The Securities and Exchange Commission (Commission) announced that on March 30, 2004 the Honorable Larry J. McKinney, Chief Judge, U.S. District Court for the Southern District of Indiana, entered a final judgment against Branson City Limits, Inc. (Branson City Limits) and Resort Hotels, Inc. (Resort Hotels), which: (1) orders Branson City Limits and Resort Hotels to pay, jointly and severally, disgorgement in the amount of $28,976,552.74 and prejudgment interest in the amount of $1,376,858.02, and (2) permanently enjoins Branson City Limits and Resort Hotels from future violations of Sections 5 and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. Both Branson City Limits and Resort Hotels consented to the entry of the final judgment without admitting or denying the allegations contained in the Commission's November 10, 2003 complaint.

The Commission also announced that on March 30, 2004, the Honorable William T. Lawrence, Magistrate Judge, U.S. District Court for the Southern District of Indiana entered an order, which: (1) empowers the Receiver previously appointed in this action to enforce any of the final judgments obtained by the Commission; (2) orders the Receiver to provide injured investors with information concerning this lawsuit; and (3) orders the Receiver to establish a claims process for injured investors and other creditors of the defendants in this action.

In its complaint, the Commission alleged that Branson City Limits, and Resort Hotels, through ten individuals and entities (the Defendants), offered and sold securities, which were nominally structured as hotel timeshare rental interests, in unregistered transactions as part of a Ponzi scheme that defrauded at least 600 investors of over $28 million in 30 states. On November 10, 2003, Chief Judge McKinney issued a temporary restraining order, which froze the Defendants' assets and temporarily restrained the Defendants from violating the antifraud and registration provisions of the federal securities laws. On November 20, 2003, the Honorable John D. Tinder, U.S. District Court for the Southern District of Indiana, issued preliminary injunctions against each of the Defendants, which continued the asset freeze ordered by Chief Judge McKinney and preliminarily enjoined the Defendants from violating the antifraud and registration provisions of the federal securities laws for the pendency of this action. On March 23, 2004, Chief Judge McKinney entered a final judgment against two other defendants in this action, Lee E. Larscheid (Larscheid) and Ozark Ticket and Travel, Inc. (Ozark Ticket), which: (1) ordered Larscheid and Ozark Ticket to pay, jointly and severally, disgorgement in the amount of $1,792,369.50 and prejudgment interest in the amount of $22,550; (2) ordered Larscheid and Ozark Ticket to each pay civil penalties in the amount of $120,000; and (3) permanently enjoined Larscheid and Ozark Ticket from future violations of Sections 5 and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder.

This case is still pending against the remaining Defendants.

For additional information, see Litigation Release No. 18450 (November 10, 2003), Litigation Release No. 18476 (November 20, 2003), and Litigation Release No. 18637 (March 25, 2004).