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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 15283 / March 11, 1997

SECURITIES AND EXCHANGE COMMISSION v. CROSS FINANCIAL SERVICES,
INC., OWEN R. FOX, CARROLL E. SIEMENS, BRUCE FRANKLIN, MICHAEL J.
COLELLO AND DOUGLAS S. CROSS, Civil Action No. 94-4228 RAP(Ex)
(C.D. Cal. June 23, 1994).

     The Securities and Exchange Commission announced that on
February 28, 1997, the Honorable Richard A. Paez of the United
States District Court for the Central District of California
entered an Order Adjudging Defendant Michael J. Colello In Civil
Contempt.  Colello, a relief defendant, had failed to pay
disgorgement of $2,620,598.00, plus prejudgment interest of
$276,954.63 pursuant to the Court's September 7, 1995, judgment
against him and other defendants.  In granting the Commission's
motion for judgment of civil contempt against Colello, the Court
found that Colello had failed to refute the Commission's prima
facie case that he was in contempt because he (1) did not fully
account for the investor money which passed through his hands,
(2) failed to credibly explain the disposition of part of the
funds he received and (3) offered no evidence that he attempted
to recover money he transferred to relatives or close associates
during the relevant time period.  The Court ordered that Colello
surrender himself within forty-five days to the custody of the
United States Marshal's Service in Los Angeles, California, and
that he remain in custody until he complies with the Judgment by
(1) making the required payments of disgorgement and interest or
(2) providing the Court with detailed specific admissible
evidence which demonstrates that he is unable to pay the amount
ordered disgorged and which fully accounts for investor funds
transferred to him.  See also LR 15142 (November 1, 1996); LR
14887 (April 22, 1996); LR 14728 (November 24, 1995); LR 14649
(September 21, 1995); LR 14135 (June 24, 1994).