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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 15205 / January 2, 1997

UNITED STATES OF AMERICA V. MICHAEL ANTHONY CHMIEL, H-96-263, 
USDC, SD/TX

     The United States Attorney for the Southern District of
Texas announced that on December 17, 1996, the Grand Jury
indicted Michael Anthony Chmiel ("Chmiel") on 10 counts of Wire
Fraud (18 U.S.C.  1343), 20 counts of Money Laundering (18
U.S.C.  1956(a)(2)(B)(i) and 2(b)), and one count of Criminal
Forfeiture (18 U.S.C.  982).

     The indictment alleges that Chmiel, a registered
representative at MBM Investment Corp., a broker-dealer
registered with the United States Securities and Exchange
Commission, had wealthy Mexican clients who owned shares in
mutual funds managed by Guinness Flight Funds Managers of
Guernsey ("Guinness Flight"), a fund manager located in the
British Channel Islands.  The indictment further alleges that
Chmiel, using his clients' Guinness Flight mutual fund shares as
collateral, fraudulently obtained loans from Guinness Mahon
Guernsey Limited ("Guinness Mahon"), a bank with its principal
place of business also located in the British Channel Islands. 
In order to induce Guinness Mahon to issue these loans, Chmiel
allegedly presented the bank with forged loan documents.  The
indictment further alleges that Chmiel converted approximately $2
million of the loan proceeds by instructing Guinness Mahon,
without the knowledge or approval of his clients, to wire the
money to a Cayman Islands bank account controlled by Chmiel. 
According to the indictment, Chmiel subsequently transferred the
funds to various bank accounts in the United States.