U.S. SECURITIES AND EXCHANGE COMMISSION


          Litigation Release No. 15838 / August 11, 1998

          SECURITIES AND EXCHANGE COMMISSION v. RYNELL & ASSOCIATES, INC.,
          LENGURNAL, INC., FIRST PARAGON, INC., MOVIE MANAGEMENT SERVICES,
          INC., DAVID L. BURNELL, J. ERIC RYMLAND AND DANIEL B. RUNG,
          Civil Action No. 98-6508 WMB (Cwx)  (C.D. Cal.)

          The Securities and Exchange Commission ("Commission") announced
          that it filed a lawsuit today in federal court in Los Angeles
          against several entities and persons for their roles in a
          fraudulent investment scheme to purportedly fund, produce and
          distribute a motion picture.  Named in the Complaint are Rynell &
          Associates, Inc. with offices in Riverside and San Francisco,
          California; Lengurnal, Inc. headquartered in Riverside,
          California; First Paragon, Inc. headquartered in San Francisco,
          California and Movie Management Services, Inc. headquartered in
          Hollywood, California.  Also named in the Complaint are David L.
          Burnell, age 46, of Lafayette, California; J. Eric Rymland, age
          40, of San Francisco, California and Daniel B. Rung, age 45, of
          Riverside, California.  The lawsuit was filed in conjunction with
          the Federal Trade Commission's "sweep" of entertainment firms
          entitled "Risky Business."

          The Complaint alleges that between November 1995 and December
          1997, the defendants, through Desert Gold Partners, a California
          general partnership ("Desert Gold"), raised approximately $8
          million from the offer and sale of Desert Gold's general
          partnership units to about 600 investors nationwide.  The
          Complaint further alleges that the defendants made material
          misrepresentations and omissions in connection with the offer and
          sale of these securities.  The defendants represented that
          investor funds would be used to produce and distribute a motion
          picture entitled "Operation: Desert Gold" and that investors
          could potentially earn a 160-445% return.  However, the
          defendants misused investors' funds by transferring most of the
          funds to themselves and their affiliates.  To date, no movie has
          been produced and all of the investors' funds have been spent.

          The Complaint also alleges that Rynell & Associates, Lengurnal,
          First Paragon, Burnell and Rymland offered and sold securities in
          Desert Gold without being registered as broker-dealers, as
          required under the federal securities laws.

          The Complaint alleges that Rynell & Associates, Lengurnal, First
          Paragon, Burnell,  Rymland and Rung violated Sections 5(a) and
          5(c) of the Securities Act of 1933 ("Securities Act"), the
          securities registration provisions, and that all of those
          defendants except Rung violated Section 15(a) of the Securities
          Exchange Act of 1934 ("Exchange Act"), the broker-dealer
          registration provisions.  The Complaint also charges that the
          defendants violated Section 17(a) of the Securities Act, Section
          10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and
          Rule 10b-5 thereunder, the anti-fraud provisions.  The Complaint
          seeks to permanently enjoin the defendants from violations of the
          securities registration, antifraud and broker-dealer registration
          provisions of the federal securities laws.  The Complaint also
          seeks disgorgement of ill-gotten gains and the imposition of
          civil monetary penalties against the defendants.