Release: #4264-99

For Release: May 19, 1999

CFTC Obtains Preliminary Injunctions Against All Defendants,
    EuroPacific Equity & Capital Management, Ltd., Tortola Corporation
    Company, Ltd., International Investment Group, Ltd., David Michael Loyd,
    and Richard Tichy, in CFTC Enforcement Action Alleging Fraud

Court Orders Preliminary Injunctions in CFTC Enforcement Action
    Alleging At Least 10 Individuals Invested Over $800,000 in the Defendants'
    Commodity Pool Scam

WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced
    today the filing of a five-count
    complaint on May 5, 1999, in the U.S. District Court for the Southern
    District of Florida seeking emergency relief against EuroPacific Equity
    and Capital Management, Ltd. (EuroPacific), a corporation registered in
    the British Virgin Islands and in Florida; Tortola Corporation Company,
    Ltd. (Tortola), an international corporation registered in the British
    Virgin Islands; International Investment Group, Ltd. (IIG); David
    Michael Loyd of Plantation, Florida; and Richard Tichy of
    Parkland, Florida.

On May 14, 1999, United States District Judge William P. Dimitrouleas
    entered consent orders of preliminary injunction against all the
    defendants. The consent orders enjoin the defendants from further violating
    the provisions of the Commodity Exchange Act (CEA) and the CFTC regulations
    with which they were charged, from engaging in any commodity
    futures-related activity, and continue the terms and conditions of a May 5,
    1999, freeze order. The consent orders also continue Marsha L. Lyons, Esq.
    as receiver (see below).

The CFTC's complaint alleges that EuroPacific, Tortola, IIG, Loyd,
    and Tichy fraudulently solicited at least 10 individuals from the United
    States and Canada to invest over $800,000 in a commodity pool variously
    called the EuroPacific or IIG Fund. The complaint further
    alleges that the vast majority of investor funds were misappropriated by
    transferring them to persons and entities unrelated to any commodity pool,
    and by using them to pay for personal expenses. The complaint also alleges
    that the defendants violated the antifraud, registration, and disclosure
    and reporting requirements of the CEA and CFTC regulations.

The fraudulent conduct with which the defendants are charged
    includes:

-- Misappropriating investor funds; -- Misrepresenting the profit potential of commodity futures
      transactions; -- Misrepresenting the amount of investor funds that would be invested
      in commodity futures contracts; and -- Sending false account statements and reports to investors that
      reported profits when, in fact, the defendants lost or misappropriated
      almost all the investor money.


Court Order Froze Defendants' Assets

Previously, on May 5, 1999, Judge Dimitrouleas entered a statutory
    restraining order against EuroPacific, Tortola, IIG, Loyd, and Tichy. The
    order froze the defendants' assets, prohibited the destruction of books and
    records, required that books and records be made available for inspection
    and copying, and appointed Marsha L. Lyons, Esq. as temporary receiver over
    all the defendants.

In the pending litigation, the CFTC also seeks an order permanently
    enjoining the defendants from violations of the CEA and requiring the
    defendants to make an accounting, to disgorge profits, to make restitution
    to defrauded customers, and to pay civil penalties not exceeding $110,000
    per violation or triple the monetary gain to the defendants.

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This action was the sixth action filed by the Commission since March
    1999 seeking emergency relief against a commodity pool operator who the
    Commission alleged was engaged in fraudulent conduct. In all of these
    actions, the court granted, among other things, a statutory restraining
    order against the defendants. CFTC v. Mark E. Chulik dba Westgate
    Partners, dba MEC Management, dba MEC Capital Management, CV99-02412GHK
    (C.D. Ca. March 11, 1999); CFTC v. Joseph P. McGivney, Sr., Edwin A.
    Koziol, et al., 99-Civ. 2375 (N.D. Ill. April 12, 1999); CFTC v.
    Donald Trivette, 5:99 cv 59-v (W. Dist. of N.C. April 14, 1999); CFTC v. Donald E. James and Donald James, Inc., 99-Civ-0967 (N.D. Ga.
    April 15, 1999); CFTC v. Edwin Jay Sheldon, 1:99-CV-138 (E.D. Tenn.
    April 28, 1999).

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