==========================================START OF PAGE 1======

             U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 15229 / January 28, 1997

SECURITIES AND EXCHANGE COMMISSION v. MUSTANG DEVELOPMENT
CORPORATION, a California corporation; TOWER OPERATING COMPANY, a
California corporation; NEAL B. STEIN; CARY S. GREENE; and SAMUEL
EMBRAS, JR., Civil Action No. 97-0440 KMW (Ex)     

     On January 23, 1997, the United States Securities and
Exchange Commission filed a complaint in federal district court
in Los Angeles against Beverly Hills-based Mustang Development
Corporation and Tower Operating Company, their principals, Neal
B. Stein and Cary S. Greene, and Dallas, Texas geologist Samuel
Embras, Jr.  The Commission alleges that the defendants defrauded
thousands of elderly investors nationwide through the operation
of a massive Ponzi scheme in which millions of dollars from new
investors were funnelled back to old investors in the form of
fictitious returns.  Stein and Greene also freely used investor
funds to support their lavish lifestyles, including payments for
expensive cars, homes, jewelry, and other luxury items.

     On December 16, 1996, Neal Stein pleaded guilty to
securities fraud and tax evasion.  He faces a maximum sentence of
10 years imprisonment and a fine of $1,100,000.  On September 30,
1996, Embras pleaded guilty to securities fraud and faces
imprisonment and a fine of up to $1,000,000.  These guilty pleas
are the product of an ongoing investigation by Postal Inspector
Catherine Budig of the United States Postal Service and Special
Agent Darren Slotsve of the Internal Revenue Service.

     The Commission's Complaint alleges, among other things, that
from December 1987 through March 1995, Mustang, Tower, Stein, and
Greene raised approximately $139 million through the offer and
sale of units in some 60 oil and gas limited partnerships.  For
each of the partnerships, the defendants told investors that most
of their money would be used to purchase interests in oil and gas
wells and that investors would receive returns based on oil and
gas revenue.  In contrast to these representations, the
defendants conducted an investment scheme that commingled
investor funds and assets from the various partnerships, and, in
some partnerships, used virtually none of the investor funds to
purchase oil and gas properties.  Instead, Mustang, Tower, Stein,
and Greene used millions of dollars from investors to finance the
Ponzi scheme, Stein's and Greene's extravagant lifestyles, and
other, unrelated business ventures owned by Stein and Greene.  

     To further deceive investors, Embras, Tower's geologist,
created false production reports for the alleged oil and gas
wells owned by the partnerships.  These reports showed bogus oil
and gas revenue to support the fictitious returns made to
investors.
==========================================START OF PAGE 2======

     The Complaint alleges violations of Sections 5(a), 5(c) and
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
Complaint seeks permanent injunctions, disgorgement with
prejudgment interest and civil penalties.

     Simultaneously with the filing of the Commission's
Complaint, Stein and Embras consented, without admitting or
denying the allegations in the Complaint, to permanent
injunctions enjoining them from future violations of the federal
securities laws.  The corporate entities, Mustang and Tower, have
agreed to settle with the Commission pending court approval in a
private civil action brought by certain investors.  The
Commission's suit is pending against Mustang, Tower, and Stein
for disgorgement, prejudgment interest, and civil penalties.  The
entire civil action is pending against Greene.