James R. Harrold, Franklin Management and Consulting, LLC, Accipter, LLC, Franklin Asset Management and Consulting, LLC, Franklin Management and Consulting, Inc., and Concord Development Group, LLC.

Litigation Release No. 17208 / October 25 , 2001

U.S. Securities and Exchange Commission v. James R. Harrold, Franklin Management and Consulting, LLC, Accipter, LLC, Franklin Asset Management and Consulting, LLC, Franklin Management and Consulting, Inc., and Concord Development Group, LLC., U.S. District Court for the Southern District of Indiana, Cause No. IP 01-1318-C H/K (S.D. Indiana 2001)

Receiver Appointed in Prime Bank Case

The U.S. Securities and Exchange Commission ("Commission") announced that on October 19, 2001, the Honorable Judge David F. Hamilton of the United States District Court for the Southern District of Indiana appointed James A. Knauer, a partner at the law firm of Kroger, Gardis & Regas, LLP in Indianapolis, Indiana, as the receiver in this matter.

On September 7, 2001 the Commission filed a complaint alleging that James R. Harrold ("Harrold") and the Entity Defendants were violating the registration and antifraud provisions of the federal securities laws by operating a prime-bank scheme. On the same day, Judge Hamilton entered a Temporary Restraining Order freezing three accounts controlled by Harrold. On September 10, 2001, Judge Hamilton entered a Temporary Restraining Order freezing all of Harrold and the Entity Defendants' assets. On September 14, 2001, Harrold and the Entity Defendants consented to the entry of an Order of Permanent Injunction, which continued the asset freeze and enjoined them from engaging in violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Harrold and the Entity Defendants consented to the entry of the permanent injunction, without admitting or denying the allegations of the complaint.

Under the Court's Receiver Order, Mr. Knauer is empowered to take possession of all of Harrold and the Entity Defendants' assets and to search for any hidden or undisclosed assets. Mr. Knauer is required to file an inventory and appraisal of all property and assets of Harrold and the Entity Defendants within thirty (30) days, or such longer time as the Court may approve, of his appointment.

Investors or other interested parties should direct any questions to Mr. Knauer at Kroger, Gardis & Regas, LLP, 111 Monument Circle, Suite 900, Indianapolis, Indiana, 46204-5125, telephone (317) 692-9000, fax (317) 264-6832. The firm's website is: http://www.kgrlaw.com.