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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 14649 / September 21, 1995 

SECURITIES AND EXCHANGE COMMISSION v. CROSS FINANCIAL SERVICES,
INC., OWEN R. FOX, CARROLL E. SIEMENS, BRUCE FRANKLIN, MICHAEL J.
COLELLO AND DOUGLAS S. CROSS, Civil Action No. 94-4228 RAP(Ex)
(C.D. Cal. June 23, 1994).

     The Securities and Exchange Commission ("Commission")
     announced that on September 7, 1995, the Honorable Richard
     A. Paez, United States District Court Judge for the Central
     District of California ("Court"), entered a Judgment Against
     Defendants Owen R. Fox, Carroll E. Siemens, Bruce Franklin,
     Michael J. Colello and Douglas S. Cross.  The Judgment was
     entered following the Court granting the Commission's
     summary judgment motions.  The Commission's enforcement
     action was initially filed on June 23, 1994.  

     The initial Complaint filed in the action, as well as the
     First Amended Complaint filed subsequently, alleged that
     Defendants Owen R. Fox ("Fox"), Carroll E. Siemens
     ("Siemens"), Bruce Franklin ("Franklin") and Douglas S.
     Cross ("Cross") were involved in a fraudulent scheme that
     raised in excess of $21 million from over 700 investors by
     offering and selling the unregistered securities of
     corporate defendant Cross Financial Services, Inc. ("CFS"). 
     The Commission alleged that these defendants misappropriated
     substantial investor funds and made misrepresentations and
     omissions of material fact, including misrepresenting that
     CFS was engaged in, and would use investor funds for,
     accounts receivable factoring.  In fact, as proven by the
     Commission, CFS never factored any accounts receivable. 
     Moreover, the Commission established that these defendants,
     unknown to CFS' investors, used investor funds to purchase
     uncollectible letters of credit, and that Siemens used
     investor funds to make loans at usurious rates of interest
     to companies in dubious financial condition.

     The Judgment permanently enjoins Defendants Fox, Siemens,
     Franklin and Cross from further violations of the
     registration and antifraud provisions of the federal
     securities laws and orders them to disgorge their ill-
     gotten gains, together with prejudgment interest thereon. 
     The Judgment orders disgorgement of over $7.8 million from
     Fox, over $6.5 million from Siemens and over $2.3 million
     from Franklin, as well as fixing disgorgement of $8.6
     million from Cross, who has filed for Chapter 7 bankruptcy. 
     These defendants are jointly and severally liable for
     various portions of these amounts.  





     The Judgment also directs that the assets of Fox, Siemens,
     Franklin and Cross, previously frozen by the Court, be
     turned over to Richard Shaffer, the Court-appointed Receiver
     for CFS.  In addition, the Judgment directs relief Defendant
     Michael J. Colello ("Colello") to disgorge in excess of $2.6
     million of CFS funds that he received from the other
     defendants.  Colello's motion to dismiss the Commission's

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     First Amended Complaint and his cross-motion for summary
     judgment against the Commission were denied.