U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

InverWorld, Inc.

On August 4, 1999, the SEC filed a civil action against InverWorld, Inc., a registered investment adviser, and InverWorld Securities, Inc., a registered broker-dealer, as well as their chairman, Jose Zollino, and president, George Fahey, and two related foreign shell companies. The SEC alleged the defendants lost approximately $475 million of client funds by making unauthorized, highly-leveraged investments and selling practically worthless securities issued by one of the shell companies to at least 1,000 Latin American investors, mostly Mexican citizens. In related criminal actions, Zollino was sentenced to prison and Fahey has pled guilty and awaits sentencing.

For more information about the SEC's action, you can read Litigation Release Nos. 16242 (Aug. 4, 1999), 16974 (Apr. 25, 2001), and 17533 (May 24, 2002).

The Court appointed Len Blackwell as Receiver to take control of and liquidate the U.S. InverWorld companies, and to distribute assets to InverWorld clients. The Receiver has set up a website where you can find the latest information about the Receivership by selecting "Posted Documents."

If you have questions, you can contact the Receiver at:

Mr. Len Blackwell, Receiver
IG Services Limited
1700 Pacific Avenue. Suite 2600
Dallas, TX 75201
Phone: (214) 840-5300
Fax: (214) 840-5301



Modified: 10/30/2002