SECURITIES AND EXCHANGE COMMISSION
                                BOSTON, MASSACHUSETTS


          LITIGATION RELEASE NO. 16012 / December 30, 1998


          SECURITIES AND EXCHANGE COMMISSION V. TODD J. LOSCOLA, CPI
          INVESTMENT MANAGEMENT, INC. AND CPA ADVISORS NETWORK, INC (United
          States District Court for the District of Rhode Island, Civil
          Action 98-610L (December 29, 1998)


               The Securities and Exchange Commission announced that on
          December 29, 1998, Judge Ernest Torres of the federal district
          court in Rhode Island ordered emergency relief against Todd
          LaScola, CPI Investment Management, Inc. ("CPI") an investment
          adviser, and CPA Network Advisors, Inc. ("CPA") a brokerage firm,
          for engaging in a series of unauthorized transactions exposing
          both advisory clients and brokerage customers to large losses and
          for engaging in misappropriation of advisory client funds.
          LaScola, a resident of Warwick, Rhode Island is a principal and a
          co-owner of CPA and is the sole owner of CPI. The Complaint
          alleges that, through CPA and CPI, LaScola has defrauded dozens
          of brokerage customers and advisory clients by diverting more
          than $6 million from their brokerage accounts in order to repay
          another client. Specifically, the Complaint alleges that LaScola
          diverted the funds in order to repay the International
          Brotherhood of Electrical Workers ("IBEW") for his illegal
          purchase in their account of nearly $6 million of highly
          speculative and illiquid promissory notes. Judge Torres
          temporarily restrained LaScola, CPI  and CPA from engaging in
          further fraudulent conduct, froze the assets of LaScola and CPI
          and appointed a Temporary Receiver for CPI.

               The Complaint alleges that when the IBEW learned about the
          investment in the notes in November 1998, it demanded that
          LaScola immediately sell the notes or it would file a lawsuit
          against him. LaScola could not find buyers for these illiquid
          notes in part because some of them were in default.  LaScola
          through CPA and CPI caused brokerage customers and advisory
          clients to purchase approximately $2 million of the notes without
          their knowledge or consent. The Complaint further alleges that in
          order to cover the $4 million balance, LaScola transferred $4
          million of customers’ or clients’ funds to the IBEW and
          misrepresented to those individuals that they had been issued the
          notes, when in fact no notes have been issued in their names. The
          Complaint alleges that in order to facilitate the return of the
          IBEW money, LaScola, using a CPA computer system, converted
          several of his advisory clients’ as well as several brokerage
          customers’ cash accounts into margin accounts without their
          permission and obtained large margin loans. Due to the improper
          margin loans, investors are at risk of losing several million
          dollars.  When questioned concerning the transactions, LaScola
          falsely told the customers and clients that the purchases were
          made in error.

               The Complaint alleges that LaScola also misappropriated
          $200,000 from an advisory client, and diverted another $127,000
          from one client to another to hide the fact that he had
          previously dissipated the account to repay the IBEW.

               The Commission alleges that all of the defendants violated
          Section 17(a) of the Securities Act of 1933, Section 10(b) of the
          Securities Exchange Act of 1934 and Rule 10b-5 thereunder and
          alleges that LaScola and CPI violated Sections 206(1) and (2) of
          the Investment Advisers Act of 1940.  In addition to the relief
          already granted, the Complaint seeks a permanent injunction,
          disgorgement and civil penalties.

               The Commission would like to acknowledge the cooperation and
          assistance of the Rhode Island State Department of Business
          Regulation, Securities Division in the investigation of this
          matter.  On December 24, 1998, in separate actions, the
          Department temporarily suspended the state licenses LaScola, CPI
          and CPA. The investigation into this matter continues.

               Please contact Juan Marcel Marcelino, the District
          Administrator of the Commission's Boston District Office, at
          (617) 424-5934.