UNITED STATES SECURITIES AND EXCHANGE COMMISSION


     Litigation Release No. 15491 / September 12, 1997

     SEC V. EDWARD M. COLLINS, N.D.ILL., 95 CIV 7251, filed December 11, 1995

          The Commission announced the entry of an Order of Permanent Injunction
     and other Equitable Relief (Order) against Edward M. Collins (E. Collins). 
     E. Collins consented to the entry of the order without admitting or denying
     the allegations of the Complaint.  The Complaint, which was filed on
     December 5, 1995, alleged that, from December 1984 to June 1994, E.
     Collins, along with his now deceased brother, Thomas Collins, through their
     company Lake States, Inc., raised $120 million from 460 investors, residing
     in 15 states.  The Complaint alleged that T. Collins and E. Collins made
     misstatements and omitted to state material facts to investors regarding
     the use of proceeds, the rate of return and the risk of the investment.  

          The Complaint alleged that investors were told that their funds would
     be pooled with other investors' funds to invest in commodity futures and
     other business ventures.  Instead of investing all of the money as
     represented, the Complaint alleged that T. Collins and E. Collins were
     running a Ponzi scheme and that most of investor funds were used to pay
     personal and business expenses and to pay interest and principal to prior
     investors.  The Complaint further alleged that E. Collins and T. Collins
     told investors to expect a 40% to 90% return on their investment.  Finally,
     the Complaint alleged that T. Collins and E. Collins failed to register
     these securities, in the form of investment contracts, and failed to
     register as broker-dealers with the Commission.

          The Honorable Blanche Manning of the U.S. District Court for the
     Northern District of Illinois entered the Order enjoining E. Collins from
     future violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of
     1933, Sections 10(b), 15(a)(1) and 15(c) of the Securities Exchange Act of
     1934 and Rules 10b-5 and 15c1-2 promulgated thereunder.  The Order also
     requires disgorgement in the amount of $950,000, plus prejudgment interest;
     however, payment is waived based on E. Collins' demonstrated inability to
     pay.