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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION


LITIGATION RELEASE NO. 15015 \ August 14, 1996

UNITED STATES OF AMERICA v. MELVIN H. COX
3:96-CR-267, USDC, ND/TX [Dallas Division]

     The Securities and Exchange Commission ("Commission") and
the United States Attorney for the Northern District of Texas
announced that on August 6, 1996, a federal grand jury returned a
one count indictment charging Melvin H. Cox ("Cox") with
securities fraud as a result of his operation of Fairfield
Investment Co., Inc. Cox will be arraigned on August 21. If
convicted, Cox could receive up to five years in a federal
penitentiary and up to a $250,000 fine.

     The criminal charges against Cox are based on the same
activities alleged in a civil injunctive action brought by the
Commission in which Cox consented to the entry of an order of
permanent injunction on May 3, 1996, enjoining him from future
violations of the registration and anti-fraud provisions of the
federal securities laws.

      The Commission's complaint alleged that Cox operated a $54
million "Ponzi" scheme and promised investors that their monies
would be used to trade in first and second mortgages and would
result in a return of 12.8% (later 13.4%) every 45 days, a
compounded return of as much as 160% a year. In fact, according
to the complaint, investors' monies were loaned to 12
corporations controlled by Cox at interest rates of 6-8% per
annum. 
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MELVIN H. COX INDICTED FOR SECURITIES FRAUD 

     The Commission (Commission) and the United States Attorney
     for the Northern District of Texas announced that on August
     6, 1996, a federal grand jury returned a one count
     indictment charging Melvin H. Cox (Cox) with securities
     fraud as a result of his operation of Fairfield Investment
     Co., Inc. Cox will be arraigned on August 21. If convicted,
     Cox could receive up to five years in a federal penitentiary
     and up to a $250,000 fine.

     The criminal charges against Cox are based on the same
     activities alleged in a civil injunctive action brought by
     the Commission in which Cox consented to the entry of an
     order of permanent injunction on May 3, 1996, enjoining him
     from future violations of the registration and anti-fraud
     provisions of the federal securities laws.

     The Commission's complaint alleged that Cox operated a $54
     million "Ponzi" scheme and promised investors that their
     monies would be used to trade in first and second mortgages
     and would result in a return of 12.8% (later 13.4%) every 45
     days, a compounded return of as much as 160% a year. In
     fact, according to the complaint, investors' monies were
     loaned to 12 corporations controlled by Cox at interest
     rates of 6-8% per annum.[United States of America v. Melvin
     H. Cox, 3:96-CR-267, USDC, ND/TX] (LR-      )



STEPHEN WEBSTER
District Trial Counsel
Fort Worth District Office
817/885-6459