-------------------- BEGINNING OF PAGE #1 ------------------- U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 14666 / September 29, 1995 SECURITIES AND EXCHANGE COMMISSION v. HOMER W. FOSTER, ET AL., Tribunal d'Arrondissement de et Luxembourg The Commission announced that on September 25, 1995, the Tribunal d'Arrondissement de et Luxembourg ("Tribunal") issued an order which froze all funds in the possession of the Dresdner Bank of Luxembourg to which Homer W. Forster ("Forster") might have any conceivable right of possession up to the sum of $1,604,708 (the amount which Forster has been ordered to disgorge in a prior Commission action in the United States). The Commission had previously filed a Requ te en saisie- arr t (Request for an attachment order) with the Tribunal. In its Request, the Commission sought an order attaching all funds (up to $1,604,708) at the Dresdner Bank in an account opened in the name of Billmey Assets Corp. ("Billmey"), a Panamanian corporation, but for which Forster was the financial beneficiary. The Commission's proceeding in Luxembourg follows its action against the Center For Financial Planning, Inc. ("CFP"), a registered investment adviser, and Forster, CFP's president and chief executive officer, in United States District Court for the Northern District of Georgia. In January 1994, the Commission sued Forster and CFP, alleging that Forster had fraudulently redeemed over $1.6 million in variable annuity contracts belonging to six clients of CFP without the clients' authorization or consent. Forster had the proceeds wired to a CFP bank account in Georgia from which he withdrew almost all of the funds. He then wired some of the customers' funds to Billmey's account at the Dresdner Bank in Luxembourg. In September 1994, the District Court entered final judgments against Forster and CFP which, inter alia, permanently enjoined them from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940, and ordered them to disgorge $1,604,708. (See Litigation Release Nos. 13937, 13969, and 14313).