FOR IMMEDIATE RELEASE                             2002-41


             SEC BRINGS EMERGENCY ENFORCEMENT ACTION
              AGAINST PAYDAY LENDER IN SOUTH FLORIDA

     Washington, D.C., March 19, 2002 - The Securities and
Exchange Commission filed an emergency enforcement action today
against ACE Payday Plus LLC, a start-up company purportedly
offering “check cashing” and “payday advance” services. The SEC
alleges that the company, its affiliates and its chief executive
raised more than $800,000 from investors with promises of
excessive investment returns and wildly optimistic profits.
     
     A U.S. District Court in Miami granted the SEC’s request for
a temporary restraining order and a freeze of the defendants’
assets. The court scheduled a hearing for April 5 on the SEC’s
request for a preliminary injunction against future violations of
the antifraud and registration provisions of the federal
securities laws.
     
     In addition to ACE Payday, defendants are ACE Management LLC
and ACE Payday Management Inc., two entities separately
identified as Ace Payday’s manager; and James Bianco of North
Miami Beach, Fla., who controlled Ace Payday and its affiliates.
     
     The Commission alleges that defendants raised at least
$800,000 from at least 30 investors by fraudulently offering and
selling membership units in Ace Payday through telemarketers
called "independent sales offices" or ISOs.  In various written
materials, sent to prospective investors at the direction of the
ISOs, the defendants describe Ace Payday as a start-up company in
the business of providing “retail payday advance” and “check
cashing” services, claim that check cashing is possibly “the
fastest growing industry in America today,” and encourage
investors to “[t]ake advantage of participating in this lucrative
industry,” according to the complaint.
     
     The defendants allegedly project that the company’s payday
loan operations will yield “an average of up to 360% profit per
year” and that the company’s check cashing operations will
generate “up to 720% per year.”  Investors are offered (a)
interest at the rate of 20% per annum to be paid at a rate of 5%
each quarter for three years, and (b) a pro-rata share of the
company’s profits, according to the complaint.  The complaint
alleges that defendants told investors that 90% of the offering
proceeds would be used to develop Ace Payday's business when, in
truth, 40% to 45% of the offering proceeds have been used to
compensate the ISOs, which act as unregistered brokers soliciting
unsophisticated investors.

     The Commission's complaint charges all of the defendants
with violating the antifraud and registration provisions of the
federal securities laws.  In addition to the emergency relief
described above, the complaint seeks permanent injunctions
prohibiting future violations of the securities laws,
disgorgement, and civil penalties.

Contacts: Barry W. Rashkover, Associate Regional Director
(646.428.1856) and William Currier (646.428.1683), Northeast
Regional Office.



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