SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 18226 / July 10, 2003

   FEDERAL COURT ISSUES EMERGENCY ORDER FREEZING ASSETS OF PURPORTED
   BILLION DOLLAR HEDGE FUND GROUP; SEC ALLEGES MASSIVE OVERVALUATION AND
   MANIPULATION SCHEME

SECURITIES AND EXCHANGE COMMISSION v. MICHAEL LAUER, LANCER MANAGEMENT
GROUP, LLC, and LANCER MANAGEMENT GROUP II, LLC, Defendants, and LANCER
OFFSHORE, INC., LANCER PARTNERS, LP, OMNIFUND, LTD., LSPV, INC., and LSPV,
LLC, Relief Defendants, Case No. 03-80612-CIV-ZLOCH (S.D. Fla., filed July
8, 2003).

   The United States Securities and Exchange Commission (SEC) announced
   today that a federal judge in South Florida has entered a temporary
   restraining order against the Connecticut-based advisers of a
   purported billion-dollar hedge fund to restrain them from violating
   the antifraud provisions of the federal securities laws. The Honorable
   William J. Zloch, Chief Judge, United States District Court for the
   Southern District of Florida, also ordered the defendants' assets
   frozen until at least July 18^th, when he has scheduled a hearing. The
   orders came in response to the SEC's emergency civil injunctive action
   (Complaint) that sought a temporary restraining order, an order
   freezing assets, disgorgement and civil penalties and other relief
   against against advisers Lancer Management Group, LLC (Lancer) and
   Lancer Management Group II, LLC (Lancer II) and their principal,
   Michael Lauer, based on their alleged violations of the federal
   securities laws. In addition the Complaint named as relief defendants
   Lancer Offshore, Inc. (Offshore), Lancer Partners, LP (Partners),
   OmniFund, Ltd. (OmniFund), LSPV, Inc. and LSPV, LLC. The court
   appointed a Receiver to marshall and safeguard the entities' assets.

   The SEC's court papers allege that from at least March 2000 to the
   present, Lauer, Lancer and Lancer II, engaged in a scheme to
   over-inflate the performances and net asset values of Offshore,
   Partners and OmniFund, three hedge funds controlled by Lauer
   (collectively the Funds) which recently claimed to have assets worth
   over $1 billion dollars. Specifically, the Complaint alleges that the
   defendants systematically manipulated the month end closing prices of
   certain securities held by the Funds to overstate the value of the
   Funds' holdings in virtually worthless companies. The SEC's Complaint
   states that the defendants then provided unfounded and unrealistic
   valuation opinions to auditors to obtain audited financial statements
   for Offshore. The Complaint also alleges that the defendants made
   numerous materially false and misleading statements and omissions in
   the Funds' offering and marketing materials. Finally, the Complaint
   alleges that the fraudulent manipulative trading practices and