SECURITIES AND EXCHANGE COMMISSION
                                   Washington, D.C.

             Litigation Release No. 15865 / September 1, 1998

             Securities and Exchange Commission v. Douglas G. McCaskey,
             et al., 98-Civ-6153 (S.D.N.Y.) (September 1, 1998)

                     SEC FILES SUIT IN $5 MILLION MICROCAP FRAUD:
                  THREE REGISTERED REPRESENTATIVES, TWO OFFICERS AND
                DIRECTORS, AND ONE UNDISCLOSED PRINCIPAL NAMED IN 1994
                            MANIPULATION OF MARCORP, INC.

             The Commission announced that it filed a complaint in the
             U.S. District Court for the Southern District of New York
             alleging that Douglas G. McCaskey, Neal E. Fitzpatrick, Hope
             D. Trowbridge, and Robert A. Schatz manipulated the
             securities of Marcorp, Inc. from May through December 1994.
             The complaint further alleges that two former registered
             representatives, John von der Lieth III and Daniel F. Dugan,
             violated the antifraud provisions of the federal securities
             laws in connection with sales of Marcorp stock to their
             customers in 1994.  The Commission's complaint also alleges
             that Marcorp made materially false and misleading statements
             and omissions in its periodic filings with the Commission in
             1993 and 1994.

             At the time of the manipulation, according to the complaint,
             Marcorp held the licensing rights to a low-voltage electron
             beam technology.  At its peak, Marcorp had a market
             capitalization of over $12 million, and its stock was listed
             for trading on the OTC Bulletin Board.

             According to the complaint, Douglas McCaskey, an undisclosed
             principal of Marcorp, artificially increased Marcorp's share
             price and volume by purchasing and selling millions of
             shares of Marcorp stock among 20 accounts at 14 brokerage
             firms in the U.S. and Canada, obtaining proceeds in excess
             of $5.2 million.  The complaint alleges that two of
             Marcorp's officers and directors, Neal Fitzpatrick and Hope
             Trowbridge, caused Marcorp to make false Commission filings,
             concealed McCaskey's control of Marcorp, opened nominee
             trading accounts for McCaskey, and surreptitiously
             transferred Marcorp shares to McCaskey for use in the
             manipulation.  The complaint further alleges that McCaskey,
             Fitzpatrick, and Trowbridge obtained aggregate illegal
             profits in excess of $1 million by selling restricted and
             unregistered shares before and during the manipulation.

             According to the complaint, former registered representative
             Robert Schatz knowingly participated in the manipulation by
             selling McCaskey's shares while McCaskey simultaneously
             purchased the same number of shares through accounts at
             other brokerage firms.

             The complaint also alleges that Daniel Dugan and John von
             der Lieth recommended Marcorp stock to their retail clients
             without adequate basis for making the recommendations.
             Further, the complaint alleges that Dugan accepted $10,000
             in undisclosed compensation for recommending the stock to
             his clients, and that Von der Lieth sold Marcorp stock to
             his clients despite knowing or recklessly disregarding that
             the market for Marcorp stock was being manipulated.

              Without admitting or denying the substantive allegations in
             the complaint, Dugan and Von der Lieth have consented to the
             entry of orders permanently enjoining them from violating
             Section 17(a) of the Securities Act, Section 10(b) of the
             Exchange Act, and Rule 10b-5, ordering Dugan to disgorge
             $10,000 plus prejudgment interest and Von der Lieth to
             disgorge $5,000 plus prejudgment interest, and waiving the
             payment of disgorgement based on their demonstrated
             inability to pay.

             In addition, without admitting or denying the Commission's
             findings, Dugan and Von der Lieth have agreed to settle a
             separate administrative proceeding to be instituted against
             them under Sections 15(b) and 19(h) of the Exchange Act.
             Dugan and Von der Lieth have consented to the issuance of an
             order of the Commission barring them from association with
             any broker, dealer, municipal securities dealer, investment
             advisor, or investment company, with rights to reapply for
             association after five years.

             This enforcement action is part of the Commission's four-
             pronged approach to minimizing microcap fraud: enforcement,
             inspections, regulation, and investor education.  For more
             information about the SEC's response to microcap fraud,
             visit the SEC's Microcap Fraud Information Center at
             www.sec.gov/news/extra/microcap.