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                SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.

SECURITIES AND EXCHANGE COMMISSION  v. TRUSTCAP FINANCIAL GROUP,
INC., MATRIX INVESTMENT ADVISORS, INC., SECURITY FINANCIAL, INC.,
AND MATRIX CAPITAL MANAGEMENT, INC., Civil Action No. 1:97CV00513
(D.D.C.).  

Litigation Release No.  15297 / March 17, 1997

     The Securities and Exchange Commission today announced the
filing of a lawsuit in federal district court in Washington, D.C.
against two investment advisers, Matrix Investment Advisors, Inc.
(Matrix) and Security Financial, Inc. (SFI), their holding
company, Trustcap Financial Group, Inc. (Trustcap), and its
recordkeeping subsidiary, Matrix Capital Management, Inc. (MCM),
alleging violations of the books and records provisions of the
Investment Advisers Act of 1940.  Simultaneously with the filing
of the complaint, the Commission and all defendants jointly moved
for appointment of a special agent to review the records,
determine the value of client accounts, monitor business
expenditures of the defendants, monitor and approve the process
by which the remaining client funds are to be converted to money
market instruments (as appropriate) pending distribution to
clients, and establish and implement a plan to return available
funds to Matrix's and SFI's clients.  Following a hearing, the
Honorable Thomas A. Flannery, Senior United States District
Judge, granted the joint motion and issued an order appointing
Charles G. Myers as special agent.

     The complaint alleges as follows:  Matrix and SFI, aided by
Trustcap, managed the accounts of approximately 250 clients,
totalling over $15 million.  MCM was responsible for providing
investment advisory accounting services to the other defendants. 
In October 1996, the president of Trustcap was hospitalized and
became unable to manage client accounts.  Because of inaccuracies
in the books and uncertainties regarding the allocation of trades
to individual clients, the defendants could not correctly
determine the value of client accounts.  Consequently, Matrix and
SFI, aided and abetted by Trustcap and MCM, violated Section 204
of the Investment Advisers Act of 1940, and Rules 204-2(a)(3),
(c)(1), and (c)(2) thereunder.  The complaint seeks permanent
injunctions against each of the parties from future violations of
these books and records provisions.  

     The Commission's investigation of other potential violations
of the federal securities laws, by the defendants and other
persons or entities, in connection with this matter is
continuing.