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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 14766 / December 27, 1995

SECURITIES AND EXCHANGE COMMISSION v. KS RESOURCES, ET AL., Civil
Action No. 95-8608 WDK (AJWx) (C.D. Cal.).

     The Securities and Exchange Commission announced that on
December 19, 1995, the Honorable William D. Keller, United States
District Judge for the Central District of California, entered a
Temporary Restraining Order and Orders Freezing Assets,
Prohibiting the Transfer of Assets, Appointing a Temporary
Receiver, for Accountings, and Order to Show Cause Why a
Preliminary Injunction Should not be Granted against KS Resources
("KS"), Weststar Exploration, Inc. ("Weststar"), Lazar Frederick
& Company ("Lazar"), John K. Judd, Jr. ("Judd"), Mark D. Seigel
("M. Seigel"), Alexander L. Kahan ("Kahan"), Betty A. Rubin,
Guardian Industries, Inc. ("Guardian"), Pathfinder Minerals
Group, Inc. ("Pathfinder"), Alex Kahan Enterprises, Inc. ("AKE"),
Mid-West Production, Inc. ("Mid-West") and Jamie B. Seigel ("J.
Seigel") (collectively, the "Defendants").

     The Commission's complaint, filed December 19, 1995, alleges
that the Defendants fraudulently offered and sold securities in
the form of 29 oil and gas limited partnerships ("Partnerships")
from May 1993 through the present, raising approximately
$34,934,000 from at least 2,000 investors, many of whom are
elderly.  The Lazar sales agents cold-called prospective
investors and represented that the Partnerships would purchase
oil and gas lease interests which would pay investor returns and
that past Partnerships had paid between 10% to 12% annually.  In
fact, the Defendants pay a substantial portion of the so-called
"returns" with investor monies.  The Commission further alleges
that Defendants KS, Weststar, Judd, M. Seigel, and Kahan have
misused and misappropriated at least $6,034,483.35 of investor
monies.  Specifically, these defendants used investor monies:

     (a)  to pay KS $4,244,500;
     (b)  to pay the Partnerships $1,423,621.35 to supplement
monthly returns to investors; 
     (c)  to pay Pathfinder, owned by M. Seigel, $584,500 for
"Consulting, Commissions and Due Diligence;"
     (d)  to pay AKE, owned by Kahan, $568,500 for "Consulting,
Commissions and Due Diligence;"
     (e)  to pay Mid-West, owned by Judd, $40,000 for "Due
Diligence;"
     (f)  to pay J. Seigel $279,500 for "Consulting, Commissions
and Due Diligence," however, J. Seigel performs no services for
these monies;
     (g)  to "lend" Pathfinder and AKE $200,000, $100,000 of
which has not been repaid; 
     (h)  to "lend" Guardian, owned by M. Seigel and Kahan,
$223,500.00; 
     (i)  to pay $80,018.59 for lease expense, auto detailing and
insurance for three Mercedes-Benz automobiles, driven by Judd, M.
Seigel, and Kahan; 
     (j)  to pay $466,300 to Judd and Mid-West and as
"Consulting, Due Diligence, and Professional Fees;" of which
$194,250 was paid to Mid-West and $272,050 was paid to Judd.

     Further, KS paid Lazar a $1,460,000 "risk and exposure" fee
in addition to the disclosed payment of 18% of all monies raised.

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     The Court granted the asset freeze over bank and brokerage
accounts controlled by Defendants KS, Weststar, Judd, M. Seigel,
Kahan, Guardian, Pathfinder, AKE, Mid-West and J. Seigel.  The
court further appointed a temporary receiver over KS and
Weststar.  The hearing on the preliminary injunction will be held
on January 4, 1996 at 8 a.m.