SECURITIES AND EXCHANGE COMMISSION

             Litigation Release No. 15857  / August 21, 1998

             Securities and Exchange Commission  v. Hugh F. Rollins,
             Civil Action Number 98-2023 (D.D.C.)

             The Commission announced today that it filed a civil
             injunctive action in the U.S. District Court for the
             District of Columbia against Hugh F. Rollins, a resident of
             Bristow, Virginia, alleging that Rollins operated a
             fraudulent "Ponzi" scheme over a six-year period, causing
             losses to investors of more than $8 million.

             The complaint alleges that from 1992 to February 1998
             Rollins sold between $10,000,000 and $20,000,000 in
             unregistered securities to hundreds of investors, many of
             whom resided in the Washington metropolitan area.  The
             complaint states that the securities took the form of
             promissory notes that bore unusually high rates of interest,
             sometimes exceeding 84%.  In fact, according to the
             complaint, the promissory notes were nothing more than props
             in a fraudulent scheme to extract money from investors.  The
             complaint alleges that, as in any Ponzi scheme, Rollins made
             periodic "interest" payments to holders of the promissory
             notes only from the money he received from new or repeat
             investors.

             According to the complaint, Rollins falsely represented that
             he could offer investors the extremely high interest rates
             because his company, Venture Associates, lent money to cash-
             starved government contractors who paid above-market
             interest rates on loans that would enable them to complete
             their contractual work.  The complaint also alleges that
             Rollins falsely represented that the promissory notes were
             fully secured by a huge trust fund called Commercial Funding
             Trust.  In reality, according to the complaint, Commercial
             Funding Trust did not exist and the promissory notes that
             Rollins sold to investors were completely unsecured.

             The complaint alleges that Rollins took millions of dollars
             from investors to support his lavish lifestyle, which was
             embellished with works of fine art, luxury automobiles,
             membership in a country club, and expensive clothing,
             jewelry, and furs.  The complaint also alleges that Rollins
             contributed more than $200,000 of investor money to various
             charities in the Washington metropolitan area.

             The Commission's complaint seeks an order of the federal
             district court permanently enjoining Rollins from violating
             the registration and antifraud provisions of the federal
             securities laws.  Rollins has entered a guilty plea in a
             related criminal prosecution by the Office of the U.S.
             Attorney for the Eastern District of Virginia and is
             awaiting sentencing.  In his plea agreement, Rollins agreed
             to make restitution of $8,324,031.62 to the victims of his
             fraud.

             The Commission wishes to acknowledge the cooperation of the
             U.S. Postal Inspection Service, the Office of the U.S.
             Attorney for the Eastern District of Virginia, and the
             Division of Securities of the Virginia State Corporation
             Commission in this matter.