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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 15354 / April 29, 1997

SECURITIES AND EXCHANGE COMMISSION v. GARY J. DIVALL AND PAUL E.
MAGNUSON, (W.D. WIS., CIVIL ACTION NO. 96-C-0634-S, FILED AUGUST
2, 1996)

The Securities and Exchange Commission today announced that on
April 10, 1997 the United States District Court for the Western
District of Wisconsin, in Madison, entered a Final Judgment and
Order of Permanent Injunction (Order) against Gary J. DiVall and
Paul E. Magnuson.  The Order enjoins DiVall and Magnuson from
future violations of Sections 17(a)(1), 17(a)(2) and 17(a)(3) of
the Securities Act of 1933, and Sections 10(b), 13(a) and
13(b)(5) of the Securities Exchange Act of 1934 and Rules 10b-5,
12b-20, 13a-1, 13a-11, 13a-13, 13b2-1 and 13b2-2 thereunder. 
DiVall and Magnuson each consented to the entry of the Order
without admitting or denying the allegations in the Commission's
Complaint.

The Commission's Complaint, filed on August 2, 1996, alleged
that, between 1988 and 1992, as general partners of three public
partnerships (the DiVall Funds), DiVall and Magnuson made
misrepresentations and omissions of material fact to investors
and the Funds' auditors concerning their personal use of over
$2.6 million that they had misappropriated from the DiVall Funds.

The Complaint also alleged that DiVall and Magnuson failed to
keep adequate books and records reflecting their use of those
investor funds and, as controlling persons of the DiVall Funds,
caused the filing of false and misleading periodic reports with
the Commission.