UNITED STATES SECURITIES AND EXCHANGE COMMISSION

     LITIGATION RELEASE NO. 15407 / July 8, 1997

     UNITED STATES OF AMERICA V. JUAN CARLOS MARTINEZ, H-97-476, USDC, SD/TX

          The United States Attorney for the Southern District of Texas
     announced that on May 21, 1997, Juan Carlos Martinez ("Martinez") was
     charged by a criminal complaint with wire fraud (18 U.S.C.  1343).  The
     complaint charges that Martinez, an officer, registered principal and
     registered representative of MBM Investment Corp. ("MBM"), a broker-dealer
     registered with the United States Securities and Exchange Commission,
     diverted more than $130,000 in client funds from MBM accounts for his own
     benefit.  The complaint further charges that Martinez made unauthorized
     trades in client accounts, including the sale of conservative investments
     and the purchase of risky options and speculative bonds issued by a
     Bermuda-based company attempting to establish retail clothing stores in
     Russia.  The complaint charges that these unauthorized transactions
     resulted in losses of more than $10 million to MBM clients.  According to
     the complaint, Martinez concealed his unauthorized activities in MBM client
     accounts by providing MBM clients with fabricated documents, including
     falsified account statements.
          






























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