Hawa Corporation, et al.

Litigation Release No. 17412 / March 14, 2002

SEC v. Hawa Corporation, et al., Case No. 01-8220-CIV- Hurley (S.D. Fla.)(filed March 15, 2001)

SEC SETTLES CASES AGAINST ILONA ALEXIS MANDELBAUM

The Securities and Exchange Commission (Commission) announced today that it settled the civil injunctive action against Defendant Ilona Alexis Mandelbaum ("Mandelbaum") in the matter of SEC v. Hawa Corporation, et al. Mandelbaum, without admitting or denying the allegations in the Commission's Complaint, consented to the entry of a Final Judgment of Permanent Injunction and Other Relief which the Court entered on November 30, 2001. The Final Judgment permanently enjoins Mandelbaum from violating 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. The Final Judgment also orders Mandelbaum to pay disgorgement and imposes a civil money penalty. The amount of disgorgement and civil penalty will be determined at a later date.

According to the Commission's Complaint, from at least December 1999 to March 2001, Hawa Corporation (Hawa), Hawa Communications, Inc. (HawaCom), and Hawa Med, Inc. (Hawa Med) raised approximately $6 million from the sale of shares to investors throughout the U.S., most of whom are doctors. The Complaint also alleged that Mandelbaum, among others, represented to investors, orally, through marketing brochures, and in an Internet website, that Hawa, HawaCom, and Hawa Med had combined assets of $160 million attributable to the companies' acquisitions of three "well-established telecommunications and technology firms" based in South America. The Commission's Complaint further alleged that, in reality, neither Hawa, HawaCom, nor Hawa Med actually owned any interest in the South American companies. [SEC v. Hawa Corporation, et al., Case No. 01-8220-CIV- Hurley (S.D. Fla.)(filed March 15, 2001)].