UNITED STATES SECURITIES AND EXCHANGE COMMISSION

          LITIGATION RELEASE NO.  15828 / July 31, 1998

          SECURITIES AND EXCHANGE COMMISSION v. Calvin Douglas Brace, et
          al., Civil Action No. 98-Z-1644 (D. Colo.)

               The Commission filed a complaint charging Calvin Douglas
          Brace (Brace), GAI Holdings, Ltd. (GAI Holdings), Howard Wesley
          Huether (Huether), and G2 Resources, Ltd. (G2 Resources) with
          operating between November 1995 and March 1997 a Ponzi scheme
          through which they falsely promised that investors' funds would
          be used to purchase nonexistent "prime bank" notes. The complaint
          alleges that Brace, a resident of Colorado, and GAI Holdings, a
          Bahamian corporation, raised $5.5 million from investors residing
          nationwide and in Canada, of which Huether, a resident of
          Alberta, Canada, and G2 Resources, a Canadian corporation, raised
          $1.3 million.

               The complaint alleges that Brace, Huether, GAI Holdings and
          G2 Resources made numerous materially false statements and
          omissions to investors concerning, among other things, the
          existence of prime bank instruments and related trading programs,
          investors' ability to achieve the rates of return of up to 30
          percent a month, the lack of risk to investors, and the use of
          investor proceeds.  According to the complaint, Brace and Huether
          used new investor proceeds to pay previous investors as part of a
          Ponzi scheme, and diverted approximately $858,000 and $208,000 to
          their respective personal uses.

               The complaint, filed in the U.S. District Court for the
          District of Colorado, seeks to permanently enjoin Brace, Huether,
          GAI Holdings and G2 Resources, from further violations of
          Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933,
          Section 10(b) of the Securities Exchange Act of 1934 ("Exchange
          Act"") and Rule 10b-5 thereunder.  Additionally, the complaint
          seeks to enjoin Huether and G2 Resources from violating Section
          15(a) of the Exchange Act because they did not register as
          broker-dealers before soliciting investors.  The complaint also
          seeks disgorgement, prejudgment interest, and civil penalties in
          regard to all defendants.

               The Commission thanks the Arizona Securities Commission for
          its assistance in this matter.