SECURITIES AND EXCHANGE COMMISSION
     Washington, D.C. 25049

     Litigation Release No. 15431 / August 5, 1997

     SECURITIES AND EXCHANGE COMMISSION V. SOUTHWEST INCOME TRUST, ET AL., Civil
     Action No. 97-0953 PHX RCB

     The Securities and Exchange Commission ("Commission") announced that on
     July 23, 1997, the Honorable Robert C. Broomfield, United States District
     Judge, issued a Judgment against an Arizona businessman, Charles Douglas
     Brown ("Brown"), 58, for his role in a $10.7 million scheme involving the
     fraudulent sale of investments in a Treasury securities trading program.

     The Commission alleges in its Complaint that the defendants, including
     Brown, raised the $10.7 million from approximately 149 investors in Arizona
     and California through the sale of interests in investment trusts
     ("Trusts") and other programs.  The defendants represented to investors
     that:  investor funds would only be used to purchase and trade Treasury
     securities; investors would receive 1% per month in profits from trading
     Treasury securities; if the 1% monthly return from trading profits were not
     achieved, investors' funds would be returned; and only after payment of the
     1% monthly return, would the trustees of the Trusts, sales agents, and
     others be paid from excess trading profits.

     The Complaint further alleges that contrary to these representations, the
     defendants operated a Ponzi-like scheme that paid investors their 1%
     monthly return from other investors' funds, failed to return investors'
     funds after suffering large trading losses, misappropriated investor funds
     for their personal benefit, and transferred over $3 million of investor
     funds to Bahamian bank accounts.

     The Judgment permanently enjoins Brown from future fraud and registration
     violations of the federal securities laws.  Specifically, the Judgment
     enjoins Brown from future violations of Sections 5(a), 5(c) and 17(a) of
     the Securities Act of 1933 ("Securities Act"), Section 10(b) of the
     Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder. 
     The Judgment additionally orders that Brown shall pay disgorgement,
     prejudgment interest and, if appropriate, civil penalties in amounts
     subsequently to be determined by the Court.  Brown consented to the entry
     of the Judgment without admitting or denying the Commission's allegations.

     On May 5, 1997, the Commission obtained a temporary restraining order
     against defendants Steven Robert Shoop ("Shoop") and Anthony Ghirardello
     Marriott to freeze their assets to protect investor funds.

     The other defendants to the Commission's action are:  Southwest Income
     Trust; Advantage Income Trust; and Investors Trading Trust; Palo Verde 136,
     Inc.; Advantage Marketing Group, Inc.; FLC Corporation; and Donn K.
     Phillips.  All of these other defendants are located in Arizona.



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     The Complaint alleges that all defendants violated Section 17(a) of the
     Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5
     thereunder.  The Complaint further alleges that the Trusts, Shoop, and
     Brown sold unregistered securities in violation of Sections 5(a) and 5(c)
     of the Securities Act, and that the Trusts operated an unregistered
     investment company in violation of Section 7(a) of the Investment Company
     Act of 1940.

     The Commission acknowledges the cooperation and assistance provided in this
     matter by the Securities Division of the Arizona Corporations Commission.











































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