UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE No. 17752 / September 26, 2002

ACCOUNTING AND AUDITING ENFORCEMENT RELEASE No. 1634 /
September 26, 2002

COMMISSION FILES FINANCIAL FRAUD ACTION AGAINST BARRY M. BUDILOV AND RAYMOND
J. GREEN

Securities and Exchange Commission v. Barry M. Budilov and Raymond J. Green,
Civil Action No. 02-7479 (E.D. Pa.)

   The Securities and Exchange Commission ("Commission") today filed a
   complaint in the United States District Court for the Eastern District
   of Pennsylvania against Barry M. Budilov, of Lafayette Hill,
   Pennsylvania, and Raymond J. Green, of Springfield, Pennsylvania.
   Budilov is the former president, director, and chief executive officer
   of Ambassador Eyewear Group, Inc. ("Ambassador"), a now defunct
   eyeglass frame distributor whose stock was traded on the Chicago Stock
   Exchange. Green is the former treasurer and principal financial
   accounting officer of Ambassador. The Commission's complaint alleges
   that, from at least 1997 through at least December 1998, Budilov and
   Green engaged in a fraudulent scheme to artificially inflate
   Ambassador's assets, income and retained earnings. As a result of the
   scheme, Ambassador falsely claimed, in a registration statement,
   annual and quarterly reports filed with the Commission and in press
   releases, that it was profitable when, in fact, the company had
   incurred substantial losses. In addition, Ambassador overstated its
   assets by as much as 35 percent.

   The Commission's complaint alleges that, as part of the scheme,
   Budilov and Green falsified Ambassador's books and records related to
   income, expense, accounts receivable, retained earnings, and
   inventory, and lied to Ambassador's auditors. The complaint further
   alleges that, after others began suspecting the fraud, Budilov
   attempted to conceal his involvement by destroying evidence, causing
   others to destroy evidence, and persuading others to accept
   responsibility for the fraud.

   The complaint charges Budilov and Green with violations of Section
   17(a) of the Securities Act of 1933, and Sections 10(b) and 13(b)(5)
   of the Securities Exchange Act of 1934 ("Exchange Act") and Rules
   10b-5, 13b2-1 and 13b2-2 thereunder. The complaint further charges
   both defendants with aiding and abetting Ambassador's violations of
   Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and
   Rules 12b-20, 13a-1 and 13a-13 thereunder. The complaint seeks
   permanent injunctions, disgorgement and civil penalties, and an