UNITED STATES SECURITIES AND EXCHANGE COMMISSION

  LITIGATION RELEASE NO.   15941 / October 20, 1998



 SECURITIES AND EXCHANGE COMMISSION v. Richard Warren &
 Associates, Inc., et. al., Civil Action No. C-97-3050MMC
 (USDC ND CA/San Francisco Div.)

      The U.S. District Court for the Northern District of
 California granted  permanent injunctions against Richard
 Warren & Associates, Inc. ("RWA"), and Richard E. Warren
 ("Warren") on October 13, 1998. The Court's order enjoins
 them from violating Section 17(a) of the Securities Act of
 1933 ("Securities Act"), Section 10(b) of the Securities
 Exchange Act of 1934 ("Exchange Act") and Rule 10b - 5
 thereunder. The order also requires RWA and  Warren, jointly
 and severally, to disgorge $7.2 million plus interest and
 requires relief defendant Citadel Enterprises Ltd.
 ("Citadel"), an Isle of Man entity, to disgorge $2.05
 million plus interest.

      The Commission's August 1997 complaint charged that RWA
 and Warren raised approximately $8 million from investors
 nationwide through two fraudulent offerings of securities.
 RWA and Warren misrepresented, among other things, the
 existence of prime bank debenture instruments, the use of
 investor proceeds, the rates of return, and the risks
 associated with the investment. Citadel received investor
 proceeds fraudulently obtained by RWA and Warren and held
 them in London bank accounts.

      On August 19 and 28, 1997, respectively, the Court
 entered a temporary restraining order and a preliminary
 injunction against RWA and Warren. On August 26, 1997  the
 Chancery Division of the High Court of Justice of England
 and Wales granted the Commission's petition for a "mareva
 injunction" against RWA and Warren. That  injunction froze
 the assets held world-wide by RWA and Warren and required
 them to disclose all such assets to the High Court.

      For more information, see Litigation Release nos. 15468
 (September 2, 1997) and 15455 (August 22, 1997).