SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. Litigation Release No. 15457/ August 21, 1997 SECURITIES AND EXCHANGE COMMISSION v. AMERICAN GROWTH CAPITAL CORP., AMERICAN GROWTH FUND I, LP, GROWTH CAPITAL RESOURCES CORP., CAPITAL GROWTH FUND I, LP, DONNA L. SNYDER, CHARLES E. DUQUETTE, ROBERT K. KELLY, HUGO V. CIANCIULLI, WILLIAM M. MCNARY, EMANUEL B. NEDWICK, JEROME L. GLAZOV, AND CHRISTOPHER A. PAULICK, Civil Action No. 97-5993 RAP (JGx) (C.D. Cal.). The Securities and Exchange Commission announced, on August 21, 1997, that the Honorable Richard A. Paez, U.S. District Judge in the Central District of California, issued an Order appointing a permanent receiver over American Growth Capital Corp. and American Growth Fund I, LP. American Growth Capital is an investment adviser based in Las Vegas, Nevada. American Growth Fund is an investment fund, managed by American Growth Capital, that purports to invest in emerging growth companies. The Fund has approximately $7.3 million under management, with over 300 investors. Judge Paez issued this Order after holding a hearing regarding appointment of a permanent receiver. The Court found, over the Defendants' Opposition, that the Commission had demonstrated that it was likely to prevail on the merits, and thus that a permanent receiver was both necessary and appropriate. The Commission showed that Defendants Snyder and Duquette fraudulently managed American Growth Capital and American Growth Fund, including misuse and misappropriation of at least $1,778,000 in investor funds by investing in shell companies, and by paying undisclosed commissions and other selling expenses, undisclosed compensation to themselves, and undisclosed management fees to American Growth Capital. ======END OF PAGE 1======