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U.S. Securities and
Exchange Commission

Litigation Release No. 17411 / March 14, 2002

Securities and Exchange Commission v. Harral Dunbar, Jr., Individually and d/b/a Ghost International, Civil Action Number 02-233-B-M1 (M.D. La.)

PRELIMINARY INJUNCTION ISSUED AGAINST HARRAL DUNBAR, JR. FOR SECURITIES FRAUD CONDUCTED ON INTERNET AND REGISTRATION VIOLATIONS

The Securities and Exchange Commission ("Commission") announced today that on March 13, 2002, following an evidentiary hearing, Judge Frank J. Polozola of the United States District Court for the Middle District of Louisiana issued a preliminary injunction with findings of fact and conclusions of law against Harral Dunbar, Jr., in his individual capacity and d/b/a Ghost International, an Internet Website operation. The Court's order imposed a freeze on the defendant's assets and ordered an accounting within 30 days. The Court found that Dunbar, of Baton Rouge, Louisiana, owned the Ghost International Website and used it to solicit investors in investment contracts by promises of inordinate amounts of guaranteed returns and promises of no-risk investing, and further found that investors have received little or no return despite several months of promises by Dunbar that returns would be paid.

In its order of preliminary injunction, the Court found that between mid-2001 and the present, Dunbar obtained over $7,500 from eleven investors in Canada, Australia and the United States by touting Ghost International's "private contribution and investment program" which allegedly paid, for example, $100,000 on a $200 investment over a few weeks. Dunbar made various promises of returns, including ones up to 1000 percent. Dunbar made various representations to fraudulently induce investors including that his company dealt in "high yield investments" and that funds were to be placed in offshore bank accounts, which would pay promised returns for five months of a supposed seven-month program. The Court also concluded that Dunbar lulled investors by making promises that payments would be made shortly. However, when the time elapsed, the promised payments were not forthcoming.

The complaint charged Dunbar with, and the Court preliminarily enjoined Dunbar from, violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. The Commission also seeks a permanent injunction against Dunbar as well as an order compelling disgorgement of ill-gotten gains, along with prejudgment interest and civil penalties.