US. SECURITIES AND EXCHANGE COMMISSION

     Litigation Release No.  15800  / July  6, 1998

     Accounting and Auditing Enforcement
     Release No. 1051 / July 6, 1998

     SECURITIES AND EXCHANGE COMMISSION v. PAUL R. SAFRONCHIK, JEROME A. ADAMO,
     and DOUGLAS A. ROY, Civil Action No. SACV 98-416-GLT (EEx) (C.D. Cal., S.
     Dist.):  UNITED STATES v. DOUGLAS ANDREW ROY, SA CR 97-61-GLT

     In a criminal prosecution by the U.S. Attorney in Los Angeles, on June 29, 1998,
     Judge Gary L. Taylor, United States District Court for the Central District
     of California, Southern Division, sentenced Douglas A. Roy (Roy) to serve
     six months home detention, three years probation, and pay $31,000 in
     restitution.  From August 1993 through September 1995, Roy was the
     controller of Home Theater Products International, Inc. (HTPI).  On
     September 15, 1997, Roy pleaded guilty to an information filed by the
     United States Attorney for the Central District of California charging him
     with conspiracy to commit securities fraud by fraudulently inflating HTPI s
     accounts receivable.  United States v. Douglas Andrew Roy, SA CR 97-61-GLT. 
     Roy is the second of three senior executives of HTPI to be sentenced. 
     Jerome A. Adamo, the former president of HTPI, pled guilty on February 4,
     1998 to insider trading and was sentenced to serve six months home
     detention, two years probation and to pay a $50,000 fine.  United States v.
     Jerome A. Adamo, SA CR 98+2.  Paul R. Safronchik, the former chairman of HTPI, 
     pleaded guilty to conspiracy, bank fraud and securities fraud on December 9, 1996, 
     and is scheduled to be sentenced by Judge Taylor on August 3, 1998.  United States 
     v. Pablo Reuben Safronchik, aka Paul R. Safronchik, SA CR 96+141+GLT.  

     In a related civil action by the Commission, on June 3, 1998, Judge Taylor permanently 
     enjoined Roy from future violations of Section 17(a) of the Securities Act, Sections 
     10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5, 13b2-1 and 13b2-2, thereunder. 
     Roy consented, without admitting or denying the allegations in the Complaint, to a final 
     judgment permanently enjoining him and ordering him to pay disgorgement but waiving such 
     payment based upon his demonstrated inability to pay.  Securities and Exchange Commission 
     v. Paul R. Safronchik, Jerome A. Adamo, and Douglas A. Roy, Civil Action No. SACV
     98-416-GLT (EEx)]  (LR-15738; AAER 15738)
          
















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