Harral Dunbar, Jr., Individually and d/b/a Ghost International

Litigation Release No. 17400 / March 7, 2002

Securities and Exchange Commission v. Harral Dunbar, Jr., Individually and d/b/a Ghost International, Civil Action Number 02-233-B-M1 (M.D. La.)

TEMPORARY RESTRAINING ORDER ISSUED AGAINST HARRAL DUNBAR, JR. FOR SECURITIES FRAUD CONDUCTED ON THE INTERNET AND REGISTRATION VIOLATIONS

The Securities and Exchange Commission ("Commission") announced today that it has filed a complaint in the United States District Court for the Middle District of Louisiana against Harral Dunbar, Jr. in his individual capacity and d/b/a Ghost International, an Internet Website operation. Further, on March 4, 2002, Judge Frank J. Polozola issued a temporary restraining order, an order freezing assets and, among other things, an order expediting discovery. The complaint alleges that Dunbar, of Baton Rouge, Louisiana, owned the Ghost International Website and used it to solicit investors in investment contracts by promises of inordinate amounts of guaranteed returns and promises of no-risk investing. The complaint also alleges that investors have received little or no return despite several months of promises by Dunbar that returns would be paid.

The complaint alleges that between mid-001 and the present, Dunbar obtained over $7,500 from eleven investors in Canada, Australia and the United States by touting Ghost International's "private contribution and investment program" which allegedly paid, for example, $100,000 on a $200 investment over a few weeks. Dunbar made various promises of returns, including ones up to 1000 percent. Dunbar made various representations to fraudulently induce investors including that his company dealt in "high yield investments" and that funds were to be placed in offshore bank accounts, which would pay promised returns for five months of a supposed seven-month program. The complaint also alleges that Dunbar lulled investors by making promises that payments would be made shortly. However, when the time elapsed, the promised payments were not forthcoming.

The complaint charges Dunbar with, and the Court temporarily restrained Dunbar from, violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. A preliminary injunction hearing has been scheduled. The Commission seeks preliminary and permanent injunctions against Dunbar as well as an order compelling disgorgement of ill-gotten gains, along with prejudgment interest and civil penalties. The Commission would like to acknowledge the assistance of the Louisiana Securities Commission in this matter.