U.S. Securities and Exchange Commission

Litigation Release No. 17429 / March 21, 2002

Securities and Exchange Commission v. Saint James Asset Management, Inc. and
John Raymond Linney Clain, Defendants and Clain Family Corporation, Relief
Defendant, Civil Action Number 1 02-CV-426 (N.D. Ga.)

Georgia Investment Adviser and Its Controlling Shareholder Permanently
Enjoined from Fraudulent Activities

   The Securities and Exchange Commission ("Commission") announced today
   that on March 11, 2002, the Honorable Robert L. Vining of the United
   States District Court for the Northern District of Georgia entered
   orders of permanent injunction and other relief against John Raymond
   Linney Clain ("Clain") and his investment adviser firm, Saint James
   Asset Management, Inc. ("St. James"), both of Alpharetta, Georgia.
   Clain and St. James were ordered to pay disgorgement, pre-judgment
   interest and civil penalties in amounts to be resolved upon motion of
   the Commission at a later date. Relief defendant Clain Family
   Corporation was ordered to pay disgorgement in an amount to be
   resolved upon motion of the Commission at a later date. Clain and St.
   James consented to the entry of the orders without admitting or
   denying the allegations of the Commission's complaint.

   The complaint alleged that Clain and Saint James obtained over
   $960,000 from sixteen clients between January 1998 and October 2000 by
   misrepresenting that the clients' money would be used to purchase
   various securities. Without the clients' knowledge or permission,
   Clain used the money primarily to fund the operations for an Augusta,
   Georgia company in which Clain had an interest, Alternate Energy
   Resources, Inc. The complaint also alleged that Clain used
   misappropriated funds to purchase two cars and a diamond ring, and to
   pay the mortgage on his house. Clain Family Corporation, which is
   controlled by Clain, owns one of the cars. The complaint also alleged
   that the defendants' misconduct included providing clients with
   materially false and misleading periodic account statements that
   represented falsely that they had bought specific securities for the
   clients, when in fact they had not.

   Judge Vining's orders permanently enjoined Clain and Saint James from
   further violations of Section 17(a) of the Securities Act of 1933,
   Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5
   thereunder and Sections 206(1) and 206(2) of the Investment Advisers
   Act of 1940.

   See also (February 15, 2002)