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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 14896 / May 1, 1996

SECURITIES AND EXCHANGE COMMISSION v. THADDEUS E. WATLEY, a/k/a
TED WATLEY, ET AL. (United States District Court for the Eastern
District of Pennsylvania, Civil Action No. 96-CV-3411)

     On May 1, 1996, the Securities and Exchange Commission
("Commission") filed an emergency action in U.S. District Court
for the Eastern District of Pennsylvania seeking a temporary
restraining order ("TRO"), preliminary and permanent injunctions,
and other expedited relief against Thaddeus E. Watley, a/k/a Ted
Watley ("Watley"), a local radio personality, and two entities he
controls: Power 2000 and Ted's Neutral Corner, Inc. ("Ted's
Neutral Corner").  The action also seeks a freeze of assets
against all three defendants.

     The Commission's complaint alleges that, from at least
November 1995 through the present, Watley, a convicted felon, has
engaged in a $2.8 million fraudulent offering of securities in
Power 2000, an entity that claims to promote the economic
empowerment of the African-American community in Philadelphia,
Pennsylvania.  Watley specifically targeted African-American
investors in communities in Philadelphia and the surrounding
area.  He solicited them through a local radio talk show known as
"Ted's Neutral Corner," as well as through other means. 
According to the Commission's complaint, the defendants lured
investors into Power 2000 by falsely claiming that over 80
percent of the funds would be held in interest bearing accounts
for a period of one year, after which time they would be
invested, for a profit to investors, at the discretion of an
appointed Power 2000 board of directors.  Each investor was
required to pay $1,440 in the form of twelve monthly installment
payments.  According to the complaint, to date, at least $61,141
has been raised from 162 investors, and nearly all of the money
has been misappropriated.  Contrary to the representations made
to investors, Watley used the Power 2000 investor funds to pay
personal expenses and purported business expenses of Power 2000
and Ted's Neutral Corner.

     The Commission also alleges that, in furtherance of the
scheme, Watley, Power 2000 and Ted's Neutral Corner made
materially false and misleading statements to investors
concerning, among other things, the degree of risk inherent in
the investment.  They touted the Power 2000 investment as
profitable, yet failed to disclose any financial information
about Power 2000 or Ted's Neutral Corner, including the fact that
Ted's Neutral Corner owed substantial obligations, and derived
nearly all of its income from the Power 2000 investor funds.  In
addition, although he portrayed himself as a successful
businessman, Watley had a record of criminal convictions for
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fraud-related offenses, a fact that was never disclosed to
investors.  The defendants also failed to disclose that Power

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2000 did not have a license to conduct business in Pennsylvania.

     In the action, the Commission charges Watley, Power 2000 and
Ted's Neutral Corner with violations of Section 17(a) of the
Securities Act of 1933 and Section 10(b) of the Securities
Exchange Act of 1934, and Rule 10b-5 thereunder.  The complaint
seeks to obtain ancillary relief from the them in the form of
disgorgement, prejudgment interest and civil penalties, and seeks
an accounting.

     Ted's Neutral Corner, which is incorporated in New Jersey,
sponsors the radio talk show of the same name, which was
broadcast on New World Radio, WNWR-AM.  The program was cancelled
in March 1996.  Power 2000 is an unincorporated association with
its principal place of business in Philadelphia, Pennsylvania.