U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17974 / February 7, 2003

   SECURITIES AND EXCHANGE COMMISSION v. NATIONAL INVESTMENT ENTERPRISES
   AND MICHAEL GARIAN A/K/A MELKON GHARAKHANIAN A/K/A BIKA BALIAN, Civil
   Action No. (CV 03-0896 GHK (JWJx)) (C.D. Cal.)

   The Securities and Exchange Commission filed a complaint in U.S.
   District Court in Los Angeles yesterday alleging securities fraud
   perpetrated primarily against Armenian-Americans by Michael Garian,
   also known as Melkon Gharakhanian, and his company, National
   Investment Enterprises ("NIE").

   The SEC's complaint alleges that between 1997 and mid-2001, Garian,
   41, of Van Nuys, California, and Glendale-based NIE raised over $19
   million from about 200 investors. Most of the investors Garian and NIE
   targeted were residents of Glendale's large Armenian-American
   community, many of whom had never invested in the stock market, and
   some of whom were Armenian immigrants for whom English was a second
   language. Garian allegedly falsely told investors that he would use
   their money to purchase various securities for their accounts; had an
   "inside line" to upcoming "hot" IPOs, particularly for Internet and
   other technology-related companies; and could deliver large profits
   quickly. The complaint charges that Garian and NIE furthered their
   scheme by sending investors false monthly account statements that
   represented that NIE was purchasing large volumes of IPO shares and
   other securities on their behalf and making large profits from
   Garian's trading activities.

   In fact, Garian invested only $5.2 million of the $19 million he
   raised, of which Garian lost all but $1.6 million in IPO investments,
   day trading, and commodities trading. The bulk of the investors'
   funds, $14 million, was used to repay earlier investors their
   principal and purported investment returns in order to sustain a
   Ponzi-like scheme. Garian used at least $112,000 for his own personal
   benefit, and an additional $2.3 million was withdrawn from NIE's bank
   account in the form of cashier's checks which remain unaccounted for,
   the complaint alleges. NIE's investors ultimately sustained a loss of
   approximately $5 million.

   Concurrent with the filing of its complaint against Garian and NIE,
   the SEC also announced that it reached a settlement with relief
   defendant Aegis Financial, LLC, a Chicago-based commodities broker.
   The SEC did not charge Aegis with securities law violations, but
   instead named it as a relief defendant in order to require Aegis to
   return $210,000 of investors' funds that had been loaned by Garian and
   NIE. Aegis promised to deposit the $210,000 into the Court's registry.