UNITED STATES SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 15333 / April 15, 1997 SECURITIES AND EXCHANGE COMMISSION v. TIMOTHY A. HILLS and S.J. WINDSOR CAPITAL PARTNERS LLP, CV 97-1580, U.S.D.C., E.D.N.Y. (TCP) The Securities and Exchange Commission announced that, on April 9, 1997, Defendants Timothy A. Hills ("Hills") and S.J. Windsor Capital Partners LLP ("S.J. Windsor") consented to preliminary injunctions. As a result, Hills is preliminarily enjoined from further violating the Order Making Findings and Imposing Remedial Sanctions and Cease and Desist Order, which was issued on consent by the Commission on November 8, 1995 ("Commission Order") in a prior administrative proceeding instituted against Hills, In the Matter of Timothy A. Hills, A.P. File No. 3-8707 (June 1, 1995). S.J. Windsor is preliminarily enjoined from further violating the broker registration provisions of the Securities Exchange Act of 1934 ("Exchange Act"). The Defendants have also been ordered not to destroy or alter documents. On April 2, 1997, the Commission had filed a complaint in the United States District Court for the Eastern District of New York against Hills and S.J. Windsor alleging that, since at least August 1996, S.J. Windsor has been operating as an unregistered broker in violation of the broker registration provisions of the Exchange Act. The Complaint also alleges that Hills, a former Stratton Oakmont, Inc. broker, has been violating the Commission Order by associating with S.J. Windsor and soliciting investors to purchase securities of Cyberweb Cafe, Inc., as well as the securities of other companies. The Commission Order, which Hills is alleged to have violated, contained findings that Hills made material misrepresentations, failed to disclose material facts and engaged in unauthorized trading, and barred Hills from association with any broker, dealer, investment company, investment adviser and municipal securities dealer. The Complaint also seeks permanent injunctions and civil penalties against the Defendants. Also at the time the Complaint was filed, the Commission made an application for a temporary restraining order, which was granted as to Hills on April 3, 1997. A hearing before the Honorable Thomas C. Platt on the application for preliminary injunctions took place on April 8, 1997 and April 9, 1997 and, prior to the conclusion of the hearing, the Defendants consented to the preliminary injunctions.