UNITED STATES SECURITIES AND EXCHANGE COMMISSION

     LITIGATION RELEASE NO. 15530 / October 7, 1997

     SECURITIES AND EXCHANGE COMMISSION V. MARK E. GATCH AND HENRY BENJAMIN
     SCHMIDT, Case No. C-1-97-599 (SSB) (S.D. Ohio, W.D.)

          The Securities and Exchange Commission announced that on September 23,
     the Honorable Sandra S. Beckwith, United States District Judge for the
     Southern District of Ohio, Western Division, entered a Final Judgment
     against defendant Mark E. Gatch.  Gatch, a resident of Amelia, Ohio, was a
     co-founder, president, and chief financial officer of Ben Mar Investments,
     Inc. ("Ben Mar"), a defunct unregistered investment adviser based in
     Florence, Kentucky.  

          The Commission's complaint, filed on June 25, 1997, alleges, among
     other things, that, from February 1992 through March 1995, Gatch and his
     partner, Henry Benjamin Schmidt, conducted a Ponzi scheme through Ben Mar. 
     The Complaint alleges that Gatch and Schmidt illegally raised approximately
     $19.5 million from at least 365 investors by selling unregistered
     promissory notes that promised interest based on the performance of an
     investment pool managed by Ben Mar (the "Ben Mar Fund").  The Complaint
     further alleges that, in connection with this Ponzi scheme and otherwise,
     Gatch made material misrepresentations and omitted material facts to Ben
     Mar Fund investors and other advisory clients of Ben Mar, illegally sold
     unregistered securities of Ben Mar (the promissory notes), and failed to
     comply with the registration and custody provisions of the Investment
     Advisers Act of 1940.  Gatch, who previously pleaded guilty to criminal
     wire fraud based upon some of the same conduct alleged by the Commission's
     Complaint, is currently serving a five-year prison sentence.  See United
     States v. Mark E. Gatch, Case No. 96-90 (WOB) (E.D. Ky., Mar. 17, 1997).

          The Final Judgment permanently enjoins Gatch from violating or aiding
     and abetting violations of Sections 5 and 17(a) of the Securities Act of
     1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
     thereunder, and Sections 203(a), 206(1), 206(2) and 206(4) of the Advisers
     Act and Rule 206(4)-2 thereunder.  The Final Judgment does not impose a
     civil penalty against Gatch, based on his demonstrated inability to pay
     such a penalty.  (In the criminal action, Gatch was ordered to pay
     restitution of $12,566,595.49.) 

          Gatch consented to the entry of the Final Judgment without admitting
     or denying the allegations in the Commission's complaint.  Gatch also
     simultaneously consented to the entry of an order by the Commission barring
     him from association with a broker, dealer, municipal securities dealer,
     investment adviser, or investment company.

          For further information, see Litigation Release No. 15394 (June 25,
     1997). 


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