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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 15327 / April 11, 1997

United States of America v. David Earl Wallace, Earl Joseph
Latiolais, David Stuart Zuckerman and Joseph C. Lucio, Criminal
No. H-97-6, U.S. District Court, Southern District of Texas,
Houston Division.

     The Commission announced that on January 8, 1997, a federal
grand jury returned a 49 count indictment charging David Earl
Wallace, Earl Joseph Latiolais, David Stuart Zuckerman, and
Joseph C. Lucio with Conspiracy, Wire Fraud, Mail Fraud, and
Money Laundering as a result of their operation of a ponzi scheme
selling what was represented to be "high yield, low risk"
securities.  The defendants raised more that $3.4 million from
approximately 70 investors. 

     The criminal charges against Wallace, Latiolais and
Zuckerman are based on the same activities alleged in civil
injunctive actions brought by the Commission against these
individuals in March 1992.  Wallace and Latiolais consented to
the entry of an order of permanent injunction, setting
disgorgement and prejudgment interest in the amount of $777,725
and $110,683, respectively.  The order allowed them to satisfy
the debt if they paid a total of $250,000 in four installments. 
The Commission subsequently filed a civil contempt action against
Wallace and Latiolais for failing to make the required
installment payments, which resulted in Wallace and Latiolais
turning over all of their assets to the Commission.  Litigation
Release Nos. 13206 and 14692.

     On March 7, 1994, the U.S. District Court for the Southern
District of Texas entered Final Judgment against Zuckerman and Q
Consulting, Inc., enjoining them from violations of the
registration and anti-fraud provisions of the federal securities
laws and ordering $1,121,000 in disgorgement, $128,220 in
prejudgment interest and $550,000 in civil penalties.  Zuckerman
previously consented to the order of permanent injunction with
disgorgement and civil penalties set by the Court.  On April 8,
1996, Zuckerman was sentenced to 120 days in prison after
pleading guilty to criminal contempt for the violation of this
order.  Litigation Release Nos. 13585, 14027, 14788, and 14944.