UNITED SECURITIES AND EXCHANGE COMMISSION

     Litigation Release No. 15401 /  July 2, 1997
     SECURITIES AND EXCHANGE COMMISSION v. JACOB Y. TERNER, NISSAN KAHEN, PARVIZ
     KAHEN, THEODORE W. DUTTON, GEORGE D. VOIGT, and ANDREA GUILLEN DUTTON,
     Civil Action No. 97-4812 GHK (JGx) (C.D. Cal.)

          The Securities and Exchange Commission announced that on July 2, 1997,
     it filed an action in United States District Court in Los Angeles,
     California, alleging insider trading in the stock of Century MediCorp, Inc.
     ("Century"), an operator of HMOs based in Los Angeles, California,
     immediately prior to its acquisition by Foundation Health Corporation
     ("Foundation") in July 1992.  Defendants in the action include Dr. Jacob Y.
     Terner ("Terner"), then CEO, President and Chairman of the Board of
     Century, and Theodore W. Dutton ("Dutton"), then member of the Board of
     Century.  Terner and Dutton are alleged to have conveyed material nonpublic
     information regarding merger negotiations between Century and Foundation to
     other Defendants.  Specifically, Terner is alleged to have tipped his
     friend and colleague, Defendant Dr. Nissan Kahen, who then profited
     $225,750 by trading Century stock, and who also tipped his brother,
     Defendant Parviz Kahen, who then profited $40,000 by trading Century stock. 
     Dutton is alleged to have tipped his friend and business associate,
     Defendant George Voigt ("Voigt"), who then profited $87,500 by trading
     Century stock.  Finally, Defendant Andrea Guillen Dutton, Dutton's
     daughter-in-law, is alleged to have profited $16,002.50 by trading Century
     stock while in possession of material nonpublic information.  All
     defendants reside in Southern California.

          Four of the six defendants have consented to the entry of permanent
     injunctions prohibiting them from future violations of the antifraud
     provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule
     10b-5 thereunder and for other relief, without admitting or denying the
     allegations by the Commission.  In addition to consenting to be enjoined,
     Terner has consented to pay a one-time Insider Trading and Securities Fraud
     Enforcement Act of 1988 ("ITSFEA") penalty of $225,750 equalling the
     profits of his alleged tippee, Nissan Kahen; Nissan Kahen has agreed to
     disgorge his profits of $225,750, together with prejudgment interest, and
     to pay a one-time ITSFEA penalty of $265,750 equalling his own profits and
     those of his alleged tippee, Parviz Kahen; and Andrea Guillen Dutton has
     agreed to disgorge her profits of $16,002.50, together with prejudgment
     interest thereon, and to pay a one-time ITSFEA penalty of $16,002.50. 
     Finally, Parviz Kahen has agreed to disgorge his $40,000 in profits
     together with prejudgment interest, except that, because of his
     demonstrated financial inability to pay the full amount, payment of all but
     $27,000 is waived.  Parviz Kahen has also acknowledged that the Court is
     not imposing an ITSFEA penalty based upon his demonstrated inability to
     pay.  

          The Commission seeks permanent injunctions, disgorgement of trading
     profits and prejudgment interest, and ITSFEA penalties from the remaining
     two defendants, Dutton and his alleged tippee, Voigt.




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