UNITED STATES SECURITIES AND EXCHANGE COMMISSION


     Litigation Release No.  15564 / November 18, 1997

     Securities & Exchange Commission v. CNC Trading Company, et al. 
     (United States District Court for the District of New Jersey, Civil Action
     No. 96-CV-4620)

          The Securities and Exchange Commission announced that on October 29,
     1997, the Honorable Garrett E. Brown of the United States District Court
     for the District of New Jersey entered a Final Judgment and Order against
     defendant Cindy J. Myers. The Final Judgment ordered Myers to pay
     disgorgement in the amount of $519,000, plus prejudgment interest thereon,
     but waived payment of the same based upon a sworn financial statement
     submitted by Myers which demonstrated inability to pay.  Myers consented to
     this relief, without admitting or denying the allegations in the
     Commission's complaint. 

          On September 30, 1996, Judge Brown had entered a permanent injunction
     against Myers, pursuant to her consent, under which she was permanently
     enjoined from violating Sections 5(a), 5(c) and 17(a) of the Securities Act
     of 1933, and Sections 10(b) and 15(a)(1) of the Securities Exchange Act of
     1934, and Rule 10b-5 thereunder.  

          On September 14, 1996, the staff filed this action in the United
     States District Court for the District of New Jersey, naming CNC Trading
     Company, Inc,, Charles N. Cugliari ("Cugliari"), Myers, Sierra and two
     other individuals as defendants.  The Commission charged that from 1985
     through February 1995, Cugliari, with the assistance of Myers and others,
     conducted a Ponzi scheme involving the fraudulent sale of approximately $70
     million of unregistered CNC investments to over 2,000 public investors. 
     Cugliari solicited investors by offering them the purported opportunity to
     finance CNC's purchase of various food products.  To attract interest,
     Cugliari told investors that the food products would be resold for a profit
     and that each investor's portion of this profit would yield a return of
     approximately 3 1/2 percent per month, or 42 percent per year.  However,
     rather than buying the particular food products which investors contracted
     for, Cugliari commingled investor funds in bank accounts that he controlled
     and used the money to pay returns to previous investors, and to pay
     salaries, sales commissions and personal expenses.<(1)>  

          The Commission further charged that Myers and others made numerous
     material misrepresentations and omissions in connection with the sale of
     CNC investments to public investors.  Among other things, the defendants
     misrepresented or omitted to disclose the true nature of the CNC
     investment, the financial condition of CNC, and the sales commission
                              

          <(1)>     A full discussion of the facts are set forth in the
                    staff's June 27, 1996 Action Memorandum, captioned CNC
                    Trading Company, Inc. (P-174)   

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     arrangement CNC had with various salespersons. 

           Myers was the second most active seller of CNC investments.  The
     Commission charged that in 1994, Myers received approximately $300,000 in
     commissions from the sale of CNC investments.  

          Myers has also been prosecuted and pled guilty to criminal charges of
     mail fraud and tax evasion based on her CNC activity.  On February 12,
     1997, Judge Brown sentenced her to four months confinement and ordered to
     pay a penalty $75,000.











































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