U.S. Securities and Exchange Commission

Litigation Release No. 17975 / February 7, 2002

SEC Settles Financial Fraud Charges against Albert Terranova

   The Securities and Exchange Commission announced that on December 11,
   2002, the Honorable Barbara S. Jones, United States District Judge for
   the Southern District of New York, entered a Final Judgment of
   Permanent Injunction and Other Equitable Relief by Consent against
   Albert Terranova ("Terranova") of Scottsdale, Arizona. The Final
   Judgment enjoins him from future violations of Section 17(a) of the
   Securities Act of 1933, and as a control person from future violations
   of Sections 10(b) and 15(c)(1) of the Exchange Act, Rules 10b-3,
   10b-5, 15c1-2, 15c1-6, and Rules 101 and 102 of Regulation M
   thereunder. Terranova was also ordered to pay $75,000 in disgorgement.

   The Commission also announced that on February 6, 2003, it instituted
   a settled administrative proceeding pursuant to Section 15(b) of the
   Exchange Act against Terranova, an undisclosed principal of First
   American Biltmore Securities, Inc. a now-defunct registered
   broker-dealer. Terranova agreed to an order that barred him from
   participating in any offering of a penny stock and from association
   with any broker or dealer.

   The Commission's Amended Complaint, filed on May 9, 1996, alleged that
   Terranova and others participated in a fraudulent scheme involving a
   registered offering of two million shares of Scorpion common stock
   that they sold at inflated prices to the public. This case, which had
   been put on the suspense docket pending resolution of a related
   criminal proceeding in the District Court for the Northern District of
   California, was restored to the active docket in July 2001.

   See also (February 9, 1996), (April 18, 2002), (July 29, 2002)

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Modified 02/07/2003