UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 17387 / February 28, 2002

   (U.S.D.C., Eastern District of Texas, Sherman Division, Civil Action
   No. CA 4 01CV117)

   CONVICTED SECURITIES FRAUDSTER SETTLES CASE WITH THE COMMISSION

   On February 13, 2002, the Honorable Paul N. Brown, U.S. District
   Judge, Eastern District of Texas, entered a Final Judgment as to Frank
   L. Harris III, a former registered representative of Josephthal & Co.,
   Inc.'s Addison, Texas branch office, permanently enjoining him from
   committing future violations of Section 17(a) of the Securities Act of
   1933, and Section 10(b) of the Securities and Exchange Act of 1934 and
   Rule 10b-5 thereunder. Previously, on June 29, 2001, Harris pleaded
   guilty to one count of federal securities fraud resulting from a
   criminal information brought by the United States Attorney's Office in
   which he admitted to stealing funds from 19 his brokerage customers.
   Because of the related criminal proceedings, in which Harris was
   imprisoned for a term of 46 months and ordered to pay restitution in
   the amount of $1,619,847, the Commission accepted Harris' consent to
   the order of permanent injunction and dismissed claims for
   disgorgement, prejudgment interest and penalties. In addition, the
   Commission announced the institution and simultaneous settlement of
   public administrative proceedings against Harris in which he agreed to
   the entry of an Order barring him from association with any broker or
   dealer for his willful violations of the antifraud provisions of the
   federal securities laws and the entry of the injunction against him.

   The Commission's Complaint charged that from January 2000 until March
   2001, Harris diverted money from his customers using three schemes 1)
   falsely representing that customer funds would be used to purchase a
   particular security; 2) borrowing against securities in the customer
   margin accounts without customer authorization; and 3) liquidating
   customer securities without their authorization. Harris' schemes were
   uncovered when he failed to report to work and fled to Cancun, Mexico.
   Harris later returned to the United States, was apprehended and faced
   criminal charges.
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Modified 03/01/2002