The Cincinnati Enquirer

A federal judge has ordered two Hamilton County men to repay $17.4 million for their part in defrauding more than 600 investors in 11 states through a "prime bank" trading scheme.

Judge David F. Hamilton also ordered John H. Brinker Jr. of Pierce Township and Gary J. Bentz of Loveland to pay an additional $110,000 each in civil penalties for their role in the scheme.

The judge also ordered Steadfast Ministries Inc., a Cincinnati charitable organization incorporated by Brinker and others, to pay $265,300 in disgorgement and prejudgment interest for funds it received from the scheme, the Securities and Exchange Commission said.

The charity was among the defendants in the case, which included an offshore bank called Wellington Bank & Trust.

Although the ruling was made last month, the SEC didn't announce the decision until Thursday.

Hamilton then agreed to let receiver Jim Knauer, who is trying to find assets to repay investors, hire a lawyer in Grenada to assist in tracking down the money. The Grenadian counsel would get 10 percent of whatever assets that can be found.

Knauer said in October 2002 that he had little realistic hope of finding any assets from the bank. He was unavailable for comment Thursday night.

In February 2001, the SEC sued Brinker, Bentz and other defendants for operating the fraudulent scheme that raised $20.3 million from the investors. At the same time, Hamilton issued a permanent injunction that prohibits Brinker, Bentz and other defendants from engaging in fraud and other misconduct in violation of the federal securities law.

The injunction order also froze their assets. In previous civil contempt proceedings, the SEC charged that shortly before the asset freeze, Bentz obtained about $142,000 by borrowing against his assets, and that after it, he spent all or part of the borrowed funds in violation of the freeze. The court ruled that Bentz violated the freeze, and held him in civil contempt.

Bentz was subsequently convicted of criminal contempt for the same conduct and sentenced to three months imprisonment.