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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No: 14692 / October 16, 1995

Securities and Exchange Commission v. Jedi Group, Ltd, Jedi
Holding Co., David E. Wallace, and Earl J. Latiolais, (United
States District Court for the Southern District of Texas, No. H-
92-934).

     The Commission announced that on September 29, 1995, it
filed a Motion for an Order to Show Cause why defendants David E.
Wallace and Earl J. Latiolais should not be held in civil
contempt.  The motion was filed in Securities and Exchange
Commission v. Jedi Group, Ltd, Jedi Holding Co., David E.
Wallace, and Earl J. Latiolais, in the United States District
Court for the Southern District of Texas.

     Wallace and Latiolais were the principals in a scheme
involving the fraudulent sale of investments in non-existent
prime bank notes.  The scheme raised more than $3.4 million from
investors before the Commission obtained a temporary restraining
order halting the illegal conduct and freezing the assets. 
Wallace and Latiolais later agreed to a permanent injunction and
to liability for $777,725.34 of ill-gotten gains and $110,682.67
prejudgment interest.  The district court's final order allowed
them to satisfy the debt if they paid a total of $250,000 in four
installments.  However, Wallace and Latiolais have failed to pay
two installments when due.

     Hearing on the motion is set for November 16, 1995 in
Houston, Texas, before Judge Ewing Werlein, Jr.