UNITED STATES SECURITIES AND EXCHANGE COMMISSION

 LITIGATION RELEASE NO. 16120 / April 22, 1999

 SECURITIES AND EXCHANGE COMMISSION v. LENNOX INVESTMENT GROUP, LTD.,  ACTIVE INTERNATIONAL, INC., RANDALL W. LAW, JAMES F. WARDELL, MONICA M.  ILES, FRANK L. PEITZ, AND DANIEL B. BENSON, 4:98CV536-Y, USDC, ND/TX  (Fort Worth Division)

 On April 21,1999, United States District Judge Terry R. Means  entered a default judgment against Lennox Investment Group, Ltd  ("Lennox") permanently enjoining the company from future violations of  Section 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, and ordering it to disgorge illegal profits  of $11,109,880, plus prejudgment interest of $2,736,623.

 Previously, on January 29, 1999, default judgments setting  disgorgement amounts were entered against defendants Daniel B. Benson  ("Benson") and Active International, Inc. ("Active), and relief  defendants P.B.F. Capital Group, Inc. ("P.B.F."), Benson Financial,  Inc. ("BFI"), and I.B.I., Inc. ("I.B.I."). Benson and Active were  ordered, jointly and severally, to disgorge illegal profits in the  amount of $11,109,000, plus prejudgment interest of $2,500,000. Relief  defendants were ordered to disgorge the following amounts: P.B.F. --  $3,949,273, plus prejudgment interest of $839,519; BFI -- $2,053,586,  plus prejudgment interest of $445,099; and I.B.I. -- $335,000, plus  prejudgment interest of $18,196. Benson and Active were permanently  enjoined by default on November 24, 1998, from future violations of  Section 17(a) of the Securities Act, and Section 10(b) of the Exchange  Act and Rule 10b-5 thereunder.

 According to the Commission’s complaint, the defendants  fraudulently offered and sold unregistered "prime bank" securities to  more than 50 investors in at least 10 states. Investors were told that  their funds would be placed in an escrow account, with the investment  principal guaranteed, and that their funds would be invested in a  trading program where investors could expect a yield of 122.5% per  week for 40 weeks during the 54 week term of the program. In fact,  according to the complaint, the trading program did not exist and  these defendants, instead of investing the funds, stole the investors’  funds and used them for their own benefit and the benefit of their  designees, including the relief defendants.

 DEFAULT JUDGMENTS ENTERED IN PRIME BANK CASE

 On April 21, United States District Judge Terry R. Means entered a  default judgment against Lennox Investment Group, Ltd (Lennox)  permanently enjoining the company from future violations of the  antifraud provisions of the federal securities laws, and ordering  it to disgorge illegal profits of $11,109,880, plus prejudgment  interest of $2,736,623.

 Previously, on January 29, 1999, default judgments setting  disgorgement amounts were entered against defendants Daniel B.  Benson (Benson) and Active International, Inc. (Active), and  relief defendants P.B.F. Capital Group, Inc. (P.B.F.), Benson  Financial, Inc. (BFI), and I.B.I., Inc. (I.B.I.). Benson and  Active were ordered, jointly and severally, to disgorge illegal  profits in the amount of $11,109,000, plus prejudgment interest of  $2,500,000. Relief defendants were ordered to disgorge the  following amounts: P.B.F. -- $3,949,273, plus prejudgment interest  of $839,519; BFI -- $2,053,586, plus prejudgment interest of  $445,099; and I.B.I. -- $335,000, plus prejudgment interest of  $18,196. Benson and Active were permanently enjoined by default  on November 24, 1998, from future violations of the antifraud  provisions of the federal securities laws.

 According to the Commission’s complaint, the defendants  fraudulently offered and sold unregistered "prime bank" securities  to more than 50 investors in at least 10 states. Investors were  told that their funds would be placed in an escrow account, with  the investment principal guaranteed, and that their funds would be  invested in a trading program where investors could expect a  yield of 122.5% per week for 40 weeks during the 54 week term of  the program. In fact, according to the complaint, the trading  program did not exist and these defendants, instead of investing  the funds, stole the investors’ funds and used them for their own  benefit and the benefit of their designees, including the relief  defendants. [ Securities and Exchange Commission v. Lennox  Investment Group, Ltd.,, et al., 4:98CV536-Y, USDC, ND/TX ] (LR-  )