Curran Moves to Shut Down Alleged Investment Fraud Scheme


FOR IMMEDIATE RELEASE:
July 22, 1999

Attorney General J. Joseph Curran, Jr. announced today that his office's Securities Division has obtained a temporary restraining order against a Prince George's County company, charging it with operating a fraudulent scheme potentially involving millions of dollars.

According to the order, issued by Circuit Court Judge Michele D. Hotten, all assets of Capital Concepts, Inc. of Martin Luther King, Jr. Highway are frozen and a temporary receivership has been imposed to take control of the company. Curran's Securities Division alleges that the company, through its president and CEO Rachel E. Reed Chittams, has violated Maryland's securities laws by offering and selling unregistered investments. In one instance, these investments were offered to passers-by at a DC-area Metro stop.

Curran alleges that in some cases, the company promised rates of return as much as 800% within 180 days and described the investments as virtually risk free. However, neither the company, its investments, or its promoters were registered with the Securities Division as required by Maryland law.

"We had to take quick action in this case considering the amount of money involved," said Attorney General Curran. "By placing the company in receivership, we can unravel this scheme and locate investors' monies."

Curran says the Securities Division's investigation of this matter is continuing and urges anyone who invested funds with Capital Concepts, Inc. or Rachel E. Reed Chittams, or who has information concerning their solicitations of funds, to contact the Securities Division of his office at 410-576-7649.

Curran also reminded investors that they can contact the Securities Division at 410-576-6882 if they have questions concerning the status of investment promoters or the securities in which they plan to invest.


For Further Information Contact:
Frank Mann
Special Assistant to the Attorney General
(410) 576-6357