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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Litigation Release No. 15028 / September 3, 1996

SECURITIES AND EXCHANGE COMMISSION v. NORTON et al. 95 Civ. 4451
(SHS)

The Securities and Exchange Commission ("Commission") announced
that, on March 22, 1996, Judge Sidney H. Stein, of the U.S.
District Court for the Southern District of New York, signed a
Final Judgment of Permanent Injunction and Other Equitable Relief
against Jeffrey S. Norton ( Norton ).  The injunction enjoins
Norton from future violations of Section 10(b) of the Securities
Exchange Act of 1934 and Rule 10b-5 thereunder, and requires
Norton to pay $824,198.94 in disgorgement and prejudgment
interest.  The judgment waived payment of disgorgement and
prejudgment interest and did not impose civil penalties based on
Norton s demonstrated inability to pay.  Norton consented to the
entry of the injunction against him without admitting or denying
the allegations of the complaint.  Norton, a 34 year old resident
of Salt Lake City, Utah, holds himself out as the Managing
Director of Sabre Investment Trust and the President and sole
officer of Sabre Credit Corporation ("Sabre Credit Corp.").  Both
are entities which appear to be nothing other than alter-egos of
Norton. The Commission s complaint against Norton, Donald C.
Reynolds ( Reynolds ), Edward T. Menster ( Menster ), and John A.
Tartaglia, which was filed on June 14, 1995, alleged that Norton
promoted a fraudulent "prime bank" scheme which resulted in
investors losing approximately $890,000.

In addition, the Commission announced that, on February 14, 1996,
Judge Stein granted the Commission's motion for a default
judgment against Reynolds for his failure to respond to the
complaint. Also, on January 22, 1996, Judge Stein signed a
Partial Final Judgment of Permanent Injunction against Menster
enjoining Menster from future violations of Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and
ordering him to pay disgorgement and civil penalties in an amount
to be determined later.  Menster consented to the entry of the
injunction against him without admitting or denying the
allegations of the complaint.
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The Commission s complaint alleged that the defendants raised
funds from investors by falsely promising them extraordinary
profits and a risk-free investment if they deposited funds in an
escrow account at a law firm.  The investors were told that their
funds would be used to facilitate Norton's purchase and sale of
instruments supposedly issued by the top banks in the world and
known as prime bank notes, letters of credit, bank debentures and
other prime bank instruments.  In fact, as alleged in the
Complaint, the investors' funds were misappropriated.  For
further information see LR-14529.  [SEC v. Jeffrey S. Norton,
Donald C. Reynolds, John A. Tartaglia, and Edward T. Menster,
USDC, S.D.N.Y., Civil Action File No. 95 Civ. 4451].