Securities COMMISSION AND EXCHANGE 

 Litigation Release No. 16020 / January 12, 1999 

  SECURITIES AND EXCHANGE COMMISSION v. BARNARD SACKETT, JOHN H.  SCHRIEK AND ENVIROLAND, LTD., Civ. Action No. 97-5934  U.S.D.C., E.D. Pa. 

 The Commission announced that on January 4, 1999, the  Honorable Anita Brody, United States District Court Judge for the  Eastern District of Pennsylvania, entered final judgments by  default ("Final Judgments") that permanently enjoin defendants  John H. Schriek ("Schriek") and Enviroland, Ltd. ("Enviroland")  from committing securities fraud and order them to pay a total of  $1.2 million in fines. The Commission's Complaint, which was  filed on September 22, 1997, alleges, among other things, that  Schriek and Enviroland, together with defendant Barnard Sackett  ("Sackett"), solicited the Bankruptcy Estate for the Foundation  For New Era Philanthropy, Inc. in Philadelphia, Pennsylvania, as  well as at least one other investor, to invest as much as $100  million in fraudulent "prime bank" securities. The Complaint  also alleges that the defendants guaranteed investors the  repayment of principal and returns on their investments at the  annual rate of at least 360% and as great as 528%. The  Commission's Complaint further alleges that the defendants  requested that those investors recommend the fictitious "prime  bank" securities to hundreds of non-profit organizations and  charities that are associated with or creditors of those  investors. The Final Judgments permanently enjoin Schriek and  Enviroland from violating Section 17 of the Securities Act of  1933, and Section 10(b) of the Securities Exchange Act of 1934  and Rule 10b-5 thereunder, and impose civil penalties against  Schriek in the amount of $200,000, and against Enviroland in the  amount of $1 million. Sackett, without admitting or denying the  allegations contained in the Complaint, previously consented to  the entry of a final judgment which enjoined him from committing  securities fraud and did not impose a civil penalty based on his  demonstrated inability to pay.