SECURITIES AND EXCHANGE COMMISSION

          Litigation Release No.  15693 / April 3, 1998

          E.C.  v.  San  Marino  Securities, Inc., et al., Civil Action No.
          2:94CV 529J, (USDC UT)

          On  January  13,  1998, the  Honorable  J.  Thomas  Greene,  U.S.
          District  Judge  for  the  District  of  Utah,  issued  permanent
          injunctions by default  against  Mark  Eames,  Robert  Eames, and
          Garth Potts.  The defendants were enjoined from violating Section
          15(b) of the Exchange Act and Rule 15b1-3 promulgated thereunder,
          Section  17(a), Section 15(c) and Section 10(b) of the Securities
          Act  and  Rule  10b-5  thereunder.   The  Commission's  complaint
          alleged that  Mark  Eames, Garth Potts, and Robert Eames violated
          the antifraud provisions of the federal securities laws by making
          misrepresentations to two investors resulting in the loss of more
          than $700,000 to those  investors.  The false statements included
          the dissemination of a false  financial  statement which was used
          to  guarantee  a  return  on an investment.  The  complaint  also
          alleged that Mark Eames misappropriated  investor funds that were
          to  be used to establish a Hong Kong broker-dealer,  and  instead
          used the funds for his personal benefit.

          The complaint,  filed  May 24, 1994, alleged extensive violations
          of the Commission's registration,  recordkeeping, and net capital
          rules by San Marino Securities, Inc.  (San  Marino),  Mark Eames,
          Robert Eames, and Garth Potts.  The complaint contended that Mark
          Eames  and  Garth Potts were "control persons" of San Marino  and
          caused San Marino  to  violate  the  Exchange Act rules governing
          recordkeeping and net capital.  San Marino itself was permanently
          enjoined by consent on November 17, 1994.