U.S. Securities and Exchange Commission

Litigation Release No. 17802 / October 23, 2002

, Civil Action Number 1 02-CV-426 (N.D. Ga.)

Order Setting Disgorgement, Prejudgment Interest and Civil Penalties Issued
Against Georgia Investment Adviser and Its Controlling Shareholder as a
Result of Fraudulent Activities, and Order Setting Disgorgement and
Prejudgment Interest Issued Against Relief Defendant

   The Securities and Exchange Commission ("Commission") announced today
   that on October 16, 2002, the Honorable Robert L. Vining of the United
   States District Court for the Northern District of Georgia issued an
   order setting disgorgement, prejudgment interest and civil penalties
   against defendants John Raymond Linney Clain ("Clain") and his
   investment adviser firm, Saint James Asset Management, Inc. ("St.
   James"), both of Alpharetta, Georgia, and ordered disgorgement and
   prejudgment interest against relief defendant Clain Family Corporation
   ("CFC"), a corporation controlled by Clain. In an earlier order, the
   Court permanently enjoined permanently enjoined Clain and Saint James
   from further violations of Section 17(a) of the Securities Act of
   1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule
   10b-5 thereunder and Sections 206(1) and 206(2) of the Investment
   Advisers Act of 1940. In its recent order, the Court ordered Clain and
   St. James to pay disgorgement, jointly and severally in the amount of
   $927,000, along with prejudgment interest thereon, ordered Clain and
   St. James to pay "third tier" statutory civil penalties in the amounts
   of $110,000 and $550,000 respectively. The Court also ordered CFC to
   pay disgorgement in the amount of $32,000 along with prejudgment
   interest thereon. The Court's Order directed that disgorgement,
   prejudgment interest and civil penalties be paid into the registry of
   the Court within thirty days from the entry of the Order.

   The Commission's complaint alleged that Clain and Saint James obtained
   the funds from sixteen clients between January 1998 and October 2000
   by misrepresenting that the clients' money would be used to purchase
   various securities. Without the clients' knowledge or permission,
   Clain used the money primarily to fund the operations for an Augusta,
   Georgia company in which Clain had an interest, Alternate Energy
   Resources, Inc. The complaint also alleged that Clain used
   misappropriated funds to purchase two cars and a diamond ring, and to
   pay the mortgage on his house. Clain Family Corporation, which is
   controlled by Clain, owns one of the cars. The complaint also alleged
   that the defendants' misconduct included providing clients with
   materially false and misleading periodic account statements that
   represented falsely that they had bought specific securities for the
   clients, when in fact they had not.