UNITED STATES SECURITIES AND EXCHANGE COMMISSION LITIGATION RELEASE NO. 15980 / November 18, 1998 SECURITIES AND EXCHANGE COMMISSION V. FUNDING RESOURCE GROUP, QUENTIN D. HIX, GENE COULTER, STEVEN C. ROBERTS, MVP NETWORK, INC., a/k/a MVP NETWORK (TRUST), FMCI TRUST, FUNDERS MARKETING COMPANY, INC., RAYMOND G. PARR, WILLARD VEARL SMITH, EARL D. MCKINNEY, FORTUNE INVESTMENTS, LTD., ROBERT CORD, a/k/a/ ROBERT F. SCHOONOVER, JR., WINTERHAWK WEST INDIES, LTD., IGW TRUST, CAROLYN DON HICKS AND CARL LADANE WEAVER, #3-98CV2689-X, USDC, ND/TX (DALLAS DIVISION) On November 13, 1998, the Commission filed a complaint in the United States District Court for the Northern District of Texas in Dallas against more than a dozen defendants involved in the fraudulent sales of interests in a succession of non-existent prime bank trading programs which raised over $14 million from hundreds of investors in Texas and 17 other states. The Court granted the Commission's request for an order freezing the defendants' assets. Additionally, the Court ordered all defendants to account for investor monies and ordered the appointment of a receiver to take control of the assets of the defendants for the benefit of investors. According to the Commission's complaint, Funding Resource Group ("FRG"), Quentin D. Hix ("Hix"), Gene Coulter ("Coulter"), Steven C. Roberts ("Roberts"), MVP Network, Inc., a/k/a MVP Network (Trust) ("MVP"), FMCI Trust ("FMCI"), Funders Marketing Company, Inc. ("Funders"), Raymond G. Parr ("Parr"), Willard Vearl Smith ("Smith"). Earl D. McKinney ("McKinney"), Fortune Investments, Ltd. ("Fortune"), Robert Cord, a/k/a Robert F. Schoonover, Jr. ("Cord"), Winterhawk West Indies Ltd. ("Winterhawk"), IGW Trust ("IGW"), Carolyn Don Hicks ("Hicks") and Carl LaDane Weaver ("Weaver"), raised $14 million by telling investors that these programs were successful, that their funds were completely secured by guarantees issued by banks or insurance companies, and that the investments would generate returns between 6% and 18% per month. In fact, according to the complaint, the trading programs did not exist, there were no such guarantees, and these defendants used most of the investor funds for their own benefit and the benefit of the relief defendants, Howe Financial Trust ("Howe") and Treds Financial Trust ("Treds"), and for payments to other investors (ponzi payments). The Commission has also requested a preliminary injunction against FRG, Hix, Coulter, Roberts, MVP, FMCI, Funders, Parr, Smith, McKinney, Fortune, Cord, Winterhawk, IGW, Hicks and Weaver from future violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. The Court has not yet scheduled a hearing on the Commission's motion for preliminary injunction. The Commission, in its complaint, ultimately seeks permanent injunctions against these defendants from future violations, as well as disgorgement of all unlawfully obtained profits from them and the relief defendants, with prejudgment interest, and civil penalties against each defendant. The Commission also wishes to acknowledge the valuable assistance of the Texas State Securities Board, as well as the U.S. Attorney's Office and the FBI in the Southern District of Texas in Houston.