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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No.  14807 / January 31, 1996

SECURITIES AND EXCHANGE COMMISSION v. DONALD MALCOLM JOHNSON,
individually and doing business as "TSA OPTIONS," "FREEDOM
SERVICES OF WISCONSIN" and "FREEDOM SERVICES" and FREEDOM
SERVICES OF WISCONSIN, INC., No. 96-C-0049 C (W.D. Wis.)(filed
January 18, 1996)

     The Securities and Exchange Commission announced the filing
of a complaint on January 18, 1996, in the United States District
Court for the Western District of Wisconsin, seeking a temporary
restraining order, preliminary and permanent injunctions,
disgorgement, civil penalties, an asset freeze and other
equitable relief against Defendants Donald Malcolm Johnson
("Johnson"), of LaCrosse, Wisconsin, and Freedom Services of
Wisconsin, Inc. ("FSW").  The complaint alleges violations of
Section 17(a) of the Securities Act of 1933, Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder. 
 
     On January 19, 1996, the Honorable John C. Shabaz granted
the Commission's request for a temporary restraining order and an
order freezing the assets of the defendants and granting other
equitable relief.  A hearing on the Commission's application for
a Preliminary Injunction has been set for February 7, 1996. 
 
     The complaint alleges that from at least April 1995 to the
present, the defendants misappropriated at least $780,000 from
the retirement plans of approximately 67 investors.  Johnson, who
was the administrator for the retirement plans, misappropriated
funds by redeeming mutual fund shares belonging to the investors
and funneling the proceeds into bank, money market and mutual
fund accounts under his control.  In order to conceal his theft,
Johnson sent bogus quarterly account statements to investors
which included false account balance information.  Johnson
disappeared with the misappropriated funds in November 1995.  In
addition, in connection with the purchase and sale of securities,
Johnson made various material misrepresentations to investors and
omitted material facts concerning the existence of a custodial
relationship between himself and Coulee State Bank of LaCrosse,
Wisconsin, the use of investor funds and the disposition of
assets under his administration.