ltd., Wellington International Investments, Inc., Wellington First International Investments, Inc. and all subsequently numbered Wellington International Investments, Inc. entities, Alpha Advantage II, Inc., Eleven Eighty-Five, LP, and Steadfast Ministries, Inc., Civil Action No. IP01-0259 C-H/G.

The U.S. Securities and Exchange Commission ("Commission") announced today that a federal court in Indianapolis has entered an order permanently enjoining Wellington Bank and Trust, Ltd ("Wellington Bank"), John E. Brinker, Jr. ("Brinker"), Gary J. Bentz ("Bentz"), and entities they control or with which they are associated, from engaging in fraud, unregistered sales of securities, and acting as unregistered brokers, in violation of federal securities laws. The order also freezes the assets of the defendants and relief defendants. Finally, the order appoints an examiner to determine how funds of allegedly defrauded investors were distributed and spent. The Court will determine later the amount of ill-gotten gains, if any, defendants and relief defendants must disgorge and the amount of civil penalties, if any, to be paid by defendants.

In its complaint, the Commission alleges that the defendants operated a "Ponzi" scheme that raised approximately $7.1 million from over 200 investors in eleven states. Most investors are Indiana residents and several are elderly. Specifically, the complaint alleges that from the Cincinnati, Ohio offices of Castlerock Consulting, LLC ("Castlerock"), Brinker and Bentz sold unregistered securities in an investment program offered by Wellington Bank, which is based in the nation of Grenada. According to the complaint, Brinker and Bentz represented to investors that the program would generate annual returns of 50% or more through trading in "prime bank" instruments. Numerous government agencies, including the Commission, the Federal Deposit Insurance Corporation and the Board of Governors of the Federal Reserve System, however, have warned the public that trading programs in prime bank instruments do not exist and are fraudulent. The complaint further alleges that of the $7.1 million they raised, Brinker and Bentz diverted at least $5.4 million to themselves, entities they control, and others with no relation to a legitimate investment purpose.

Besides Brinker, Bentz, Castlerock, and Wellington Bank, the defendants are several U.S., Grenadan, and Bahamian corporate entities that helped facilitate the scheme. The complaint also names as relief defendants three companies associated with Brinker and Bentz, Alpha Advantage II, Inc., Eleven Eighty-Five, LP and Steadfast Ministries, Inc., that received investor money.

The defendants and relief defendants consented to the court's order without admitting or denying the allegations in the complaint. Specifically, the order: (1) permanently enjoins all defendants from engaging in fraud or the sale of unregistered securities in violation 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; (2) and permanently enjoins Castlerock, Wellington Capital Holdings Limited, Inc., Wellington Capital Holdings, Ltd., Brinker, and Bentz from acting as unregistered brokers in violation of Sections 15(a) and 15(c) of the Securities Exchange Act of 1934 and Rule 15c1-2 thereunder. The order was entered on February 27, 2001, by U.S. District Judge David F. Hamilton, in S.E.C. v. John E. Brinker, Jr., et. al., (Case No. IP01 0259 C-H/G).

The Commission acknowledges the assistance of the Indiana Securities Division, the Kentucky Division of Securities, and the Delaware Division of Securities in this matter.

from: http://www.sec.gov/litigation/litreleases/lr16915.htm

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934
RELEASE NO. 44671 / August 9, 2001

ADMINISTRATIVE PROCEEDING
FILE NO. 3-10547

I.

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be and hereby are instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") against John E. Brinker, Jr. ("Brinker") and Gary J. Bentz ("Bentz") (collectively "Respondents").

In anticipation of the institution of these proceedings, Respondents have submitted Offers of Settlement to the Commission that the Commission has determined to accept. Solely for the purposes of these proceedings and any other proceedings brought by or on behalf of the Commission or in which the Commission is a party and without admitting or denying the findings contained in this order, except as to the entry of the permanent injunction described in paragraph II.H. below and the Commission's jurisdiction over them and over the subject matter of this proceeding, which are admitted, Respondents consent to the institution of public administrative proceedings, and the findings and remedial sanctions set forth below.

II.

On the basis of this Order and the Offers of Settlement submitted by Respondents, the Commission finds that:

A. Brinker, age 54, resides in Cincinnati, Ohio. He worked as a registered representative of three registered broker-dealers during 1992-98. Since then, Brinker has not been affiliated with any registered broker-dealer or registered with the Commission in any capacity.

B. Bentz, age 44, resides in Loveland, Ohio. He worked as a registered representative for two registered broker-dealers during 1994-99. Since then, Bentz has not been affiliated with any registered broker-dealer or registered with the Commission in any capacity.

C. Castlerock Consulting LLC ("Castlerock") is an Ohio limited liability company. Brinker is Castlerock's manager. Bentz is also a Castlerock employee. Castlerock has never been registered with the Commission in any capacity.

D. Wellington Capital Holdings, Ltd., Inc. ("Wellington Capital Nevada") and Wellington Capital Holdings, Ltd. ("Wellington Capital Bahamas") (collectively "Wellington Capital") were incorporated in Nevada and the Bahamas respectively. Brinker and Bentz are the officers of Wellington Capital Nevada and the directors of Wellington Capital Bahamas. Neither Wellington entity has ever been registered with the Commission in any capacity.

E. During the period of June 1998 through February 27, 2001, Castlerock and Wellington Capital engaged in the business of effecting transactions in securities for the accounts of others and Brinker and Bentz were associated with Castlerock and Wellington Capital.

F. On February 27, 2001, the Commission filed a complaint in the United States District Court for the Southern District of Indiana against Brinker, Bentz, Castlerock, Wellington Capital Nevada, Wellington Capital Bahamas, and several other entities, captioned SEC v. John E. Brinker, et al., Civil Action No. IP01-0259 C-H/G.

G. The Commission's complaint alleges as follows: From at least June 1998 through the date of the complaint, Brinker, Bentz, and others violated federal securities laws by engaging in a Ponzi scheme that raised at least $7.1 million from over 200 investors. In the scheme, Brinker, Bentz, and others offered and sold securities in a trading program that they represented would generate annual returns of 50% or more through trading in prime bank instruments. Brinker, Bentz, and others misrepresented and omitted material facts regarding the use of investor funds, the safety of investor funds, the existence of prime bank trading programs, guarantees regarding the investment, and the existence of insurance on the investment. Castlerock was the nerve center through which Brinker and Bentz transacted business with investors. Wellington Capital corresponded with investors and provided them forms to process their investments. Wellington Capital Nevada received investor funds in its bank account, which Brinker and Bentz controlled. Of the $7.1 million in investor funds raised and deposited in the Wellington Capital Nevada account, Brinker and Bentz transferred at least $5.4 million to themselves, Castlerock, investors, and other individuals and entities with no apparent involvement in any trading program. The complaint further alleges that Brinker and Bentz violated antifraud provisions of the federal securities laws, and that Castlerock and Wellington Capital violated, and Brinker and Bentz aided and abetted violations of, the broker-dealer registration provisions of the federal securities laws.

H. On February 27, 2001, in SEC v. Brinker, the Honorable David F. Hamilton entered an order permanently enjoining Brinker and Bentz from violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Sections 10(b), 15(a), and 15(c)(1) of the Exchange Act and Rules 10b-5 and 15c1-2 thereunder. Brinker and Bentz consented to the order without admitting or denying the above-described allegations in the complaint.

III.

In view of the foregoing, the Commission deems it appropriate and in the public interest to accept the Offers of Settlement of Respondents.

Accordingly, IT IS ORDERED that Respondents John E. Brinker, Jr. and Gary J. Bentz are barred from association with any broker or dealer.

By the Commission.

Jonathan G. Katz
Secretary

from: http://www.sec.gov/litigation/admin/34-44671.htm

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

Litigation Release No. 17152 / September 26, 2001

SEC v. John E. Brinker, Jr., Gary J. Bentz, et al., Civil Action No. IP01-0259 C-H/G (S.D. Ind.)

The U.S. Securities and Exchange Commission ("Commission") announced today that it filed a motion seeking to have Gary J. Bentz ("Bentz") held in civil contempt.

In February 2001, Hon. David F. Hamilton of the U.S. District Court in Indianapolis entered an order permanently enjoining Bentz and other defendants from engaging in fraud and other misconduct in violation of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Sections 10(b), 15(a), and 15(c) of the Securities Exchange Act of 1934, and Rules 10b-5 and 15c1-2 thereunder. The Commission's complaint alleges that Bentz and others operated a Ponzi scheme which raised approximately $7.1 million from hundreds of investors in a "prime bank" trading program. Bentz and the other defendants consented to the injunction order without admitting or denying the allegations in the complaint. (For more detail on the Commission's allegations and the injunction proceedings, see Litigation Release No.16915.)

The injunction order also froze the assets of Bentz and the other defendants. In its current motion, the Commission alleges that shortly before the asset freeze, Bentz obtained approximately $72,000 through mortgage loans, and after the freeze, he spent those funds in violation of the freeze. Accordingly, the motion asks the court to hold Bentz in civil contempt and order him to replace the spent funds.

from: http://www.sec.gov/litigation/litreleases/lr17152.htm