SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17238 / November 16, 2001.

   UNITED STATES ATTORNEY'S OFFICE INDICTS RECIDIVIST SECURITIES LAW
   VIOLATOR FOR MAIL AND WIRE FRAUD

   United States v. Steven H. Adler, Criminal Action No. 8
   01-CR-413-T-24-MSS (M.D. Fla., Tampa Division, November 6, 2001)

   On November 6, 2001, the United States Attorney's Office for the
   Middle District of Florida (USAO) indicted Steven H. Adler of Tampa,
   Florida, charging him with mail and wire fraud. The indictment is
   based on allegations that Adler violated the law by convincing
   investors to entrust their money to him, and then misappropriating
   those funds. On November 15, 2001, the Securities and Exchange
   Commission (SEC) instituted an administrative order making findings
   against Adler.

   The indictment alleges that Adler solicited and received funds from
   investors between October 1994 and September 1998, while he was the
   president and majority owner of Vector Index Advisers, Inc. (Vector),
   formerly based in Tampa. The indictment also alleges that Adler was
   the president of a mutual fund formerly known as ASM Index 30 Fund
   (ASM), and that Vector was ASM's investment adviser. According to the
   indictment, Adler solicited money from people who wished to invest in
   ASM, but in some cases, he never invested the money. Instead, Adler
   kept the money and used it for his own or for Vector's expenses. In
   other cases, the indictment alleges that Adler did invest the funds,
   but then withdrew the money from ASM without the knowledge or consent
   of the investors. The indictment alleges that Adler also then used
   that money for his own or Vector's benefit.

   The indictment further charges Adler with preparing, and furnishing to
   the investors, fictitious monthly statements that falsely assured the
   investors that their investments were intact, and were appreciating in
   value.

   The SEC's administrative order is based on the same misconduct
   described in the USAO's indictment. In the Matter of Vector Index
   Advisors, Inc. and Steven H. Adler, Securities Act of 1933 (November
   15, 2001). The Commission also instituted an order imposing a
   cease-and-desist order against Adler in 1996, In the Matter of Vector
   Index Advisors, Inc. and Steven H. Adler, Investment Advisors Act of
   1940 Release No. 1569 (July 8, 1996).
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Modified 11/26/2001