SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 17609 / July 12, 2002

   SECURITIES AND EXCHANGE COMMISSION v. MICHAEL D. RICHMOND, et al.
   (United States District Court for the District of Massachusetts, C.A.
   No. 98cv11378-NG)

   The Commission announced today that, the Honorable Nancy Gertner,
   United States District Judge for the District of Massachusetts,
   entered summary judgment against Michael D. Richmond ("Richmond") on
   June 28, 2002. The judgment permanently enjoins Richmond from
   violating the antifraud, securities and broker-dealer registration
   provisions of the federal securities laws, and orders Richmond to
   disgorge his ill-gotten gains of $8.5 million plus prejudgment
   interest in the amount of $3 million for a total of $11.5 million. The
   Court also froze Richmond's assets until the disgorgement order is
   satisfied.

   The Commission's action was filed in July 1998 alleging that Richmond
   operated a Ponzi scheme in which he used internet websites and a
   network of Liberty Network sales agents to convince unsophisticated
   investors, including many elderly persons and widows, to liquidate
   annuities and other investments in order to purchase fraudulent
   securities issued by Royal Meridian International Bank ("RMIB"). The
   Commission charged that Richmond falsely claimed RMIB was a fully
   chartered private offshore bank with offices in Canada, the Bahamas,
   Guernsey and Turks & Caicos when, in fact, RMIB was a shell with no
   offices and no apparent significant sources of revenue from which it
   could pay returns except through the sale of additional fraudulent
   securities to unwitting investors. Additionally, the Commission
   charged that Richmond deposited investor funds into a series of money
   market and bank accounts he controlled and that he used the funds to
   repay other investors and for Richmond's and others' personal
   expenses. The Court found Richmond liable for violations of Securities
   Act of 1933 Sections 5(a), 5(c) and 17(a) as well as Securities
   Exchange Act of 1934 Sections 10(b) and 15(a) and Rule 10b-5
   thereunder.

   On April 11, 2001, Richmond pled guilty to 17 counts of an indictment
   charging him with mail fraud in connection with the RMIB offering and
   he subsequently was sentenced to 50 months in federal prison, to be
   followed by three years of supervised release, and ordered to pay
   $8,372,304.86 in restitution to defrauded investors. , Criminal Action
   No. 00-10125-01-JLT (D. Mass.). Any amounts recovered in the criminal
   case will be credited against the civil disgorgement order.

   For further information, see Litigation Release Nos. , , , , , , and .