UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.

Litigation Release No. 17661 / August 6, 2002

SECURITIES AND EXCHANGE COMMISSION v. AMERICA IN-LINE CORPORATION, AMERICA IN LINE OF MOUNT SINAI, INC., and PETER RICCARDO, 02 CIV. 4362 (LDW) (U.S.D.C., E.D.N.Y.)

The Securities and Exchange Commission filed a complaint today in the United States District Court for the Eastern District of New York charging America In Line Corporation ("America In Line"), America In Line of Mount Sinai, Inc. ("Mount Sinai") and Peter Riccardo ("Riccardo") with securities fraud in connection with a fraudulent private placement scheme that raised approximately $650,000 from investors.

The Commission's Complaint names the following defendants:

• America In Line Corporation, a Delaware corporation with its principal place of business in Ronkonkoma, New York. America In Line was formed for the purported purpose of developing, building, operating and maintaining roller hockey rinks.

• America In Line of Mount Sinai, Inc., a Delaware corporation with its principal place of business in Mount Sinai, New York. Mount Sinai, a subsidiary of America In Line, was formed for the purported purpose of developing, building, operating and maintaining a roller hockey rink in Mount Sinai, New York.

• Peter Riccardo, 56 of Shirley, New York, is the CEO and President of both America In Line and Mount Sinai.

The Commission's Complaint alleges that Riccardo created America In Line and its subsidiary Mount Sinai for the purpose of building, developing and maintaining an in-line roller skating rink in Mount Sinai, New York. The Complaint alleges that from in or about March 1996 through May 2000, the defendants fraudulently offered and sold shares of America In Line's and Mount Sinai's stock in at least five unregistered offerings to over 52 investors throughout the United States. These fraudulent offerings generated at least $650,000 in proceeds to America In Line and Mount Sinai.

The Complaint alleges that the defendants made material misrepresentations to investors about the anticipated use of the offering proceeds. The offering materials provided to investors either failed to mention that the company intended to pay any sales commissions to brokers selling the securities or falsely stated that the company expected to pay no more than 8% of the offering proceeds in sales commissions. According to the Complaint, however, Riccardo, America In Line and Mount Sinai paid undisclosed cash commissions of 30% to unlicensed brokers, thereby substantially reducing the amount of funds available to develop and maintain the companies' business.

America In Line, Mount Sinai and Riccardo are charged with violations of Sections 5(a), 5(c) and 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5. The Complaint seeks a final judgment (i) enjoining the defendants from future violations of the above-cited provisions; (ii) requiring Riccardo to disgorge his ill-gotten gains, plus pre-judgment interest; (iii) assessing civil penalties; and (iv) barring Riccardo from acting as an officer or director of any publicly traded company.

SEC Complaint in this matter.