UNITED STATES SECURITIES AND EXCHANGE COMMISSION


     Litigation Release No. 15397 / June 26, 1997

     SECURITIES AND EXCHANGE COMMISSION v.FREDERICK LIU, United States District
     Court for the Southern District of New York, Civil Action No. 97-CIV4709
     (DC)

          On June 26, 1997, the U.S. Securities and Exchange Commission filed an
     insider trading lawsuit in federal district court against Frederick Liu, a
     35-year-old resident of Hong Kong.  The Commission alleged that in December
     1996 Liu obtained material nonpublic information concerning Doubletree
     Corporation's proposed acquisition of Renaissance Hotel Group in breach of
     a duty of trust and confidence.  According to the complaint, Liu purchased
     more than 1.4 million shares of Renaissance based on that information just
     before the announcement of the transaction.  Liu has consented, without
     admitting or denying the allegations in the complaint, to be enjoined from
     violating the antifraud provisions of the federal securities laws and to
     pay $2 million in civil money penalties.

          Renaissance Hotel Group, Inc. is a hotel management firm based in Hong
     Kong, and its common stock is listed for trading on the New York Stock
     Exchange.  Doubletree, based in Phoenix, Arizona, is also in the hotel
     management business.

          According to the complaint, advisors to Renaissance met with
     representatives of Doubletree in mid-December 1996 and outlined terms for
     Doubletree's possible acquisition of Renaissance.  The principals of both
     companies finalized the terms of the proposed acquisition in Hong Kong in
     late December.  The complaint alleges that by December 30, 1996, Liu
     obtained material, nonpublic information concerning the proposed
     acquisition through a breach of a duty of trust and confidence, and that he
     purchased more than 1.4 million shares of Renaissance common stock at an
     average price of $15.66 per share on December 30 and 31 while in possession
     of that information.  The complaint alleges that Liu purchased the shares
     in a new account that was opened at a Hong Kong brokerage firm in the name
     of a colleague, who agreed to fund the purchases and to split any profits. 

          According to the complaint, the shares that Liu purchased increased in
     value by $11,270,000, or 44%, immediately after the public announcement of
     the merger.  The complaint further alleges that on January 2, 1997, after
     learning that the Commission had authorized an emergency lawsuit charging
     Liu with illegal insider trading, Liu cancelled the trades and abandoned
     the trading profits.

          The Commission appreciates the substantial assistance that the Hong
     Kong Securities and Futures Commission provided to it in this matter.





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