UNITED STATES SECURITIES AND EXCHANGE COMMISSION

     Litigation Release No. 15463 / August 28, 1997

     SEC v. Michael J. Randy, et al., N.D. IL, No. 94-C-5902, filed September
     27, 1994. 

     The Commission announced that on August 5, 1997, it filed a civil contempt
     action against David Johnston (Johnston), a defendant in a $15 million
     dollar Ponzi Scheme involving fraudulent Certificates of Deposit
     purportedly issued by Canadian Trade Bank.  In the underlying Complaint,
     the Commission charged Johnston and others with violations of Sections
     5(a), 5(c), 17(a) of the Securities Act of 1933 and Sections 10(b) and
     15(a)(1) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. 


     The Commission moved the Court for an order of civil contempt and other
     sanctions for Johnston's failure to comply with Court orders dated April
     23, 1997 and June 19, 1997 requiring him to answer Interrogatories
     propounded upon him by the Commission.  The Commission moved for contempt
     as well as a judgment of default.  The Commission also moved for costs,
     attorneys fees and other discovery sanctions set forth in Rule 37(b) of the
     Federal Rules of Civil Procedure.  

     The Honorable Wayne Andersen heard the contempt motion on August 14. 
     Johnston's counsel appeared via telephone and requested another opportunity
     to answer the Interrogatories.  After consideration, the Court granted
     counsel's request and ordered Johnston to answer and/or respond to the
     Commission's Interrogatories.  The Court left open the available relief if
     the Interrogatories were not answered.























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