U.S.  SECURITIES AND EXCHANGE COMMISSION


             Litigation Release No.   15938 / October 19, 1998

 SECURITIES AND EXCHANGE COMMISSION v. ROB NITE; PHILIP L.
 THOMAS; and DAVID V. SIMS, CIVIL ACTION No. 97-6546  DDP (RZx)
 (C.D. Cal)

     On September 30, 1998, the District Court for the Central
 District of California entered summary judgment against Rob
 Nite, the sole remaining defendant in the Commission's action
 filed on September 3, 1997.  In the judgment, Nite was
 permanently enjoined from future violations of the antifraud
 provisions of Section 17(a) of the Securities Act of 1933
 ("Securities Act") and Section 10(b) of the Securities Exchange
 Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder.  Nite
 was also ordered to pay $3,678,500 in disgorgement plus
 prejudgment interest thereon and $100,000 in civil penalties.
 Nite is currently incarcerated in Missoula, Montana, where he
 is awaiting trial for conspiracy to commit fraud, wire fraud,
 bank fraud and interstate transportation of stolen property,
 charges unrelated to the Commission's action.  Judgments
 against the other two defendants, Philip L. Thomas and David V.
 Sims, were entered on March 2, 1998.  Thomas and Sims, without
 admitting or denying the allegations in the Commission's
 complaint, consented to the entry of final judgments
 permanently enjoining them from future violations of the
 antifraud provisions of Section 17(a) of the Securities Act and
 Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.

     The Commission's complaint, filed in federal district
 court, alleged that Nite, Thomas and Sims conducted a multi-
 million dollar fraudulent investment scheme involving the
 fictional trading of securities purportedly issued by major
 international banks.  The complaint alleged that from July 1994
 through October 1994, the defendants, Nite, age 47, Thomas, age
 43 and Sims, age 47, offered and sold to the public interests
 in a phony program to trade these purported securities,
 amassing approximately $3.7 million.  For their investment, the
 victims were promised astronomical returns on relatively small
 investments.  Specifically, the complaint alleges that the
 defendants guaranteed the victims that for an initial
 investment of either $50,000 or $150,000, they would receive
 returns of $1 million per week for 40 weeks, or $40 million.
 Contrary to their promises, the defendants did not invest the
 victims' funds, but instead misappropriated the funds for their
 own personal benefit, including donations to religious
 organizations, purchases of luxury automobiles and gifts to
 family members.