UNITED STATES SECURITIES AND EXCHANGE COMMISSION

     Litigation Release No. 15525 / October 1, 1997


     SECURITIES AND EXCHANGE COMMISSION v. KS RESOURCES, et al., Civil Action
     No. 95-8608WDK(AJWx)(C.D. Cal.).

          The Securities and Exchange Commission announced that on September 25,
     1997, the Honorable William D. Keller, United States District Judge for the
     Central District of California, entered an order and final judgment
     granting the Commission's motion for summary judgment against KS Resources
     and Weststar Exploration, Inc.  The Court ordered KS and Weststar to pay a
     total of $7,853,399.54 and permanently enjoined them from committing future
     securities law violations.  The Court ordered KS Resources to pay
     $3,292,980 in disgorgement and $321,941.09 in prejudgment interest and
     ordered Weststar to pay $3,861,004 in disgorgement and $377,474.45 in
     prejudgment interest. 

          The Commission's complaint, filed December 19, 1995, alleged that KS
     and Weststar, and other defendants, operated a Ponzi-like scheme,
     fraudulently offering and selling securities in the form of 29 oil and gas
     limited partnerships from May 1993 to December 19, 1995.  The complaint
     further alleged that the scheme raised approximately $34,934,000 from
     investors, many of whom are elderly.  The Court ruled that KS Resources
     acted as general partner for 27 of the 29 limited partnerships and that
     Weststar acted as the operator for all of the limited partnerships. 

     See Litigation Release Nos. LR-14766, 14866, and 15331. 
























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