$5M judgment obtained against Idaho investment promoters

Ada County District Judge Richard Greenwood has entered a civil money judgment and a permanent injunction against Jamison Potter, Adam Bentley, North American Capital Trust, LLC, Pacific Partners, LLC and Silverstone Equity Group, LLC, all formerly of the Treasure Valley.

The Idaho Department of Finance sued the defendants in March 2009, alleging that the defendants violated provisions of the Idaho Uniform Securities Act. The state’s complaint alleged that the promoters misrepresented to investors that their investment proceeds totaling more than $5 million would be used to purchase insurance or life settlement policies. Life settlement instruments are essentially an investment in the death benefit of an unrelated insured party.

The complaint further alleged that the defendants never purchased insurance policies or death benefit interest and instead forwarded the investment funds to out-of-state promoters, who in turn sent the money to another purported investment operating in the country of Panama.

Defendant Potter consented to the entry of the judgment and permanent injunction and is ordered to pay restitution in the amount of $5,373,464. The Department obtained a default judgment against defendants Bentley, North American Capital Trust, Pacific Partners, and Silverstone Equity Group.

In the order, Bentley, North American Capital Trust, Pacific Partners, and Silverstone Equity Group were assessed a civil penalty of $200,000, ordered to pay investor restitution of $5,373,464 and were adjudged to have violated the registration and anti-fraud provisions of the Idaho Uniform Securities Act. Also, the Court permanently enjoined all defendants from selling securities in Idaho.