United States Securities and Exchange Commission

   Litigation Release No. 16371 / November 24, 1999

   (Defendant Solely for Purposes of Equitable Relief) Case No. 4
   99-CV-0978-Y USDC, NDTX (Dallas Division)

   The U.S. Securities and Exchange Commission ("Commission") announced
   today that on November 24, 1999, Judge Terry R. Means, United States
   District Judge for the Northern District of Texas, granted the
   Commission's request for a Temporary Restraining Order and other
   relief to protect its ability to recover millions of dollars raised in
   a fraudulent securities scheme. The Commission charges Cornerstone
   Prodigy Group, Inc. and its principals Gary D. Reeder, a convicted
   felon, and Sandra Reeder, a licensed securities professional, with
   perpetrating this scheme. Specifically, from early 1999 through the
   present, Defendants, all of Fort Worth, have been engaged in a
   fraudulent scheme and have raised over $16.5 million from
   approximately 625 investors through the offer and sale of unregistered
   securities promising investors a share in the profits of Cornerstone
   and its affiliated companies. Cornerstone's scheme involved sales of
   investments through its website on the Internet, cold-calling of
   potential investors, and the payment of cash for investor referrals.

   The Commission alleges that Defendants attracted investors by falsely
   promising that their funds would be pooled and used for the business
   operations of Cornerstone and its affiliated companies. The Complaint
   also alleges that the Defendants falsely represented that these
   companies generate profits that enable Cornerstone to pay investors a
   40 percent return on their investment within four months. Further,
   Defendants assured investors that the investments are safe, touting a
   "100 percent success ratio." Essentially, the Commission alleges the
   investment program is a Ponzi scheme wherein funds of recent investors
   are used to make purported profit payments to earlier investors.
   Contrary to representations made by the Defendants, investor funds
   were not used, to any material extent, in any profit-generating
   activity of Cornerstone or its affiliates. Rather, Defendants have,
   and continue to, misappropriate investor funds for unauthorized
   business uses and for the personal benefit of Gary and Sandra Reeder.

   Mr. Reeder, age 53, is the co-chairman and CEO of growth and
   development for Cornerstone. According to the Commission's Complaint,
   he has been convicted in Texas of numerous felony offenses, including
   forgery, theft and burglary. Ms. Reeder, age 52, is the co-chairman
   and CEO of client relations for Cornerstone. She is also a licensed
   securities broker associated with WMA Securities, Inc., a
   broker-dealer registered with the Commission. The Commission also
   named Executive NetProfits, Inc., a Texas entity owned and controlled