UNITED STATES SECURITIES AND EXCHANGE COMMISSION

     LITIGATION RELEASE NO.  15482 / September 10, 1997

     THE STATE OF TEXAS v. CHARLES R. CLEVELAND, SR.
     21st Judicial District, Cause No. 12557, Washington Co. 

     THE STATE OF TEXAS v. CHARLES R. CLEVELAND, JR.
     21st Judicial District, Cause No. 12558, Washington Co.

          The Securities and Exchange Commission ("Commission") and the District
     Attorney for the 21st Judicial District, Texas, announced that a grand jury
     in Washington County returned indictments against Charles R. Cleveland,
     Sr., and his son Charles R. Cleveland, Jr. on September 4, 1997. The
     indictment charges the Clevelands with unlawfully and deceptively
     appropriating funds belonging to investors with the intent to deprive the
     owners of their property. Another son, James Russell Cleveland, was
     indicted on the same charges in September 1996 and remains in custody in
     lieu of a $200,000 bond.  

          The indictments are based on activities alleged against James R.
     Cleveland in a civil action filed by the Commission on May 22, 1996. The
     Commission's complaint alleges that James R. Cleveland, individually, and
     doing business as Central Texas Securities, took in at least $4.8 million
     from his customers to purchase municipal securities at below market prices,
     but never purchased the bonds for the investors. In fact, the complaint
     alleges, Cleveland used funds received from new investors to pay off
     previous customers, and used falsified confirmations and account statements
     to conceal his misuse and misappropriation of customers' funds. The
     Commission's civil case against Cleveland is continuing.























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