SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 17440 / March 27, 2002

UNITED STATES DISTRICT COURT ISSUES ORDER REQUIRING COMPLIANCE IN SEC SUBPOENA ENFORCEMENT ACTION AGAINST CHARLES TIMSON

Securities and Exchange Commission v. Charles Timson, Misc. No. 02- MBD-10076-RCL (D. Mass. March 15, 2002)

The Securities and Exchange Commission today announced that on March 15, 2002, the U.S. District Court for the District of Massachusetts granted its application for enforcement of an investigative subpoena against Charles Timson of Greenlawn, New York. The Court ordered Timson to comply with the Commission's subpoena by providing sworn testimony on March 29, 2002.

According to the Commission's court filings, Timson's testimony was sought in connection with an investigation to determine whether he and others may have violated the antifraud provisions of the federal securities laws by selling investments in Growth Benefit Systems. GBS purports to participate in buying and selling negotiable bank instruments, including letters of credit, that are represented to be "direct primary obligations of top rated international banks," with a promised return of 20% per month.

According to court filings, Commission staff in January, 2002, issued an investigative subpoena to Timson requiring him to provide investigative testimony on February 26, 2002. Timson, however, failed to appear on that date and did not respond to the Commission staff's efforts to reschedule his testimony. The Commission filed its application for enforcement of its subpoena on March 15, 2002. The Court granted the Commission's application to enforce its subpoena the same day and ordered Timson to appear to give testimony at the Commission's Boston District Office on March 29, 2002.