United States Securities and Exchange Commission

LITIGATION RELEASE NO. 17610 / July 12, 2002

   Civil Action No. 3 01-CV-02683-M, USDC NDTX (Dallas Division)

   On July 2, 2002, the Honorable Barbara M.G. Lynn, Judge, United States
   District Court for the Northern District of Texas (Dallas), entered a
   partial summary judgment in a multi-million dollar offering fraud
   scheme against Richard T. Taylor (Spring, Texas). The judgment enjoins
   Taylor from violating the antifraud and registration provisions of the
   federal securities laws (Sections 5(a) and (c) and 17(a) of the
   Securities Act of 1933, Section 10(b) of the Securities Exchange Act
   of 1934 and Rule 10b-5 thereunder), orders Taylor to disgorge
   $3,298,295.95, together with prejudgment interest, to a
   court-appointed receiver for the benefit of defrauded investors. The
   issue of civil money penalties will be determined at a later time by
   the court.

   As alleged in the Commission's complaint, the Court found that,
   between 1992 and late 2001, Taylor, individually and doing business as
   Transworld Bankers, sold 30-month, purported FDIC-insured certificates
   of deposit (CDs) to no less than 82 investors; that the CDs were not
   registered with the Commission; and that Taylor had represented that
   the CDs would pay higher-than-average rates and that there would be no
   charge to investors for Taylor and Transworld Bankers' services. The
   Court also found that Taylor used investor funds for his own use, for
   "Ponzi" payments and to pay sales commissions.

   After the Commission filed its original emergency action to shut down
   the scheme and freeze assets on December 20, 2001, the United States
   Attorney for the Northern District of Texas filed an information
   charging Taylor with securities fraud and mail fraud arising out of
   the scheme. On March 20, 2002, Taylor entered a plea of guilty to one
   count of securities fraud in violation of Section 17(a) of the
   Securities Act of 1933, 15 U.S.C. §77q(a), and one count of mail fraud
   in violation of 18 U.S.C. §1341. Taylor is scheduled to be sentenced
   on August 2, 2002, and could receive a prison sentence of as much as
   10 years. Additionally, the United States Attorney for the Northern
   District of Texas filed an information charging Kevin M. Devoto, a
   salesman who offered Taylor's CDs, with misprision of a felony arising
   out of the scheme. Devoto entered a guilty plea to the information and
   is scheduled to be sentenced on September 13, 2002.
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Modified 07/12/2002