UNITED STATES ATTORNEY W. WALTER WILKINS announced today that DARYL BATTS, age 46, of Easley, South Carolina, entered a plea of guilty today before United States District Judge G. Ross Anderson, Jr. Batts pled to one felony count of Securities Fraud and one felony count of Mail Fraud and faces a total possible penalty of 50 years in prison. He will be sentenced by Judge Anderson at a later date.

Attached hereto is a copy of the Information to which Batts pled guilty, which details the activities in which Batts engaged. Mr. Wilkins advised that this was a classic Ponzi scheme where Batts took in money from investors for almost six years, during which time he never invested any of the money, but simply diverted it to his own uses. Batts was able to keep the investors from realizing their money was being stolen by providing them with bogus monthly statements showing large profits. Additionally, if an investor wanted some of his "profits," or return of his principle, Batts would simply use funds of new investors to keep old investors fooled. Mr. Wilkins stated that Batts is cooperating fully with investigators to identify all investors and determine the amount each must be refunded. At this point a conservative estimate of loss is five million dollars.

Mr. Wilkins advised that Attorney Bruce Byrholdt of Anderson has been appointed by Judge Anderson to serve as Receiver in the case. It is the duty of a Receiver to determine who was defrauded of funds, and then attempt to recover and distribute same to these victims. Mr. Wilkins emphasized that Batts did not defraud all of his clients and that as quickly as possible Mr. Bryholdt will determine who was and who was not a victim. Mr. Byrholdt will then contact those clients who were in fact victimized.

The investigation and prosecution is being led by FBI Special Agent Paul Jacobs and Assistant United States Attorney David C. Stephens of Greenville.