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             U.S. SECURITIES AND EXCHANGE COMMISSI0N

Litigation Release No. 15051 / September 17, 1996  

Accounting and Auditing Enforcement
Release No. 815 / September 17, 1996

SECURITIES AND EXCHANGE COMMISSION v. DUANE V. MIDGLEY,
Civil Action No. 2:96CV-0783G (D. Utah).

     The Securities and Exchange Commission ("Commission")
announced the filing of a Complaint on September 16, 1996 in the
United States District Court for the District of Utah against
Duane V. Midgley, a certified public accountant from Salt Lake
City, Utah.  

     The Complaint alleges, among other things, that in December
1991, Midgley issued materially false and misleading audit
reports on the initial balance sheets of two new mutual funds
known as Public Funding Portfolios, Inc. and American Vision
Funds, Inc. (collectively, the "Funds").  Midgley falsely
represented in his audit reports that (1) the Funds' balance
sheets were presented fairly in conformity with Generally
Accepted Accounting Principles; and (2) he had conducted his
audits in accordance with Generally Accepted Auditing Standards. 
In fact, contrary to what was shown on the Funds' balance sheets,
the Funds had not been capitalized and did not own any tangible
assets.  Midgley's false audit reports were filed with the
Commission in the Funds' Investment Company Act registration
statements.  The Commission's Complaint seeks a permanent
injunction and civil monetary penalties against Midgley based on
his violations of Section 10(b) of the Securities Exchange Act of
1934 and Rule 10b-5 thereunder and Section 34(b) of the
Investment Company Act of 1940.

     The Commission's action against Midgley is the second action
filed in Salt Lake City concerning the Funds.  On September 29,
1995, the Commission brought an action in the United States
District Court for the District of Utah against seven defendants
who allegedly operated the Funds for fraudulent purposes.  That
Complaint alleged that those defendants became shareholders of
the Funds by selling grossly overvalued securities with a
purported value of $165 million to the Funds.  After infusing the
overvalued assets into the Funds, the seven defendants
misrepresented material facts to brokerage firms concerning,
among other things, the net asset values for the Funds' shares
and the liquidity of the Funds' assets while attempting to use
the grossly overvalued shares of the Funds as collateral for
margin loans.  Securities and Exchange Commission v. Michael
Carnicle, Michael Hansen, William Straughan, Randy Glad, Lionel
Reifler, Howard Ray and Arie From, Civil Action No. 1:95CV-0110C
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(D. Utah).  See LR Nos. 14669 (October 2, 1995) and 14946
(June 6, 1996).




                              - 2 -

     The Funds were based in Los Angeles, California prior to
their dissolution by court order on March 31, 1992 in an action
brought by the Commission.  Securities and Exchange Commission v.
Public Funding Group, Inc., V. Thayne Whipple II, American Vision
Funds, Inc. and Public Funding Portfolios, Inc., Civil Action No.
92-1646 WDK (EEx) (C.D. Cal.).  See LR Nos. 13192 (March 17,
1992) and 13374 (September 22, 1992).
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             U.S. SECURITIES AND EXCHANGE COMMISSI0N
                     PACIFIC REGIONAL OFFICE
                     LOS ANGELES, CALIFORNIA

FOR IMMEDIATE RELEASE

NEWS DIGEST

COMPLAINT FOR PERMANENT INJUNCTION AND OTHER RELIEF FILED AGAINST
DUANE V. MIDGLEY, C.P.A.

          The Commission announced the filing of a Complaint on
     September 16, 1996 in the United States District Court for
     the District of Utah against Duane V. Midgley, a certified
     public accountant from Salt Lake City, Utah.  

          The Complaint alleges, among other things, that in
     December 1991, Midgley issued materially false and
     misleading audit reports on the initial balance sheets of
     two new mutual funds known as Public Funding Portfolios,
     Inc. and American Vision Funds, Inc.  Midgley falsely
     represented in his audit reports that (1) the Funds' balance
     sheets were presented fairly in conformity with Generally
     Accepted Accounting Principles; and (2) he had conducted his
     audits in accordance with Generally Accepted Auditing
     Standards.  In fact, contrary to what was shown on the
     Funds' balance sheets, the Funds had not been capitalized
     and did not own any tangible assets.  Midgley's false audit
     reports were filed with the Commission in the Funds'
     Investment Company Act registration statements.  The
     Commission's Complaint seeks a permanent injunction and
     civil monetary penalties against Midgley based on his
     violations of Section 10(b) of the Securities Exchange Act
     of 1934 and Rule 10b-5 thereunder and Section 34(b) of the
     Investment Company Act of 1940.

     Securities and Exchange Commission v. Duane V. Midgley,
     Civil Action No. 2:96CV-0783G (D. Utah) (L.R. No. _____).

     Dennis Arnold
     Pacific Regional Office
     (213) 965-3852