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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 14688 / October 12, 1995                 

SEC v. Personal Wealth Systems, Inc. and Gary M. Haiser, Case No.
95-473-Civ-J-20 (M.D. Fla.), Judge Harvey E. Schlesinger.

The Securities and Exchange Commission ("Commission") announced
that on May 30, 1995, a complaint was filed by the Commission in
the United States District Court for the Middle District of
Florida seeking permanent injunctive relief, civil penalties, an
accounting and disgorgement against Personal Wealth Systems, Inc.
("PWS"), a privately held Florida corporation based in
Jacksonville, Florida, and Gary M. Haiser ("Haiser"), its
president, also of Jacksonville, Florida.

The complaint alleges that from at least June 1986 through at
least June 1994, PWS and Haiser operated a multilevel marketing
pyramid scheme by offering and selling PWS memberships to the
public.  The complaint alleges that the PWS memberships
constituted investment contracts, and thus securities, which were
offered and sold to the public in an unregistered distribution
for which no exemption from registration was available.  In
connection with the offer and sale of the memberships, the
complaint alleges that PWS and Haiser made fraudulent
misrepresentations and omissions of material facts concerning the
potential return associated with the PWS memberships, the risk of
market saturation, and the prior financial performance of PWS.  

The complaint alleges that the scheme generated total gross
revenues of approximately $7.7 million, of which approximately $6
million, or 78%, was generated by fees from membership sales. 
Although the total number of persons purchasing PWS memberships
is not known, PWS had 1,840 members as of April 1993.

The complaint seeks to enjoin PWS and Haiser from violating
Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933
("Securities Act"), 15 U.S.C. Sections 77e(a), 77e(c) and 77q(a),
and Section 10(b) of the Securities Exchange Act of 1934
("Exchange Act"), 15 U.S.C. Section 78j(b), and Rule 10b-5, 17
C.F.R. Section 240.10b-5, promulgated thereunder.  In addition,
the complaint seeks civil penalties pursuant to Section 20(d) of
the Securities Act, 15 U.S.C. Section 77t(d), and Section 21(d)
of the Exchange Act, 15 U.S.C. Section 78u(d), against PWS and
Haiser, an accounting and disgorgement of all ill-gotten gains.