UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Rel. No. 17793 / October 18, 2002

       Court Issues Preliminary Injunctions and Asset Freezes Against
              Claude Lefebvre, Dennis Herula, Mary Lee Capalbo
          RMO Assets Management and Watch Hill Capital Management
                          in Securities Fraud Case

   (United States District Court for the Northern District of California,
   No. C 02-3704 SBA, filed July 31, 2002)

   The Commission announced today that it has obtained preliminary
   injunctions and asset freezes in a civil fraud action filed against
   Claude Lefebvre, a purported bond trader, Dennis Herula, a former
   Rhode Island broker, Mary Lee Capalbo, Herula's wife, and others in
   connection with a fraudulent scheme that raised $40 million from
   investors during July 2002. The Commission filed its action on July
   31, 2002, and a California federal court entered temporary restraining
   orders and asset freezes against the defendants on August 1. The court
   orally entered preliminary injunctions and asset freezes against
   Lefebvre and RMO Assets Management during an October 1 hearing, and
   issued a written preliminary injunction and asset freeze order against
   Herula, Capalbo and Watch Hill Capital Management on October 15.

   The Commission alleged in its complaint that Lefebvre, acting through
   RMO Assets Management and Watch Hill Capital Management, falsely
   promised investors exorbitant returns, such as a 100% return per week,
   through a fraudulent prime bank trading program. The Commission's
   complaint alleged that Herula aided and abetted Lefebvre's violations
   of the federal securities laws, and named Capalbo as a relief
   defendant on the grounds that she received at least $3 million of
   investor funds to which she had no legitimate claim. The complaint
   further alleged that, in the span of several weeks in July 2002,
   Lefebvre, Herula, and Capalbo spent at least $4 million in investor
   funds on personal and luxury items such as cars, jewelry, and large
   hotel bills.

   The court entered preliminary injunctions against Lefebvre, RMO Assets
   Management, Herula, Capalbo and Watch Hill Capital Management,
   prohibiting them from committing further violations of the antifraud
   provisions of the federal securities laws (Section 17(a) of the
   Securities Act of 1933 and Section 10(b) of the Securities Exchange
   Act of 1934 and Rule 10b-5 thereunder). Although the Commission
   charged Capalbo as a relief defendant, the court nonetheless found
   that the Commission made a substantial showing that Capalbo aided and
   abetted the securities laws violations alleged in the case, and
   applied the preliminary injunction to Capalbo as well. The court also