==========================================START OF PAGE 1====== UNITED STATES SECURITIES AND EXCHANGE COMMISSION LITIGATION RELEASE NO. 15048 / September 16, 1996 SECURITIES AND EXCHANGE COMMISSION v. ROYAL AMERICAN MANAGEMENT, INC.,et al., CIV-94:1619-T, USDC, WD/OK The Securities and Exchange Commission ("Commission") announced that on July 31, 1996, a final judgment was entered in United States District Court in Oklahoma City, Oklahoma, against Anthony Escobar ("Escobar"). Without admitting or denying the allegations in the Commission's complaint, Escobar consented to be permanently enjoined from future violations of the securities registration and anti-fraud provisions of the federal securities laws based on his participation in the offering of the common stock of Omnet Corporation ("Omnet"), a penny stock company. According to the complaint, Escobar, and other defendants in this case, engaged in the fraudulent activity in order to artificially inflate the stock price of Omnet and personally benefit by selling shares they controlled at inflated prices. The Court also ordered Escobar to pay disgorgement in the amount of $30,600, which represents the proceeds attributable to him from the allegedly unlawful sales of securities, plus prejudgment interest of $9,601.48. However, the payment of all disgorgement and prejudgment interest was waived based on Escobar's demonstrated financial inability to pay. Additionally, the Court did not impose a civil penalty because of Escobar's poor financial condition. ==========================================START OF PAGE 2====== ANTHONY ESCOBAR PERMANENT ENJOINED IN PENNY STOCK SCHEME PARKER The Commission announced that on July 31, 1996, a final judgment was entered in United States District Court in Oklahoma City, Oklahoma, against Anthony Escobar (Escobar). Without admitting or denying the allegations in the Commission's complaint, Escobar consented to be permanently enjoined from future violations of the securities registration and anti-fraud provisions of the federal securities laws based on his participation in the offering of the common stock of Omnet Corporation, a penny stock company. According to the complaint, Escobar, and other defendants in this case, engaged in the fraudulent activity in order to artificially inflate the stock price of Omnet and personally benefit by selling shares they controlled at inflated prices. The Court also ordered Escobar to pay disgorgement in the amount of $30,600, which represents the proceeds attributable to him from the allegedly unlawful sales of securities, plus prejudgment interest of $9,601.48. However, the payment of all disgorgement and prejudgment interest was waived based on Escobar's demonstrated financial inability to pay. Additionally, the Court did not impose a civil penalty because of Escobar's poor financial condition. Phillip W. Offill Trial Counsel Fort Worth District Office 817/978-6450