Securities Division Alleges
Fraud by Alpha Capital Group, LLC

Olympia, WA, June 21, 1999 - The Washington Securities Division issued a Summary Order to Cease and Desist against respondents Alpha Capital Group, LLC, Anne DiLeo, Lynn Gordon, Viatical Escrow Services, James Capwill, Linda Demiero-Stull, Robert Stull, Joseph Voutour, James Metcalf, Donald Johnson, Alan Goode, and Michael Barry Russell, for alleged violations of the registration and antifraud provisions of the Securities Act of Washington. Respondents offered and sold ownership interests in viatical settlement contracts that would purportedly produce a 100-percent return on the investors' investment.

The Securities Division contends that the offer and sale of these viatical investments constitute the offer and sale of securities. These securities are not registered in the state of Washington and have not previously been so registered. None of the respondents are registered as securities salespersons or broker-dealers. In addition, respondents allegedly made material misrepresentations and omissions in connection with the offer and sale of the viatical investments.

The Securities Division directed the respondents (subject to the respondents' right to request an administrative hearing) to make no further offers and sales of the viatical settlements at issue in the state of Washington. Any offers or sales of the viatical settlements at issue will constitute further violations of the Securities Act of Washington. Any person who is solicited by or has information about these companies or persons is asked to notify the Washington Securities Division by calling 1-877-RING DFI (1-877-746-4334), or in the Olympia area: (360) 902-8760.

Contact:
Martin Cordell
Enforcement Attorney
(360) 902-8772
mcordell@dfi.wa.gov

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