UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17553 / June 10, 2002

   SEC v. Terry L. Dowdell, et al., Civil Action No. 3 01CV00116 (W.D.
   Va.) (Honorable James H. Michael, Jr.)

   On June 4, 2002, the Honorable James H. Michael, Jr., Senior U. S.
   District Judge for the Western District of Virginia, entered a
   permanent injunction order against Terry L. Dowdell and two entities
   that he controls in connection with a massive international Ponzi
   scheme Dowdell orchestrated. The scheme raised more than $70 million
   from investors in the U.S. and abroad through the sale of securities
   in a trading program purportedly being operated by Vavasseur Corp., a
   Bahamian company which is also a Defendant in the lawsuit. In a
   Consent and Stipulation filed in conjunction with the entry of the
   permanent injunction order, Dowdell has now admitted to the fraud.

   As is alleged in the SEC's Complaint, Dowdell offered and sold,
   through various promoters and marketers in the U.S. and abroad,
   fictitious "prime bank" securities purportedly involving the purchase
   and sale of foreign bank trading instruments such as medium term
   debentures. Dowdell and his promoters represented that his trading
   program would provide virtually risk-free returns of 4 percent per
   week for 40 weeks per year - up to 160% per year. As Dowdell admitted
   in his Consent and Stipulation, there was in fact no actual trading
   program. Instead, Dowdell was operating a classic Ponzi scheme in
   which old investors were being paid with new investor money.

   In its permanent injunction order, the Court entered findings in favor
   of the SEC with respect to its allegations against Dowdell and two of
   the entities that he controls, Dowdell Dutcher & Associates, Inc.
   ("DDA") and Emerged Market Securities, DE-LLC ("EMS"). The Court
   incorporated into its order as additional findings of fact the
   representations contained in Dowdell's Consent and Stipulation. The
   Court further found that Dowdell, DDA and EMS have engaged in and are
   likely to continue to engage in violations of Section 17(a) of the
   Securities Act of 1933 and Section 10(b) of the Securities Exchange
   Act of 1934 and Rule 10b-5 thereunder. The Court permanently enjoined
   Dowdell, DDA and EMS from further violations of these provisions and
   ordered Dowdell, DDA and EMS to disgorge all investor funds and
   ill-gotten gains received by them through the Ponzi scheme.

   Prior to the entry of the permanent injunction order, the Court had
   entered orders freezing more than $21 million of investor funds
   diverted by Dowdell into various domestic accounts under his control.
   Dowdell admitted in his Consent and Stipulation that even after these
   freeze orders, Dowdell continued his scheme by using various foreign