Washington State Department of Financial Institutions


Washington State
Department of Financial Institutions

Securities Division
PO Box 9033, Olympia, Washington 98507-9033

Phone:(360) 902-8760


(Olympia, July 29, 2002)Criminal charges have been filed by the Santa Clara County, California District Attorney's Office in connection with a Securities fraud scheme estimated to have bilked nearly $100 million from 1300 people nationwide.  The scheme involved so-called "International Prime Bank Notes" sold by Resource Development International, based in Tacoma, Washington.

Anyone having questions or information concerning this case is encouraged to contact Washington State Dept. of Financial Information Securities Enforcement Attorney Martin Cordell at 360-902-8772 (or 1-877-RING DFI (1-877-746-4334)), or Santa Clara County District Attorney's Office Investigator Dalton Rolen at 408-792-2939 in San Jose, California.

UPDATE 1/7/03 - Securities and Exchange Commission initiates proceedings in Resource Development International case.


News Alert: Securities Division investigates Resource Development International
 in alleged "prime bank"/offshore investment scam

(Olympia, June 10, 2002) The Securities Division is investigating a Tacoma-based company, Resource Development International (RDI), and its principals, James Edwards and his son David Edwards, both of Tacoma.

On March 25, 2002, the Securities and Exchange Commission (SEC) obtained a temporary restraining order, asset freezes, and other relief in connection with an alleged investment scheme operated by James and David Edwards. The SEC alleges that the Edwards, along with Gerald J. Stock, Kevin Lynds, and William Whelan, marketed the Resource Development International, Jade Asset Management and Intercoastal Group LLC trading programs by telling investors that their funds would be used overseas to trade financial instruments with the "top world banks" and that the Federal Reserve monitored the program.

The Securities Division requests that investors in RDI and related investments complete a complaint form and send it to the Securities Division with copies of all documents relating to the investment -- including, but not limited to, the front and back of cancelled checks or wire instructions.

The Securities Division complaint form may be accessed on the Web at: http://www.dfi.wa.gov/sd/investor_online_complaint.htm  or it can be downloaded at: http://www.dfi.wa.gov/sd/sd_complaint.pdf

For more information on the SEC investigation, see http://www.sec.gov/litigation/litreleases/lr17438.htm

For information on prime bank, offshore and other investment scams, see http://www.sec.gov/divisions/enforce/primebank/howtheywork.shtml

and http://www.dfi.wa.gov/sd/scamsbrochure.htm.