EX PARTE ORDER ENTERED BY MICHIGAN FEDERAL COURT FREEZES ASSETS OF DANIEL M. O'SHAUGHNESSEY, GLORY FUND I, INC. AND GLORY FUND, L.L.C.

Release:#3970-96 (Civ 96-10421)

For Release:November 26, 1996

EX PARTE ORDER ENTERED BY MICHIGAN FEDERAL COURT FREEZES ASSETS OF DANIEL M. O'SHAUGHNESSEY, GLORY FUND I, INC. AND GLORY FUND, L.L.C.

CFTC Complaint Charges Defendants with Defrauding Customers,

Among other Federal Commodity Law Violations

WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today that on November 21, 1996, the Honorable Robert H. Clelend of the U.S. District Court for the Eastern District of Michigan entered a statutory ex parte restraining order freezing the assets of Daniel M. O'Shaughnessey, Glory Fund I, Inc., and Glory Fund, L.L.C., all of Midland, Michigan.

In addition to freezing the defendants' assets, the court's ex parte order prohibits the destruction of the defendants' books and records, and grants the CFTC access to their books and records.

The order stems from a five-count injunctive complaint filed on November 20, 1996, alleging that the defendants defrauded Glory Fund pool participants, issued false statements, commingled pool funds, and engaged in false advertising.

Specifically, the complaint charged that since at least April 1996, the defendants have violated the anti-fraud provisions of the Commodity Exchange Act (CEA), as well as the regulatory proscriptions against commingling and false advertising.

The defendants allegedly cheated and defrauded pool participants by misappropriating customer funds and by misrepresenting:

the performance of Glory Fund and other commodity investments managed or operated by O'Shaughnessey and Glory Fund I, Inc.;
that customer funds were invested in the Glory Fund pool trading account, when, in fact, the defendants knew that statement was false;
the value of the customers' investments;
that customers' pool participation interests had earned a "profit" from trading commodity futures contracts;
that defendants converted or "rolled" investor loan interests into pool interests in Glory Fund; and
the results of an audit conducted by the National Futures Association.

In the continuing litigation against the defendants, the CFTC is seeking preliminary and permanent injunctions prohibiting the defendants from violating Federal commodity law, in addition to other remedial relief, including disgorgement of ill-gotten gains, restitution, and civil monetary penalties as provided for by the CEA for each violation of the CEA or regulations.