International Thoroughbred Breeders, Inc., and Nunzio DeSantis

Litigation Release No. 17361 / February 14, 2002

Accounting and Auditing Enforcement
Release No. 1506 / February 14, 2002

Securities and Exchange Commission v. International Thoroughbred Breeders, Inc., and Nunzio DeSantis, Case No. 1:02CV00282 (D.D.C. filed February 13, 2002)

Securities and Exchange Commission v. Nunzio DeSantis, Case No. CIV-01-484 (D.N.M.) (April 30, 2001)

SEC CHARGES FORMER HORSE RACETRACK COMPANY AND THREE OF ITS OFFICERS FOR ACCOUNTING VIOLATIONS

The Securities and Exchange Commission ("Commission") announced today that it filed a settled civil action alleging that Nunzio DeSantis ("DeSantis") of Albuquerque, New Mexico, violated anti-fraud, disclosure and tender offer provisions of the federal securities laws while an officer and director of two publicly traded companies, International Thoroughbred Breeders, Inc. ("ITB") of New Jersey, and AutoLend Group, Inc. ("AutoLend") of Albuquerque. The Commission also announced that it instituted settled cease-and-desist proceedings against ITB's Chief Financial Officer, William H. Warner, and former President, Robert J. Quigley.

In the federal court action, which was filed in the United States District Court for the District of Columbia, the Commission alleged that DeSantis aided and abetted ITB's failure to disclose and properly account for certain related party transactions in its Forms 10-Q for the quarters ended December 31, 1996 and March 31, 1997. According to the Complaint, DeSantis repaid ITB the personal expenses paid on his behalf in 1999. The Commission also alleged that DeSantis engaged in a scheme to defraud the holders of AutoLend's 9.5% convertible subordinated debentures during a self tender offer made on October 22, 1996 to the AutoLend bondholders, and that DeSantis aided and abetted AutoLend's failure to disclose related party transactions in the company's December 31, 1996 Form 10-Q and in its March 31, 1997 Form 10-K. The allegations relating to AutoLend were originally contained in a complaint the Commission filed against DeSantis on May 1, 2001, in the United States District Court for the District of New Mexico [LR- 16985]. As part of a settlement with the Commission, the New Mexico case was dismissed and refiled as part of the District of Columbia action.

DeSantis, without admitting or denying the allegations in the Complaint, consented to the entry of a final judgment permanently enjoining him from future violations of Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5 and 14e-5 (formerly Rule 10b-13) thereunder, and aiding and abetting violations of Sections 10(b), 13(a), 13(b)(2)(A), 13(e) and 14(e) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, 13a-13 and 13e-4(j) (formerly Rule 13e-4(b)) thereunder pursuant to Section 20(e) of the Exchange Act. DeSantis also agreed to pay a civil penalty of $80,000 and to be prohibited for a period of five (5) years from acting as an officer or director of any publicly traded company. Without admitting or denying the allegations in the Complaint, ITB consented to the entry of a final judgment permanently enjoining it from future violations of Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 10b-5, 12b-20 and 13a-13 promulgated thereunder.

In the cease-and-desist proceedings, the Commission found that Warner and Quigley committed and caused violations of the reporting, record-keeping and internal control provisions of the Exchange Act by causing ITB to improperly disclose and account for certain related party transactions. Without admitting or denying the Commission's substantive findings, Warner consented to the issuance of an order that he cease and desist from causing any violation or future violation of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20 and 13a-13 thereunder and from committing any violations and any future violations of Rules 13b2-1 and 13b2-2, and Quigley consented to the issuance of an order that he cease and desist from causing any violation or future violation of Section 13(a) of the Exchange Act and Rules 12b-20 and 13a-13 thereunder and from committing any violation and any future violation of Rule 13b2-2 [Sec. Exch. Act Rel. No. 45441; AAE Rel No. 1502].