NEWS RELEASE
Office of Maryland Attorney General J. Joseph Curran, Jr.


September 11, 2000 Media Inquiries: Sean Caine 410-576-6357

CURRAN SEEKS TO PROTECT INVESTORS

Baltimore - Attorney General J. Joseph Curran, Jr. announced today that his office's Securities Division obtained a preliminary injunction against Flowers Financial Group, Inc., an investment adviser located in Carroll County, its president Thomas M. Flowers, and various affiliated entities. The defendants are accused of violating Maryland's securities laws, including offering and selling unregistered securities and providing investment advice by use of a fraudulent scheme. Flowers formed several hedge funds and allegedly solicited investors by using inflated, unsubstantiated performance figures and by claiming that audited statements would be prepared by prestigious accounting firms.

According to the injunctive order, issued by Circuit Court Judge Michael M. Galloway, all assets of Flowers Financial Group, Inc., 1440 N. Main Street, Hampstead, and affiliated entities of Thomas Flowers, including Flowers Fund, LP, The Flowers Offshore Fund, Ltd., Flowers Capital, LLC, Flowers Asset Management, Ltd., Mako Investment Management, LLC, Mako Master Fund, LP, and The Mako Fund, Ltd., are temporarily frozen. A temporary receiver has been appointed to take control of the companies and their assets, to engage an investment adviser to temporarily provide advice to Flowers Financial Group, Inc.'s individual clients, and to engage an auditor to conduct an audit of investors' funds.

"We had to bring a receivership action quickly in this case to protect investors' monies," said Attorney General Curran. "By placing the companies into receivership, we can audit the investment funds, trace investors' monies through the funds, and preserve the remaining assets for an equitable distribution to investors."

Curran emphasized that the Securities Division's investigation of this matter is continuing and urges anyone who invested funds with Flowers, Flowers Financial Group, Inc. or their affiliated entities, or who has or is seeking information concerning these investment programs, to call the Securities Division of his office at 410-576-6407.

Curran reminded investors to call the Securities Division at 410-576-6360 before they invest to find out whether their investment adviser, broker and securities are registered, or whether there have been any complaints filed against them. Even when an investment program looks reasonable, and friends and family trust the promoter, it's better to take a few minutes to verify the status of the promoters or securities offerings

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