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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 15186 / December 12, 1996

United States v. Hugh Keith and Steven Wolis, USDC. S.D. Fla., 
Case No. 96-5204-CRIM-ZLOCH.

     On December 10, 1996, the grand jury for the United States
District Court, Southern District of Florida, indicted Hugh Keith
("Keith") and Steven Wolis ("Wolis") on: (1) one count of
conspiracy to defraud the Securities and Exchange Commission
("Commission"), to file false reports, and to commit securities
fraud, mail fraud and wire fraud; and (2) four counts of filing
false reports with the Commission.  In addition, the indictment
alleges that Keith committed: (1) six counts of securities
fraud/illegal insider trading; (2) six counts of engaging in
monetary transactions in criminally derived property; and (3) two
counts of perjury pertaining to Keith's sworn testimony before
the Commission.   

     On July 24, 1995, the Commission filed a Complaint in the
United Stated District Court for the Southern District of Florida
against Keith Group of Companies, Inc. ("Keith Group"), Keith,
Wolis, and Robert McClernon alleging that Keith Group, Keith, and
Wolis, knowingly, willfully and/or recklessly, prepared, caused
and/or allowed to be filed Forms 10-K, Forms 10-Q and a Form 8-K
with the Commission that contained materially false and
misleading information and failed to disclose material
information concerning Keith Group, its financial condition, and
illegal trading by Keith.  Securities and Exchange Commission v.
Keith Group of Companies, et al., USDC, S.D. Fla., Civil Action
No. 95-6702-CIV-GONZALEZ.  Keith was Keith Group's president. 
Wolis was Keith Group's general counsel.  Specifically, the
complaint alleged that Keith Group's filings falsely reported
that Keith Group sold six parcels of real estate at a total
profit of $4,837,899 when the parcels had not in fact been sold. 
Keith is alleged to have perpetrated the fraudulent scheme by
creating fraudulent real estate documents, submitting forged
documents to the Commission, and providing false and misleading
information to Keith Group's auditors.  In addition, Keith is
alleged to have, while in possession of material, non-public
information concerning Keith Group's true financial condition,
traded in Keith Group stock and received proceeds of
approximately $1,019,229, in breach of his fiduciary duty to
Keith Group's shareholders.  Wolis is alleged to have knowingly
or recklessly prepared documents relating to the fraudulent real
estate "sales" and signed Keith Group's Form 10-K for the period
ending August 31, 1991, reflecting these "sales".