Litigation Release No. 16414/ January 20, 2000


Securities and Exchange Commission v. Michael W. Berger, Manhattan Investment Fund Ltd., and Manhattan Capital Management, Inc., (00 Civ. 0333 (DLC), Southern District of New York, January 18, 1999)

The Securities and Exchange Commission today announced that yesterday, January 20, 2000, the Honorable Denise L. Cote, United States District Judge entered an order appointing Helen Gredd as receiver for defendants Manhattan Investment Fund Ltd. and Manhattan Capital Management, Inc. Ms. Gredd is a partner in the New York law firm of Lankler Siffert & Wohl LLP. The Court's order provides, among other things, that as receiver, Ms. Gredd has the authority to take immediate custody and control of all assets of Manhattan Investment Fund and Manhattan Capital Management. Manhattan Capital Management consented to the appointment of the receiver.

Earlier this week, on January 18, 2000, the Commission filed this enforcement action charging Michael W. Berger, a hedge fund adviser, Manhattan Investment Fund and Manhattan Capital Management with securities fraud. At that time, Judge Cote, entered an order freezing the assets of Manhattan Investment Fund and Manhattan Capital Management. The Judge's January 18 order also included a temporary restraining order barring further violations against Manhattan Investment Fund from committing further violations and preliminary injunctions against Berger and Manhattan Capital Management. See Litigation Release No. 16412 (January 19, 2000).

The Commission's investigation into these matters is continuing.