SECURITIES AND EXCHANGE COMMISSION

             Litigation Release No. 16115 / April 21, 1999
             Accounting and Auditing Enforcement Release No. 1129 / April
             21, 1999

             SEC v. Mark A. DeSimone and James Shields, Civ. Action No.
             1:99CV00991 (EJS)(DCDC)

             SEC CHARGES MARK A. DESIMONE, FORMER CHAIRMAN OF NORTHSTAR
             HEALTH SERVICES, INC., AND ASSOCIATE JAMES SHIELDS WITH
             FINANCIAL FRAUD

                  The Securities and Exchange Commission today filed a
             Complaint in United States District Court for the District
             of Columbia against Mark A. DeSimone, former president and
             chairman of the board of Northstar Health Services, Inc.,
             and James Shields, DeSimone’s cousin and a former manager of
             a Northstar subsidiary, for engaging in financial fraud at
             Northstar.  The Complaint alleges that between 1993 and
             1995, DeSimone and Shields engaged in a scheme to inflate
             Northstar’s income by causing Northstar to report in its
             financial statements over $1.2 million in fictitious revenue
             from phony consulting contracts and medical equipment
             rentals.  Northstar, a publicly-traded company engaged in
             providing medical rehabilitation services, is located in
             Indiana, Pennsylvania.

                  According to the Commission’s Complaint, DeSimone and
             Shields conducted the financial fraud by providing Northstar
             and its auditors with fabricated invoices, consulting
             agreements and checks to substantiate the phony consulting
             services and equipment rentals.  As a result, Northstar’s
             reported income before taxes was overstated by 28 percent in
             fiscal year 1993 and by 54 percent in fiscal year 1994.

                  Without admitting or denying the allegations in the
             Commission’s Complaint,  DeSimone consented to the entry of
             a final judgment (i) enjoining him from violations of the
             antifraud and books and records provisions of the federal
             securities laws (Section 17(a) of the Securities Act of 1933
             and Sections 10(b) and 13(b)(5) of the Securities Exchange
             Act of 1934 and Rules 10b-5, 13b2-1 and 13b2-2 thereunder),
             (ii) permanently barring him from serving as an officer or
             director of a public company, and (iii) ordering him to pay
             a $50,000 civil penalty.  Shields also consented to the
             entry of a final judgment, without admitting or denying the
             allegations therein, enjoining him from violating the
             antifraud and books and records provisions of the federal
             securities laws (Section 17(a) of the Securities Act and
             Sections 10(b) and 13(b)(5) of the Exchange Act and Rules
             10b-5 and 13b2-1 thereunder), and ordering him to pay a
             $12,000 civil penalty.

                  In a related action, the Commission today instituted
             and simultaneously settled an administrative proceeding
             against Jeff Bergman, a business associate of DeSimone,
             finding that Bergman participated in the falsification of
             Northstar’s 1994 financial statements by providing Northstar
             with checks and an audit confirmation letter to support the
             recording of fictitious consulting fees earned by a
             Northstar subsidiary.  The Commission’s order finds that
             Bergman’s conduct resulted in Northstar’s overstatement of
             revenue by $167,750 for fiscal 1994.  Without admitting or
             denying the allegations, Bergman consented to the entry of
             the Commission’s order requiring him to cease and desist
             from violating or committing any future violations of the
             antifraud provisions of the federal securities laws.  (In
             the Matter of Jeff Bergman, Rel. Nos. 33- 7669; 34-41316;
             AAER                1128; File No. 3-9879).