UNITED STATES SECURITIES AND EXCHANGE COMMISSION

     LITIGATION RELEASE NO. 15381 / June 5, 1997

     SECURITIES AND EXCHANGE COMMISSION v. ROBERT C. COWAN, et al.,
     5:96-CV-0224-C, USDC, ND/TX (Lubbock Division)

          The Securities and Exchange Commission ("Commission") announced that
     on June 2, 1997, an Agreed Final Judgment was entered against Robert C.
     Cowan ("Cowan"), individually and doing business as CS Investments Trust
     ("CSI"), and Cowan Asset Management, Inc., ("CAMI"), an investment adviser
     registered with the Commission. The Agreed Final Judgment permanently
     enjoins Cowan, individually and doing business as CSI, from future
     violations of Section 17(a) of the Securities Act of 1933 and Section 10(b)
     of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. Cowan
     and CAMI are permanently enjoined from future violations of Sections
     206(1), (2), and (4) of the Investment Advisers Act of 1940, and Rule
     206(4)-2 thereunder, and Cowan is permanently enjoined from aiding and
     abetting any CAMI violations. 

          The Court also ordered Cowan to pay disgorgement in the amount of
     $3,080,418, plus prejudgment interest. However, this amount will be reduced
     by the value of the assets Cowan surrendered to the Special Master, the
     final total of which will be determined in the Special Master's final
     report. Based on Cowan's demonstrated financial inability to pay, the Court
     waived collection of whatever disgorgement amount remains after the value
     of Cowan's assets turned over to the Special Master has been deducted.
     Additionally, based on Cowan's financial condition, the Court will not
     order him to pay a civil penalty. 

           According to the complaint filed on November 5, 1996, Cowan raised
     between $1 million and $3 million from his customers for the purpose of
     purchasing trust units in CSI. In fact, according to the complaint, CSI
     does not exist, apart from Cowan's misrepresentations and created records,
     and does not hold securities or funds for customers; rather, Cowan used
     customers' funds for his personal expenses, and to satisfy periodic
     payments and redemptions for his customers as part of a "ponzi" scheme.   
















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