Securities and Exchange Commission

   Litigation Release No. 16338 / October 15, 1999

   Securities and Exchange Commission v. Princeton Economics
   International, Ltd., Princeton Global Management, Ltd., and Martin A.
   Armstrong, 99 Civ. 9667 (RO) (S.D.N.Y.)

   The Securities and Exchange Commission's application for a preliminary
   injunction and other relief against Martin A. Armstrong was granted
   yesterday by the United States District Court for the Southern
   District of New York.

   In its complaint, the Commission alleges that Armstrong and two
   companies he controls, Princeton Economics International, Ltd. and
   Princeton Global Management, Ltd., defrauded Japanese investors out of
   nearly $1 billion. The Commission alleges that defendants have raised
   billions of dollars since 1996 by fraudulently offering and selling
   promissory notes to Japanese corporations. In offering and selling
   those notes, defendants represented to investors that the proceeds
   from the note sales would be deposited in segregated accounts and
   would be conservatively invested. Instead, defendants lost hundreds of
   millions of dollars through risky currency and commodities trading,
   commingled investor funds, used investor funds to conceal trading
   losses, and arranged for the mailing of letters that materially
   overstate the net asset value of the accounts underlying investors'
   notes. As a result of defendants' conduct, investor losses approach $1
   billion. The Commission alleged that, by engaging in the foregoing
   conduct, the defendants committed securities fraud in violation of
   Section 17(a) of the Securities Act of 1933, and Section 10(b) and
   Rule 10b-5 of the Securities Exchange Act of 1934 (the "antifraud
   provisions").

   The Commission sought a temporary restraining order, a freeze of
   defendants' assets, and the appointment of a receiver for the
   corporate defendants -- relief which was granted by the court on
   September 13, 1999 -- as well as orders preliminarily and permanently
   enjoining the defendants from future violations of the federal
   securities laws, disgorgement of ill-gotten gains plus prejudgment
   interest, and civil penalties. Yesterday, the court approved the
   Commission's application for a preliminary injunction and other
   relief, including the continuation of the asset freeze and the
   temporary receivership during the pendency of the litigation. The
   court indicated that it will issue an opinion and order accordingly
   and ordered that the order entered on September 13, 1999, will remain
   in place until the preliminary injunction order is executed. In
   addition, Princeton Economics International, Ltd. and Princeton Global
   Management, Ltd., the two corporate defendants, have consented,