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             U.S. SECURITIES AND EXCHANGE COMMISSION


Litigation Release No. 15359 / May 5, 1997

SECURITIES AND EXCHANGE COMMISSION v. MUSTANG DEVELOPMENT
CORPORATION, a California corporation; TOWER OPERATING COMPANY, a
California corporation; NEAL B. STEIN; CARY S. GREENE; and SAMUEL
EMBRAS, JR., Civil Action No. 97-0440 JGD (CTx)     

     The Securities and Exchange Commission announced that on
April 17, 1997, a judgment of permanent injunction and other
relief was entered against defendant Cary S. Greene, one of the
principals in an oil and gas Ponzi scheme.  In addition, on April
23, judgments of permanent injunction and other relief were
entered against defendants Mustang Development Corporation and
Tower Operating Company, the Beverly Hills-based general partner
and operating company which operated the Ponzi scheme.  The
judgments permanently enjoin Greene, Mustang, and Tower from
future violations of the antifraud provisions of the federal
securities laws under Section 17(a) of the Securities Act of 1933
("Securities Act") and Section 10(b) of the Securities Exchange
Act of 1934 and Rule 10b-5 thereunder.  Greene and Mustang are
further enjoined from future violations of the registration
provisions of the federal securities laws under Sections 5(a) and
5(c) of the Securities Act.  The Commission's suit is pending
against Greene, Mustang, and Tower for disgorgement, prejudgment
interest, and civil penalties.  Greene, Mustang, and Tower
consented to the entry of the judgments without admitting or
denying the Commission's allegations.  In addition, Greene has
agreed to be barred from the securities industry.

     In its complaint, filed on January 23, 1997 in federal
district court in Los Angeles, the Commission alleged that
Mustang and Tower, their principals, Greene and Neal B. Stein,
and Dallas, Texas geologist Samuel Embras, Jr., defrauded
thousands of elderly investors nationwide through the operation
of a massive Ponzi scheme in which millions of dollars from new
investors were funnelled back to old investors in the form of
fictitious returns.  Stein and Greene also freely used investor
funds to support their lavish lifestyles, including payments for
expensive cars, homes, jewelry, and other luxury items.

     From December 1987 through March 1995, Mustang, Tower,
Stein, and Greene raised approximately $139 million through the
offer and sale of units in some 60 oil and gas limited
partnerships.  For each of the partnerships, the defendants told
investors that most of their money would be used to purchase
interests in oil and gas wells and that investors would receive
returns based on oil and gas revenue.  In contrast to these
representations, the defendants conducted an investment scheme
that commingled investor funds and assets from the various
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partnerships, and, in some partnerships, used virtually none of
the investor funds to purchase oil and gas properties.  Instead, 


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Mustang, Tower, Stein, and Greene used millions of dollars from
investors to finance the Ponzi scheme, Stein's and Greene's
extravagant lifestyles, and other, unrelated business ventures
owned by Stein and Greene.  

     To further deceive investors, Embras, Tower's geologist,
created false production reports for the alleged oil and gas
wells owned by the partnerships.  These reports showed bogus oil
and gas revenue to support the fictitious returns made to
investors.

     On January 31, 1997, judgments of permanent injunction
against future violations of the federal securities laws were
entered against Stein and Embras.  Stein and Embras consented to
the entry of the judgments without admitting or denying the
allegations in the complaint.  The Commission's suit is pending
against Stein for disgorgement, prejudgment interest, and civil
penalties.