UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 16582, June 2, 2000

SECURITIES AND EXCHANGE COMMISSION v. Gene Irving Garland, Jr., individually and dba Association for Retired Persons Financial Services and Sharla Dawn Holland, Case No. 3:00CV-1149-X, USDC, NDTX (Dallas Division)

The Securities and Exchange Commission announced that on May 31, 2000, Judge Solis, United States District Judge for the Northern District of Texas, granted the Commission's request for a temporary restraining order against Gene Irving Garland, Jr., individually and doing business as Association for Retired Persons Financial Services ("RPFS"). Immediately following the hearing on the temporary restraining order, agents of the Federal Bureau of Investigations arrested Garland.

The Commission alleges that Garland and Sharla Dawn Holland defrauded approximately 60 elderly individuals of approximately $1.8 million. The order restrains Garland from future violations of the antifraud and securities registration provisions of the federal securities laws and (1) freezes all assets of Garland and Holland; (2) requires them to furnish accountings of revenues, expenditures and assets, (3) prohibits the destruction of documents, and (4) authorizes expedited discovery. The Commission's Complaint further seeks to preliminarily and permanently enjoin Garland and Holland against future violations of the same provisions.

• Garland, age 44, is a resident of Plano, Texas. Garland has been doing business as RPFS since at least 1995.

• Holland, age 32, is a resident of Fort Worth, Texas. Holland, as the office manager, was responsible for the daily operations of RPFS.

Under the guise of providing estate and financial planning services, the defendants solicited information about the senior citizens' assets and investments. Upon obtaining this information, the defendants encouraged the senior citizens to liquidate their legitimate investments and individual retirement accounts and to use the proceeds to purchase 93annuities94 issued by RPFS purportedly paying 11 percent interest. Concealed from investors, however, were the facts that RPFS had minimal business operations and insufficient revenue to pay the promised interest rate and that Garland and Holland used funds from later investors to make principal and interest payments to earlier investors, as well as for their own personal uses. Garland and Holland misappropriated at least $900,000 of the $1.8 million raised.

In its Complaint, the Commission alleges that Garland and Holland violated Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Commission is seeking a permanent injunction restraining future violations of the antifraud provisions of the federal securities laws; an order requiring disgorgement of all wrongfully obtained profits, with prejudgment interest, and civil penalties against each defendant. The Court has scheduled a preliminary injunction hearing for June 26, 2000, at 2:00 p.m.

Contact Person: Hal Degenhardt 817/978-6469