U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 18326 / September 8, 2003

, Civil Action No. CV 02-6156 NM (MCx) (C.D. Cal.)

JUDGMENT ISSUED AGAINST RECIDIVIST STOCK MANIPULATOR AFTER HE PLEADS GUILTY
TO THREE COUNTS OF SECURITIES FRAUD AND ONE COUNT OF CRIMINAL CONTEMPT

   The Commission announced today that on September 4, 2003, the
   Honorable Nora M. Manella, United States District Judge for the
   Central District of California, entered judgment, pursuant to his
   consent, against Thomas S. Hughes, 55, of Rancho Palos Verdes,
   California. The Court ordered Hughes to pay a civil penalty in the
   amount of $120,000, permanently enjoined him from future violations of
   the insider transactions reporting provisions of the federal
   securities laws, Section 16(a) of the Securities Exchange Act of 1934
   and Rule 16a-3 thereunder, and prohibited Hughes from acting as an
   officer or director of a publicly traded company.

   In its complaint, filed August 7, 2002, the SEC alleged that Glendale,
   California, based eConnect (OTCBB ECNT) and Hughes, eConnect's former
   president, issued false and misleading press releases and posted false
   statements on eConnect's websites in July 2002. These statements
   concerned a purported $20 million investment of "AA" rated bonds that
   in fact were not rated, a nonexistent stock repurchase program, and a
   purported $964,000 purchase order for eConnect's principal product.
   The Commission obtained emergency relief against Hughes and others,
   including an asset freeze, on August 8, 2002, based on the
   Commission's prima facie showing that Hughes and others violated the
   federal securities laws. On August 16, 2002, Judge Manella granted the
   Commission's request for a preliminary injunction and continued the
   asset freeze.

   In a related criminal matter, on August 11, 2003, Hughes pleaded
   guilty to three counts of securities fraud based on the same scheme in
   the SEC's action and one count of criminal contempt of the permanent
   injunction the Commission had previously obtained against him in ,
   CV-00-2959-MMM (JWJx)( C.D. Cal.)(Lit. Rel. No. 16481).

   This case is the product of an investigation by the Securities and
   Exchange Commission, the United States Attorney's Office in Los
   Angeles, and the Federal Bureau of Investigation, which received
   assistance from NASD Regulation, Inc.

   For further information, please see Litigation Release Nos. , , and .

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