UNITED STATES SECURITIES AND EXCHANGE COMMISSION

     Litigation Release No. 15668 / March 12, 1998

     SECURITIES AND EXCHANGE COMMISSION v. KS RESOURCES, et al., Civil Action
     No. 95-8608 WDK (AJWx)(C.D. Cal.).

          The Securities and Exchange Commission announced that on March 5,
     1998, the Honorable William D. Keller, United States District Judge for the
     Central District of California, entered a judgment requiring Lazar
     Frederick & Company to pay $7,935,990.32 in disgorgement.  The Court also
     ordered Betty Ann Rubin, Lazar's President, to pay $346,410.92 in
     disgorgement.  Previously Rubin and Lazar, without admitting or denying the
     Commission's allegations, had consented to a permanent injunction from
     future sales of fraudulent and unregistered securities. 

          The Commission's complaint, filed December 19, 1995, alleged that
     Lazar, Rubin, and other defendants fraudulently offered securities in the
     form of 29 oil and gas limited partnerships from May 1993 to December 19,
     1995.  The complaint alleged that Rubin, Lazar, and other defendants were
     participants in a Ponzi-like scheme that paid investor returns with other
     investors' money.  The complaint further alleged that Lazar sales agents
     misrepresented that the partnerships had paid investors between 10% to 12%
     annually from partnership oil and gas revenue.  This Ponzi-like scheme
     raised approximately $34,934,000 from investors, many of whom are elderly. 
     The complaint further alleged that Rubin, Lazar, and other defendants
     violated 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.  

     See Litigation Release Nos. LR-14766, 14866, 15331, 15525, 15567, and
     15574.  


























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