UNITED STATES SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 16085 \ March 12, 1999 SEC V. OMNI INTERNATIONAL TRADING, INC., et al., D.Minn., CIVIL ACTION NO. 97-2116, FILED SEPTEMBER 17, 1997. The Commission announced the entry of an Order of Permanent Injunction and other Equitable Relief by Default ("Order by Default") against Omni International Trading, Inc. ("Omni"), Daniel L. Koehler ("Koehler") and Michael A. Wilcox ("Wilcox") on December 4, 1998. The Commission also announced the entry of an Order of Permanent Injunction and other Equitable Relief ("Order") against Brian E. Farley ("Farley") and John C. Hetherington ("Hetherington") on March 1, 1999. Farley and Hetherington consented to the entry of the Order without admitting or denying the allegations of the Complaint. The orders were based on the Commission’s Complaint, which was filed on September 17, 1997 and alleged that, from in or about January 1991 through in or about February 1995, referred to as the relevant time period, Omni, Koehler, Wilcox, Farley, Hetherington and the other defendants defrauded public investors through the offer and sale of over $4 million in Omni securities. These securities were not registered with the Commission. The Commission’s Complaint also alleged that throughout the relevant time period, Omni , Koehler, Wilcox, Farley and Hetherington and the other defendants, in connection with the offer and sale of these Omni shares, made numerous misrepresentations and omitted to state material facts regarding, among other things, Omni’s future revenues, the use of proceeds, the listing of Omni securities for trading on the National Association of Securities Dealers Automated Quotations system, a purported tender offer, the expected profit to be made on the tender offer and the commissions to be earned. In addition, the Commission’s Complaint alleged that Koehler, Farley and others acted as an unregistered broker or dealer. The Honorable David S. Doty of the U.S. District Court for the District of Minnesota entered the orders enjoining Omni from future violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 promulgated thereunder. The orders also enjoined Koehler and Farley from future violations of Sections 5(a), 5(c) and 17(a) of the Securities Act, Sections 10(b), 15(a)(1) and 15(c) of the Exchange Act and Rules 10b-5 and 15c1-2 promulgated thereunder. In addition, the orders enjoined Wilcox Hetherington from future violations of Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder. The Order by Default ordered that Omni, Koehler and Wilcox pay disgorgement of ill-gotten gains in the amounts of $1,598,342, plus prejudgment interest of $884,862, $222,632, plus prejudgment interest of $126,062, and $286,516, plus prejudgment interest of $130,044, respectively and that Koehler and Wilcox each pay a civil penalty of $100,000. The Order found that Farley and Hetherington should each pay disgorgement in the amounts of $510,584 and $154,250 respectively, plus prejudgment interest; however, payment was waived based on Farley's and Hetherington’s demonstrated inability to pay.