LITIGATION RELEASE NO. 17106 / August 21, 2001

UNITED STATES v. MICHAEL D. RICHMOND (United States District Court for the District of Massachusetts, C.A. No. 00 -CR-10125-JLT)

On August 16, 2001, in a parallel criminal proceeding against Michael D. Richmond of Orland Park, Ill., Judge Joseph L. Tauro of the United States District Court for the District of Massachusetts sentenced Mr. Richmond to fifty (50) months incarceration based on Richmond's guilty plea to seventeen counts of mail fraud. The mail fraud charges relate to Richmond's fraudulent sale of over $8 million in purported certificates of deposit through an entity called Royal Meridian International Bank (RMIB). Richmond was also ordered to pay $8.3 million in restitution to defrauded investors, and ordered placed under supervised release, following his release from prison, for three years during which period he will be subject to a prohibition against the sale of investment products. Mr. Richmond will begin his incarceration on October 29, 2001.

The Securities and Exchange Commission previously sought and obtained in mid-1998 temporary restraining orders, preliminary injunctions and asset freezes against Richmond, RMIB, Zone Productions and others involved in the alleged scheme. The Commission's litigation is continuing. For further information see Litigation Release Nos. 15813, 15892, 16027, 16104, 16512, 16824A and 16966.