United States Securities and Exchange Commission

Litigation Release No. 18073 / April 4, 2003

Jeffrey L. Goldberg Charged by SEC and United States Attorney with Fraud for
Operating a Ponzi Scheme

, No. 03C 2259 (N.D. Ill.)

, No. 03CR 0332 (N.D. Ill.)

   On April 1, 2003, the Securities and Exchange Commission and United
   States Attorney for the Northern District of Illinois announced the
   filing of civil securities fraud and criminal mail fraud charges
   against Jeffrey L. Goldberg, age 51, of Buffalo Grove, Illinois, for
   operating a Ponzi scheme that defrauded at least 130 investors out of
   millions of dollars. The charges against Goldberg are the result of
   close cooperation between the United States Attorney's Office, the
   Federal Bureau of Investigation, and the Commission's staff. Both
   actions were filed in federal district court in the Northern District
   of Illinois.

   The Commission's complaint alleges that from at least 1988 through at
   least March 2002, Goldberg raised approximately $6.1 million from
   investors by selling six different investments. In raising money,
   Goldberg misrepresented the nature of the investments and that he
   would use investors' funds -- without their permission -- for his own
   purposes. When the investments inevitably failed to generate the
   promised returns, Goldberg perpetuated the investments, just like a
   Ponzi scheme, by paying returns from funds raised from new investors.

   Throughout this time, Goldberg served in positions of trust to his
   potential and existing investors. The Commission alleges that Goldberg
   raised nearly all his funds from his investment advisory clients, most
   recently at Essex, LLC. Goldberg also served on the Board of Directors
   for two issuers for which he raised money -- Stamford International,
   Inc. and Dauphin Technology, Inc. In March 2002, Goldberg's scheme
   finally collapsed leaving his remaining investors with worthless
   investments.

   The Commission's complaint alleges that Goldberg engaged in multiple
   violations of the antifraud provisions of the federal securities laws
   in connection with his Ponzi scheme. The Commission seeks a permanent
   injunction barring Goldberg from violating Sections 17(a)(1), (2), and
   (3) of the Securities Act of 1933, Section 10(b) of the Securities
   Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1)
   and (2) of the Investment Advisers Act of 1940. The Commission also
   seeks civil monetary penalties from Goldberg, disgorgement of any