LITIGATION RELEASE NO. 15732 / May 6, 1998

SECURITIES AND EXCHANGE COMMISSION v. EDWARD J. PARADIS, JR. AND WALTER R. SNYDER, JR. (United States District Court for the District of Massachusetts, Civ. Action No. 98-10638-NG).

The Securities and Exchange Commission announced that on April 30, 1998, the Honorable Nancy Gertner, U.S. District Judge for the District of Massachusetts, entered a Preliminary Injunction and Order Continuing Asset Freeze and Other Relief ("Order") preliminarily enjoining EDWARD J. PARADIS, JR. (of Sturbridge, Massachusetts) and WALTER R. SNYDER, JR. (of Southbridge, Massachusetts) from continuing a fraudulent investment scheme in violation of the federal securities laws. The Order also continues a freeze of assets of Paradis and Snyder originally entered by the Court on April 13, 1998, and grants other relief. The Court entered the Order upon a motion by the Commission. One of the defendants, Walter Snyder, consented to the relief.

The Commission's Complaint in the action alleges that Paradis and Snyder obtained $175,000 from an investor, promising him a return of over 300% in stock and cash within thirty days. They falsely told the investor that his money would be safely held in Snyder's attorney escrow account until completion of a "financing" transaction that would produce the 300% profit. Contrary to their promises to the investor, Paradis and Snyder began removing the investor's funds as soon as the funds arrived in Snyder's account, and have misappropriated at least $157,000 to date, using it for purposes such as paying Paradis' rent. Some of the investor funds were transferred to a Swiss bank account in Paradis' name.

On April 13, the Court granted a temporary restraining order and asset freeze and ordered repatriation of funds diverted overseas.

In the April 30 Order, the Court ruled that the Commission had shown a likelihood that it would prove at trial that defendants had violated the antifraud provisions of the federal securities laws, Section 17(a) of the Securities Act of 1933 and Section 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In its lawsuit, the Commission also seeks a permanent injunction, disgorgement of Paradis' and Snyder's ill-gotten gains and civil monetary penalties.

For further information, please see Litigation Release no. 15706.