U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.

Litigation Release No. 17976 / February 10, 2003

   No. 03-MK-0228 (District of Colorado)

   On February 5, 2003, The Securities and Exchange Commission filed an
   action in the United States District Court for the District of
   Colorado against Rocky Mountain Securities & Investments, Inc. ("Rocky
   Mountain"), a brokerage firm headquartered in Denver, and Judith L.
   Clarke, a Denver resident and former employee of Rocky Mountain. Rocky
   Mountain ceased business on February 3, 2003, due to a multi-million
   dollar net capital deficiency. The Commission alleged that Rocky
   Mountain violated the net capital and customer protection provisions
   of the federal securities laws contained in Section 15(c)(3)(a) of the
   Securities Exchange Act of 1934 ("Exchange Act") and Rules 15c3-1 and
   15c3-3. The Commission also alleged that Rocky Mountain violated the
   broker-dealer books and record provisions of the Exchange Act
   contained in Section 17(a) of the Exchange Act and Rule 17a-3. In this
   action, the Commission sought a temporary restraining order and asset
   freeze against the firm, as well as preliminary and permanent
   injunctions. In addition, the Commission filed a joint motion with the
   Securities Investor Protection Corporation ("SIPC"), which filed a
   separate action, to have a trustee appointed to liquidate the firm.

   In the action the Commission also charged Clarke with aiding and
   abetting Rocky Mountain's violations of the net capital, customer
   protection and books and records provisions. The Commission also
   charged Clarke with violating the antifraud provisions of the Exchange
   Act contained in Section 10(b) of the Exchange Act and Rule 10b-5. The
   Commission alleged that Clarke had traded equities for Rocky Mountain
   in an account at the firm and allegedly incurred significant trading
   losses, which she attempted to conceal from the firm by creating false
   trading records. To pay the debts owed by Rocky Mountain as the result
   of the losses, Clarke allegedly used almost the entire $4.5 million
   balance of a money market account in Rocky Mountain's name. This money
   market account had contained cash belonging to Rocky Mountain's retail
   customers. The Commission sought against Clarke a temporary
   restraining order, asset freeze and an order to provide an accounting,
   as well as preliminary and permanent injunctions, disgorgement plus
   prejudgment interest and civil penalties.

   On February 7, 2003, a temporary restraining order was entered against
   Rocky Mountain prohibiting the firm from violating the net capital,
   customer protection and broker-dealer books and records provisions the
   firm was alleged to have violated in the complaint. In addition, John
   D. Shively of the law firm Fagre & Benson in Denver was appointed to