United States Securities and Exchange Commission

Litigation Release No. 17468 / April 11, 2002

(Criminal No. 01-CR-40006-NMG (USDC., D.MA))

Court Sentences Two Massachusetts Men in $600,000 Prime Bank Scheme

   The Commission announced that, on April 4, 2002, judgments of criminal
   conviction were entered against Edward J. Paradis, Jr., of Sturbridge,
   Massachusetts, and Walter R. Snyder, Jr., of Southbridge,
   Massachusetts, by the federal district court for the District of
   Massachusetts in connection with a criminal matter brought against
   them by the U.S. Attorney for the District of Massachusetts as a
   result of their participation in a fraudulent "prime bank" offering
   scheme between January 1995 and March 1998. Judge Nathaniel M. Gorton
   sentenced Paradis, based on his guilty plea to one count of conspiracy
   to defraud, to 24 months' imprisonment, to be followed by two years of
   supervised release. Judge Gorton sentenced Snyder, based on his guilty
   plea to one count of conspiracy to defraud, to 14 months'
   imprisonment, to be followed by two years of supervised release. In
   addition, Judge Gorton ordered Paradis and Snyder to make restitution
   to victims in a total amount of $277,769.

   According to the indictment filed in this matter, Paradis and Snyder
   raised more than $600,000 from four individuals between January 1995
   and March 1998 by falsely claiming that they could obtain funding for
   business projects by acquiring letters of credit from international
   "prime banks." Paradis and Snyder falsely represented that the
   business funding could be obtained only if the individuals made
   substantial up-front payments to Snyder and Paradis. According to the
   indictment, the individuals were told that these payments -- which
   ranged as high as $200,000 -- were to pay fees charged by the "prime
   banks" issuing the letters of credit. The individuals were assured
   that the payments would be maintained in escrow accounts administered
   by Snyder, who was a licensed attorney in Massachusetts, and refunded
   if the promised financing did not materialize within seven to thirty
   days. Contrary to these assurances, the funds were withdrawn from the
   escrow accounts shortly after being deposited. Paradis and Snyder used
   the funds for their own benefit and that of their relatives, and to
   pay for items such as rent, clothing, gas and a hairdressing salon.

   In an earlier, related proceeding, the Securities and Exchange
   Commission filed a civil enforcement action against Paradis and Snyder
   on April 13, 1998 alleging that they violated the antifraud provisions
   of the federal securities laws in connection with the scheme described
   above. On March 11, 1999 and June 22, 1999, the United States District
   Court for the District of Massachusetts entered final judgments