-------------------- BEGINNING OF PAGE #1 ------------------- U. S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 14675 / October 2, 1995 SEC v. Louis Bethune, Charles Howard and John Jackson, U.S.D.C., N.D. Alabama, Civil Action File No. CV95-B2509-S (September 29, 1995). The United States Securities and Exchange Commission ("Commission") announced that on September 29,1995, a complaint was filed in the United States District Court for the Northern District of Alabama seeking to permanently enjoin Louis Bethune ("Bethune"), Charles Howard ("Howard") and John Jackson ("Jackson") from further violations of the antifraud provisions of the federal securities laws. Bethune and Howard are longtime residents of Birmingham. Jackson is the mayor of a White Hall, a small town in central Alabama. The complaint alleges that the defendants participated in a fraudulent scheme to pledge $300 million in revenue bonds purportedly issued by the Redevelopment Authority of White Hall ("Authority") in an attempt to obtain a $255 million margin loan from a Sarasota, Florida office of Smith Barney, Inc. ("Smith Barney"). The complaint also alleges that prime bank securities do not exist and that all series of the bonds issued by the Authority contained multiple misrepresentations, including fundamental misrepresentations that the bonds were "Bank Guaranteed," and that they were backed by "Prime Bank Securities, issued by a an acceptable institution in good standing, rated AA+ or higher by Standard & Poors." The complaint seeks a permanent injunction, an order imposing civil monetary penalties on the defendants and other equitable relief.