Paul Douglas Catchings

LITIGATION RELEASE NO. 17406 / March 11, 2002

PAUL DOUGLAS CATCHINGS - A FUGITIVE FOR FOUR YEARS - ARRESTED AND INDICTED FOR CONSPIRACY AND FRAUD

On February 1, 2002 the United States Attorney for the Central District of California announced that Paul Douglas Catchings was arrested after arriving in the United States at San Francisco International Airport on an international flight from Bankok, Thailand. The U.S. Attorney also announced that Catchings has been indicted for, among other things, conspiracy, mail fraud, and securities fraud in connection with the operation of First Zurich National, USA, LLC and Compunomics 139, Inc. If convicted of all charges Catchings could face a sentence of 55 years in federal prison.

On February 13, 1998, the United States District Court for the District of Wyoming issued an order for civil contempt and arrest against Paul Douglas Catchings for violating the Court's temporary restraining orders of February 10, 1998 and February 3, 1998. The Court also issued a preliminary injunction against First Zurich National USA, LLC ("First Zurich"), Compunomics and Catchings in an action involving an affinity fraud largely targeting African Americans. The Court enjoined each from violating the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934.

Also indicted with Catchings was Tony Alvin Ashley, age 41 of Las Vegas, Nevada, formerly the chief financial officer for Compunomics and Marcus Bruce Farrow of Compton, California who was formerly Compunomics' chief operating officer. Ashley has agreed to plead guilty to conspiracy and mail fraud charges.

Securities and Exchange Commission v. First Zurich National USA, LLC, Compunomics 139, Inc. and Paul Douglas Catchings, Civil Action No. 98-CV-29D (USDC WY)

For Further information on the SEC's civil action see litigation releases: 15634 (February 3, 1998); 15639 (February 10, 1998); 15645 (February 18, 1998); 16011 (December 29, 1998).