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U.S. SECURITIES AND EXCHANGE COMMISSI0N

Litigation Release No.  14669 / October 2, 1995

SECURITIES AND EXCHANGE COMMISSION v. MICHAEL CARNICLE, MICHAEL
HANSEN, WILLIAM STRAUGHAN, RANDY GLAD, LIONEL REIFLER, HOWARD RAY
and ARIE FROM, Civil Action No. :95-CV-0110C TC (D. Utah).

     The Securities and Exchange Commission ("Commission")
announced the filing of a Complaint on September 29, 1995 in the
United States District Court for the District of Utah against
Michael Carnicle ("Carnicle"), Michael Hansen, William Straughan,
Randy Glad, Lionel Reifler, Howard Ray and Arie From
(collectively, the "Defendants").
  
     The Complaint alleges that, from January 1992 through mid-
March 1992, the Defendants attempted to use shares of two new
registered investment companies known as Public Funding
Portfolios, Inc. and American Vision Funds, Inc. (the "Funds") as
collateral for millions of dollars of margin loans from
securities brokerage firms nationwide with knowledge that the
publicly quoted net asset values for the shares in the Wall
Street Journal and other newspapers had been grossly inflated. 
The Commission's Complaint seeks permanent injunctions against
the Defendants based on, among other things, violations of the
antifraud provisions of the federal securities laws.  The
Complaint also seeks civil penalties against the Defendants along
with disgorgement and prejudgment interest against Carnicle.

       The Commission's Complaint alleges that the Defendants
became shareholders of the Funds by selling grossly overvalued
assets to the Funds.  These unmarketable assets, with a total
purported value of $165 million, consisted of stock and
promissory notes issued by shell corporations and nonexistent
shares of a Liechtenstein trust.  The Complaint further alleges
that after infusing these essentially worthless assets into the
Funds, the Defendants, while seeking margin credit,
misrepresented material facts to brokerage firms concerning,
among other things, the net asset values for the Funds' shares
and the liquidity of the Funds' assets.

     The Funds were based in Los Angeles, California prior to
their dissolution by court order on March 31, 1992 in an action
brought by the Commission.  Securities and Exchange Commission v.
Public Funding Group, Inc., V. Thayne Whipple II, American Vision
Funds, Inc. and Public Funding Portfolios, Inc., Civil Action No.
92-1646 WDK (EEx) (C.D. Cal.).

     The Commission gratefully acknowledges the cooperation and
assistance provided in this matter by the Italian Commissione
Nazionale per le Societe La Borsa, the German Ministry of Finance
and the H.M. Treasury of the United Kingdom.