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                SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.

LITIGATION RELEASE No. 15073 / September 26, 1996      

SECURITIES AND EXCHANGE COMMISSION v. WYE RESOURCES, INC. AND
REHAN MALIK, Civil Action No. 96CV02223 (D.D.C., filed September
26, 1996).

     The Securities and Exchange Commission ("Commission") today
announced the filing of a complaint in the United States District
Court for the District of Columbia against Wye Resources, Inc.
("Wye") and Rehan Malik.  Wye is a Canadian corporation
headquartered in Toronto, Ontario and claims to own interests in
various gold and diamond mining properties.  Rehan Malik
("Malik"), a resident of Labrador City, Newfoundland, served as
Wye's President from June 24, 1993 through March 25, 1994.  The
complaint alleges that during 1993 and early 1994, Wye and Malik
engaged in a fraudulent promotional campaign targeted towards
U.S. investors and improperly distributed Wye stock to those
investors.  

     The Commission's complaint specifically alleges that Wye and
Malik engaged in a scheme to distribute approximately 5.3 million
shares of Wye stock that were not properly issued under Canadian
law nor properly registered with the Commission.  According to
the complaint, Wye directly distributed approximately 2.5 million
of these improperly issued shares to U.S. investors.  As of
February 1, 1994, approximately 4 million shares, or 28.9 percent
of the Wye stock then outstanding, was held by U.S. investors.   

  

     The complaint alleges that Wye and Malik specifically
targeted U.S. investors by placing advertisements in U.S.
publications and placing messages over the Internet through a New
Orleans-based computer bulletin board service ("BBS") called the
"Emerging Growth Stock" BBS.  The complaint alleges that certain
of these advertisements and messages were false and misleading in
that they misrepresented, among other things, the status of Wye's
ongoing exploitation of certain Zairian mining properties.  For
example, starting in March 1993, prior to the time that Malik
became Wye's President, Wye falsely claimed that it had
successfully completed a sampling program during which it
recovered 10 gem-quality diamonds from its Zairian concessions. 
In reality, Wye's contractors had not set foot on the concessions
themselves and purchased the diamonds from Zairian vendors
located elsewhere.    

     The Commission's complaint seeks a permanent injunction
against Wye and Malik for violations of Section 5 of the
Securities Act of 1933 and Section 10(b) of the Securities
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Exchange Act of 1934 and Rule 10b-5 thereunder.  The complaint
also seeks civil penalties against Malik.  

     The Commission also today announced the institution of
administrative proceedings against two U.S. residents, Murray
Aaron Huberfeld and Broad Capital Associates, Inc., in connection
with the unregistered distribution of Wye securities.  Without
admitting or denying the Commission's findings, both Broad
Capital and Huberfeld consented to the issuance of an order
finding that they violated Section 5 of the Securities Act.  In
addition, they agreed to the entry of an order requiring them to
disgorge a total of $426,790.05, representing profits made as a
result of transactions in Wye stock and prejudgment interest
thereon.  See In the Matter of Broad Capital Associates, Inc. and
Murray Aaron Huberfeld, Administrative Proceeding File No. 3-9101
(Securities Act 
Release No. 7338).     

     The Commission wishes to acknowledge the assistance of the
Ontario Securities Commission.