ARIZONA CORPORATION COMMISSION
1200 W. WASHINGTON
PHOENIX, AZ. 85007

COMMISSION ORDERS END TO CHILDREN'S TV INVESTMENT SCAM

An Arizona Corporation Commission undercover investigation has shut down a Scottsdale-based investment scam before it claimed a single victim. The Commission issued a cease and desist order after developing evidence that telephone salesmen based in Arizona were falsely claiming to be "Associate Producers for the Frank Capra family" who were making their calls from "Burbank, California, right next to the NBC studios." The salesmen were touting a minimum $10,000 investment in "Barnyard Place," a children's television program, as being potentially as profitable as "Barney," the purple dinosaur that has brought in over $500 million in revenues.

As an example, salesman Alan Lee Rippee told potential investors that "most investors come in at $25 thousand to $50 thousand," and that the offering was "half funded already," when in fact not a single investment was sold, and no investment dollars were raised at all.

The investment scam was stopped short when a Commission investigator penetrated the boiler room, obtaining the sales scripts and recording the "pitches" that used false information to try to lure investors.

The salesmen were attempting to raise $825,000, allegedly to fund 13 episodes of a pilot program. Rippee falsely told potential investors they could expect a return of 100% for 26 shows, based on 150 stations that had already signed for the show. He also falsely said that projections were for a three-to-one return on investor's money, and that income would continue for the next 20 years through reruns and syndication.

Commission Chairman Carl Kunasek said, "This is another success for the Securities Division's innovative and aggressive approach, stopping fraud before investors lose a dime." Securities Director Michael G. Burton, Sr. said, "It is always gratifying to stop fraudulent activity before it claims victims. This action may have saved thousands of investment dollars."

The orders to cease and desist were issued against Scottsdale Financial, company President Jack Walton Combs, 53, Scottsdale, and a salesman, Alan Lee Rippee, 30, Phoenix. Cease and desist orders were also issued against Barnyard Place Partners, LLC, a Nevada limited liability company, company president Frank Capra, Jr., and two affiliated California companies. The California companies are Silver Vision Entertainment of Burbank, and American Cineplex, the general partner of a California limited partnership known as Television Game Show Partners.

In addition to the orders to cease and desist, administrative penalties were assessed as follows:

American Cineplex, Silver Vision Entertainment, Barnyard Place Partners, LLC, and Frank Capra, Jr. - $5,000.

Scottsdale Financial and Jack Walton Combs, Jr. - $2,500, with Combs ineligible for a securities license for one year.

Alan Lee Rippee - $500.