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                SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 14809 / February 1, 1996

SECURITIES AND EXCHANGE COMMISSION V. ROBERT L. SHULL, LEONARD E.
FIESSEL, COLLEEN A. FIESSEL, PATRICK A. COLLINS, MARK J. HAMEL,
ROBERT J. RAFFA, JEFFREY J. FERNANDEZ, MICHAEL J. MURPHY AND
WILLIAM CHO (United States District Court for the District of
Massachusetts, Civil Action No. 94-11759-REK). 

     The Securities and Exchange Commission announced on January
17, 1996, the entry of a final judgment by the Honorable Robert
E. Keeton of the United States District Court for the District of
Massachusetts against William Cho ("Cho").  The final judgment
against Cho permanently enjoins him from violating Sections 5(a),
5(c) and 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, and orders
disgorgement of $26,000.  Based upon the financial condition of
Cho, Cho was ordered to pay $20,000, and the remainder of
disgorgement was waived and no civil penalty was imposed.  Cho
consented to the entry of the final judgment without admitting or
denying the allegations in the Commission's Complaint, which was
filed on August 31, 1994.  Previously, Cho pleaded guilty to
criminal securities fraud charges.

     Specifically, the Complaint alleges that, from January 1993
to September 1993, Robert L. Shull ("Shull"), Leonard E. Fiessel
("L. Fiessel") and Colleen A. Fiessel ("C. Fiessel") agreed to
acquire a controlling interest in Fairmont Resources Inc.
("Fairmont"), to manipulate the price of Fairmont's stock and to
sell their holdings in Fairmont at prices that were artificially
enhanced by their manipulation.  The Complaint further alleges
that, as part of their scheme, Shull, L. Fiessel and C. Fiessel
paid kickbacks in the form of cash and/or stock at prices well
below market value to Cho and other defendants, each of whom was
a registered representative of a U.S. broker-dealer.  The
Complaint alleges that the kickbacks, the total value of which
were approximately six hundred thousand dollars ($600,000), were
essentially bribes to induce Cho and other defendants to
recommend and sell Fairmont stock to their U.S. retail brokerage
customers and resulted in the sale of over one million shares of
Fairmont stock to more than 150 residents in seventeen states. 
According to the Complaint, Cho and other defendants failed to
disclose the kickback arrangement to their customers.  Finally,
the Complaint alleges that the defendants' manipulative activity
caused the market price for Fairmont stock to increase over one
thousand percent (1000%) - from 30 cents (Canadian) per share to
$3.05 (Canadian) per share - in a period of less than six months,
and that Shull, L. Fiessel and C. Fiessel each realized illegal
profits of as much as $1 million from the scheme.  The federal
court previously entered orders enjoining Mark J. Hamel
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("Hamel"), Robert J. Raffa ("Raffa"), Jeffrey J. Fernandez,
Patrick A. Collins and Michael J. Murphy from future violations
of the securities laws and ordering disgorgement of $234,466,
$91,977, $30,665, $237,500, and $26,161, respectively.  The
Commission barred them from association with any broker, dealer,
municipal securities dealer, investment adviser or investment
company, and from participating in the offering of any penny
stock.  Raffa and Hamel also have pleaded guilty to criminal
securities fraud charges. 
  
     For further information, see Litigation Release Nos. 14213,
14342, 14352, 14441 and 14518.