UNITED STATES SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 15525 / October 1, 1997 SECURITIES AND EXCHANGE COMMISSION v. KS RESOURCES, et al., Civil Action No. 95-8608WDK(AJWx)(C.D. Cal.). The Securities and Exchange Commission announced that on September 25, 1997, the Honorable William D. Keller, United States District Judge for the Central District of California, entered an order and final judgment granting the Commission's motion for summary judgment against KS Resources and Weststar Exploration, Inc. The Court ordered KS and Weststar to pay a total of $7,853,399.54 and permanently enjoined them from committing future securities law violations. The Court ordered KS Resources to pay $3,292,980 in disgorgement and $321,941.09 in prejudgment interest and ordered Weststar to pay $3,861,004 in disgorgement and $377,474.45 in prejudgment interest. The Commission's complaint, filed December 19, 1995, alleged that KS and Weststar, and other defendants, operated a Ponzi-like scheme, fraudulently offering and selling securities in the form of 29 oil and gas limited partnerships from May 1993 to December 19, 1995. The complaint further alleged that the scheme raised approximately $34,934,000 from investors, many of whom are elderly. The Court ruled that KS Resources acted as general partner for 27 of the 29 limited partnerships and that Weststar acted as the operator for all of the limited partnerships. See Litigation Release Nos. LR-14766, 14866, and 15331. ======END OF PAGE 1======