98-14                              
Media Contact:
Chris Ullman, (202) 942-0020
                                
            SEC PROPOSES SEVERAL MEASURES TO COMBAT                      
           SECURITIES FRAUD AND ISSUES STATUS REPORT
           ON COMMISSION-WIDE MICROCAP FRAUD EFFORTS

     Washington, DC, February 10, 1998--The Securities and
Exchange Commission today proposed several new regulatory
measures to combat microcap securities fraud and it issued a
status report on the Commission's comprehensive, coordinated
efforts to reduce fraud among these lower priced stocks.  The
Commission has a three-pronged approach to minimizing microcap
fraud: enforcement, investor education and regulation.

     "By considering measures to strengthen our regulations to
reduce microcap fraud, we will  send an unmistakable signal -- to
market participants and investors alike:  The Commission is firm
in its resolve to protect America's markets from schemers who
would skirt the law, scam the system, and swindle the investing
public," said SEC Chairman Arthur Levitt.

     Microcap companies are typically thinly capitalized and are
often not required to file periodic reports with the SEC.
Securities of microcap companies may be quoted on the Over-the-
Counter Bulletin Board operated by the National Association of
Securities Dealers, Inc., in the Pink Sheets operated by the
National Quotation Bureau, and on the Nasdaq Small Cap Market.
In any of these trading mediums, public information is limited
and a small number of brokers control the market.

     The "pump and dump" scheme is a typical microcap fraud.  It
often involves fraudulent sales practices, including high
pressure tactics from "boiler room" operations where a small army
of sales personnel cold call potential investors using scripts to
induce them to purchase "house stocks" -- stocks in which  the
firm makes a market or has a large inventory.  The information
conveyed to investors often is at best exaggerated and at worst
completely fabricated.  Increasingly, these stocks also are being
touted on the Internet by unregistered promoters.  The promoters
of these companies, and often company insiders, typically hold
large amounts of stock and make substantial profits when the
stock price rises following intense promotional efforts.  Once
the price rises, the promoters, insider and brokers sell,
realizing their profits.

     "In undertaking these revisions, we are sensitive to any
inadvertent impact these proposals may have on the liquidity of
thinly-traded issues," Chairman Levitt said.  He added,
"Nevertheless, we recognize that -- as professionals in a
regulated industry -- market-makers must be more that mere order-
takers.  In publishing a price quotation, a market-maker lends
credibility to a security.  But if he doesn't know anything about
the security, he does a disservice to the investor -- and to
himself."

     Investors seeking additional information should contact the
SEC at (800) SEC-0330, or through our website at www.sec.gov.

     Attached is a list of measures investors should take to
protect themselves.
                           #    #    #
                                
                                
         INVESTIGATE BEFORE YOU INVEST
                       
     Before handing over your hard-earned
     money, take the time to investigate.

     1.   Ask Questions.  Call your state's
       securities regulator, and ask:

       *    Is the investment registered?
       *    Are the broker and the firm 
            licensed to do business 
            in my state?

       You can get that number by
       calling the North American
       Securities Administrators
       Association toll-free at (888)
       846-2722.

     2.   Know Your Broker.  Ask your
       state's securities regulator if
       they've received complaints
       against either the broker or the
       firm pushing the deal.  Or call
       the National Association of
       Securities Dealers' toll-free
       public disclosure hot-line at
       (800) 289-9999.

     3.   Know the Investment.  How long
       has the company been in business?
       What are its products or services?
       Has the company made money for
       investors before?

     4.   Get the Facts in Writing.  Don't
       get swept away by a sales pitch.
       Ask for - and read carefully - the
       company's prospectus or latest
       annual report.
          
     For more tips on how to invest wisely
     and protect yourself against
     investment fraud, call the U.S.
     Securities and Exchange Commission
     toll-free at (800) SEC-0330, or visit
     our website at www.sec.gov.  Our free
     publications include:

       Ask Questions: Questions you should
       ask about your investments, the people
       who sell them, and what to do if you
       run into problems.
                       
       Cold Calling: Tells you the rules on
       cold calling, how to deal with cold
       calls, how to stop them, and how to
       evaluate any investment opportunity to
       comes your way over the telephone.