United States Securities and Exchange Commission

Litigation Release No. 17804 / October 24, 2002

Securities and Exchange Commission v. Kenneth Roy Weare, a/k/a Roy Weaver,
J&K Global Marketing Corporation, and AAA-Auction.Com, Inc., Civil Action
No. 01-K-0645 (D. Colo.)

Commission Seeks Civil Contempt Against Weare and J&K Global Marketing for
Violation of Asset Freeze

   The Commission announced that on October 21, 2002 it filed a motion
   seeking entry of a civil contempt order against Kenneth Roy Weare,
   also known as Roy Weaver, a resident of Littleton, Colorado, and his
   company, J&K Global Marketing Corporation. The Commission alleged that
   Weare and J&K have violated orders entered by the United States
   District Court for the District of Colorado freezing the defendants'
   assets, requiring the defendants to repatriate funds held in offshore
   accounts, prepare an accounting of funds raised by the defendants in
   an investment scheme, and pay disgorgement of over $6.2 million in
   funds illegally obtained from investors. A hearing on the matter is
   set for October 29, 2002.

   On January 8, 2002 the District Court entered a permanent injunction
   by default against Weare, J&K and AAA-Auction.com, another Colorado
   company operated by Weare. The Court found that Weare and J&K violated
   the anti-fraud and registration provisions of the federal securities
   laws when they used the Internet to sell $375 investments in a
   "rent/mortgage free" program that promised investors returns of 600
   percent annually from funds that were suppose to be invested offshore.
   In fact, the defendants operated a Ponzi scheme where funds raised
   from later investors were used to pay purported returns to earlier
   investors. An analysis of the company's bank records disclosed no
   investments.

   The Court also found that Weare and AAA-Auction.com had engaged in
   securities fraud by making false representations to investors in
   connection with their investments in merchandise resale agreements
   offered by AAA-Auction, funds from which were to be used to buy
   merchandise that would be sold through AAA-Auction's live auction
   website allegedly for a large profit.

   The Court permanently enjoined Weare and J&K from violating Sections
   5(a) and (c), and 17(a) of the Securities Act of 1933, and Section
   10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and
   ordered Weare and J&K together to pay disgorgement of $6,278,334.91
   and prejudgment interest of $486,848.02. The Court also ordered Weare
   to pay a civil penalty of $220,000 and J&K to pay a civil penalty of