U.S. SECURITIES AND EXCHANGE COMMISSION



     Litigation Release No.  15762 / May 29, 1998

     U.S. v. JOHN D'ACQUISTO 98-CR-1703-K (S.D. Cal.)

          The U.S. Attorney for the Southern District of California and the
     Securities and Exchange Commission announced that on May 28, 1998, a
     federal grand jury in San Diego charged John D'Acquisto with 39 counts of
     wire fraud and money laundering in connection with a scheme to defraud
     investors.  The indictment alleges that D'Acquisto raised approximately
     $7,000,000 from investors through false, fraudulent and misleading
     representations.  The indictment further alleges that D'Acquisto
     represented that his investment programs would pay investors returns of
     five to seven and one-half percent per week and that certain investment
     transaction reports sent to investors falsely claimed that the investments
     had grown by millions of dollars.  D'Acquisto allegedly used some of the
     proceeds to purchase a $71,148.17 Porsche, three race horses costing
     $530,000; and an escrow payment of $100,000.

          In connection with these charges, D'Acquisto faces up to five years
     imprisonment and a $250,000 fine on each of the 26 counts of wire fraud,
     and up to 20 years imprisonment and a $500,000 fine on each of the seven
     counts of money laundering.  D'Acquisto also faces up to 10 years
     imprisonment and a $250,000 fine for each of the six counts of engaging in
     monetary transactions in property derived from a specified unlawful
     activity. 

          In September 1995, D'Acquisto was enjoined in a civil fraud action
     brought by the Securities and Exchange Commission and then subsequently
     ordered to pay $7,421,471.27 in disgorgement for his participation in the
     same fraudulent scheme.  In a subsequent administrative hearing, the
     Commission issued an opinion finding that it was in the public interest to
     revoke D'Acquisto's investment adviser registration and bar him from
     further association with any investment adviser. 

          For further information, please see Litigation Release Nos. LR-14562,
     LR-14681, LR-15140, and LR-15636.













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