UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 17182 / October 12, 2001

   SECURITIES AND EXCHANGE COMMISSION V. GERARD CHIARELLA, INDIVIDUALLY
   AND D/B/A FREEDOM IN 14 DAYS, WVM FINANCIAL GROUP, AND MINDA TRADING
   GROUP, Civil Acition No. 3 01-CIV-2037-G, USDC, NORTHERN DISTRICT OF
   TEXAS, DALLAS DIVISION

   On October 10, 2001, the Commission filed a civil fraud action in
   Dallas, Texas, against Gerard Chiarella in connection with a
   fraudulent Internet investment scheme. The Commission's complaint
   alleges that from February to July of this year, Chiarella used spam
   e-mail and three websites to offer and sell investments in phony
   "trading" programs, supposedly involving offshore banks. Promising
   returns of up to 200% per week with no risk, Chiarella's offerings
   defrauded approximately 325 investors throughout the United States of
   over $82,000.

   Gerard Chiarella, age 34, is a resident of Congers, New York.
   Chiarella operated websites to offer investments under the names of
   three fictitious entities "Freedom in 14 Days," "WVM Financial Group,"
   and "Minda Trading Group."

   According to the complaint, Chiarella's offerings appeared on Internet
   websites and in spam email from at least February 5, 2001, to July 26,
   2001. In each offering, Chiarella promised investors risk-free
   returns, ranging from 100% to 200% per week, from secretive trading
   programs involving unidentified offshore banks. In reality, these
   trading programs did not exist, and none of Chiarella's fictitious
   entities had any legitimate business operations from which to pay
   investors. Indeed, Chiarella made no payments to investors and
   converted investor funds to his own use.

   In its complaint, the Commission alleged that Chiarella violated the
   antifraud and the registration provisions of the federal securities
   laws. Specifically, it is alleged that he violated Section 17(a) of
   the Securities Act of 1933 (Securities Act), Section 10(b) of the
   Securities Exchange Act of 1934, and Rule 10b-5 thereunder, as well as
   Sections 5(a) and 5(c) of the Securities Act. The Commission seeks a
   permanent injunction against Chiarella from future violations of the
   foregoing provisions of the federal securities laws, an order
   requiring him to disgorge all wrongfully obtained profits plus
   prejudgment interest, and a civil money penalty. Simultaneously with
   the filing of its action, the Commission announced that Chiarella had
   agreed to a settlement in which he agreed to a permanent injunction
   and the payment of disgorgement and a civil penalty in amounts to be
   determined in further court proceedings.