FOR IMMEDIATE RELEASE                                  98-74

           SEC, FTC and NASAA Crack Down on Fraud 
              in the Entertainment Industry,
                 File Dozens of Fraud Cases 
                in Federal and State Courts

     Washington, DC, August 11, 1998 -- The Securities and
Exchange Commission today joined forces with the Federal Trade
Commission and the North American Securities Administrators
Association in filing dozens of fraud cases against scam artists
in the entertainment industry.

     The SEC filed four cases in Federal court, three in Los
Angeles and one in Salt Lake City.  One of the Los Angeles cases
is under seal and cannot be discussed at this time.

     Richard H. Walker, Director of the SEC's Enforcement
Division, said, "Investment opportunities come in all shapes and
sizes.  So, too, does fraud.  Scam artists are forever seeking
novel ways to rip people off.  Witness the rise in microcap stock
scams on the Internet.  The cases we bring today are a shot
across the bow of present and future fraudsters:  First, whether
they work on Wall Street or in Hollywood, we're going to catch
them; second, fraud on the Internet and in the microcap market
will not be tolerated; and third, with the help of investors who
do their homework before they buy securities, the SEC can help
prevent fraud before it happens."

     Mr. Walker commented on the importance of teaming with other
agencies, saying, "The cases we present today demonstrate the
SEC's desire to work closely with fellow regulators and
enforcement agencies to bring maximum resources to bear on fraud
in the markets."

     Mr. Walker also noted the crucial role that investors play
in preventing fraud and policing the markets.  He said, "When a
stranger calls you at home guaranteeing unbelievable returns on
your investment, or when a glossy package arrives in your mailbox
promising a deal that's just too good to pass up, remember that
if it sounds too good to be true, it probably is a scam.  Before
you buy securities from a stranger check with the SEC or your
state's securities administrator to make sure the investment is
registered.  If not registered, your investment will involve less
disclosure and more risk.  And importantly, read the prospectus
before making an investment and ask questions if you don't
understand something.  With this type of teamwork we'll be able
to stop the fraudsters before they claim their next victim."

                                


Summary of the three cases brought by the SEC:

I. Operation: Desert Gold

     The first case involves the production of a motion picture
called Operation: Desert Gold.  The SEC alleges that between
November 1995 and December 1997, the defendants raised
approximately $8 million by selling general partnership units to
about 600 investors nationwide.  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 percent 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.

II. Casino Cruises

     The second case involves cruise ship gambling.  The
Commission has sued seven individuals who used a fraudulent stock
scheme to raise nearly one million dollars from more than one
hundred investors nationwide.  Between June 1997 and January
1998, investors were told that Casino Cruises and BRW Leasing
Services would operate the first gaming cruise ship off the coast
of Southern California by Summer 1998.  Well, the Summer of `98
is nearly gone and no ship has been purchased.  Instead, the
individuals paid about $100,000 in commissions to sales agents
and kept nearly a half million dollars for themselves.

III. American Gladiators Live Performances

     The third case involves attempts to stage live performances
of American Gladiators.  The SEC alleges that Chariot
Entertainment violated various provisions of federal securities
law in its attempts to finance the American Gladiators stage
shows outside a Las Vegas hotel.  The shows were never produced.
Chariot sought to go public by merging with a shell company
listed on NASDAQ.  To meet NASDAQ listing requirements, the
defendants developed and executed a scheme to acquire $5 million
in certificates of deposit, ostensibly issued by a Russian bank,
but in reality created at a Kinko's copy shop in Florida.
Chariot was to finance acquisition of the CDs through the sale of
newly issued stock which superficially met the requirements of
Regulation S, but which was actually issued to a California
corporation.  Finally, Chariot failed to disclose that it
violated its lease agreement with the Las Vegas hotel by failing
to obtain a performance bond and to make required payments.

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