U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 20641 / July 11, 2008

U.S. v. Ralph Gregory Gibbs, Criminal No. 3:08CR100 (E.D. Va.)

Ralph Gregory Gibbs Sentenced to More Than Five Years in Prison for Mail Fraud in Connection with a Nationwide Ponzi Scheme

The Securities and Exchange Commission announced today, that in a judgment entered on July 2, 2008, Ralph Gregory Gibbs was sentenced in the United States District Court for the Eastern District of Virginia to 63 months (5 years and 3 months) in prison following his guilty plea to mail fraud. In support of his plea, Gibbs admitted that he engaged in a scheme to defraud numerous investors through a nationwide Foreign Currency Market ("FOREX") Ponzi scheme.

On March 19, 2008, Gibbs pled guilty to mail fraud and the Commission filed a settled civil injunctive action in the U.S. District Court for the Eastern District of Virginia against Gibbs for operating a Ponzi scheme. S.E.C. v. Ralph Gregory Gibbs, Civil Action No. 3:08 CV 174 (E.D. Va.). The Commission's Complaint alleges that since at least April 2005 through February 2007, Gibbs, doing business as Golden Summit Group, raised approximately $21 million from at least 150 investors in at least 25 states through the offer and sale of securities. Based on Gibbs' promises that they would receive large returns on their investments and guaranteed returns of their principal, a significant number of the investors liquidated their retirement savings or obtained home equity loans to invest the money with Gibbs.

Simultaneous with the filing of the Commission's Complaint, and without admitting or denying the Commission's allegations, Gibbs consented to the entry of: a final judgment permanently enjoining him from future 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; ordering him to pay disgorgement, plus prejudgment interest thereon, totaling $21,421,418, but based upon Gibbs' representations in his sworn statement of financial condition, waiving payment of all but the monies and assets Gibbs placed into a constructive trust for investors, namely $4,142,493 in cash, plus accumulated interest, two real estate properties and certain personal property; and not imposing a civil penalty based upon Gibbs' representations in his sworn statement of financial condition; and an order appointing a receiver to assume control of the constructive trust for liquidation and ultimate distribution to the injured investors. On March 27, 2008, the Court entered the Final Judgment and ordered the appointment of the receiver.

For further information, please see Litigation Rel. No. 20503 (March 19, 2008).

http://www.sec.gov/litigation/litreleases/2008/lr20641.htm