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                SECURITIES AND EXCHANGE COMMISSION


LITIGATION RELEASE NO. 14828 / February 28, 1996

SECURITIES AND EXCHANGE COMMISSION v. GENE BLOCK, INDIVIDUALLY
AND D/B/A BLOCK CONSULTING SERVICES, RENATE HAAG, INDIVIDUALLY
AND D/B/A HAAG + PARTNER, AND ROBERT T. RILEY, JR., INDIVIDUALLY
AND D/B/A THE ROBERTS GROUP (United States District Court for the
District of Massachusetts, Civil Action No. 95-11748RCL).

     The Commission announced that on February 26, 1996, the
Honorable Reginald C. Lindsay of the U.S. District Court for the
District of Massachusetts entered a civil contempt order against
Renate Haag ("Haag") of Langen, Germany and Malibu, California,
doing business as Haag + Partner.  The Court found Haag in
contempt for failing to comply with the temporary restraining
order entered against her on October 26, 1995.  Specifically,
Haag failed a) to file a sworn accounting with the Court and the
Commission identifying investors in her investment scheme and the
monies received from the investors, and b) to repatriate investor
funds.  If Haag fails to comply with the order by March 12, 1996,
she was ordered to pay $5,000 per day until she fully complies
with the order. 

     The relief was entered in connection with an enforcement
action alleging that Haag was engaging in an ongoing, fraudulent
securities offering of so-called "prime bank instruments" in
violation of the antifraud and registration provisions of the
federal securities laws.  Specifically, the Commission alleges
that since at least October 1994, Haag has been the central
figure in a fraudulent scheme that has induced members of the
public to invest over $1 million in her programs by promising, in
some cases, returns as high as 200%-420% annually.  In addition
to Haag, Gene Block of Durham, North Carolina ("Block"), doing
business as Block Consulting Services, and Robert T. Riley, Jr.
of St. Louis, Missouri ("Riley"), doing business as The Roberts
Group, were offering and selling the unregistered and fraudulent
Haag + Partner programs through various methods, including
advertisements on the Internet.  Previously, on August 8, 1995,
the Court entered a temporary restraining order and asset freeze
on the Commission's ex parte motion against Block.  On September
14, 1995, Block consented to the entry of a preliminary
injunction.  On January 30, 1996, the Court entered a preliminary
injunction against Haag.

     The Commission further alleges that as an inducement to
potential investors, the Defendants have represented that
investors' funds would be invested in risk-free, high-yield
investment programs.  The Defendants have falsely represented





that the initial investment is guaranteed against loss because a
"Prime Bank Guarantee" will be used as security for the
transaction.  In fact, there are no legitimate financial
instruments known as "Prime Bank Guarantees."  The Defendants
have also fraudulently represented that investors' funds are
doubled by buying and selling "Bank Instruments."  However, the
Defendants have failed to disclose the nature of the "Bank
Instruments," how the trading will generate such unrealistic
returns, or the risk that the returns will not be achieved.  None
of the Defendants or their businesses are registered with the
Commission as a broker-dealer, nor are they associated with any
broker-dealer registered with the Commission.

     The Commission alleges that the Defendants have violated the
antifraud and registration provisions of the federal securities
laws.  The Commission seeks the following relief:  (i) a
permanent injunction prohibiting the Defendants from further
violations of the antifraud and broker-dealer registration
provisions of the federal securities laws; (ii) disgorgement of
the Defendants' ill-gotten gains plus prejudgment interest
thereon; and (iii) civil monetary penalties in an amount to be
determined by the Court.  

     For further information, see Litigation Release Nos. 14598,
14711 and 14804.




























                   
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