UNITED STATES SECURITIES AND EXCHANGE COMMISSION

   LITIGATION RELEASE NO. 16495 \ March 31, 2000

   SEC v. Thomas E. Loyd, individually, and d/b/a Loyd Financial
   Consulting. CA-00-CV-1085, USDC, SD/TX (Houston Division)

   On March 29, 2000, the Securities and Exchange Commission filed a
   Complaint in the United States District Court for the Southern
   District of Texas alleging that Thomas E. Loyd, individually, and
   d/b/a Loyd Financial Consulting, engaged in a stock touting and
   scalping scheme through the dissemination of his investment
   newsletter, Investors' Alert. The Complaint alleges that on 14
   separate occasions between April 1999 and October 1999, Loyd published
   "strong buy" recommendations in Investors' Alert for the securities of
   seven microcap companies. In addition to his subscribers, the
   Complaint alleges that Loyd sent certain of his recommendations to
   millions of potential investors through unsolicited Internet e-mails,
   commonly known as "spams." With respect to almost every stock touted
   by the defendant, the Complaint alleges that (1) the volume and/or
   price increased sharply, sometimes by as much as 160%, shortly after
   the defendant's "strong buy" recommendation; and (2) the defendant
   took advantage of the market interest he created by selling into the
   inflated market large amounts of stock he had received in
   consideration for his promotional services. According to the
   Complaint, Loyd realized profits of $168,000 from sales of these
   securities and subscription fees from his subscribers. Moreover, the
   Compliant alleges that Loyd failed to disclose that in many instances
   he had, directly or indirectly, received tens of thousands of shares
   of stock from the recommended companies in consideration for featuring
   the companies in Investors' Alert. Lastly, the Complaint alleges that
   Loyd failed to advise his subscribers and readers that he intended to
   sell the stock in contravention of his buy recommendations - a
   fraudulent practice known as "scalping."

   Simultaneous with the filing of the Complaint, Loyd consented, without
   admitting or denying the allegations of the Complaint, to the entry of
   a final judgment permanently enjoining him from violations of Section
   17(b) of the Securities Act of 1933, Section 10(b) of the Securities
   Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1)
   and 206(2) of the Investment Advisers Act of 1940. Loyd also agreed to
   pay disgorgement and pre-judgment interest of $172,093, and a $50,000
   civil penalty.
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Modified 04/03/2000