SECURITIES AND EXCHANGE COMMISSION
     Washington, D.C.

     Litigation Release No.  15787 / June 19, 1998

     SEC v. Albert E. Carter, Kelly Polatis and Eunice Polatis, Civil Action 
     No. 2:98CV 0440B, (USDC D.Ut.)(June 18, 1998)

     On June 18, 1998, a civil complaint was filed against Albert E. Carter,
     Kelly Polatis and Eunice Polatis alleging the defendants have, since at
     least March 1997, been perpetrating a securities fraud by selling over $3.5
     million of nineteenth century state and railroad bonds, which have only
     nominal value as collectibles, to investors as investment vehicles capable
     of generating extraordinary returns to those investors.  The bonds being
     sold by the defendants were issued by the Chicago, Saginaw & Canada Railway
     Co. in 1873, the East Alabama & Cincinnati Railway Co.in 1870 and by the
     State of Mississippi in 1838.  The defendants have represented among other
     things that the bonds are redeemable in gold and are guaranteed by the
     United States government; Carter has also represented that the East Alabama
     bonds are guaranteed by the State of Alabama.  It is also alleged that
     Carter has sold interests in an offshore investment program into which he
     claims the nineteenth century bonds can be placed, generating annual
     returns of 100% to 500%.

     The complaint alleges that the defendants violated 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.  As part of the complaint, the Commission
     seeks, among other relief:  a preliminary injunction; a freeze of the
     defendants  assets; a freeze of the assets of Valice Ltd. LLC, Duro L.C.
     and Iron Horse One, Inc., three relief defendants who received proceeds of
     sales by the Polatises; disgorgement of all illegally obtained profits with
     prejudgment interest thereon and the imposition of civil money penalties.

     Also on June 18, 1998, the Honorable Dee V. Benson, United States District
     Judge, issued an order freezing the assets of Carter, Kelly Polatis, Eunice
     Polatis and the three relief defendants.

















                              ======END OF PAGE 1======