UNITED STATES SECURITIES AND EXCHANGE COMMISSION Litigation Release 15379 / May 30, 1997 SEC v. Nu-Life International of Georgia, Inc. and Gene Arthur (Civil Action No. 1:96-CV-2534-ODE, N.D. Ga.) The Securities and Exchange Commission announced today that on May 21, 1997, the Honorable Orinda D. Evans, United States District Judge for the Northern District of Georgia, entered separate orders of permanent injunction and other relief against Nu-Life International of Georgia, Inc. ("Nu-Life") and Gene Arthur ("Arthur"), enjoining them from violating 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. Arthur was ordered to pay civil penalties in the amount of $20,000 within 30 days of the date of the Order. The Court further ordered Nu-Life and Arthur to prepare sworn accountings of all monies received from the scheme and of the disposition and use of said funds. The accountings are to be submitted to the Court within 30 days of the date of the Court's order. Nu-Life and Arthur consented to the relief without admitting or denying the allegations set forth in a complaint filed by the Commission on September 27, 1996. The complaint alleged that the defendants raised at least $200,000 from approximately 100 investors in at least twelve states by selling securities in the form of investment contracts and approximately $662,500 in stock options. The complaint further alleged that the defendants sold Nu-Life memberships at prices ranging from $494 to $12,500 by misrepresenting or failing to disclose material facts in connection with the offer and sale of the securities. For more information, see Litigation Release No. 15099 (September 30, 1996). ======END OF PAGE 1======