The SEC claims that Brost led a sales team, called Structurists, which held investment seminars where they claimed to be independent financial professionals. At the seminars, the men allegedly pushed investments in gold mining businesses that could generate annual returns ranging from 18 to 36 percent. The SEC also alleges that Brost and the Structurists promised that all investments were collateralized by gold.

The complaint claims that Brost and his sales team sold shares in various entities and then through a unique "structuring" process that ultimately led to the transfer of funds from Syndicated Gold Depository to Merendon Mining Corp. Ltd. Apparently, Sorenson claims to be an independent businessman making loans to Merendon, but in reality controlled the company.

However, in reality, the SEC claims that investor funds were used to support various shell companies owned by Brost and Sorenson, a fact that was apparently not disclosed. Allegedly the money was filtered through bank accounts in various countries including the United States, Canada, the Bahamas, and Portugal. The SEC claims that funds were used primarily to make interest payments to investors as well as for personal use of Brost and Sorenson.