On January 4, 2001 Sidney Neil Katchem aka Jack Tanner aka Bobby Jones aka Dave Taylor was sentenced to 37 months in prison and to pay restitution in the amount of $2,487,709.28 by Judge James R. Nowlin, Chief United States District Judge for the Western District Of Texas--Austin Division in connection with his guilty plea in case number A-98-CR-171(1) to one count of conspiracy to devise and intend to engage in a scheme to defraud investors. The indictment alleged that Mr. Katchem engaged in the conspiracy with Tracy Jones Katchem and David McIntosh. Mr. McIntosh was previously sentenced to 168 months in prison in connection with the scheme. Tracy Jones Katchem was sentenced to 5 years probation. The indictment alleged that Mr. Katchem and his co-conspirators solicited investments from investors throughout the United States for the purchase of the corporate notes of Austin Jones, Inc. and other companies. The indictment further alleged that the Defendants misrepresented numerous facts in connection with the offering. The matter was investigated by the Texas Securities Board in cooperation with the FBI and the states of Kentucky, Ohio and Indiana.