UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 17082 / July 30, 2001

UNITED STATES SECURITIES AND EXCHANGE COMMISSION v. Richard H. Steinberg, Timothy J. Brasel, Joseph J. Peirce, Roger M. Taft and Stuart J. Taft, Civil Action No. 99-B-1488, U.S. District Court, District of Colorado.

The Securities and Exchange Commission ("Commission") announced today that the U.S. District Court for the District of Colorado entered final judgments imposing permanent injunctive and other relief against all defendants in a case the Commission filed in August 1999 against Richard H. Steinberg, Timothy J. Brasel, Joseph J. Peirce, Roger M. Taft and Stuart J. Taft. The Commission alleged that all defendants violated Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder by engaging in a scheme to manipulate the market for the stock of Music Tones Limited by employing various deceptive trading practices, such as matched orders.

The Court entered final judgments against Steinberg and Roger Taft by consent on July 12, 2001, permanently enjoining these defendants from violating Sections 5(a), 5(c) and 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5. The judgment against Steinberg further orders that he pay disgorgement of $118,684, prejudgment interest of $34,954, and a civil penalty of $85,000. The judgment against Roger Taft orders that he is liable for disgorgement of $32,591 plus prejudgment interest, but payment of the disgorgement was waived and no civil penalties were imposed based upon Roger Taft's demonstrated inability to pay.

The Court also entered final judgments against Brasel, Peirce and Stuart Taft by consent on July 12, 2001, permanently enjoining these defendants from violating Sections 5(a) and 5(c) of the Securities Act, but dismissing the claims against them alleging violation of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5. The judgments against Brasel and Peirce further order that they pay disgorgement of $27,109 and $4,030, prejudgment interest of $7,586 and $1,093, and civil penalties of $5,500 and $5,000, respectively. The judgment against Stuart Taft orders that he is liable for disgorgement of $51,610 plus prejudgment interest, but payment of the disgorgement was waived and no civil penalties were imposed based upon Stuart Taft's demonstrated inability to pay.

Steinberg, Brasel and Peirce all reside in the Denver, Colorado area. Roger Taft lives in Delray Beach, Florida and Stuart Taft lives in Palm Harbor, Florida.