Litigation Release No. 15683 / March 25, 1998 SECURITIES AND EXCHANGE COMMISSION v. DAVID A. COLVIN; INTELLINET PUBLISHING, INC.; INTELLINET HOLDING GROUP, INC.; MEDICAL ADVANTAGE, INC.; LAMELLI, INC., a/k/a LAMELLI MEDICAL TECHNOLOGY, INC.; WALL STREET RESEARCH COMPANY, INC.; JOB KJELL HOVIK; LAMAR ELLIS; and JOHN LARSON, a/k/a JOHN ST. JOHN, Civil Action No. SACV 98-135 AHS (EEx) (C.D. Cal.) On March 16, 1998, the Honorable Alicemarie H. Stotler, United States District Judge for the Central District of California, issued an order of preliminary injunction against defendants David A. Colvin, Job Kjell Hovik; Intellinet Publishing, Inc.; Intellinet Holding Group, Inc.; Medical Advantage, Inc.; Lamelli, Inc. a/k/a Lamelli Medical Technology, Inc.; and Wall Street Research Company, Inc. The Court also ordered appointment of a permanent receiver over the entity Defendants and continued a previous order freezing these Defendants' assets and prohibiting the destruction of documents. Also, on March 16, 1998, the Court entered a Final Judgment Of Permanent Injunction And Other Relief Against Defendant Lamar Ellis. The judgment, which Defendant Ellis consented to, without admitting or denying the Commission's allegations, permanently enjoins him from future violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. On March 2, 1998, the Court had issued an order of preliminary injunction against Defendant John Larson a/k/a John St. John. The preliminary injunction orders enjoin the Defendants from future violations of the registration, antifraud and broker- dealer registration provisions of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a) of Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Commission's Complaint, filed on February 19, 1998, alleges that the Defendants raised over $5 million since January 1997, defrauding investors, by among other things, falsely representing that former U.S. Surgeon General C. Everett Koop and NBC television journalist Tom Brokaw were affiliated with Defendant Medical Advantage, Inc., a company which purportedly operated obesity clinics but which was, in fact, insolvent and which the Defendants falsely claimed was the subject of an imminent public stock offering. The Commission further alleges that investors were falsely promised the return of their principal investment, plus 12% interest, in 120 to 180 days. Instead, Defendants Colvin and Hovik misappropriated investor funds, using most of the money for boiler room expenses and for other business ventures. Among the other misrepresentations alleged, the Defendants falsely claimed that Defendants Intellinet and Lamelli would also be the subject of an imminent public stock offering. For additional information, see Litigation Release No. 15651 (February 24, 1998). PERSON TO CONTACT: Karen Matteson Pacific Regional Office/Los Angeles (213) 965-3840