SECURITIES AND EXCHANGE COMMISSION

   Litigation Release No. 16947 / March 29, 2001

   SECURITIES AND EXCHANGE COMMISSION v. SEAN EDWARD ST. HEART, Civil
   Action No. 01-CV-00695 (D.D.C.) (TPJ) (filed March 29, 2001)

   SEC SUES SEAN ST. HEART FOR INTERNET FRAUD

   On March 29, 2001, the Commission filed a complaint in the United
   States District Court for the District of Columbia alleging that Sean
   E. St. Heart, age 25, engaged in an illegal cyber smear by posting a
   false message about NCO Group, Inc. on the Yahoo! Finance Internet
   message board. St. Heart's message had a dramatic impact on NCO's
   stock price, causing its market capitalization to drop by over $200
   million.

   The Commission's complaint specifically alleges that on Friday night,
   December 3, 1999, St. Heart posted a false message on Yahoo! in which
   he claimed that he, as the President and CEO of St. Heart Productions,
   together with twelve other companies, had prepared a $20 million
   lawsuit against NCO for its "business practices." The message was
   false in that St. Heart (1) had not prepared such a lawsuit, (2) had
   not joined with any other company in connection with such a lawsuit,
   and (3) had no basis to claim that he had been damaged in the amount
   of $20 million.

   The complaint alleges that on the same day, St. Heart received a
   telephone call about an unpaid debt from someone engaged by NCO, a
   public company engaged in accounts receivable management services.
   Several hours after he received that call, St. Heart posted his
   fraudulent message with the knowledge, or reckless disregard of the
   fact, that the message would materially impact NCO's stock price.

   The complaint alleges that St. Heart's message had a dramatic impact
   on NCO's stock price. Over the next two trading days, NCO's stock
   price dropped $12 3/16, or 28 percent, to $34 5/16 from its closing
   price of $49 9/16 on Friday, December 3, 1999, representing a loss of
   over $200 million of NCO's market capitalization. NCO's trading volume
   also surged to 2.9 million shares on December 7, 1999 - representing a
   ninefold increase relative to the average three-month daily volume.

   Simultaneously with the filing of the Commission's complaint, St.
   Heart, without admitting or denying the Commission's allegations,
   consented to the entry of a judgment permanently enjoining him from
   violating the antifraud provisions of the federal securities laws -
   Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
   thereunder. St. Heart further consented to the entry of a judgment