UNITED STATES SECURITIES AND EXCHANGE COMMISSION

     LITIGATION RELEASE NO. 15766 / June 3, 1998

     SECURITIES AND EXCHANGE COMMISSION v. SCOTT L. KLION, individually and
     d/b/a CEN-TEX ALCHEMY GUILD, and ELIZABETH ALANIZ,   W98CA186, USDC, WD/TX
     (Waco Division)

          The Commission announced today that Judge Walter S. Smith, United
     States District Judge for the Western District of Texas, Waco Division,
     granted the Commission's request for an emergency restraining order to halt
     the fraudulent money raising efforts of Scott L. Klion, individually and
     d/b/a Cen-Tex Alchemy Guild, and Elizabeth Alaniz of  Copperas Cove, Texas. 
     According to the Commission's complaint, Klion and his fiancee, Alaniz,
     raised approximately $2.7 million from at least 1,400 investors in several
     states through the offer and sale of  interests in a fraudulent  Pure
     Contract Trust  investment program. Klion and Alaniz represented to
     investors that their money was pooled and then used to make a variety of
     foreign or offshore investments that Klion and Alaniz claimed were not
     subject to the jurisdiction of any  Agent or Agency  of the U. S.
     Government. The complaint alleges that Klion and Alaniz told investors that
     these  secret  investments would generate gross returns of 400% or more,
     that virtually all of the investments were guaranteed by  Top 100  banks,
     and that the remainder were backed by either unidentified wealthy
     individuals or the governments of foreign countries. The complaint further
     states that the trading programs do not exist and that, in fact, the
     defendants used funds obtained from current investors to pay purported
     profits in the form of monthly dividends to prior investors, in an obvious
      Ponzi  scheme, and for their own personal expenses, including a $30,000
     engagement ring that Klion purchased for Alaniz. 

          The temporary restraining order entered on June 3, 1998, by Judge
     Smith, enjoins Klion and Alaniz from violating the federal securities. and
     includes orders freezing the assets of the defendants, requiring the
     defendants to surrender their passports and repatriate any funds held at
     any bank or financial institution not subject to the jurisdiction of the
     Court, and the appointment of a receiver. 

          In its complaint, the Commission alleges that defendants have violated
     Section 17(a) of the Securities Act of 1933 and Section 10(b) of the
     Securities Exchange Act of 1934, and Rule 10b-5 thereunder. The Commission
     also seeks an order permanently enjoining Klion and Alaniz, an order
     requiring disgorgement of all wrongfully obtained profits, with prejudgment
     interest, and civil penalties.









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