FOR IMMEDIATE RELEASE
DATE: April 24, 2007
CONTACT: Chris Lee (702) 486-2440

Additional $10 million Identified from Southwest Exchange, Inc.

Las Vegas, NV – Secretary of State Ross Miller announced that the Secretary of State, Securities Division, has identified various locations where over $110 million in brokerage accounts have been transferred by Southwest Exchange, Inc. to several business entities.

In its ongoing investigation of the brokerage firm and its principles, the agency has traced the flow of over $10 million in investors' money into accounts for an airplane and a ranch. Millions more have been traced to various other accounts, some overseas in France, Scotland and Mexico.

"Our office has been working diligently to identify where the money has gone,” said Secretary Miller. "This discovery significantly furthers the process of returning money lost by investors.”

The agency has turned over this information to the receiver, which will determine what accounts to go after and the amount it can recover.

In February, investigators issued a Cease and Desist Order against several financial institutions across the Las Vegas valley where it was believed that Southwest Exchange, Inc., Donald McGhan and other principles may have transferred large sums of investors’ money.

Last month, the agency recovered over $100,000 and an additional 2.25 million shares from accounts held by Southwest Exchange, Inc. and its principles

As in all criminal matters, the office maintains that the allegations are merely accusations and individuals are presumed to be innocent until proven guilty in a court of law.