U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 18991 / December 2, 2004

SECURITIES AND EXCHANGE COMMISSION V. MICHAEL LAUER, ET AL., Case No. 03-80612-CIV-MARRA/VITUNAC (S.D. Fla).

SEC FILES CONTEMPT MOTION AGAINST MICHAEL LAUER

The Securities and Exchange Commission announced that on October 22, 2004, it filed with the United States District Court for the Southern District of Florida, an Application for an Order to Show Cause why Michael Lauer should not be held in civil contempt for violating the Court's July 17, 2003 Preliminary Injunction Order. That order, among other things, froze Lauer's assets. The Application alleged that Lauer transferred and/or withdrew assets, in direct contravention of the July 17, 2003 Order.

The Commission's contempt application asserts, among other things, that Lauer violated the asset freeze order on December 12, 2003 by transferring or assigning his interest in the Millennium 3 Opportunity Fund, LLC (Fund) in the amount of $11,011 and also on April 7, 2004, by transferring or assigning his interest in the Fund in the amount of $8,801. The contempt application also asserts that in addition to the Fund distribution checks, between November 2003 and December 2003, Lauer made numerous other transfers to a bank account in the name of Heidi Carens d/b/a The Lava Group, whose address is Lauer's home address.

For further information, see Litigation Release No. 18226 (July 10, 2003) and Litigation Release No. 18247 (July 23, 2003).