SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17167 / October 2, 2001

Accounting and Auditing Enforcement Release No. 1462 / October 2, 2001

Securities and Exchange Commission v. Millionaire.com and Robert L. White, Civial Action No. 9:01-3897-23 (S.C., Beaufort Division, filed October 1, 2001)

On Monday, October 1, 2001, the U.S. Securities and Exchange Commission (SEC) filed a complaint in the U.S. District Court for South Carolina against Millionaire.com (Millionaire), the publisher of OPULENCE Magazine, and its president, Robert L. White. The SEC alleges in its complaint that Millionaire violated the antifraud, reporting, record keeping and internal controls provisions of the federal securities laws, and that White aided and abetted Millionaire's violations.

The SEC alleges that in a press release issued December 21, 1998, Millionaire falsely claimed that it had sold $8 million of advertising space in its magazine. The SEC further alleges that in a press release issued December 24, 1998, Millionaire falsely claimed that it had entered into a definitive agreement to purchase an established regional auction house. In addition, the SEC alleges that on October 5, 2000, Millionaire filed with the Commission a quarterly report for the period ended June 30, 2000, that failed to disclose that Millionaire had lost its contractual right to exclusive use of the Millionaire and Billionaire trademarks. Finally, the SEC alleges that Millionaire failed to comply with the record keeping and internal controls provisions of the federal securities laws. The complaint charges White with aiding and abetting Millionaire's violations.

Millionaire and White have consented, without admitting or denying the SEC's allegations, to the entry by the Court of a permanent injunction, enjoining future violations by Millionaire and White of Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-20 and 13a-13, thereunder. White has also agreed to pay a $25,000 civil penalty.