SECURITIES AND EXCHANGE COMMISSION
                         WASHINGTON D.C.

Litigation Release No. 14975 / July 9, 1996

SECURITIES AND EXCHANGE COMMISSION v. RICHARD M. LAMBERT, 95 Civ.
1232, RSP-DS (N.D.N.Y.).

On March 27, 1996, the United States District Court for the
Northern District of New York enjoined Richard M. Lambert
("Lambert") from future violations of 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. Civil penalties
were not imposed upon Lambert based upon his demonstrated
inability to pay them. 

The Commission's Complaint in this matter, filed on August 29,
1995, alleged that Lambert, an Onondaga County resident, violated
the antifraud provisions of the federal securities laws in
connection with his solicitations of investments in the
securities of Asset Management Group II, Inc. ("AMG II"), E.C.B.
Financial, Inc. ("ECB"), and other securities. Specifically, the
Complaint alleged that, from in or about December 1991 to in or
about August 1993, Lambert, in connection with such
solicitations, made numerous false and misleading statements to
investors. For example, the Complaint alleged that Lambert
falsely told investors that he would invest their money in AMG
II, ECB, and other securities when, in fact, he used the
investors' money for his own personal benefit. The Complaint also

alleged that Lambert made misrepresentations and omissions of
material fact as to, among other things, the rates of return that
investors in AMG II and ECB would receive and the degree of risk
accompanying investments in AMG and ECB. The Complaint further
alleged that Lambert raised approximately $880,000 from at least
eleven investors. 

Lambert consented to the entry of the injunction without
admitting or denying the allegations in the Commission's
Complaint. Lambert has also been convicted on criminal charges
arising from the foregoing activities, and, in connection with
his criminal conviction, has been ordered to pay restitution to
the defrauded investors. For additional information, see
Litigation Release No. 14621.