SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 17019 \ May 25, 2001

SECURITIES EXCHANGE COMMISSION V. TODD J. LASCOLA ET AL, United States District Court for the District of Rhode Island 98-610-T (December 29,1998)

United States v. Todd J. LaScola CR 00-133ML (D.R.I.)

TODD J. LASCOLA SENTENCED TO 8 YEARS IN PRISON

The Commission announced that on May 22, 2001, U.S. District Court Judge Mary M. Lisi sentenced Todd J. LaScola, formerly of Providence, Rhode Island, to 96 months in federal prison for misappropriating more than $6,400,000 from clients of CPI Investment Management, Inc. ("CPI"), a registered investment adviser, and CPA Advisors Network, Inc. ("CPA"), a registered broker-dealer. In addition, Judge Lisi ordered LaScola to pay full restitution to his victims.

In Feburary 2001, LaScola pleaded guilty to nine charges, including three counts of mail fraud, five counts of wire fraud and one count of embezzling from an employee profit sharing plan. The indictment against LaScola alleged that he used CPI and CPA to collect illegal commissions, improperly invest $6 million in a pension fund account, and misappropriate customer and client funds.

On December 28, 1998, the Commission filed an emergency action against LaScola arising out of the same conduct. On June 23, 2000, the court granted the Commission's motion for summary judgment, permanently enjoined LaScola from future violations of the antifraud provisions and ordered him to pay $6,329,825 in disgorgement plus prejudgment interest and a civil monetary penalty of $100,000. On April 27, 2001, the Commission issued an order barring LaScola from association with any investment adviser, broker or dealer.

LaScola's sentencing was the result of a two-year, joint investigation of LaScola's activities conducted by the Commission, the United States Attorney, two investigative divisions of the U.S. Department of Labor, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Rhode Island State Police, and the Rhode Island Department of Business Regulation.

For further information, please see Litigation Release Nos. 16928 (March 9, 2000), 16658 (August 18, 2000), 16019 (January 11, 1999) and 16012 (December 30, 1998).