U.S. SECURITIES AND EXCHANGE COMMISSION

     Litigation Release No. 15598 / December 22, 1997

     SECURITIES AND EXCHANGE COMMISSION v. WILLIAM MADON, 
     Civil Action No. SACV 97-1023 LHM (EEx) (C.D. Cal.)

          The Securities and Exchange Commission ("Commission") announced that,
     on December 18, 1997, the Honorable Linda Hodge McLaughlin, United States
     District Judge for the Central District of California, issued a Judgment of
     Permanent Injunction and Other Relief Against Defendant William Madon
     enjoining him from future violations of the antifraud and securities
     registration provisions of the federal securities laws and freezing his
     assets and any assets of Capital Growth Group ("Capital Growth").  The
     Commission also announced that earlier this week, on December 16, 1997, it
     filed a lawsuit in the Central District of California against William Madon
     ("Madon"), alleging antifraud and securities registration violations in
     connection with the sale of interests in an unregistered investment
     company.  The Commission alleges in its Complaint that Madon, a resident of
     Coto de Caza, California, raised at least $5 million from approximately 250
     investors nationwide to invest in Capital Growth.  Madon represented
     Capital Growth to be a mutual fund with a portfolio of stocks.  In fact,
     Capital Growth, Madon's sole proprietorship, never purchased stock;
     instead, Madon misappropriated investor funds for his own benefit and to
     operate a Ponzi scheme.

          The Commission's Complaint charges Madon with violating the antifraud
     provisions of Section 17(a) of the Securities Act of 1933 ("Securities
     Act"), Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
     thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act
     of 1940 and the securities registration provisions of Sections 5(a) and
     5(c) of the Securities Act.  Madon consented, without admitting or denying
     the allegations in the Complaint, to the entry of a permanent injunction
     enjoining him from future violations of certain provisions of the federal
     securities laws, to pay disgorgement and civil penalties in amounts to be
     determined, and to an order freezing assets.


      













                              ======END OF PAGE 1======