UNITED STATES SECURITIES AND EXCHANGE COMMISSION LITIGATION RELEASE NO. 15806 / July 13, 1998 SECURITIES AND EXCHANGE COMMISSION v. GLENN A. SCHUSTER, ET AL. SECURITIES AND EXCHANGE COMMISSION v. GLENN A. SCHUSTER, ET AL. Civil Action No. H-92-3598, USDC/SD TX [HOUSTON] The Securities and Exchange Commission announced that on June 26, 1998, a Final Judgment as to defendant Leslie Mersky ("Mersky") was entered in United States District Court for the Southern District of Texas. Without admitting or denying the allegations in the Commission's complaint, Mersky consented to be permanently enjoined from future violations of the anti-fraud provisions of the federal securities laws found in Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, and Rules 10b-5 and 10b-6 thereunder. The Commission's complaint, filed November 23, 1992, alleged that Mersky, and others, participated in a scheme to distribute and manipulate the securities of Bancus Richmond, Inc., a now defunct penny stock company he and Glenn Schuster controlled. The Court also ordered Mersky to pay disgorgement in the amount of $114,782.14, plus prejudgment interest of $127,352.80, representing his gains from the conduct alleged in the complaint. However, all disgorgement and prejudgment interest was waived based on Mersky's demonstrated financial inability to pay. LESLIE MERSKY PERMANENTLY ENJOINED The Commission announced that on June 26, a Final Judgment as to defendant Leslie Mersky ("Mersky") was entered in United States District Court for the Southern District of Texas. Without admitting or denying the allegations in the Commission's complaint, Mersky consented to be permanently enjoined from future violations of the anti-fraud provisions of the federal securities laws found in Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, and Rules 10b-5 and 10b-6 thereunder. The Commission's complaint, filed November 23, 1992, alleged that Mersky, and others, participated in a scheme to distribute and manipulate the securities of Bancus Richmond, Inc., a now defunct penny stock company he and Glenn Schuster controlled. The Court also ordered Mersky to pay disgorgement in the amount of $114,782.14, plus prejudgment interest of $127,352.80, representing his gains from the conduct alleged in the complaint. However, all disgorgement and prejudgment interest was waived based on Mersky's demonstrated financial inability to pay. [Securities and Exchange Commission V. Glenn A. Schuster, et al., H-92-3598, USDC/SD TX ] (LR- 15806) Phillip W. Offill Trial Counsel Fort Worth District Office 817/978-6450