==========================================START OF PAGE 1====== UNITED STATES SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 14951 / June 19, 1996 SECURITIES AND EXCHANGE COMMISSION V. JAMES P. MCLAUGHLIN, (United States District Court for the Northern District of Illinois, Civil Action No. 95C 5241) The Securities and Exchange Commission announced that on February 20, 1996, the Honorable Judge Suzanne B. Conlan entered an Order of Permanent Injunction and other Equitable Relief (Order) in the United States District Court for the Northern District of Illinois against Defendant James P. McLaughlin (McLaughlin) permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933 (Securities Act) and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934 (Exchange Act). In addition, the Order also barred McLaughlin permanently from acting as an officer or director of any issuer that has a class of securities registered pursuant to Section 12 of the Exchange Act or that is required to file reports pursuant to Section 15(d) of the Exchange Act. Finally, the Court ordered McLaughlin to pay disgorgement in the amount of $605,012 but waived this amount based upon his inability to pay. McLaughlin consented to the entry of the Order without admitting or denying the allegations in the complaint. In its Complaint the Commission alleged that from February 1991 through May 1993, McLaughlin, through three corporations he controlled, Global Venture Capital (GVC), GVC Asset Management, Inc. (GVCAM) and TMB Futures International, Inc. (TMB), fraudulently offered and sold common stock and convertible debentures through seven private placement offerings to at least 81 investors in 17 states raising at least $1.1 million. Specifically, he misrepresented the intended use of investor proceeds. In reality, more than 90% of investor funds raised in the three offerings were misappropriated by McLaughlin for business and personal expenses. As a result, the total losses sustained by McLaughlin's investors exceeds $1 million.