James R. Harrold, et al.

On September 14, 2001, the SEC obtained permanent injunctions against James R. Harrold and entities he controlled in connection with the operation of a prime bank trading scheme. The SEC alleged that the defendants raised at least $2 million to purportedly invest in risk-free prime bank securities that generated a 20% monthly rate of return. The program did not exist and instead of investing the funds as promised, the defendants deposited investor funds in various bank accounts controlled by Harrold and used the funds to pay both business and personal expenses, including payments for golf course developments and Harrold's monthly mortgage payments. For more information about the SEC's action, you can read Litigation Release Nos. 17132 (Sept. 18, 2001) and 17208 (Oct. 25, 2001).

On October 19, 2001, the Court appointed James A. Knauer as Receiver. Mr. Knauer has set up a website where investors can read information about the status of the Receivership.

http://www.sec.gov/divisions/enforce/claims/jamesharrold.htm