SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17241 / November 19, 2001

   SECURITIES AND EXCHANGE COMMISSION V. JAMES A. NIES, JEFFREY DENE
   LEADER AND HAROLD DALTON DAVLIN, Civil Action No. 3 00-CV-465-MU
   (W.D.N.C.)

         SEC OBTAINS PERMANENT INJUNCTIONS AGAINST THREE DEFENDANTS

   The Securities and Exchange Commission ("Commission") announced today
   that on November 1, 2001, the Honorable Graham C. Mullins of the
   United States District Court for the Western District of North
   Carolina entered individual orders of permanent injunction and other
   relief against defendants James A. Nies ("Nies") of San Francisco,
   California, Jeffrey Dene Leader ("Leader") of Mt. Kisco, New York and
   Harold Dalton Davlin ("Davlin") of Ellicott City, Maryland for
   engaging in violations of the antifraud provisions of the securities
   laws in a mutual banks conversion scheme. Judge Mullins's orders
   permanently enjoined Nies, Leader and Davlin from further violations
   of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
   thereunder. Nies was ordered to pay disgorgement in the amount of
   $300,000 with prejudgment interest thereon, but payment was waived for
   the amount exceeding $40,000 based upon his demonstrated inability to
   pay. Leader was ordered to pay disgorgement in the amount of $193,000
   with prejudgment interest thereon, but payment was waived for the
   amount exceeding $125,000 based upon his demonstrated inability to
   pay. Davlin was ordered to pay disgorgement in the amount of $17,072
   along with prejudgment interest, but payment was waived for
   prejudgment interest based upon Davlin's inability to pay beyond the
   amount of disgorgement. Civil penalties were not imposed against the
   defendants based upon each defendant's inability to pay. Each
   defendant consented to the entry of his respective order, without
   admitting or denying the allegations of the Commission's complaint.

   The Commission previously sued the defendants alleging that from early
   1995 through early 1997, Nies and Leader, aided and abetted by Davlin,
   all registered representatives of broker-dealers registered with the
   Commission, orchestrated the fraudulent exercise of stock subscription
   rights in connection with at least seventeen mutual thrift conversions
   in eleven states. Under applicable federal and state banking
   regulations, when a savings and loan association, savings bank, or
   thrift converts to a publicly traded company, account holders are
   given the first opportunity to purchase stock, but are prohibited from
   transferring their stock purchase rights or entering into pre-issuance
   arrangements to sell the stock. The complaint alleged that Nies,
   Leader and Davlin developed an elaborate scheme to purchase shares in
   converting mutual thrifts for themselves or certain of their customers