U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.

LITIGATION RELEASE NO. 17520 / May 16, 2002

DOUGLAS G. McCASKEY ORDERED TO PAY $100,000 CIVIL PENALTY

SEC v. Douglas G. McCaskey, et. al., 98 civ. 6153 (SWK) (S.D.N.Y.)
United States v. Douglas G. McCaskey, 00 cr. 219 (SRU) (D.CT.)

The Securities and Exchange Commission today announced that the U.S. District Court for the Southern District of New York issued an order on May 1, 2002 directing a Connecticut stock promoter, Douglas G. McCaskey, immediately to pay a $100,000 civil penalty in connection with a scheme to manipulate the market for Marcorp, Inc. stock during 1994. The Court previously found that McCaskey had committed securities fraud in connection with the scheme, found McCaskey substantially unfit to serve as an officer or director of a public company, and barred McCaskey from serving as an officer or director for a period of six years. The Court also permanently enjoined him from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Section 17(a) of the Securities Act of 1933. See Litigation Release No. 17131 (September 18, 2001).

McCaskey was sentenced to five years probation and ordered to pay a $30,000 fine on April 30, 2001 in the U.S. District Court for the District of Connecticut in connection with related criminal charges brought by the U.S. Attorney for the District of Connecticut. McCaskey had, on October 13, 2000, pleaded guilty to criminal charges that he violated Section 10(b) of the Exchange Act and Rule 10b-5 by manipulating the market for Marcorp, Inc. stock from May to December 1994. See Litigation Release No. 17056 (July 2, 2001).