U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17496 / April 30, 2002

FEDERAL COURT JUDGE HOLDS RELIEF DEFENDANT RAINBOW BRIDGE INVESTMENTS, LLC IN CIVIL CONTEMPT

DEFAULT ENTERED AGAINST ALL DEFENDANTS AND RELIEF DEFENDANTS

Securities and Exchange Commission v. Rainbow Bridge Investments, LLC, Case No. 01-4269-CIV-SEITZ (USDC/SD FL)

The Securities and Exchange Commission (SEC) announced that on January 22, 2002, the Honorable Patricia A. Seitz, United States District Judge for the Southern District of Florida, entered an Order holding Relief Defendant Rainbow Bridge Investments, LLC (Rainbow) in civil contempt for failing to comply with a previous Court Order requiring a sworn accounting of all monies received, repatriation of offshore monies and a written description of any repatriated funds within five (5) days of October 25, 2001. Judge Seitz imposed a daily monetary sanction of $25,000 per day to be paid into the Court registry.

On March 27, 2002, Judge Seitz entered a Default Judgment against Defendants Vestron Financial Corp., Salman Shariff, Vestron Investment Club, Crescent Capital Partners LP, Crescent Capital Offshore Fund (collectively Defendants) and Relief Defendants North Coast Holdings, Ltd. (North Coast) and Rainbow for failure to plead or otherwise defend as required by law.

In its Complaint filed on October 16, 2001, and application to the Court for a temporary asset freeze order, which the Court granted, the SEC alleged that Defendants were violating the anti-fraud, registration, investment company and investment advisor provisions of the federal securities law. The SEC alleged that Defendants perpetrated a fraud, which duped hundreds of unsuspecting investors nationwide out of over $11 million. The SEC also alleged and named North Coast and Rainbow as Relief Defendants because they purportedly received proceeds from Defendants' fraudulent scheme.

For further information, please see Litigation Release Number 17443 (March 27, 2002).