SECURITIES AND EXCHANGE COMMISSION
                                   Washington, D.C.

             Litigation Release No. 16034 / January 21, 1999

             SECURITIES AND EXCHANGE COMMISSION v. DONALD WALLACE, et al., Case No.
             1:99CV00120 (RWR) (D.D.C., filed Jan. 14, 1999).

             SEC FILES CIVIL INJUNCTIVE ACTION IN PRIME BANK FRAUD

                  The Securities and Exchange Commission announced today
             that it filed a Complaint in the United States District
             Court for the District of Columbia against Donald Wallace,
             The Investment Group, Linda Schroeder, John McNulty, Berach
             International, Ltd. and Gary Tedford for the fraudulent
             offer and sale of non-existent, prime bank securities.  The
             Complaint alleges that Schroeder and McNulty were principals
             of The Investment Group and that Tedford was a principal of
             Berach.  The Complaint alleges that Wallace was responsible
             for arranging the purported prime bank trades.

                  The Complaint alleges that in April 1995, The
             Investment Group obtained $100,000 from an investor under
             the pretense that his money would be invested in a prime
             bank program with a guaranteed return of 15% per week.  The
             Complaint also alleges that The Investment Group wired the
             investor’s $100,000 to a bank account, designated by
             Tedford, pursuant to a contract between The Investment Group
             and Berach.  According to the Complaint, that contract,
             pursuant to which Berach was to invest the $100,000 in prime
             bank securities, guaranteed The Investment Group a return of
             2,000% per month.  The Complaint alleges that Berach sent
             the $100,000 to Wallace.  The Complaint further alleges that
             in the spring of 1995, Wallace held himself out as an
             investment adviser on prime bank programs, promising
             extraordinary returns on investments with essentially no
             risk.

                  The Complaint alleges that by their conduct, the
             defendants violated Section 17(a) of the Securities Act of
             1933 (“Securities Act„), Section 10(b) of the Securities
             Exchange Act of 1934 (“Exchange Act„) and Rule 10b-5
             thereunder.  The Complaint also alleges that Wallace failed
             to register as an investment adviser and thereby violated
             Section 203(a) of the Investment Advisers Act of 1940.  The
             Complaint seeks a permanent injunction barring the
             defendants from future violations of the antifraud
             provisions of the federal securities laws and barring
             Wallace from future violations of the investment adviser
             registration provisions of the federal securities laws, an
             accounting, disgorgement and the imposition of civil
             monetary penalties.

                  Simultaneously with the filing of the Complaint, and
             without admitting or denying the Commission’s allegations,
             The Investment Group, Schroeder and McNulty consented to the
             entry of a final judgment permanently enjoining them from
             future violations of Section 17(a) of the Securities Act,
             Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
             The final judgment will require McNulty to pay disgorgement
             of $8,000, plus prejudgment interest of $2,245, and a civil
             penalty of $9,755.  With respect to Schroeder and The
             Investment Group, the Commission waived the payment of
             disgorgement and did not seek the imposition of civil
             monetary penalties against them based on their demonstrated
             financial inability to pay.