Litigation Release No. 19749 / June 30, 2006

S.E.C. v. Hatch, Docket No. 2:05CV00654 PGC (USDC, D.Ut.)

On June 21, 2006, the Honorable Paul G. Cassell entered a Final Judgment of Permanent Injunction against Dale C. Hatch, the former director of the Utah Educational Savings Plan (UESP), a state-run college savings plan. The judgment enjoins Hatch from violating the antifraud provisions 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 thereunder.

On August 4, 2005, the Securities and Exchange Commission filed a Complaint in the United States District Court for the District of Utah, against Hatch alleging that Hatch violated the federal securities laws by misappropriating funds that should have been allocated to the accounts of participants who had placed their money with the UESP. The Complaint also alleged that Hatch established secret accounts and transferred over $500,000 in unallocated participant funds into those nominee accounts. Finally, the Complaint alleges that Hatch transferred approximately $85,000 from the secret nominee accounts into personal bank accounts for his own use. Hatch consented to the entry of the Final Judgment without admitting or denying the allegations in the Complaint.