SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17242 / November 19, 2001

   SECURITIES AND EXCHANGE COMMISSION v. TERRY L. DOWDELL et al., U.S.
   District Court for the Western District of Virginia, Civil Action No.
   3 01CV0011610557 (W.D. VA. Nov. 19, 2001)

   On November 19, 2001, the Securities and Exchange Commission filed a
   Complaint in Federal District Court in Charlottesville, Virginia, to
   halt a Ponzi scheme operated by Terry L. Dowdell ("Dowdell"), a
   resident of Charlottesville, which has allegedly raised over $29
   million during the last several years. On the same day, Judge James A.
   Michael, Jr., of the Western District of Virginia issued a Temporary
   Restraining Order, which included a prohibition against violations of
   federal securities laws and an asset freeze, against the defendants,
   including Dowdell, Birgit Mechlenburg a resident of Lenox,
   Massachusetts, Kenneth G. Mason, a resident of Wilmette, Illinois, and
   entity defendants Vavasseur Corp., a Bahamian corporation, and
   Dowdell, Dutcher & Associates, Inc., an inactive Florida corporation.
   The Complaint also alleges violations of the federal securities laws,
   but does not seek emergency relief, against Emerged Market Securities,
   DE-LLC and Daniel Derouard. The Complaint alleges that Dowdell offered
   fictitious "prime bank" securities through Vavasseur claiming that
   investors would earn gross returns of 4 percent per week for 40 weeks
   out of the year. The Complaint also alleges that Dowdell told
   investors that their money would be sent to the Bahamas in an account
   in their own name to trade "medium term debenture instruments...
   issued by one or more of the major money center banks of either North
   America or Western Europe." Instead, the Complaint alleges that
   Dowdell pooled the money in accounts he controlled in the United
   States and used the money to pay existing investors, pay commissions
   and pay personal expenses.

   The Complaint alleges that the defendants violated Section 17(a) of
   the Securities Act of 1933 and Section 10(b) of the Securities
   Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder. The
   Complaint also alleges that Mechlenburg sold securities and acted as
   an unregistered broker-dealer in violation of Section 15(a) of the
   Exchange Act and also committed violations of Section 15(c) of the
   Exchange Act and Rule 15c1-2 thereunder. In the Complaint, the SEC
   also seeks to recover assets from several relief defendants. Judge
   Michael also ordered a hearing on November 27, 2001 at 10 00 a.m.

   This case is part of the SEC's continuing effort to combat prime bank
   fraud and to alert the public to the risks posed by these phony
   instruments. The risks of this type of fraud and warnings about how to
   avoid it are spelled out in the Interagency Advisory Warning