For Immediate Release: May 20, 2008

IRVINE ATTORNEY ARRESTED TODAY IN CONNECTION WITH INVESTMENT
SCHEME THAT DEFRAUDED OVER 150 INVESTORS IN EXCESS OF $20 MILLION

An Irvine resident, Jeanne Rowzee, 49, was arrested by FBI agents at her home this afternoon on wire fraud charges in connection with her role in a fraudulent investment scheme, announced Salvador Hernandez, Assistant Director in Charge of the FBI in Los Angeles, and United States Attorney Thomas P. O'Brien. According to a criminal complaint unsealed this afternoon, Rowzee defrauded approximately 150 investors out of more than $20 million through fraudulent offerings, including public investments in private entities (PIPE) and money market programs. A federal search warrant was also executed this afternoon at Rowzee's residence. The investigation into the alleged fraudulent activity of Rowzee and others was initiated in the summer of 2007 when victims of the scheme reported the fraud to the FBI's Orange County office. According to the complaint, filed in U.S. District Court in Santa Ana, Rowzee and others had been involved in soliciting investments in PIPEs as short-term bridge loans to companies that were in the process of obtaining equity financing for growth. Rowzee and others told victims their money would be used to fund the short-term loans and promised victims a return of up to 35 percent on their investments over the term of three to four months, according to the complaint. Rowzee claimed she had never lost money in this type of investment. Rowzee told victims she was an experienced securities attorney and had previously worked for the Securities and Exchange Commission. She told victims she performed due diligence on the companies receiving the loans. Rather than investing victims' money in PIPEs, Rowzee and other others used the money for personal gain and also to disburse payments to satisfy earlier investors, similar to a Ponzi scheme. According to the complaint, Rowzee admitted that the scheme was a fraud, and that she had not invested victims's money in any PIPEs. Rowzee will make her initial appearance in U.S. District Court in Santa Ana on Wednesday afternoon at 2:00 p.m. A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until proven guilty in court. The crime of wire fraud carries a statutory maximum sentence of 20 years in federal prison. MEDIA CONTACTS: FBI: Laura Eimiller: 310 996-3343 U.S. Attorney's Office: 213 894-6947 ###