==========================================START OF PAGE 1======

         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 14962 / June 25, 1996

Securities and Exchange Commission v. Independence Asset
Management, et al. (United States District Court for the Eastern
District of Pennsylvania, Civil Action No. 94-CV-1698)

     The Securities and Exchange Commission ("Commission")
announced that on December 11, 1995, United States District Judge
James T. Giles issued an Order of Disgorgement and Civil
Penalties as to Independence Asset Management ("IAM") and Peter
T. Jones ("Jones").  The Order requires IAM to disgorge
$4,775,132 together with prejudgment interest, with this amount
being reduced by the initial distribution of $2,473,763
previously made to investors by the court appointed Trustee.  The
Order also requires Jones to disgorge $300,000.  The Order waives
payment of the balance owed by IAM, and all of Jones'
disgorgement, and refrains from imposing civil penalties, based
upon IAM's and Jones' demonstrated inability to pay.  In
addition, on December 11, 1995, Judge Giles issued an Order of
Disgorgement as to Debra A. Jones and an Order of Disgorgement as
to Sally M. Gaines ("Gaines"), two relief defendants.  The Order
as to Debra A. Jones requires her to disgorge $182,327.72,
together with any proceeds she receives from the sale of certain
property.  The Order as to Gaines acknowledges that she has
released all claims to funds held on deposit in the Office of
Judicial Support, Delaware County, Pennsylvania, in Gaines v.
Independence Asset Management, Inc. et al., No. 94-610 (Del.
Cty.), and orders the Trustee to pay her $93,674.75, together
with interest, less $39,783.67 already paid to her by the Trustee
in the initial distribution.  IAM, Jones, Debra A. Jones and
Gaines each consented to their respective Orders, without
admitting or denying the allegations contained in the
Commission's Complaint for Permanent Injunction and Other
Equitable Relief ("Complaint").

     The Commission's Complaint alleged that, beginning in the
spring of 1985 and continuing through November 1993, Jones and
IAM conducted a fraudulent scheme in which they raised over $9.2
million through the sale of unregistered securities to over 400
public investors.  On March 15, 1994, Judge Giles issued an Order
of Permanent Injunction (Reserving the Issues of Disgorgement and
Civil Penalty) enjoining IAM and Jones from future violations of
the securities registration and antifraud provisions of the
federal securities laws, as well as from future violations of
certain books and records provisions of the Investment Advisers
Act of 1940 ("Advisers Act"), and the registration provisions of
the Advisers Act and the Investment Company Act of 1940.  IAM and
Jones consented to the entry of the Order of Permanent Injunction
without admitting or denying the allegations contained in the
Commission's complaint.