U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17199 / October 22, 2001

   SECURITIES AND EXCHANGE COMMISSION v. TLC INVESTMENTS & TRADE CO., TLC
   AMERICA, INC. dba BREA DEVELOPMENT COMPANY, TLC BROKERAGE, INC., dba
   TLC MARKETING, TLC DEVELOPMENT, INC., TLC REAL PROPERTIES RLLP-1,
   CLOUD & ASSOCIATES CONSULTING, INC., ERNEST F. COSSEY, GARY W.
   WILLIAMS, AND THOMAS G. CLOUD, Civil Action No. SACV 00-960 DOC(MLGx)
   (C.D. Cal.)

   SALES AGENT AND SALES AGENT'S PRINCIPAL ENJOINED AND ORDERED TO PAY
   OVER $1.1 MILLION IN DISGORGEMENT

   The Securities and Exchange Commission ("Commission") announced that
   on October 15, 2001, the Honorable David O. Carter, United States
   District Judge for the Central District of California, entered an
   Order Granting Plaintiff's Motion for Summary Judgment against Cloud &
   Associates Consulting, Inc. ("Cloud & Associates"), a sales agent in a
   $151.6 million real estate Ponzi scheme, and its CEO, Thomas G. Cloud
   ("Cloud"). The Court found that Cloud, through Cloud & Associates,
   both of Atlanta, Georgia, recklessly repeated TLC's fraudulent
   representations concerning an investment's security and profit
   potential on Cloud & Associates' website, thereby giving the
   misrepresentations Cloud & Associates' imprimatur of approval.
   Further, the Court found that Cloud and Cloud & Associates made
   additional independent fraudulent representations concerning Cloud's
   due diligence and trustworthiness, the securities' soundness, and the
   issuer's track record and failed to disclose Cloud's 1992 conviction
   for conspiracy to commit tax fraud. The Court determined that
   recklessly repeating the issuer's misrepresentations and making
   additional material misrepresentations and an omission violated the
   antifraud provisions of the securities laws Section 17(a) of the
   Securities Act of 1933 and Section 10(b) of the Securities Act of
   1934, and Rule 10b-5 thereunder. The Court also found that Cloud and
   Cloud & Associates sold unregistered securities in violation of the
   registration provisions of the securities laws Sections 5(a) and 5(c)
   of the Securities Act of 1933. Accordingly, the Court permanently
   enjoined Cloud and Cloud & Associates from further violations of these
   registration and antifraud provisions of the securities laws and
   ordered Cloud and Cloud & Associates to pay disgorgement in excess of
   $1.1 million, prejudgment interest, and civil penalties.

   Prior Litigation Releases dealing with this case and .
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Modified 10/23/2001