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             U.S. SECURITIES AND EXCHANGE COMMISSION


Litigation Release No. 14881 / April 16, 1996

SECURITIES AND EXCHANGE COMMISSION v. KAROLA E. JAMISON, Civil
Action No. 93-00639 HG (D. Hawaii)

     The Securities and Exchange Commission ("Commission")
announced that on June 8, 1995, a Final Judgment of Permanent
Injunction And Other Relief was entered against defendant Karola
E. Jamison ("Jamison").  The Final Judgment enjoined Jamison from
violating the antifraud provisions of Section 17(a) of the
Securities Act of 1933 and Section 10(b) of the Securities
Exchange Act of 1934 and Rule 10b-5 thereunder.  The Final
Judgment further ordered Jamison to pay disgorgement in the
amount of $468,880, plus prejudgment interest thereon, but waived
payment of these amounts based upon her demonstrated inability to
pay them.  Jamison consented, without admitting or denying the
allegations in the Complaint, to the entry of the Final Judgment.


     The Commission's Complaint alleges that from March 1988
through November 1989, Jamison raised over $1 million from more
than 40 investors through the offer and sale of promissory notes.

Investor funds were purportedly to be invested in an
international loan program called the Collateralized Funding
Program.  Jamison, capitalizing on her husband's high rank in the
military, attracted investors who were primarily military
personnel and promised them returns of as high as 240% per year. 
Investor funds were not only misused by Jamison to pay other
investors pursuant to a Ponzi scheme, they were also misused for
her unrelated business ventures and personal expenses.