UNITED STATES SECURITIES AND EXCHANGE COMMISSION


           LITIGATION RELEASE NO.  15810  / July 14 , 1998

           U.S. v. JAMES RUSSELL CLEVELAND, H98-CR-196, USDC, SD/TX, Houston

                The Securities and Exchange Commission ("Commission") and the
           United States  Attorney for the Southern District of Texas announced
           that on July 10, 1998, James Russell Cleveland of Brenham, Texas,
           pleaded guilty to one count of securities fraud. Cleveland will be
           sentenced on October 9, 1998.

                The  criminal charge against Cleveland is based on the same
           activities alleged in a civil action filed by the Commission in United
           States District Court, Houston, Texas, on May 22, 1996. The
           Commission's complaint alleges that Cleveland, individually, and doing
           business as Central Texas Securities, took in at least $4.8 million
           from his customers to purchase municipal securities at below market
           prices, but never purchased the bonds for the investors. In fact, the
           complaint alleges, Cleveland used funds received from new investors to
           pay off previous customers, and used falsified confirmations and
           account statements to conceal his misuse and misappropriation of
           customers' funds. The Court entered a preliminary injunction against
           Cleveland on June 17, 1996.

           JAMES R. CLEVELAND PLEADS GUILTY TO SECURITIES FRAUD IN FEDERAL COURT

                The Commission and the United States  Attorney for the Southern
                District of Texas announced that on July 10, James Russell
                Cleveland of Brenham, Texas, pleaded guilty to one count of
                securities fraud. Cleveland will be sentenced on October 9, 1998.

                The  criminal charge against Cleveland is based on the same
                activities alleged in a civil action filed by the Commission in
                United States District Court, Houston, Texas, on May 22, 1996. The
                Commission's complaint alleges that Cleveland, individually, and
                doing business as Central Texas Securities, took in at least $4.8
                million from his customers to purchase municipal securities at
                below market prices, but never purchased the bonds for the
                investors. In fact, the complaint alleges, Cleveland used funds
                received from new investors to pay off previous customers, and
                used falsified confirmations and account statements to conceal his
                misuse and misappropriation of customers' funds. The Court entered
                a preliminary injunction against Cleveland on June 17, 1996. (U.S.
                v. JAMES RUSSELL CLEVELAND, H98-CR-196, USDC, SD/TX, Houston) (LR-
                )



           Phillip W. Offill
           Trial Counsel
           Fort Worth District Office
           817/978-6450