UNITED STATES SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 15411 / July 11, 1997 S.E.C. V. CLYDE KEITH LAMONDA and CD ALTERNATIVES, INC., Case No. 97-857-CIV-ORL-19 (M.D. Fla.) The Securities and Exchange Commission ( Commission ) announced today the filing of a Complaint in the United States District Court for the Middle District of Florida charging CD Alternatives, Inc., a Florida corporation ( CD Alternatives ) and Clyde Keith LaMonda ( LaMonda ), its President and sole shareholder (collectively, Defendants ), with having made false statements concerning the safety of corporate notes. In addition, the Commission s Complaint charges that Defendants acted as broker-dealers of securities while not registered with the Commission. The Complaint alleges that Defendants raised over $4,000,000 for the companies that issued the securities, and obtained at least $89,000 in commissions on the sale of those securities. LaMonda is a resident of Altamonte Springs, Florida. CD Alternatives has offices in Winter Park, Florida. CD Alternatives is a successor corporation to The C.D. Exchange Limited, Inc. ( CD Exchange ), a Florida corporation that has been administratively dissolved by the State of Florida. According to the Complaint, from approximately March 1994 to May 1995, LaMonda and CD Alternatives held seminars at which they solicited insurance agents to sell interest- bearing corporate notes issued by Direct Participation Services Inc., d/b/a Government Financial ( Government Financial ), a California business, and by various companies associated with James G. Freeman, a California resident ( Freeman Companies ). LaMonda and CD Alternatives received a commission from Government Financial and from the Freeman Companies for each investment sold by the insurance agents whom they enlisted to sell the securities. The Complaint further alleges that during their seminars, Defendants represented that the notes were safe investments. In fact, the investments were not safe and investors in all of the companies lost all or most of their investment. The Commission seeks permanent injunctions against the Defendants, prohibiting further violations of the antifraud and broker-dealer registration provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. (15 U.S.C.  77(q)(a); 15 U.S.C.  78j(b) and 17 C.F.R.  240.10b-5; and 15 U.S.C.  78o(a)(1)). The Complaint also requests that Defendants disgorge their ill-gotten proceeds and pay civil monetary penalties for their misconduct. ======END OF PAGE 1======