SECURITIES AND EXCHANGE COMMISSION


          Litigation Release No. 16106 / April 6, 1999

          [United States v. James Michael Cogley, et al., S.D. OH; No. CR2-
          99-039] [SEC v. James Michael Cogley, et al., S.D. OH; No. C2-98-
          802]


                     COURT FINDS JAMES MICHAEL COGLEY IN CRIMINAL CONTEMPT
                     FOR VIOLATING PRELIMINARY INJUNCTION ORDER

               The Commission announced that on April 1, 1999, the United
          States District Court for the Southern District of Ohio accepted
          James Michael Cogley’s (Cogley) guilty plea to criminal contempt
          for violating provisions of an Order of Preliminary Injunction
          entered against him by consent on August 18, 1998.  The Court
          found that Cogley violated a provision of the Preliminary
          Injunction that prohibited him from receiving, directly or
          indirectly, funds for the purpose of  investment.  The Court
          noted that Cogley was a "predator of a different sort" and
          sentenced him to 30 days in jail, fined him $1000 and ordered a
          special assessment of $25.

                Earlier, on February 24, 1999, the Commission filed an
          Emergency Motion for an Order to Show Cause why Cogley should not
          be held in civil contempt for violating the Preliminary
          Injunction.  At the civil contempt hearing on March 5, 1999, it
          was established that Cogley had received at least $310,000 from
          at least  two investors.  The Court found that Cogley’s conduct
          violated the Preliminary Injunction and set a criminal contempt
          hearing to determine whether Cogley should be held in criminal
          contempt for the violative conduct.