U.S. SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 17794 / October 21, 2002

Accounting and Auditing Enforcement Release No. 1653 / October 21, 2002

   , No. 02-CV-1524 (DRH) (E.D.N.Y. Oct. 18, 2002)

           SEC SETTLES CIVIL FRAUD CASE AGAINST AARON CHAITOVSKY
         AND ROBERT GLASS, FORMER AUDITORS FOR APPONLINE.COM, INC.

   The Commission today announced that on October 18, 2002, the Honorable
   Denis R. Hurley, United States District Judge, Eastern District of New
   York, entered final judgments of permanent injunction and other relief
   against defendants Aaron Chaitovsky and Robert Glass.

   Without admitting or denying the allegations of the complaint,
   defendants consented to the entry of final judgments permanently
   enjoining them from violating Sections 10(b) and 10A of the Securities
   Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, and
   from aiding and abetting violations of Section 13(a) of the Exchange
   Act and Rules 12b-20 and 13a-1 thereunder. The Court also ordered
   Chaitovsky to pay a civil penalty of $35,000, and Glass to pay a civil
   penalty of $25,000.

   In its complaint filed on March 12, 2002, the Commission alleged that
   defendants Chaitovsky and Glass served as the engagement partner and
   SEC review partner, respectively, on the audit of AppOnline.com,
   Inc.'s ("AppOnline") December 31, 1999 financial statements, which
   were filed with the Commission. The complaint alleged that Chaitovsky
   and Glass violated Sections 10(b) and 10A of the Exchange Act and Rule
   10b-5 thereunder, and from aiding and abetting violations of Section
   13(a) of the Exchange Act and Rules 12b-20 and 13a-1 thereunder, by
   causing the issuance of an audit report, which contained an
   unqualified opinion stating that the audit had been conducted in
   accordance with Generally Accepted Auditing Standards ("GAAS") and
   that the financial statements had been prepared in conformity with
   Generally Accepted Accounting Principles ("GAAP"). Chaitovsky and
   Glass knew, or were reckless in not knowing, that the audit had not
   been performed in accordance with GAAS and that the financial
   statements had not been prepared in conformity with GAAP. Chaitovsky
   and Glass also knew that AppOnline had filed false financial
   statements with the Commission, but took no steps to notify
   AppOnline's board of directors, or any committee thereof, that an
   illegal act had or might have occurred.

   The Commission acknowledges the assistance of the United States
   Attorney's Office for the Eastern District of New York and the Federal