U.S. SECURITIES AND EXCHANGE COMMISSION

     Litigation Release No. 15472 / September 4, 1997

     SECURITIES AND EXCHANGE COMMISSION v. ROB NITE; PHILIP L. THOMAS; and DAVID
     V. SIMS, Civil Action No. 97-6546 DDP(RZx) (C.D. Cal) 

          On September 3, 1997, the Securities and Exchange Commission sued
     three Southern California businessmen alleging that they conducted a multi-
     million dollar fraudulent investment scheme involving the fictional trading
     of securities purportedly issued by major international banks.  According
     to the Commission's complaint filed in federal district court in Los
     Angeles, from July 1994 through October 1994, the defendants, Rob Nite, age
     46, Philip L. Thomas, age 43, and David V. Sims, age 47, offered and sold
     to the public interests in a bogus program to trade these purported
     securities, amassing approximately $3.7 million.  For their investment, the
     victims were promised astronomical returns on relatively small investments. 
     Specifically, the complaint alleges that the defendants guaranteed the
     victims that for an initial investment of either $50,000 or $150,000, they
     would receive returns of $1 million per week for 40 weeks, or $40 million. 
     Contrary to their promises, the defendants did not invest the victims'
     funds, but instead misappropriated most, if not all, of the funds for their
     own personal benefit, including donations to religious organizations,
     purchases of luxury automobiles and gifts to family members.

          The scheme allegedly perpetrated by the defendants is commonly
     referred to as a "prime bank" scheme, and has been the subject of official
     warnings issued to investors by several federal agencies including the
     Securities and Exchange Commission and the Board of Governors of the
     Federal Reserve System.

          Defendant Nite is currently incarcerated in federal prison in Arizona
     serving a 44 month sentence for mail fraud, wire fraud and conspiracy,
     conduct unrelated to this lawsuit.  Sims, who currently resides in Beverly
     Hills, has previously been sued administratively by the Commission for
     causing a public company to file false financial statements with the
     Commission. In the Matter of David Sims and Lewis Kurtz, Exchange Act Rel.
     34-37031 (March 27, 1996).  Thomas also resides in Beverly Hills.

          As part of its lawsuit, the Commission seeks permanent injunctions
     against the defendants prohibiting future violations of Section 17(a) of
     the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act
     of 1934 and Rule 10b-5 promulgated thereunder, disgorgement of all ill-
     gotten gains, plus prejudgment interest and civil penalties.
        








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