U.S. SECURITIES AND EXCHANGE COMMISSION
                                
Litigation Release No. 15121 / October 15, 1996

SECURITIES AND EXCHANGE COMMISSION v. WESTERN EXECUTIVE GROUP,
INC., CASH SYSTEMS USA, INC., CHARLES R. RIETZ, ROBERT R.
PARRISH, ROBERT J. STRUTH and R. STEPHEN EDGEL,
Civil Action No. 96-6938 GHK (JGx) (C.D. Cal.)

     The Securities and Exchange Commission ("Commission")
announced that on October 7, 1996, the Honorable George H. King,
United States District Court Judge for the Central District of
California, signed a Temporary Restraining Order ("Order")
halting a Ponzi scheme involving investment contracts for the
sale and leaseback of automated teller machines ("ATMs").  The
defendants offered the ATM investment program over the Internet
to the public and raised over $3.49 million from at least 132
investors nationwide.  This is the first lawsuit involving ATMs
and the largest lawsuit involving Internet investment fraud
brought by the Commission to date.

     In its Complaint, the Commission alleges that the defendants
have operated a Ponzi scheme from at least September 1995, when
they began offering and selling investments involving the sale
and leaseback of privately owned ATMs (ATMs not affiliated with
banks).  Through simultaneously executed agreements with both WEG
and Cash Systems, investors purchased ATMs from WEG for $23,950
and immediately leased them back to Cash Systems.  Investors were
guaranteed monthly lease payments for five years which payments
would allegedly return all of the investors' principal and a
yield of 17.4% per year.  However, as of July 1996, only 42 ATMs
were operational even though the defendants had sold 195 ATMs,
and only 2 of the 42 ATMs made enough money to cover their
associated monthly lease payments and expenses.  Consequently,
the defendants were using new investor funds to pay existing
investors their monthly lease payments.

     The Commission obtained an order temporarily enjoining the
following entities and individuals from future violations of the
antifraud and registration provisions of the federal securities
laws: Western Executive Group, Inc. ("WEG") headquartered in
Reno, Nevada; Cash Systems USA, Inc. ("Cash Systems")
headquartered in Reno, Nevada; Charles R. Rietz ("Rietz") of
Mesa, Arizona; Robert R. Parrish ("Parrish") of Gilmer, Texas;
Robert J. Struth ("Struth") of Southern California; and R.
Stephen Edgel ("Edgel") of Carmichael, California.  The order
also imposes an asset freeze against WEG and Cash Systems and
appoints a temporary receiver over WEG and Cash Systems.  A
hearing to show cause why a preliminary injunction should not be
granted will be held on October 21, 1996.





     The Complaint also alleges that the defendants solicited
investors nationwide through private investment seminars, mass
mailings, cold calling and over the Internet.  Defendants
provided investors with offering materials which misrepresented
the number of ATMs operating and the amount of money the ATMs
made.  Additionally, the offering materials failed to disclose
that Rietz and Struth had previous orders entered against them
for violating certain securities laws.  The Complaint seeks
preliminary and permanent injunctions, and other relief,
including disgorgement and civil penalties, against the
defendants.

     The Complaint alleges that the defendants violated Sections
5(a) and 5(c) of the Securities Act of 1933, as amended (the
"Securities Act"), the registration provisions, and Section 17(a)
of the Securities Act and Section 10(b) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and Rule
10b-5 thereunder, the antifraud provisions.  The Complaint also
charges Parrish, Struth and Edgel with violations of Section
15(a) of the Exchange Act, the broker-dealer registration
provisions.




             U.S. SECURITIES AND EXCHANGE COMMISSION
                     PACIFIC REGIONAL OFFICE
                     LOS ANGELES, CALIFORNIA

For Immediate Release

NEWS DIGEST

TEMPORARY RESTRAINING ORDER GRANTED IN SEC v. WESTERN EXECUTIVE
GROUP, INC., ET AL.

     On October 7, 1996, the Honorable George H. King, United
States District Court Judge for the Central District of
California, entered a Temporary Restraining Order (Order)
prohibiting the offer and sale of investment contracts for the
sale and leaseback of automated teller machines (ATMs) by Western
Executive Group, Inc. (WEG), Cash Systems USA, Inc. (Cash
Systems), Charles R. Rietz (Rietz), Robert R. Parrish (Parrish),
Robert J. Struth (Struth) and R. Stephen Edgel (Edgel).  The
Order also appoints a temporary receiver over WEG and Cash
Systems and freezes their assets.

     The Complaint alleges that the defendants violated Sections
5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section
10(b) of the Securities Exchange Act of 1934 (Exchange Act), and
Rule 10b-5 thereunder, by engaging in the fraudulent offer and
sale of interests in the ATM investment program.  The defendants
misrepresented the number of ATMs actually operating, the fact
that the ATMs were not generating sufficient funds to pay
investor returns and that the program was a Ponzi scheme.  Rietz
and Struth also failed to disclose their previous disciplinary
history.  The Complaint also charges Parrish, Struth and Edgel
with acting as unregistered broker-dealers in violation of
Section 15(a) of the Exchange Act.

SECURITIES AND EXCHANGE COMMISSION v. WESTERN EXECUTIVE GROUP,
INC., CASH SYSTEMS USA, INC., CHARLES R. RIETZ, ROBERT R.
PARRISH, ROBERT J. STRUTH and R. STEPHEN EDGEL,
Civil Action No. 96-6938 GHK (JGx) (C.D. Cal.)

Lisa A. Gok
Assistant Regional Director
Office of Enforcement
Pacific Regional Office/Los Angeles
(213) 965-3835