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Millennium Financial, Ltd.


U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19926 / November 28, 2006

Securities and Exchange Commission v. Millennium Financial, Ltd., Civil Action No. 02-3901 (LAP) (S.D.N.Y.) (filed May 22, 2002)

SEC Obtains Preliminary Injunction to Protect Defrauded Investors' Funds

The Securities and Exchange Commission announced today that the United States District Court for the Southern District of New York entered a preliminary injunction dated November 14, 2006 barring Ian Scott from pursuing litigation in the Federation of St. Kitts and Nevis. The Commission sought the order, alleging that Scott has been seeking to obtain control over more than $1.3 million in funds fraudulently obtained from investors as part of an international boiler-room scheme formerly operated by Millennium Financial, Ltd.

The Commission filed its securities fraud action against Millennium Financial in May 2002. The Court subsequently appointed a receiver for Millennium, entered an asset freeze and, in December 2005, entered final judgment in favor of the Commission. Among other things, the final judgment requires Millennium to disgorge $17.2 million in ill-gotten gains which it received from the hundreds of investors it defrauded. In May 2006, the Court entered an order providing for the submission, processing and resolution of the defrauded investors' claims.

The U.S. District Court, in its order granting the preliminary injunction, found that there was sufficient evidence to infer that Scott was attempting, in the name of Millennium, to obtain control of the Millennium account at the Bank of Nevis International in St. Kitts in violation of the District Court's order appointing a receiver.

The preliminary injunction bars Scott from prosecuting, maintaining, initiating or participating in legal proceedings to obtain the funds in the Millennium account in any jurisdiction other than the Southern District of New York, and further enjoins Scott from purporting to act for or on behalf of Millennium.

For additional information, see Litigation Release No. 17528 (May 22, 2002)