SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 17289 / December 21, 2001

SECURITIES AND EXCHANGE COMMISSION v. EARL A. ABBOTT, RICHARD L. STALVEY, GLENN PERDUE, ROBERT E. GERWIN, KENNETH C. NUNN AND THOMAS J. O'KEEFFE (United States District Court for the Middle District of Florida, C.A. No. 6:01-CV-364-ORL-31-KRS)

The Commission announced today that on December 13, 2001, a judgment by consent was entered in the United States District Court for the Middle District of Florida against Glenn Perdue of Indianapolis, Indiana. The Commission's complaint in the matter, filed on March 22, 2001, alleged that Perdue acted as a sales agent for Earl A. Abbott, a Titusville, Florida businessman by selling $3 million of non-existent prime bank securities to investors. Perdue, the complaint alleged, entered into joint venture agreements promising investors a weekly return of 2% over forty weeks, or 80%. The complaint alleged that Perdue told investors that the profits would be earned by trading in "medium term bank debentures" of the "top 25'' western European Banks. Further, the complaint alleged that Perdue assured investors that Abbott was honest and trustworthy, and told them Abbott had invested $1 million of his own funds in the purportedly risk-free trading program. The Commission further alleged there were no bank debentures and no trading and that Perdue made material misrepresentations to his investors concerning: (i) the existence of the trading program; (ii) the use of investor funds; (iii) the promised return; and (iv) the safety of the funds invested.

Defendant Perdue has agreed, without admitting or denying the Commission's allegations, to settle the action by agreeing to the entry of an injunction against future violations of the securities and broker-dealer registration provisions as well as the general antifraud provisions of the federal securities laws. The Commission's complaint did not allege that Perdue received any sales commission or profits and accordingly, the Commission did not seek disgorgement. Based on Perdue's sworn representations in his statement of financial condition and other documents submitted to the Commission, the Commission is not imposing a civil monetary penalty against Perdue.

The Commission's complaint alleged that, in connection with this scheme, Perdue engaged in transactions, acts, practices and courses of business which constituted violations of Section 17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of the Exchange Act of 1934 ("Exchange Act"), and Rule 10b-5 thereunder, Section 5(a) and 5(c) of the Securities Act and Section 15(a) of the Exchange Act. The Commission's litigation continues against Abbott and the purported London, England program manager, Kenneth C. Nunn, as well the purported prime bank trader, Thomas J. O'Keeffe of Ireland, who was named as a relief defendant.

For further information on the action, see Litigation Release Nos. 16940 and 17198.