ASC rules Gold-Quest International Investment Scheme a Ponzi and Pyramid
Scheme

CALGARY , Jan. 21 /CNW/ - The Alberta Securities Commission (ASC) has found that Nevada-based Gold-Quest International Corp. raised approximately US$29 million from approximately 2940 investors, with more than US$2 million from approximately 412 Alberta investors, through a sham investment scheme that was both a classic Ponzi scheme and a classic pyramid scheme. Gold-Quest International investors were enticed with promises of 87.5% returns from foreign currency trading, as well as promises of referral payments for the recruitment of new investors.

An ASC panel determined that, contrary to information provided to Gold-Quest International investors, Gold-Quest International depended on the influx of new investors' money to make its payments to existing investors. The ASC panel also noted that millions of dollars of Gold-Quest International investors' money made their way to promoters of Gold-Quest International and were apparently used to pay their personal expenses.

The ASC panel ruled that Gold-Quest International illegally traded in and distributed securities in Alberta and that David Michael Greene , John Jenkins , Michael McGee and Delroy Atwood illegally distributed securities in Alberta. The ASC panel also ruled that Gold-Quest International and Greene made misleading and untrue statements about the anticipated returns and the safety of investments in Gold-Quest International and that Jenkins, McGee and Atwood authorized, permitted or acquiesced in such misconduct by Gold-Quest International.

The ASC panel set deadlines, up to and including March 5, 2010 , for the filing of written submissions regarding sanctioning, and the parties have until March 10, 2010 to indicate if they wish to make oral submissions.

A copy of the decision is available on the ASC website at www.albertasecurities.com.

The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted to foster a fair and efficient capital market in Alberta and to protect investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.

For further information: For Media Inquiries: Mark Dickey, Senior Communications Advisor, [phone]; For Investor Inquiries: ASC Public Inquiries, Toll Free 1-877-355-4488