Securities and Exchange Commission

Litigation Release No. 18353 / September 17, 2003

SEC Obtains Preliminary Injunctive Relief Against Tecumseh Holdings
Corporation and Affiliates

Securities and Exchange Commission v. Tecumseh Holdings Corporation,
Tecumseh Tradevest LLC, S.B. Cantor & Co., Inc., John L. Milling, Gerard A.
McCallion, Anthony M. Palovchik and Dale Carone, Defendants, and Tecumseh
Alpha Fund LP, Tecumseh Alpha LLC, and Stracq, Inc., Relief Defendants,
Civil Action No. 03 Civ. 5490 (SAS) (S.D.N.Y., filed July 24, 2003)

   At a hearing on August 22, 2003, the U.S. District Court for the
   Southern District of New York granted the Securities and Exchange
   Commission's application for a preliminary injunction and other relief
   against Tecumseh Holdings Corporation ("Tecumseh"), Tecumseh Tradevest
   LLC ("Tradevest"), S.B.Cantor & Co., Inc. ("Cantor"), and John L.
   Milling ("Milling"). The defendants filed no opposition to the
   Commission's motion and ultimately consented to the relief. Entered on
   September 5, 2003, the court's order continues in place various forms
   of interim relief initially ordered by the court on July 25, 2003,
   when the court granted the Commission's application for a temporary
   restraining order and other relief to halt the fraud perpetrated by
   Tecumseh and the other defendants. Among other things, the court's
   September 5, 2003 order preliminarily enjoins (a) Tecumseh, Tradevest,
   Cantor and Milling from committing future violations of the
   registration provisions, Sections 5(a) and 5(c) of the Securities Act
   of 1933 ("Securities Act"); (b) Tecumseh, Tradevest and Milling from
   future violations of the antifraud provisions, Section 17(a) of the
   Securities Act and Section 10(b) of the Securities Exchange Act of
   1934 ("Exchange Act") and Rule 10b-5 thereunder; (c) Cantor from
   future violations of the broker-dealer books and records provisions,
   Section 17(a) of the Exchange Act and Rules 17a-3 and 17a-4
   thereunder; and (d) Milling from aiding and abetting future violations
   of the broker-dealer books and records provisions, Section 17(a) of
   the Exchange Act and Rules 17a-3 and 17a-4 thereunder. The order also
   (a) continues a freeze over the assets of those defendants and relief
   defendants Tecumseh Alpha Fund LP ("Alpha Fund") and Tecumseh Alpha
   LLC ("Alpha LLC"); and (b) keeps in place Loretta E. Lynch as the
   court-appointed receiver for Tecumseh, Tradevest, and Cantor. At the
   request of defendant Milling, the order also imposes a limited stay of
   discovery and stays defendants' time to respond to the Commission's
   complaint pending resolution of a criminal investigation. The order
   allows the Commission, however, to take third-party discovery
   notwithstanding the stay.

   The Commission's complaint, filed on July 24, 2003, alleges that,