U.S. SECURITIES AND EXCHANGE COMMISSION

     Litigation Release No. 15461 / August 27, 1997

     SECURITIES AND EXCHANGE COMMISSION v. FRANK A. M. LUCA, RUDY CROSSWELL, and
     PAULA G. DEN BOER, Civil Action No. CV-97-1813-PHX-EHC (D. Az.)

          The Securities and Exchange Commission ("Commission") announced that
     on August 27, 1997 it sued Frank A. M. Luca, age 53, of Scottsdale,
     Arizona, for fraud, and sued Luca and two of his sales agents, Rudy
     Crosswell, age 49, of Scottsdale, Arizona, and Paula G. Den Boer, age 47,
     of Paradise Valley, Arizona, for offering and selling unregistered
     securities and for failing to register with the Commission as securities
     broker-dealers.  Luca, Crosswell and Den Boer offered and sold limited
     partnership units and promissory notes from 1990 to 1995.  From at least
     January of 1990, Luca raised over $10 million from over 400 mostly elderly
     and unsophisticated investors nationwide.  Many of the investors attended
     the same church as Luca in Scottsdale, Arizona.  

          Luca told investors that they were investing in residential and
     commercial real estate developments in Henderson, Nevada, a community near
     Las Vegas.  Although some investor funds were used to purchase and develop
     land, most were used: (1) to pay principal and "returns" to earlier
     investors, (2) to build and furnish Luca's lavish 10,000 square foot home
     in Scottsdale, Arizona, and (3) to pay personal expenses, commissions and
     business expenses.  Luca also made large gifts and loans to charities.  The
     Commission alleges that Luca misappropriated over $3.2 million from
     investors.  Although Luca had no business activities that generated any
     profit to him or his investors, he continually paid investors "returns" of
     20 to 25 percent.  Luca used new investor funds to pay existing investors
     their returns.

          Crosswell and Den Boer were two of Luca's top independent sales
     agents, receiving hundreds of thousands of dollars in commissions.  The
     Complaint seeks a permanent injunction, disgorgement and an accounting
     against Luca for violating Sections 5(a), 5(c) and 17(a) of the Securities
     Act of 1933, and Sections 10(b), and 15(a)(1) of the Securities Exchange
     Act of 1934, and Rule 10b-5 thereunder.  The Commission seeks a permanent
     injunction and civil penalties against Crosswell and Den Boer for violating
     Sections 5(a) and 5(c) of the Securities Act of 1933 and Section 15(a)(1)
     of the Securities Exchange Act of 1934.
       











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