Litigation Release No. 22509A / October 15, 2012

Securities and Exchange Commission v. James B. Catledge, Derek F.C. Elliott, EMI Resorts (S.V.G.) Inc., EMI Sun Village, Inc. and Sun Village Juan Dolio, Inc., Case No. 2:12-cv-00887-JCM-RJJ (USDC Nevada, filed May 24, 2012)

On October 5, 2012 the Honorable James C. Mahan, United States District Judge for the District of Nevada, entered a Final Judgment against Derek F.C. Elliott (Elliott).

On May 24, 2012, the United States Securities and Exchange Commission filed a complaint, in the United States District Court for the District of Nevada, against James B. Catledge, Derek F.C. Elliott, EMI Resorts (S.V.G.) Inc., EMI Sun Village, Inc. and Sun Village Juan Dolio alleging that James B. Catledge and Elliott, and certain of their related entities, made material misrepresentations to investors in connection with the unregistered sale of interests in two resorts in the Dominican Republic. The Final Judgment against Elliot seeks no civil penalty at this time, waives disgorgement and authorizes the Commission to seek a civil penalty of not more than $250,000 by subsequent motion.

The Final Judgment enjoins Elliott from future violations of Sections 5(a), 5(c) and 17(a)(1), (2) and (3) of the Securities Act of 1933 and Section 15(a) of the Securities Exchange Act of 1934. Elliott consented to the relief granted in the Final Judgment.