SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.

Litigation Release No. 17276 \ December 17, 2001

SECURITIES AND EXCHANGE COMMISSION v. PETER W. CHABOT, CHABOT INVESTMENTS, INC., SIRENS INVESTMENTS, INC., SIRENS SYNERGY AND THE SYNERGY FUND, LLC, Civil Action No. 01 CV 9976 (AGS)(S.D.N.Y.)(filed November 13, 2001).

SEC OBTAINS PRELIMINARY INJUNCTION AGAINST FRAUDULENT HEDGE FUND MANAGER

The Securities and Exchange Commission announced today that on December 10, 2001, the United States District Court for the Southern District of New York entered a preliminary injunction prohibiting Peter W. Chabot ("Chabot"), Chabot Investments, Inc., Sirens Investments, Inc., Sirens Synergy, and The Synergy Fund LLC from engaging in the fraudulent offer and sale of securities. The injunction also freezes the defendants' assets. All of the defendants consented to the relief requested.

The Court previously entered a temporary restraining order and an asset freeze against Chabot and the other defendants on November 13, 2001. The Commission's complaint alleges that from 1999 onwards Chabot, individually and through his entities, raised over $1.2 million from approximately 14 investors by making material misrepresentations and omissions to them concerning an alleged hedge fund. Chabot claimed he was an experienced trader and that he had developed a mathematical model to predict when to buy stocks. In fact, according to the complaint, Chabot did not buy stocks or other securities with the investors' funds, but instead spent the money for his personal expenses.

The preliminary injunction enjoins Chabot and his co-defendants, during the pendency of this action, from violating the antifraud provisions of the federal securities laws, Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, and Section 206(1) and 206(2) of the Investment Advisers Act of 1940. For additional information, see L.R. 17227 (November 13, 2001).

The Commission wishes to thank the U.S. Attorney for the Southern District of New York and the Federal Bureau of Investigation for their cooperation in this matter.