Tracy Calvin Dunlap Jr.

Much of that money went into the pockets of Tracy Calvin Dunlap Jr., a Greensboro businessman who grew up in Rockingham County, authorities say.A federal grand jury indicted Dunlap this week on 11 counts of fraud and related charges.

The indictment says Dunlap was president of a company that sold fictitious mutual funds through an online investment club.And that was just one of several illegal schemes run by Dunlap, according to a federal affidavit.

"There were hundreds of investors," said Eric N. Miller, an attorney with the U.S. Securities and Exchange Commission, which has a pending civil case against Dunlap and six others connected with Dunlap's several companies.
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Here's how it worked: Dunlap and Barry Lowe, a Greensboro businessman who owns an industrial plumbing business, ran a company called Elfindepan that ostensibly sold securities.
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But Dunlap was not happy with just his considerable earnings from Elfindepan, authorities say.So he set up an online "investment club" called Le Club Prive.The club was swanky, with memberships costing between $1,500 to $2,500.Members were allowed to invest in mutual funds offered through Strategic Asset Funds, another company ran by Dunlap.

According to the Le Club Prive Web site, Strategic Asset Funds "was developed out of a need for a safe and diversified high-yield vehicle for its members."The Web site promised monthly returns ranging from 20 to 30 percent, depending on the level of investment.Investors were told to fax a signed check to a number provided at Le Club Prive.

But it was a sham, authorities say.The roughly 750 investors who sunk $6.2 million into the funds during June and July 2000 never got a return on their investments.
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Instead, the investors' money was funneled into a Rock Hill, S.C., bank and then dispersed to personal bank accounts belonging to Dunlap and his relatives, according to the indictment.

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A federal judge has frozen about $4.5 million related to Elfindepan and other businesses allegedly run by Dunlap.

Federal authorities have Dunlap in custody, where he will remain at least until his detention hearing on Friday.If convicted, he could face up to 75 years in prison.

Contact Phillip Reese

at 373-7021 or at preese@news-record.com

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