UNITED STATES SECURITIES AND EXCHANGE COMMISSION

           LITIGATION RELEASE NO.  16119 / April 22, 1999

           SECURITIES AND EXCHANGE COMMISSION v. EDWARD ARNOLD PATTERSON
           Civil Action No.  4:99CV0325-P , USDC, ND/TX, (Ft. Worth Division)

                On April 22, 1999, the Commission filed a civil injunctive action
           against Edward Arnold Patterson ("Patterson"), an associated person of
           Financial Management Services ("FMS"), the business name of an
           investment adviser formerly registered with the Commission.  The
           complaint alleges that between 1993 and 1996, Patterson, a resident of
           Fort Worth, Texas, misappropriated a total of $155,000 from two FMS
           clients.  In addition, from 1994 through 1997, the complaint alleges
           that Patterson provided approximately 33 FMS clients with account
           statements that materially overstated the collective value of their
           accounts by approximately $807,000.  With respect to at least five of
           these accounts, it is alleged that Patterson provided clients with
           altered or fictitious mutual fund statements that purportedly confirmed
           the figures contained in the inflated FMS account statements.

                As a result of Patterson’s conduct, the Commission alleges that
           Patterson violated the antifraud provisions contained in 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.  Further, the complaint
           charges Patterson with aiding and abetting violations of the antifraud
           and books and records provisions contained in  Sections 206(l), 206(2)
           and 204 of the Investment Advisers Act of 1940  and Rules 204-2(a) (3),
           (7) and (9), thereunder.  The Commission seeks an order permanently
           enjoining Patterson from further violations of these provisions, an
           order requiring disgorgement of all wrongfully obtained profits, with
           prejudgment interest, and a civil penalty.

                Also on April 22,  Wren Harold Hart ("Hart"), the founder and
           principal of FMS, consented to the entry of an administrative
           proceeding order finding that he failed reasonably to supervise
           Patterson, with a view toward preventing Patterson’s violations of the
           above provisions of the federal securities laws.  The order suspends
           Hart from association with any investment adviser, in any capacity for
           a period of 3 months, and thereafter, in any supervisory or proprietary
           capacity for a period of 9 months.  The order further orders Hart to
           pay a civil money penalty of $10,000.

                The Commission gratefully acknowledges the valuable assistance of
           the Texas State Securities Board in the investigation of this matter.
           INJUNCTIVE ACTION FILED AGAINST EDWARD ARNOLD PATTERSON

                On April 22, the Commission filed a civil injunctive action
                against Edward Arnold Patterson, an associated person of an
                investment adviser formerly registered with the Commission.  The
                complaint alleges that between 1993 and 1996, Patterson, a
                resident of Fort Worth, Texas, misappropriated a total of $155,000
                from two adviser clients.  In addition, from 1994 through 1997,
                the complaint alleges that Patterson provided approximately 33
                adviser clients with account statements that materially overstated
                the collective value of their accounts by approximately $807,000.
                With respect to at least five of these accounts, it is alleged
                that Patterson provided clients with altered or fictitious mutual
                fund statements that purportedly confirmed the figures contained
                in the inflated adviser account statements.  The Commission seeks
                an order permanently enjoining Patterson, an order requiring
                disgorgement of all wrongfully obtained profits, with prejudgment
                interest, and a civil penalty. [SEC v. EDWARD ARNOLD PATTERSON,
                4:99CV0325-P, USDC, ND/TX, (Ft. Worth Division)] (LR-
                )


           Stephen Webster
           Fort Worth District Office
           817/978-6459