December

Charles Dwain Davis, Jr., of Dallas, Texas, was sentenced on December 12, 2006, in the United States District Court, Northern District of Texas, Dallas Division, following his guilty plea in July 2006 to one count of securities fraud. Davis admitted that while working as a registered securities salesman, he opened bank accounts with names similar to his employing brokerage firms, misappropriated clients' investments for his personal benefit by depositing their monies into these accounts, manufactured and provided customers with fictitious account statements, and made payments from these accounts to his clients as part of a ponzi scheme. Davis was sentenced to serve a total of 33 months in federal prison, followed by supervised release of two years, and to pay restitution of $2,345,348.58 to 11 victims.

Phillip Ronald Richardson, of The Woodlands, Texas, pled guilty on December 5, 2006, in the 177th District Court, Harris County, Texas, Cause No. 1060965 to securities fraud. Richardson was involved in the offer for sale and the sale of stock issued by ETG Technologies, Inc. He was sentenced to two years confinement in the Institutional Division of the Texas Department of Criminal Justice.

November

Jules B. Fleder of Beverly Hills, California, was convicted on November 16, 2006, in the United States District Court, Eastern District of Texas, Tyler Division, Cause No. 6:05CR00016-001, on one count of conspiracy to commit mail fraud and one count of securities fraud. Felder conspired with Jack A. Brown to raise nearly $2 million through the sale of limited partnership interests in Prairie Lake Estates, L.P. Fleder was sentenced to 10 years incarceration, to be followed by 3 years of supervised release, and was ordered to pay restitution in the amount of $27,540,302.

Jack Arnold Brown of Marshall, Texas, was convicted on November 16, 2006, in the United States District Court, Eastern District of Texas, Tyler Division, Cause No. 6:05CR00033-001, on one count of conspiracy to commit securities fraud and mail fraud. Brown conspired with Jules B. Fleder to raise nearly $2 million through the sale of limited partnership interests in Prairie Lake Estates, L.P. Brown was sentenced to 5 years imprisonment, to be followed by 3 years of supervised release, and was ordered to pay restitution of $8,286,950.

Melvin Dean Marshall of Meadowlakes, Texas, was convicted on November 16, 2006, in the 33rd Judicial District Court in Burnet County, Texas, Cause Nos. 32521 and 32522, on one count of securities fraud and one count of first-degree theft, respectively. Marshall sold investment agreements through his insurance company, Marshall Insurance Agency, Inc., raising approximately $2 million from primarily elderly victims. Marshall was sentenced to 11 years confinement and 10 years probation; the sentences to run concurrently.

Michael David George of Austin, Texas, was indicted on November 15, 2006, in the United States District Court, Western District of Texas, San Antonio Division, Cause No. SA-06-CR-600-XR. George is charged with one count of securities fraud, two counts of mail fraud, and one count of money laundering for the sale of investment contracts and fractional undivided interests in oil, gas, and other mineral rights in the form of working interests in oil and gas wells in Wyoming and New Mexico, issued by his company, CKG Energy, Inc.

Bruce Barney Strahan, Jr. of Temple, Texas, pled guilty on November 9, 2006, in the 15th Judicial District Court, Grayson County, Texas, Cause No. 054741-15, to selling unregistered securities and selling securities without being registered as a securities dealer or agent. Strahan was a sales agent for Premium Income Corp., a Seattle-based company that offered purported investments in the foreign currency markets primarily to senior citizens. The scheme collected approximately $12 million from investors. Strahan was sentenced to two years probation and 160 hours community service.

October

John Kareem Wannamaker of Dallas, Texas, pled guilty on October 26, 2006, in United States District Court, Northern District, Dallas Division, Cause No. 305-CR-0184K, to one count of conspiracy to commit wire fraud and securities fraud, five counts of wire fraud and aiding and abetting, one count of securities fraud and aiding and abetting, five counts of money laundering, and four counts of engaging in illegal monetary transactions. Wannamaker was sentenced to 110 months incarceration. Patrick Price of High Ridge, Missouri, pled guilty on November 8, 2006, in United States District Court, Northern District, Dallas Division, Cause No. 305-CR-0184K, to one count of securities fraud and aiding and abetting. Price was sentenced to probation for a term of three years. Nancy Harlan Saporta of Denver, Colorado, pled guilty on November 8, 2006, in United States District Court, Northern District, Dallas Division, Cause No. 305-CR-0184K, to one count of conspiracy to commit wire fraud and securities fraud. Saporta was sentenced to probation for a term of four years. Wannamaker, Price, and Saporta were charged with operating a prime bank scheme to defraud investors by misrepresenting that 3KTrade.com, Inc. was a large and highly successful business investing in real estate, business acquisitions and international banking funds; that the investors' money would be used as collateral only and never leave the bank account; and that the funds invested were guaranteed. They failed to disclose that the investments were not made; that some funds were used as lulling payments to other investors; and that funds were spent for their use and not maintained as collateral or otherwise guaranteed. Restitution of $2,224,490 was ordered to be paid to 86 victims; such restitution to be paid jointly and severally by John Wannamaker, Patrick Price, and Nancy Saporta.

Frank Boyd Harrison, of Selma, Texas, was indicted on October 12, 2006, in the 290th District Court in Bexar County, Texas, Cause No. 2006-CR-8714, for the sale of unregistered securities, the sale of securities by an unregistered dealer/agent, and for securities fraud. Harrison allegedly made fraudulent sales or unregistered securities issued by TMT Management Group, LLC and POSA TMT, LLC, programs involving POS terminal equipment. The scheme raised more than $1.5 million from investors.

September

Jeffrey Eugene Brown of Mesquite, Texas, was indicted on September 26, 2006, in the 173rd Judicial Court, Henderson County, Texas, Cause Nos. B-15,039 and B-15,040, charged with acting as an unregistered sales agent in the sale of unregistered securities issued by Mobile Billboards of America, Inc. The program involved the purchase of truck-mountable billboard frame equipment from Mobile Billboards of America, Inc. and the lease of that equipment to Outdoor Media Industries in exchange for monthly payments equivalent to a 13.49% annual return. The Mobile Billboards scheme raised approximately $60 million from the public nationwide.

August

William June Fletcher, Jr. of Plano, Texas, pled guilty on August 22, 2006, in the 210th Judicial District Court in Collin County, Texas, Cause No. 219-81812-06, to charges of securities fraud. Fletcher received a 10 year suspended sentence, and agreed to pay restitution in the amount of $241,161 and a fine of $10,000. Fletcher, doing business as Texas Oil Equities, Inc., sold working interests in oil and gas leases located in Goliad County, Texas, at times when he did not own the leases.

Bruce Frank Ruark of Austin, Texas, was indicted on August 8, 2006, in the 277th Judicial District Court in Williamson County, Texas, Cause No.'s 06-1393-K277 and 06-1394-K277. Ruark was charged with securities fraud in the aggregate amount of $100,000 or more, stemming from ten sales of the Mobile Billboards program and securing execution of documents by deception in the aggregate amount of $200,000 or more stemming from nine sales of the Mobile Billboards program. The Mobile Billboards scheme raised approximately $60 million from the public nationwide.

July

On July 26, 2006, an Information and Waiver of Indictment were entered against Charles Dwain Davis of Dallas, Texas, in the US District Court, Northern District, Dallas, Texas Division, Cause No. 03-06:CR-240-D. The Information charged Davis with one count of securities fraud. Davis pled guilty to the charge and admitted that while working as a registered securities salesman, he opened bank accounts with names similar to his employing brokerage firms, misappropriated clients' investments for his personal benefit by depositing their monies into these accounts, manufactured and provided customers with fictitious account statements, and made payments from these accounts to his clients as part of a ponzi scheme. Sentencing is scheduled for November 17, 2006.

Frederick Otto Delin of Denison, Texas, and Bruce Strahan, Jr. of Colleyville, Texas, were indicted on July 12, 2006 in the 336th Judicial District Court in Grayson County, Texas, Cause No.'s 54697-15, and 54741-59, respectively, for selling unregistered securities and for selling securities without being registered as securities dealers or agents with the Texas Securities Commissioner. Strahan and Delin were sales agents for Premium Income Corp., a Seattle-based company that offered purported investments in the foreign currency markets primarily to senior citizens. The scheme collected approximately $12 million from investors.

James Eugene Graves of Claude, Texas, pled guilty on July 10, 2006 in the 287th Judicial District Court in Bailey County, Texas, Cause No. 2398, to one count of securing execution of a document by deception in connection with the sale of an investment in a timeshare sale/leaseback arrangement involving hotels located in Branson, Missouri. Graves was sentenced to a suspended five-year term and ordered to pay $35,000 in restitution to the elderly victim.

June

On June 12, 2006, following a parole hearing, Gerald Leo Rogers, previously of Seattle, Washington, was ordered to serve 120 months in federal prison. At the hearing, evidence was presented establishing Rogers' involvement in the sale of $12 million in Premium Income Corp. investments to vulnerable victims, while he was on parole for investment-related fraud. The revocation was a result of joint efforts by the Texas State Securities Board and federal agencies. Mr. Rogers has been incarcerated since February, 2005, in connection with this mater.

May

On May 24, 2006, Case No. 04-15038-FRM, in the United States Bankruptcy Court for the Western District of Texas, Austin Division, an Agreed Final Judgment was entered against Melvin Dean Marshall of Marble Falls, Texas in connection with his Chapter 7 bankruptcy filing. Marshall's debt of $2,556,650 was excepted from discharge from bankruptcy. The debt arose as a result of Marshall's offering of promissory notes to the public and his subsequent default on those notes.

Steven Michael Herrera of Plano, Texas, was indicted on May 9, 2006 in Dallas County, Texas, Criminal District Court No. 5, Cause No.'s F06-00562-GJR; F06-00563-GJR; F06-00564-GJR; and F06-00565-GJR, for money laundering and theft. Herrera allegedly falsely held himself out as an authorized representative of an oil and gas company and persuaded several individuals to send money for the purpose of investing in the company's oil and gas projects. The funds were allegedly used for Herrera's personal use.

Norman Paul Cowart, Sr., of Fort Worth, Texas, pled guilty on May 9, 2006 in the 27th District Court, Bell County, Texas, Cause No.'s 56138; 56139; and 56140, to violations of the registration requirements of the Texas Securities Act. Cowart was sentenced to 10 years confinement in the Institutional Division of the Texas Department of Criminal Justice.

Richard Munoz, Jr., of San Antonio, Texas, pled guilty on May 8, 2006, in the 379th Criminal District Court in Bexar County, Texas, Cause No. 2005 CR 3960 A, to misapplication of fiduciary property. On June 27, 2006, Munoz was sentenced to 10 years in prison. Munoz operated a securities day-trading scheme that resulted in investor losses of more than $200,000.

April

John Mark Eseppi of Dallas, Texas, pled guilty on April 25, 2006 in the 194th Judicial District Court in Dallas County, Texas, Cause No.'s F04-00189, and F04-00197, to engaging in fraud in connection with the sale of securities issued by Associates Capital Management Corp. dba ACM Yield Hedge Intermediate Term Joint Venture, and sale of stock issued by Associates Venture Capital Corp. Eseppi was sentenced to 5 years imprisonment on each charge to run concurrently.

James L. Slayton of Port Lavaca, Texas, as President, Director, and Owner of Mariah Resources, Inc., was indicted on April 20, 2006 in the United States District Court, Southern District of Texas, Victoria Division, Cause No. V-06-38, for mail fraud. Slayton marketed and sold interests in the drilling and production of fictitious oil and gas wells purportedly located in Texas and Oklahoma.

Larry Joseph Bolden of Austin, Texas, was indicted on April 17, 2006 in the 331st Judicial District Court in Travis County, Texas, Cause No. D1DC06900244 for forgery and aggregated theft of over $100,000. Bolden allegedly forged wire transfer authorizations and checks to transfer money from individual investors' accounts into accounts which he controlled.

Norman Paul Cowart, Sr., of Fort Worth, Texas, pled guilty on April 4, 2006 in the 43rd District Court, Parker County, Texas, Cause No. CR04-0232 to securities fraud in connection with the sale of stock of OLU.com, Inc. Cowart was sentenced to 10 years confinement in the Institutional Division of the Texas Department of Criminal Justice.

Bobby E. Hearn, of Ft. Worth, Texas, pled guilty on April 3, 2006 in the Tarrant County Criminal District Court, No. 3, Cause No.'s 0975518D, and 0971226D, for selling securities at a time when he was not registered with the Texas Securities Commissioner and theft of $1,500 - $20,000. Hearn was sentenced to 5 years confinement in the Texas Department of Criminal Justice System and 5 years deferred adjudication.

March

David Allan Hilburn; Box 40 Group, LLC; Brazos Valley Capital, LLC; and Mayhaw Capital Partners of Houston, Texas were enjoined on March 23, 2006 in the 98th Judicial District Court, in Austin, Texas. The Court entered orders of Permanent Injunction and Permanent Receivership based on evidence that the defendants sold unregistered securities, acted as unregistered dealers, and committed fraud in connection with the sale of securities.

Patrick Price, of High Ridge, Missouri, and Nancy Harlan Saporta, of Denver, Colorado, doing business through 3KTrade.com, Inc., were re-indicted on March 22, 2006 in the U.S. District Court, Northern District of Texas, Cause No. 305-CR-0184K for Conspiracy, Wire Fraud, Mail Fraud, and Securities Fraud. They are charged with operating a prime bank scheme to defraud investors by misrepresenting that 3KTrade.com, Inc. was a large and highly successful business investing in real estate, business acquisitions and international banking funds; that it had made loans to the Federal Reserve Bank of the US; that the return rate on investments was 100 to 150%; that the investors money would be used as collateral only and never leave the bank account; and that the funds invested were guaranteed. They are also charged with failing to disclose that the investments were not made; some funds were used as lulling payments to other investors; and that funds were spent for their use and not maintained as collateral or otherwise guaranteed.

Bruce Frank Ruark of Austin, Texas, was indicted on March 22, 2006, in the 26th Judicial District Court in Williamson County, Texas, Cause No. 06-650-K277. Ruark was charged with theft in the aggregate amount of $200,000 or more, stemming from ten sales of the Mobile Billboards program. On November 7, 2005, Ruark was charged with acting as an unregistered sales agent in the sale of the unregistered securities issued by Mobile Billboards of America, Inc. The program involved the purchase of truck-mountable billboard frame equipment from Mobile Billboards of America, Inc. and the lease of that equipment to Outdoor Media Industries in exchange for monthly payments equivalent to a 13.49% annual return. The Mobile Billboards scheme raised approximately was a $60 million from the public nationwide.

Phillip Lee Head, and Wintford Evans Verkin, Jr. of Sugarland, and Galveston, Texas respectively, were indicted on March 21, 2006 in the 122nd Judicial District Court, Galveston County, Texas, Cause No.'s 06CR0955, and 06CR0956, for securities fraud. They were charged with engaging in fraud in connection with the sale of stock of over $4 million issued by Retriever Equity Fund.

Phillip Ronald Richardson, and Donna Wick Richardson of The Woodlands, Texas, were indicted on March 9, 2006 in the 177th District Court, Harris County, Texas, Cause No.'s 1060965, and 1060964, for securities fraud. They were charged with engaging in fraud in connection with the offer for sale of stock, issued by ETG Technologies, Inc.

Nicholas Mitsakos, of Lewisville, Texas, as President of Petromerica Resources, LLC, was found guilty on March 6, 2006 in the United States District Court, Eastern District of Texas, Sherman Division, Cause No. 4:05:CR-00003-001 of securities fraud, wire fraud, and 22 counts of mail fraud. Mitsakos was sentenced to 41 months imprisonment, and ordered to pay $332,561.14 to victims of his fraudulent investment scheme. Mitsakos sold interests in oil and gas projects, the majority of which were located in Texas, to investors located throughout the United States. He represented that investor funds would be used in specific oil and gas projects when in fact, only a portion of investors funds went to oil and gas projects and the majority of the funds were used for administrative and personal expenses.

James H. Gentry of Sanger, Texas, president of Federal Funding, Inc. and First Realty of the Southwest, Inc. pleaded guilty on March 3, 2006 in the 16th Judicial District Court in Denton County, Texas, Cause No. F-2005-1107-B to theft. Gentry received ten years probation and was ordered to pay $397,000 in restitution. In 2003 and 2004, Gentry sold bonds issued by Federal Funding, Inc., and First Realty of the Southwest, Inc. to an 85 year-old investor which totaled $390,990. Gentry used the funds from the bonds to pay other investors, to pay credit card debt he incurred in other people's names and to pay personal expenses.

James Eugene Graves of Claude, Texas, was indicted on March 1, 2006 in the 287th Judicial District Court in Bailey County, Texas, Cause No. 2398. Graves was indicted for theft and for securing execution of a document by deception in the sale of an investment in a timeshare sale/leaseback arrangement involving hotels located in Branson, Missouri.

February

Carlos Jorge Hinojosa, of Mercedes, Texas, plead guilty on February 22, 2006 in the United States District Court, Southern District of Texas, Brownsville Division, to money laundering charges. Hinojosa was sentenced to 167 months in prison, 3 years supervised release and ordered to pay $6,659.493.90 in restitution ($3,559,493.90 to be paid jointly by Francisco Loya, Jr.). Francisco R. Loya, Jr., of Harlingen, Texas plead guilty on April 6, 2004 in the United States District Court, Southern District of Texas, Brownsville, Division, to securities fraud. Loya was sentenced to 27 months in prison and ordered to pay $3,559,493.90 in restitution jointly with Carlos Jorje Hinojosa. Hinojosa was charged with collecting over $7 million from over 300 investors through Economic Solutions, El Crucero, and Asset Management Services. He promised to invest money contributed by investors in highly lucrative offshore debenture trading programs that did not exist. Loya was charged with assisting Hinojosa through Asset Management Services.

Gary Raymond Moss, of El Paso, Texas, pled guilty on February 9, 2006 in the United States District Court, Western District of Texas, El Paso Division, Cause No. EP-05-CR-475-FM, to securities and wire fraud. Moss had sold investments in a prime bank scheme known as Oxford American Benefits Trust. He was sentenced on May 9, 2006 to 41 months in federal prison and ordered to pay $340,600 in restitution.

James David Gauch, of Allen, Texas, was indicted on February 9, 2006 in the 104th District Court, Taylor County, Texas, Cause No. 15912B, for securities fraud. Gauch, doing business as Restaurant Development Resource Network, Inc. (RDRN) allegedly sold 1,180,000 shares of RDRN for $118,000 to an investor. Gauch allegedly used the majority of funds for his personal expenses after depositing the investor's funds into his personal bank account.

Melvin Dean Marshall of Meadowlakes, Texas, was indicted on February 7, 2006 in the 33rd Judicial District Court in Burnet County, Texas, Cause Nos. 32521, 32522, 32523, and 32524, for securities fraud, theft, and unregistered securities. Marshall was selling investment agreements through his insurance company, Marshall Insurance Agency, Inc.

Susan Marshall of Meadowlakes, Texas was indicted on February 7, 2006 in the 33rd Judicial District Court in Burnet County, Texas, Cause Nos. 32525, and 32526, for securities fraud and theft. Marshall was a party to selling investment agreements through Melvin Dean Marshall's Insurance company, Marshall Insurance Agency, Inc.

Steven Michael Herrera of Plano, Texas, was indicted on February 7, 2006 in the 140th Judicial District Court in Lubbock County, Texas, Cause No. 2006-411610, for theft. Herrera allegedly held himself out as a broker and persuaded an elderly man to wire $15,000 for the purpose of purchasing investments. The funds were allegedly used for Herrera's personal use.

January

Richard August Lowrance, Sr. of Portland, Texas, plead nolo contendere on January 30, 2006 in the 319th Judicial District Court in Nueces County, Texas, Cause No.'s 05-CR-4142-G, and 06-CR-0404-G, to violations of the registration requirements of the Texas Securities Act. Lowrance was sentenced to 10 years probation and ordered to pay restitution to victims in the amount of $121,280. Lowrance was a sales agent for Premium Income Corp., a Seattle-based company that offered purported investments in the foreign currency markets primarily to senior citizens. The scheme collected approximately $12 million from investors.

Jacob Cody Evans, of Mabank, Texas, pled guilty on January 11, 2006 in the 422nd District Court in Kaufman County, Texas, Cause No.'s 23537-422, 23562-422, 23563-422, 23564-422, and 23565-422 to one count of theft between $100,000 and $200,000 and four counts of misapplication of fiduciary property between $1,500 and $20,000. Evans was sentenced to four years deferred adjudication and ordered to pay restitution in the amount of $100,546.89 to the victims.