UNITED STATES SECURITIES AND EXCHANGE COMMISSION

     LITIGATION RELEASE NO. 15591 / December 15, 1997

     SECURITIES & EXCHANGE COMMISSION v. JOHN GARDNER BLACK, DEVON CAPITAL
     MANAGEMENT, INC., AND FINANCIAL MANAGEMENT SCIENCES, INC. (United States
     District Court for the Western District of Pennsylvania, Civil Action No.
     97-2257)

          The Securities and Exchange Commission ("Commission") announced that,
     on December 12, 1997, the Honorable Donetta Ambrose of the U.S. District
     Court for the Western District of Pennsylvania signed an order of permanent
     injunction ("Order") against defendants John Gardner Black ("Black"), Devon
     Capital Management, Inc. ("Devon"), and Financial Management Sciences, Inc.
     ("FMS").  The Order enjoins the defendants from future violations of the
     anti-fraud provisions of the federal securities laws while reserving the
     issues of the dollar amounts of disgorgement and civil penalties to be paid
     by them.  The Order provides for a forty-five day period of discovery
     relating to the issues of disgorgement and civil penalties.  At the
     conclusion of the discovery period, if the parties are unable to agree on
     the amounts of disgorgement and penalties to be paid, the parties will
     request that Judge Ambrose hold an evidentiary hearing and make rulings on
     these remaining issues.

          Defendants Black, Devon and FMS consented to the Order without
     admitting or denying the allegations in the Commission's Complaint.

          The Commission filed this action as an emergency matter on September
     26, 1997.  On the same date, the Court granted the Commission's requested
     relief, including a temporary restraining order, freeze of assets and an
     order appointing the Honorable Richard Thornburgh, formerly Attorney
     General of the United States, United States Attorney for Western
     Pennsylvania and Governor of Pennsylvania, as Trustee.  

          The Order of permanent injunction maintains the freeze of the
     defendants' assets until such time as the issues of payment of disgorgement
     and civil penalties are resolved.  Previously, on October 30, 1997, the
     Court denied defendant Black's request to release $625,000 of the frozen
     assets to pay legal fees, in part because he had failed to demonstrate that
     he did not have access to other funds.  At the same time the Court denied
     in substantial part defendant Black's request to release approximately
     $127,000 of the frozen funds to pay living expenses, allowing him only
     $25,000 for this purpose.   

          The Commission's Complaint alleged that Black, acting through Devon, a
     Pennsylvania-based registered investment adviser, and FMS, an affiliate of
     Devon's engaged in a fraudulent scheme in connection with the solicitation
     and management of Devon's investment advisory clients' funds.  The
     Complaint alleged that the scheme resulted in the loss of millions of
     dollars of municipal bond proceeds invested by school districts and other
     local government units throughout Western and Central Pennsylvania.


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          At the time the Complaint was filed, Devon managed approximately $345
     million in assets for approximately 100 investment advisory clients, the
     vast majority of which were local school districts seeking to invest the
     proceeds of municipal bond offerings.  The Complaint alleged that Devon had
     invested approximately $233 million of these funds, on behalf of 75 local
     school districts, in a form of investment called a Collateralized
     Investment Agreement ("CIA").  In promotional materials, Devon represented
     to these school districts that the CIA was an investment which paid a
     specified rate of return over a fixed period and which was fully protected
     by a pool of securities equalling the amount of the school districts' total
     principal investment.  The Complaint alleged that, in fact, the school
     districts that had invested in the CIA program have suffered a combined
     loss of their principal investment of approximately $71 million.  Finally,
     the Complaint alleged that Black, Devon and FMS benefitted financially from
     this fraudulent scheme.

          The Complaint alleged that Devon, FMS and Black violated the antifraud
     provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b)
     of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.  The
     Complaint further alleges that Devon, aided and abetted by Black, violated
     the antifraud and custody provisions in Section 206(1), (2) and (4) of the
     Investment Advisers Act of 1940 and Rule 206(4)-2(a) thereunder.































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