Department of Commerce and Regulation
For Immediate Release: April 25, 2001
For more information: Mr. Gail Sheppick, 773-4823

(Pierre) - David Volk, Secretary of the Department of Commerce and Regulation, renewed his warning to South Dakota residents about an investment fraud offered by TriWest Investment Club. According to Volk there has been increased activity with this scheme. 

"While we have not had a lot of complaints yet", he said, "like all "Ponzi" schemes where principal and interest payments to early investors are paid with funds raised from later investors, it is just a matter of time before people start losing their money." 

The promoters may be subject to prosecution for violating securities laws by selling unregistered securities and acting as unregistered broker-dealers, says Volk. One of the reasons that this scheme has spread so quickly is that the promoters get paid a referral bonus of $150.00 on each $1,000 invested, plus $15.00 per month for twelve months. 

Those that do not understand fraudulent schemes may be lured by claims that a $1,000 investment in the TriWest Growth Fund will grow well over $250,000 in 5 years. 

These schemes typically have investors wire money offshore where the money is difficult to trace and hard to recover. Volk said that if you are solicited to invest in TriWest, call the Division of Securities rather than making the wire transfer. 

You can contact the Division of Securities by writing 118 West Capitol Avenue, Pierre, SD 57501 or by calling 605-773-4823. The Division's website also contains information for consumers on purchasing securities.