UNITED STATES SECURITIES AND EXCHANGE COMMISSION


     LITIGATION RELEASE NO. 15464 / August 28, 1997

     UNITED STATES OF AMERICA v. KARL L. DAHLSTROM, et al.
     96-CR-157-ALL, USDC, SD/TX [Houston Division]

          The Securities and Exchange Commission ("Commission") and the United
     States Attorney for the Southern District of Texas announced that on August
     28, 1997, after a jury trial in Houston, Texas, Karl L. Dahlstrom was
     convicted on two counts of securities fraud, one count each of violating
     the broker-dealer registration and securities registration provisions of
     the federal securities laws, and eight counts of mail fraud. Dahlstrom's
     daughter, Karla D. Dahlstrom, was convicted on one count each of violating
     the broker-dealer registration and securities registration provisions. The
     Dahlstroms were indicted for their involvement in a nationwide solicitation
     campaign for the purpose of selling unregistered shares of Inferno
     Snuffers, Inc., ("ISI"), and Inferno Engineering and Consulting, Inc.
     ("IEC"). Sentencing was set for December 5, 1997. A trial attorney from the
     Commission's Fort Worth District Office, assigned as a Special Prosecutor,
     assisted in the prosecution of this case.

          Previously, on March 5, 1997, two other defendants in this case,
     Hubert Leon Leopard and Richard E. Lopez, pleaded guilty to one count each
     of securities registration violations of the federal securities laws.
     Leopard and Lopez are to be sentenced December 4, 1997. 

          The criminal charges are based on the same activities alleged in a
     civil injunctive action brought by the Commission on September 30, 1992. 
     The Commission's complaint alleged that ISI and IEC, operating under Karl
     Dahlstrom's direction, were purportedly marketing "Uni-Snuff", a product
     claimed to be useful in extinguishing and suppressing fires, and the
     "Snuffer System", a method of dispensing Uni-Snuff.


















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