SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.

LITIGATION RELEASE NO. 16607 / June 23, 2000

SECURITIES AND EXCHANGE COMMISSION v. ENTERPRISES SOLUTIONS, INC., et al., Case No. 00 Civ. 2685 (Cedarbaum, J.) (U.S.D.C., S.D.N.Y.)

SEC FILES AMENDED COMPLAINT IN
ENTERPRISES SOLUTIONS LITIGATION

On June 23, 2000, the Securities and Exchange Commission filed an amended complaint in its securities fraud case against Enterprises Solutions, Inc. ("ESI"), Herbert S. Cannon, and John A. Solomon. The amended complaint, filed in the United States District Court for the Southern District of New York, alleges the same securities fraud violations as did the original complaint, but, in accordance with a direction from the court during a hearing held on May 26, 2000, provides further specificity as to defendant Cannon's role with Enterprises Solutions and his relationship with brokers in the Fort Lauderdale office of Global Financial Group.

As previously announced, the Commission temporarily suspended trading in ESI's stock for a ten-day period beginning March 30, 2000, based on questions concerning the accuracy and completeness of assertions made by ESI in its filings with the Commission, in its recent press releases, and on its Internet website, including questions about the identity of persons in control of the operations and management of the company. See Exchange Act Rel. No. 42593 (March 30, 2000). The Commission originally filed its securities fraud case against ESI and the other defendants on April 6, 2000, at which time it also obtained an immediate asset freeze preventing the removal of more than $2.3 million in assets from the securities accounts of relief defendants Rowen House Limited and Montville Limited, both based in Gibraltar. See Lit. Rel. No. 16506 (April 7, 2000). On May 1, 2000, after the Commission presented further evidence in the case, the court entered a preliminary injunction extending the asset freeze pending a final resolution of the matter at trial. See Lit. Rel. No. 16543 (May 9, 2000). The case has been proceeding against all defendants, and the court has not yet set a date for trial.

This enforcement action is part of the Commission's four-pronged approach to attacking microcap fraud: enforcement, inspections, investor education and regulation. For more information about the SEC's response to microcap fraud, visit the SEC's Microcap Fraud Information Center at http://www.sec.gov/news/extra/microcap.htm. Information on trading suspensions is available at http://www.sec.gov/enforce/tsuspend.htm.

http://www.sec.gov/litigation/litreleases/lr16607.htm