LITIGATION RELEASE NO. 16268 / August 31, 1999

SECURITIES AND EXCHANGE COMMISSION V. PHEBE W. ERDMAN, et al., (United States District Court for the District of Southern Florida, C.A. No. 98-6500)

The Commission announced today that it reached a settlement with relief defendants Rebecca W. Erdman and Leslie Chekin in the above-referenced enforcement action. On July 27, 1999, Judge William P. Dimitrouleas entered final judgments of disgorgement against the two relief defendants. Rebecca Erdman was ordered to pay disgorgement of $20,211, plus prejudgment interest, but was required to pay only $5,000 based on her inability to pay more. Leslie Chekin was ordered to pay $27,110, but payment was waived based on her demonstrated inability to pay. Both Rebecca Erdman and Leslie Chekin consented to the entry of the final judgments without admitting or denying the allegations in the Commission's complaint. These settlements conclude the Commission's injunctive action.

On May 15, 1998, the Commission filed a complaint alleging that the defendants to the action, Phebe W. Erdman, Hans L. Erdman and David M. Lemon, conducted a fraudulent unregistered offering of stock in a worthless shell corporation called International Trade and Commerce Corp. ("ITC"). During the first nine months of 1993, 40 persons purchased approximately 370,000 shares of ITC stock through two brokerage firms. Relief defendants Rebecca Erdman and Leslie Chekin, family members of Phebe Erdman and Hans Erdman, sold ITC stock in the offering.

For further information on the Commission's Complaint, see Litigation Release No. 15742.