UNITED STATES SECURITIES AND EXCHANGE COMMISSION

           Litigation Release No. 16148 / May 17, 1999

           SECURITIES AND EXCHANGE COMMISSION v. KLEIN MAUS & SHIRE INC.,
           THE UNITED STATES FINANCIAL GROUP INC., MOHAMMAD ALI KHAN AND
           ASIM SAIN KOHLI, 99 Civ. 3424  (S.D.N.Y.) (RWS)

             NEW YORK --  The Securities and Exchange Commission today
           filed an action in federal court in Manhattan charging a
           registered broker-dealer based in New York City, its parent
           company and two individuals, including the sole common
           stockholder of both companies, with securities fraud and other
           violations.  The Commission further alleges that at least 55
           investors were defrauded of more than $2.7 million.

             Named in the complaint are:

             Klein Maus & Shire, Inc. ("KMS"), a broker-dealer registered
           with the Commission and a member of the National Association of
           Securities Dealers.  KMS maintained its offices in New York, New
           York.

             The United States Financial Group, Inc. ("USFG"), a Delaware
           corporation and the parent company of KMS and two other
           subsidiaries: U.S. Military Resale Group, Inc. and KMS Asset
           Management Group. Inc.

             Mohammad Ali Khan ("Khan"), age 33, a resident of Franklin Park,
           New Jersey and KMS' chief executive officer and sole owner of KMS
           stock.  Khan is also the chairman and president of USFG and the
           sole owner of USFG common stock.

             Asim Sain Kohli ("Kohli), age 33 and a resident of Monmouth
           Junction, New Jersey.  Kohli is KMS' operations manager and the
           executive vice-president and chief operating officer of USFG.

             According to the Commission's Complaint:

             Khan, who controls KMS and USFG, and Kohli, Khan's brother-in-
           law, engaged in two fraudulent offerings of unregistered
           securities.  First, between April 1996 and June 1997, KMS, Khan
           and Kohli fraudulently obtained at least $2.7 million from at
           least 55 purchasers of KMS securities by making false and
           misleading statements about KMS' business operations and by
           overstating its financial condition.  Second, in offering for
           sale securities of USFG, KMS' parent company, from July 1997
           through January 1998, USFG, Khan and Kohli made material
           misrepresentations concerning the financial condition of USFG.
           For example, Khan and Kohli, directly or indirectly, distributed
           financial statements for KMS and USFG that overstated each
           company's assets by more than 20-fold and 200-fold,
           respectively.

             During the course of the offerings of the KMS and USFG
           securities, Khan and Kohli diverted and dissipated for their
           personal benefit sums totaling hundreds of thousands of dollars.
           By March 17, 1999, KMS had exhausted its capital and closed its
           doors.

             Khan and KMS also: (a) unlawfully offered and sold KMS
           securities without filing a registration statement and when no
           exemption was available; (b) unlawfully employed an unregistered
           salesman to sell the KMS securities and took steps to conceal
           that activity; and (c) failed to comply with the penny stock
           disclosure requirements in connection with the sale of the KMS
           securities.

             The Commission alleges that by engaging in the foregoing conduct:
           (a) KMS and Khan violated the antifraud provisions of the federal
           securities laws [Section 17(a) of the Securities Act of 1933
           ("Securities Act") and Section 10(b) and Rule 10b-5 of the
           Securities Exchange Act of 1934 ("Exchange Act")], as well as, the
           securities registration requirements [Section 5 of the Securities
           Act], penny stock disclosure requirements [Section 15(g) and Rules
           15g-2, 15g-3 through 15g-6 and 15g-9 of the Exchange Act] and
           broker registration requirements [Section 15(b)(7) and Rule 15b7-1
           of the Exchange Act] of the federal securities laws;  (b) Kohli
           violated the antifraud provisions of the federal securities laws
           [Section 17(a) of the Securities Act and Section 10(b) and Rule
           10b-5 of the Exchange Act]; and (c) USFG violated certain antifraud
           provisions of the federal securities laws [Sections 17(a)(1) and
           17(a)(3) of the Securities Act].

             The Commission seeks a final judgment: (1) permanently
           enjoining the defendants from future violations of these
           provisions of the federal securities laws; (2) requiring the
           defendants to provide an accounting and to disgorge all ill-
           gotten gains, plus prejudgment interest thereon; (3) imposing
           civil penalties against Khan and Kohli; (4) ordering that
           defendants repatriate all assets transferred abroad that were
           obtained from the illegal activities; and (5) permanently
           barring Khan and Kohli from serving as officers or directors of
           a public company.

             The litigation is pending.