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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION


LITIGATION RELEASE NO. 14960 / June 25, 1996

SECURITIES AND EXCHANGE COMMISSION v. JAMES RUSSELL CLEVELAND,
individually and d/b/a CENTRAL TEXAS SECURITIES, Civil Action No.
H-96-1629, USDC, SD/TX [Houston Division]

     The Securities and Exchange Commission ("Commission")
announced that on June 17, 1996, in United States District Court,
Houston, Texas, an Agreed Order of Preliminary Injunction was
entered against James Russell Cleveland, individually and d/b/a
as Central Texas Securities ("CTS"), without the admission by
Cleveland of any of the facts alleged in the Commission's
complaint. 

     The Agreed Order provides that Cleveland and CTS, be
preliminarily enjoined from future violations of Section 17(a) of
the Securities Act of 1933, and Sections 10(b) and 15(a)(1) of
the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.
Further, Cleveland and CTS are preliminarily restrained from
making any disposition of any asset pending further order of the
Court, except for reasonable expenditures for personal living
expenses and business expenses. Cleveland may also liquidate or
close-out  customers' securities positions and pay the proceeds
directly to the customers. Additionally, Cleveland and CTS shall
make an interim accounting, under oath, on or before June 24,
1996, detailing investor monies and other benefits he received as
a result of his sale of securities; all of his current assets;
and all accounts maintained in his name or for his benefit during
the period from March 1, 1995 to the present.

     The Commission's complaint, filed May 22, 1996, alleged that
Cleveland, through CTS, took in at least $4.8 million from CTS
customers to purchase municipal securities at below market
prices, but never purchased the municipal bonds with the
investors' funds. The complaint further alleged that Cleveland,
as part of a "Ponzi" scheme used funds received from new
investors to pay off previous customers. Also, according to the
complaint, Cleveland has been unable to account for customer
funds or assets in his possession.