CEASE TRADING ORDERS ISSUED

Released on July 13, 1998

On July 9th, 1998, the Saskatchewan Securities Commission issued two

Cease trading Orders against a number of individuals and companies in

Saskatchewan and the United States.



One order was issued in respect of Harold George Gerhart and the

Harold Gerhart Foundation Inc. of Regina, Romeo L. Miles, Romeo L.

Miles and Associates and MB Trust International of California. The

second order was issued in respect of Robert Edwin Gough of Macrorie,

Saskatchewan.



The Orders were issued as a result of separate and unrelated

investigations. However, both involve an international investment

scheme known by enforcement officials as a prime bank instrument

fraud. Vic Pankratz, Deputy Director, Enforcement with the

Saskatchewan Securities Commission said, "In the past this type of

scam has resulted in Saskatchewan residents losing millions of dollars

and it continues to be a big money loser for those who get caught up

in it. So far, we are aware that over $400,000 has been invested in

respect to these two cases by people in Saskatchewan, Manitoba and

B.C."



There are a number of characteristics that identify such scams:



the promise of huge returns on an investment, ranging from

30 per cent to 200 per cent or more with no risk;



vague talk about international financial transactions that

take place on a secret world market made up of the very

largest banks and available only to the very rich;

pretends to offer the poor or average investor the

opportunity to play in the same financial ball park by

pooling their money. The truth is there is no such market;

and,



in almost all cases, the money is seen for the last time

when it is sent out of the country where it goes to a

"trader" who supposedly buys and sells these financial

instruments.



Pankratz added, "The most obvious characteristic of this scheme

is the requirement to sign either a confidentiality or secrecy

agreement and not to tell anyone about it. The only purpose this

serves is to delay detection of the fraud. Legitimate investment

opportunities seek out public attention and interest."



This scheme has been the subject of numerous warnings by the

Saskatchewan Securities Commission as well as such agencies as

the US Treasury Department and Securities and Exchange

Commission. The International Chamber of Commerce, who's name is

frequently used without authorization to give the impression of

legitimacy, calls the scheme "the fraud of the century".



Pankratz said, "The public should be wary of any investment

scheme that promises unusually large returns, where the money has

to be sent out of the country and requires secrecy. When in

doubt, seek advice from your broker, accountant, bank manager,

lawyer or the Securities Commission before investing your money."



If you have been approached to invest in such a scheme, please

contact the Saskatchewan Securities Commission at (306)787-5645.



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For more information, contact:



Vic Pankratz

Deputy Director, Enforcement

Saskatchewan Securities Commission

#800 - 1920 Broad Street

Regina, Sask.

S4P 3V7

Phone: (306)787-5645