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U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 14672 / October 2, 1995

SECURITIES AND EXCHANGE COMMISSION v. CHRISTOPHER M. PEDERSEN,
Civil Action No. 95-6488 WJR(RNBx) (C.D. Cal.)

The Securities and Exchange Commission ("Commission") announced
that on September 28, 1995, it filed a Complaint in the United
States District Court for the Central District of California,
seeking to permanently enjoin Christopher M. Pedersen
("Pedersen") from violations of the securities registration and
antifraud provisions of the federal securities laws.  The
Complaint also seeks an accounting, disgorgement of ill-gotten
gains and imposition of civil penalties against Pedersen.

The Complaint alleges that from 1984 to August 1992, Pedersen,
President of City USA Holding Corporation, City Oil Corporation,
City Oil Management Corporation (collectively "City entities")
and City First Securities Corp. d/b/a City Associates Investment
Corporation ("City Associates"), formerly located in Los Angeles,
California, raised approximately $10 million through the sale of
securities, primarily in the form of oil and gas limited
partnership interests, to several hundred investors in various
states.  The Complaint further alleges that Pedersen, directly
and through City Associates, made material misrepresentations and
omissions in connection with the offer and sale of these
securities.  Pedersen represented that bonds would be purchased
to protect investments in some of the programs; however, bonds
were not purchased for all of these offerings.  In addition,
offering materials for the various investment programs
represented that funds raised would be used for those programs;
instead, some investor funds were diverted to other investment
programs, used for unrelated expenses and withdrawn by Pedersen
as undisclosed salary "advances" and "officer loans."  Finally,
Pedersen represented in offering materials that City had
sufficient assets to maintain all of its operations and
demonstrate continual growth while omitting to disclose that the
City entities were in serious financial decline from at least
July 1991.

The Complaint alleges that Pedersen violated Sections 5(a), 5(c)
and 17(a) of the Securities Act of 1933 ("Securities Act"),
Section 10(b) of the Securities Exchange Act of 1934 ("Exchange
Act") and Rule 10b-5 thereunder.