UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 14913 / May 17, 1996

SEC v. Robert L. Citron and Matthew R. Raabe, 
Civil Action No. SACV 96-0074 GLT (EEx) (C.D.Cal.)

DISTRICT COURT ENTERS JUDGMENT AGAINST CITRON AND RAABE

     The United States Securities and Exchange Commission
announced that on May 9, 1996, the Honorable Gary L. Taylor,
United States District Court for the Central District of
California, entered final judgments of permanent injunction
against Robert L. Citron and Matthew R. Raabe.

     In its Complaint filed January 24, 1996, the Commission
charged former Orange County Treasurer-Tax Collector Robert L.
Citron and former Assistant Treasurer Matthew R. Raabe with
violations of the antifraud provisions of the federal securities
laws, Section 17(a) of the Securities Act of 1933 and Section
10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
thereunder.  Citron and Raabe, without admitting or denying the
allegations in the Complaint, consented to the entry of final
judgments of permanent injunction, enjoining them from future
violations of the antifraud provisions.  In addition, they agreed
to cooperate with Commission staff in the continuing
investigation and any resulting litigation.

     The Complaint concerned the fraudulent offer and sale of
over $2.1 billion in municipal securities issued in 1993 and 1994
by Orange County, the Orange County Flood Control District, and a
school district located within Orange County.  The Complaint
alleged that Citron and Raabe made material misstatements and
omissions of fact in the Official Statements for eleven municipal
securities offerings, regarding:

     ú    the Orange County Investment Pools, including the
          County Pools' investment strategy and investment
          results, manipulation of the County Pools' yield and
          investment in the County Pools of the funds pledged to
          repay the municipal securities.  These matters affected
          the issuer's ability to repay the securities and the
          County Pools' ability to perform under agreements to
          repurchase or provide for repayment of the securities;

     ú    Orange County's financial condition, including its
          economic reliance on interest income from the County
          Pools as a source of funds to repay the purchasers of
          the securities;

     ú    the tax-exempt status of certain offerings;

     ú    an undisclosed interest rate cap on variable rate
          securities sold in certain offerings; and
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     ú    the unauthorized use of an audit report in certain
          offerings.

In addition, Raabe made misrepresentations to national securities
rating agencies concerning the County Pools in connection with
certain offerings.