SECURITIES AND EXCHANGE COMMISSION

      

     LITIGATION RELEASE NO. 15798 / July 1, 1998


     SECURITIES AND EXCHANGE COMMISSION V. ALFRED J. ALMEDER AND HAROLD J. LEE
     (United States District Court for the District of Massachusetts, C.A. No.
     97-12143-GAO (D. MA))


          The Securities and Exchange Commission announced that on June 3, 1998,
     the Honorable George A. O Toole, U.S. District Judge for the District of
     Massachusetts, issued a Judgment Against Defendant Alfred J. Almeder
     ( Almeder ).  The judgment, entered by default, permanently enjoins Almeder
     from further violations of the antifraud provisions of the federal
     securities laws, orders him to disgorge $259,000 plus prejudgment interest
     of $151,113, and orders him to pay a civil monetary penalty of $75,000. 
     The complaint alleged that, between January 1992 and May 1993, Almeder, a
     resident of Braintree, Massachusetts, and Harold J. Lee ( Lee ), a resident 
     of Lynn, Massachusetts, fraudulently offered and sold stock of DreamWorld, Inc. 
     ("DreamWorld") to at least 28 investors who invested more than $250,000.  
     According to the defendants, the proceeds of the sales of the securities would 
     be used for the development of a vast theme park and entertainment complex on 
     the banks of the Cape Cod Canal in Bourne, Massachusetts, when, in fact, the 
     money was used for personal and living expenses, including Almeder's lease of a
     Jaguar automobile.

          The complaint alleged that the defendants committed securities fraud
     by falsely telling investors that: (1) they had obtained a commitment of
     $300 million in financing; (2) they had secured or were about to secure
     sponsorship of the theme park by major corporate investors; (3) they owned
     sufficient land on which to build the theme park; (4) DreamWorld was a
     secure investment due to the value of land it already owned; (5) DreamWorld
     stock was currently worth $1.00 to $1.50 per share, based upon the current
     value of its assets, and would be worth $15 per share within a couple of
     years; and (6) they had obtained all necessary permits for a large portion
     of the park.

          The judgment enjoins Almeder from violating Section 17(a) of the
     Securities Act of 1933, Section 10(b) of the Securities Exchange Act of
     1934 and Rule 10b-5 thereunder.  Lee previously consented to the entry of a
     Final Judgment enjoining him from future violations of the antifraud
     provisions of the federal securities laws and waiving disgorgement of
     $73,191 based upon a demonstrated inability to pay. 




                              ======END OF PAGE 1======