U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19620 / March 21, 2006

SEC v. Travis E. Correll, individually and d/b/a Horizon Establishment, Gregory Thompson, Dwight J. Johnson, Harry Robinson "Robbie" Gowdey, individually and d/b/a Atlas and Jericho Productions, Grant Cardno, Neulan D. Midkiff, Travis Correll & Company, Inc., The Liberty Establishment, Inc., Sovereign Capital Investments, S.A., TNT Office Supply, Inc., The Net Worth Group, Inc. and Joshua Tree Group LLC, Defendants, and Banner Shield, LLC, Hospitality Management Group, Inc., Creative Wealth Ventures, LLC and JTA Enterprises, Relief Defendants, Civil Action No. 4:05CV472, (E.D. Tex)(Filed December 7, 2005)

SEC Moves for Contempt Against Prime-Bank Defendant

On March 20, the Securities and Exchange Commission filed a motion for an order to show cause and order holding Neulan D. Midkiff in civil contempt for his failure to comply with the Order of Preliminary Injunction and Order Appointing Receiver entered by the Court in December 2005. According to the SEC's motion, Midkiff has failed to turn over assets and records to the court-appointed receiver. In addition, Midkiff has interfered with the duties of the receiver by communicating false and misleading information to the defrauded investors regarding the SEC's civil injunctive action and failing to provide an interim accounting under oath. Finally, Midkiff has filed actions outside the receivership court naming SEC staff as fiduciaries and containing documents that purport to be financial instruments drawn on the United States Treasury in the amount of $100 million with instructions to use the funds to settle the Commission's claims for monetary relief.

On December 7, 2005, the SEC filed an emergency action in United States District Court for the Eastern District of Texas seeking permanent injunctions, disgorgement plus prejudgment interest and civil money penalties against Travis E. Correll of Atlanta, individually and d/b/a Horizon Establishment, and his companies The Net Worth Group, Inc. (Net Worth Group) and Travis Correll & Company, Inc. (TC&Co.), Gregory Thompson of San Antonio and his company TNT Office Supply, Inc., (TNT) Dwight J. Johnson of Garland, Texas, Harry Robinson "Robbie" Gowdey of Frisco, Texas, individually and d/b/a Atlas and Jericho Productions, Grant Cardno of Norfolk Island, a territory of Australia and his entities, The Liberty Establishment, Inc. (Liberty) and Sovereign Capital Investments, S.A. (Sovereign), Neulan D. Midkiff of Forest Lake, Minnesota and his entity, Joshua Tree Group LLC (Joshua Tree), charging that the defendants were engaged in an ongoing fraudulent high yield investment scheme by which they raised approximately $36 million since July 2004. The Court granted a temporary restraining order, asset freeze and other emergency relief against defendants Correll, TC&Co., Net Worth Group, Thompson, TNT, Johnson, Gowdey, Midkiff and Joshua Tree.

In its complaint, the Commission alleged that the defendants offered interests in purported foreign and international bank deposit programs (collectively Bank Deposit programs) promising four to 12 percent monthly returns without risk to their investment principal. In reality, according to the complaint, the Bank Deposit program does not exist and none of the investors' funds invested. Instead, all of the investor funds were commingled among various Correll-controlled accounts, and used to make Ponzi payments to investors, run the business operations of the defendants or misappropriated by the defendants.