UNITED STATES SECURITIES AND EXCHANGE COMMISSION

     LITIGATION RELEASE NO. 15455/August 21, 1997

     SECURITIES AND EXCHANGE COMMISSION v. Richard Warren & Associates, Inc.,
     et. al., Civil Action No. C-97-3050MMC (USDC ND CA/San Francisco Div.)

          The Commission announced today that on August 19, 1997, Judge William
     A. Ingram granted a temporary restraining order against Richard Warren &
     Associates, Inc. (RWA) and Richard E. Warren (Warren), formerly located in
     Fremont, California and now located in London, United Kingdom.  The Order
     also granted a freeze of their assets, appointment of a receiver, an
     accounting and repatriation of assets.  The Commission's complaint alleged
     that between February and October 1996, RWA and Warren raised a total of
     approximately $8 million from at least 48 investors nationwide through two
     fraudulent offerings of securities.  In the first offering, RWA and Warren
     represented that investor proceeds would be used to trade "Prime Bank
     Debenture instruments" and would generate a return of 15 percent within 30
     days or 180 percent annually.  In the second offering, RWA and Warren
     represented that investor proceeds would be deposited in an escrow account
     for trading debentures, would generate a return of approximately 1,600
     percent within 66 days, and would not be released from the escrow account
     unless RWA provided a "Major World Bank Guarantee" for the funds.  The
     statements made to investors were false.  RWA and Warren misrepresented,
     among other things, the existence of prime bank securities, the use of the
     escrow account, rates of return investors were to receive, the use of
     investor proceeds and the risks associated with the investment.  Warren
     used in excess of $2 million for payments to salesman and for personal use
     and used approximately $1.2 million to make false "profit" payments to
     investors.  The remaining funds were diverted to other entities and were
     apparently not used to buy or sell debentures, as represented.

          In the temporary restraining order, Judge Ingram also ordered the
     named relief defendant, Citadel Enterprises, Ltd. (Citadel), to freeze and
     repatriate assets derived from Warren's fraud.  Citadel, an Isle of Man
     entity headquartered in London, United Kingdom, received more than $2
     million of investor proceeds from Warren. The Commission was informed that
     Citadel planned to transfer $700,000 to Warren on or after August 19, 1997. 
     The Commission requested the emergency action to prevent Warren, RWA and
     Citadel from transferring or liquidating any funds.











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