Litigation Release No. 16252 / August 13, 1999

The Securities and Exchange Commission announced the filing today of an emergency action against Uniprime Capital Acceptance, Inc. of Las Vegas, Nevada, and Alfred J. Flores, the president of a Uniprime subsidiary. The Commission charges Uniprime and Flores with issuing a series of false and misleading press releases since June 16, 1999 that touted a "major breakthrough" in treating human immunodeficiency virus or HIV. The United States District Court for the Southern District of New York has issued an order that, among other things, temporarily restrains Uniprime and Flores from committing securities fraud and freezes their assets. A hearing is scheduled for August 23, 1999, relating to the Commission's request to continue that relief through the completion of the action.

According to the Commission's complaint:

In various press releases, Uniprime and Flores fraudulently described Flores as an immunologist who developed a treatment named "Plasma Plus" and successfully tested it on persons with full-blown AIDS at the General Hospital of Madrid in 1990. The press releases were false and misleading because, among other things: Flores was incarcerated in a Colorado prison from 1984 through October 1992; and there is no evidence that any persons with AIDS or HIV ever were treated with Plasma Plus at the General Hospital of Madrid.

Prior to June 16, 1999, when Uniprime issued its first release about Plasma Plus, Uniprime was trading at approximately $0.625 per share on volume of less than 20,000. Following the issuance of the second false and misleading press release on July 19, 1999, Uniprime stock traded as high as $7.95 per share, and more than 5 million shares traded hands. Because of questions about the accuracy of Uniprime's claims for Plasma Plus, the Commission suspended trading in Uniprime on July 22, 1999. Notwithstanding the trading suspension, Uniprime, using "Plasma Plus" as an inducement, continued to sell securities to investors in a purported private placement. Since the expiration of the ten-day trading suspension, Uniprime stock has been trading in the over-the-counter market.

The Commission seeks a final judgment: permanently enjoining Uniprime and Flores from committing securities fraud in violation of Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5; ordering Uniprime and Flores to disgorge their unjust enrichment; assessing civil penalties against them pursuant to Section 20(d) of the Securities Act and Section 21(d)(3) of the Exchange Act; and permanently enjoining Flores from acting as an officer or director of any public company, among other relief.

For more information, see Exchange Act Release No. 41638 dated July 22, 1999.