UNITED STATES SECURITIES AND EXCHANGE COMMISSION


     Litigation Release No. 15475 / September 4, 1997                   

     SEC v. Keith Knutsson and Kaldi, Inc.
     (Civil Action No. 1: 97-CV-2514-CC, USDC N.D. Ga.)

          The Securities and Exchange Commission announced that a complaint was
     filed by the Commission on August 29, 1997, in the United States District
     Court for the Northern District of Georgia, against Keith Knutsson
     ("Knutsson"), in his individual capacity and as Keith Knutsson d/b/a Kaldi
     Koffee, and against Kaldi, Inc. ("Kaldi"), a Georgia corporation, as a
     relief defendant.  Knutsson is the chief executive officer of Kaldi.  The
     complaint seeks to permanently enjoin Knutsson and Kaldi from violating
     Sections 17(a)(1) through 17(a)(3) of the Securities Act of 1933 and
     Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
     thereunder.  The Commission also seeks an order requiring an accounting of
     all funds received from the sale of securities by the defendants during the
     scheme, disgorgement of all ill-gotten gains acquired by the defendants
     along with prejudgment interest, and civil penalties.

          The Commission's complaint alleges that Knutsson violated the
     antifraud provisions of the securities laws by offering and selling
     investors notes, purportedly to finance the establishment of a new business
     venture, called Kaldi Koffee, an entity which Knutsson proposed to form for
     the purpose of opening a chain of coffee "cafes" in Europe.  Between
     October 1994 and October 1996, Knutsson raised approximately $800,000 from
     20 investors for his scheme.    The Commission alleges that Knutsson
     misappropriated the money he raised, using it to pay for several trips to
     Europe and for his own personal expenses.  The chain of European coffee
     shops was never opened.

      



















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