UNITED STATES SECURITIES AND EXCHANGE COMMISSION

     Litigation Release No. 15430 / August 4, 1997

     Securities and Exchange Commission v. Emmanuel A. Lagpacan, John A. Moreno
     and Kubasaki Associates, Inc., Civil Action No. C97-2849-CW (N.D. Cal.)

          The Securities and Exchange Commission announced today that it has
     obtained a preliminary injunction freezing the business assets of an East
     Bay investment adviser sued by the Commission in federal court for
     defrauding his clients out of $4.4 million.

          The Commission alleges in a lawsuit filed Friday that Defendant
     Emmanuel Lagpacan, of Lafayette, California, fraudulently offered and sold
     approximately $4.4 million in phony securities to 73 of his clients between
     January 1990 and at least February 1997.  The victims included Lagpacan's
     advisory clients as well as his clients from an earlier job as a
     stockbroker.  Lagpacan operates his investment advisory business under the
     name Money Matters, Financial Consultants & Accountants ("Money Matters"),
     in Walnut Creek, California.  He previously was a registered representative
     at a local office of Waddell & Reed, Inc. ("Waddell"), a registered broker-
     dealer. 

          Also named as Defendants are a real estate company owned by Lagpacan
     called Kubasaki Associates, Inc. ("Kubasaki"), Lagpacan's assistant, John
     R. Moreno of Walnut Creek, and a real estate partnership run by Moreno
     called Diablo Asset Development LP ("DAD").  

          The complaint alleges that Lagpacan convinced clients to redeem their
     investments in mutual funds, annuities and other financial products and to
     invest the proceeds in purportedly low-risk, government-insured investments
     supposedly issued by Diablo Advisory Services ("Diablo").  In reality,
     Diablo was nothing more than a fictitious business name for Kubasaki. 
     Instead of placing the Diablo investors' money in safe investments,
     Lagpacan deposited it into Kubasaki's checking accounts and used it to
     purchase real property in Kubasaki's name.  Lagpacan defrauded other
     clients while at Waddell by falsifying brokerage account documents in order
     to transfer clients' money, without their knowledge, from reputable mutual
     funds into his real estate company's bank accounts.  Lagpacan and Kubasaki
     were aided and abetted by Moreno.

          Lagpacan still owes at least $3.2 million to approximately 50
     investors located in California, Hawaii and four other states, according to
     the complaint.  In recent months, according to the complaint, Lagpacan has
     begun selling the properties purchased with investor funds and distributing
     the proceeds unfairly to a small number of favored clients.  More than 40
     other clients have received no payments, according to the complaint. 
     Lagpacan has also been lying to clients to cover up his earlier fraudulent 

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     acts, the complaint alleges.

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          The preliminary injunction, which was issued Friday by Judge Claudia
     Wilken, of the United States District Court for the Northern District of
     California, freezes Lagpacan's business assets and Kubasaki's assets,
     appoints a temporary receiver to oversee Kubasaki, orders all Defendants to
     cease violating the law, and other relief.  All of the defendants consented
     to the entry of the preliminary injunction without admitting or denying the
     allegations of the complaint.

          Defendants Lagpacan and Kubasaki are charged with violating Section
     17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of
     the Securities Exchange Act of 1934 ("Exchange Act"), and Rule 10b-5
     thereunder, and Moreno is charged with aiding and abetting the violations
     of Section 10(b) and Rule 10b-5.  Lagpacan is also accused of violating
     Sections 206(1), 206(2) and 206(4) of the Investment Advisers Act of 1940,
     and Rules 206(4)-2 and 206(4)-4(a)(1) thereunder.  DAD is named as a relief
     Defendant from which the Commission seeks to recover $130,000 in money
     received by DAD that came from Lagpacan's defrauded clients. The complaint
     seeks a permanent injunction, disgorgement of ill-gotten gains, civil
     penalties, and other relief.


































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