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U.S. Securities and Exchange Commission

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.

Litigation Release No. 16563 / May 24, 2000

SECURITIES AND EXCHANGE COMMISSION v. CORPORATE RELATIONS GROUP, INC., STRATCOMM MEDIA LTD., GULF ATLANTIC PUBLISHING, INC., NEW CONCEPTS L.L.C., CJL CORPORATION, POW WOW, INC., FONDO DE ADQUISICIONES E INVERSIONES INTERNACIONALES XL, S.A., C.A. OPORTUNIDAD, S.A., AMMONIA HOLD, INC., ROBERTO E. VEITIA, JAMES W. SPRATT III, JAMES A. SKALKO, JACK R. RODRIGUEZ, JOSE ANTONIO GOMEZ CORTES, ARNOLD ZOUSMER, CHARLES J. LIDMAN and MICHAEL PARNELL

Civil Action No. 99-1222-CV-22-A (M.D. Fla., Orlando) (filed September 27, 1999)

The Securities and Exchange Commission ("Commission") announced today that, on May 5, 2000, the United States District Court for the Middle District of Florida entered Final Judgments against New Concepts, L.L.C. ("New Concepts"), an Illinois company, Arnold Zousmer ("Zousmer"), a partner in New Concepts, CJL Corporation ("CJL"), a California consulting firm, and Charles J. Lidman ("Lidman"), the owner and president of CJL.

Without admitting or denying the Commission's allegations, New Concepts, Zousmer, CJL and Lidman consented to the entry of a judgment which permanently enjoins them from violating Sections 5(a) and 5(c) of the Securities Act of 1933 ("Securities Act"). The judgment requires these four defendants, jointly and severally, to pay disgorgement in the amount of $963,000, including prejudgment interest. Finally, the judgment requires New Concepts to pay a civil penalty of $20,000, and Zousmer and Lidman to pay a civil penalty of $15,000 each.

The Commission alleged that the defendants violated the registration requirements of the Securities Act by selling the securities of clients of a public relations firm known as Corporate Relations Group, Inc. ("CRG"). These securities were not registered with the Commission nor was an exemption from registration available.

The Commission's enforcement action against CRG and other defendants, which alleged a variety of federal securities laws violations, including violations of the antifraud, antitouting and registration provisions, is proceeding in the Middle District of Florida. See Litigation Release No. 16294 (September 27, 1999).

http://www.sec.gov/litigation/litreleases/lr16563.htm

Modified:05/25/2000