U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20890 / February 9, 2009
Securities and Exchange Commission v. Craig T. Jolly and Quest Holdings, Inc., Case No. CV-09-38-EFS (E.D. Wash. filed February 9, 2009)

The Securities and Exchange Commission today filed securities fraud and other charges against Quest Holdings, Inc. and its principal, Craig T. Jolly, of Spokane, Washington, for operating an internet-based Ponzi scheme promising monthly returns of up to 19.5 percent.

According to the complaint, defendants Quest and Jolly raised approximately $4 million from more than 200 investors, located throughout the country and abroad, through the issuance of short-term securities promising monthly interest rates as high as 19.5 percent. Jolly raised funds by offering and selling Quest securities through Quest's website, EarnByLoaning.com. As set forth in the complaint, Jolly claimed to be active in the investment community and financial markets and falsely assured investors that Quest had a reserve fund to ensure that they would be repaid.