Securities and Exchange Commission

Litigation Release No. 17833 / November 8, 2002

Recidivist Securities Law Violator Convicted and Sentenced for Mail and Wire
Fraud

, Criminal Action No. 8 01-CR-413-T-24-MSS (M.D. Fla., Tampa Division)

   Steven H. Adler, who was twice the subject of Securities and Exchange
   Commission (SEC) administrative proceedings, has been convicted of
   mail and wire fraud and sentenced to jail. The charges against Adler
   arose out of the same misconduct that was the basis for an SEC order
   dated November 15, 2001. Among other things, the SEC's administrative
   order barred Adler from associating with any broker, dealer, or
   investment adviser.

   On November 6, 2001, the United States Attorney's Office for the
   Middle District of Florida (USAO) indicted Steven H. Adler of Tampa,
   Florida, charging him with mail and wire fraud. The indictment was
   based on allegations that Adler violated the law by convincing
   investors to entrust their money to him, and then misappropriating
   those funds. The indictment alleged that Adler
     * solicited and received funds from investors between October 1994
       and September 1998, while he was the president and majority owner
       of Vector Index Advisors, Inc. (Vector), formerly based in Tampa;

     * kept some of the money that he raised and invested the rest, but
       later withdrew it without the knowledge or consent of the
       investors;

     * prepared and furnished to investors fictitious monthly statements
       assuring investors that their investments were intact and
       appreciating in value; and

     * used investor funds for his own or Vector's benefit.

   Following a nine day jury trial, Adler was convicted in May 2002 of
   thirteen counts of mail fraud and seven counts of wire fraud. On
   September 24, 2002, Adler, age 64, was sentenced to a term of five
   years imprisonment and ordered to pay more than $900,000 in
   restitution to his victims.

   The SEC took action against Adler for the same misconduct that led to
   his criminal conviction. In the Matter of Vector Index Advisors, Inc.
   and Steven H. Adler, Securities Act of 1933 (November 15, 2001). The
   Commission also instituted an order imposing a cease-and-desist order
   against Adler in 1996, In the Matter of Vector Index Advisors, Inc.