FOR IMMEDIATE RELEASE                            2002-25


       SEC Charges Notorious “Dr. Noe” and Five Others
             in Million Dollar Prime Bank Fraud
                              
     Washington, DC, February 14, 2002 -- The U.S.
Securities and Exchange Commission Thursday filed fraud
charges against career swindler Clif Goldstein—long known to
criminal law authorities as “Dr. Noe”—for bilking at least
20 investors out of nearly $1.1 million in an elaborate
fraud known as a prime bank scheme.  The lawsuit also names
Goldstein’s older brother, Paul Howe Noe, and two Boca
Raton, Fla. companies run by the brothers, Great American
Trust Co. and Great American Trust Corp.
     
     “Dr. Noe,” whose multi-million dollar swindles have
been widely chronicled in U.S. newspapers and abroad for
decades, is a high school dropout from Texas who has
sometimes claimed to be highly educated in order to gain the
confidence of his victims.  Goldstein, 71, formerly Clifford
Dixon Noe, has a criminal record as a con man that dates
back to the 1970s that includes multiple convictions and
prison sentences for wire fraud, mail fraud and forgery.
Goldstein’s brother, Paul Noe, 74, also has an extensive
criminal record, including convictions and prison sentences
for embezzlement, larceny and wire fraud.

     The SEC complaint, filed in the U.S. District Court in
Columbia, S.C., alleges that Goldstein, Noe and their
companies sold wholly fictitious securities that they
described as “stand-by letters of credit” sold by “top ten
European banks.”  Four other defendants named in the
complaint—Carolyn Kaplan, Noel Alelov, Russell B. Gerstein
and Nuell W. Paschal—served as “finders” who were paid for
locating and luring potential victims.

     The prime bank schemes were promoted through in-person
solicitations and over the Internet, according to the
complaint.  Victims who were targeted typically included
individuals associated with cash-strapped companies in
urgent need of financing and sophisticated investors looking
for high returns in short periods of time.  In some
instances, the defendants promised to double investors’
money in 13 weeks.  Instead, the complaint charges, they
pocketed the money for their own personal use.
     
     In its complaint, the SEC alleges that the defendants
violated the antifraud provisions of the federal securities
laws, Section 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 seeks permanent
injunctions against future violations of the anti-fraud
provisions, disgorgement of defendants' ill-gotten gains
plus prejudgment interest, and civil penalties.    
     
     In a related matter, the U.S. Attorney for the District
of South Carolina filed criminal charges against Goldstein,
Noe, Gerstein and Paschal for their roles in the alleged
investment scheme, and they have been arrested by the
Federal Bureau of Investigation in recent days.
     
     The Commission acknowledges the assistance of the South
Carolina Offices of the FBI and the U.S. Attorney.
     
     Additional information about the case can be found in
Litigation Release No. 17362.  For more information about
prime bank fraud, visit the SEC’s “Prime Bank Information
Center” at www.sec.gov/divisions/enforce/primebank.shtml.
To report suspicious activity involving potential Internet
fraud, visit www.sec.gov/complaint.shtml.
     
     
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