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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 15175 / December 3, 1996

SECURITIES AND EXCHANGE COMMISSION v. ROBERT C. COWAN, et al.,
5:96-CV-0224-C, USDC, ND/TX (Lubbock Division)

     The Securities and Exchange Commission ("Commission")
announced that on November 21, 1996, Robert C. Cowan ("Cowan"),
individually, and on behalf of Cowan Asset Management, Inc.,
("CAMI"), an investment adviser registered with the Commission,
agreed to the entry of a preliminary injunction. The injunction
preliminarily enjoins Cowan from 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, CAMI from
violations of Sections 206(1), (2), and (4) of the Investment
Advisers Act of 1940, and Rule 206(4)-2 thereunder, and Cowan
from aiding and abetting any CAMI violations. Also, on November
21, the Court appointed a Special Master to receive and liquidate
the assets of Cowan, individually and doing business as CS
Investments Trust ("CSI"), and CAMI to prevent waste and the
dissipation of Cowan's and CAMI's assets to the detriment of
investors.  

      According to the complaint filed on November 5, Cowan
raised between $1 million and $3 million from his customers for
the purpose of purchasing trust units in CSI. In fact, according
to the complaint, CSI does not exist, apart from Cowan's
misrepresentations and created records, and does not hold
securities or funds for customers; rather, Cowan used customers'
funds for his personal expenses, and to satisfy periodic payments
and redemptions for his customers as part of a "ponzi" scheme. 
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ROBERT C. COWAN AGREES TO PRELIMINARY INJUNCTION AND COURT
APPOINTS A SPECIAL MASTER

     The Commission announced that on November 21, 1996, Robert
     C. Cowan (Cowan), individually, and on behalf of Cowan Asset
     Management, Inc., (CAMI), an investment adviser registered
     with the Commission, agreed to the entry of a preliminary
     injunction. The injunction preliminarily enjoins Cowan from
     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, CAMI from violations of Sections
     206(1), (2), and (4) of the Investment Advisers Act of 1940,
     and Rule 206(4)-2 thereunder, and Cowan from aiding and
     abetting any CAMI violations. Also, on November 21, the
     Court appointed a Special Master to receive and liquidate
     the assets of Cowan, individually and doing business as CS
     Investments Trust ("CSI"), and CAMI to prevent waste and the
     dissipation of Cowan's and CAMI's assets to the detriment of
     investors.  

     According to the complaint filed on November 5, Cowan raised
     between $1 million and $3 million from his customers for the
     purpose of purchasing trust units in CSI. In fact, according
     to the complaint, CSI does not exist, apart from Cowan's
     misrepresentations and created records, and does not hold
     securities or funds for customers; rather, Cowan used
     customers' funds for his personal expenses, and to satisfy
     periodic payments and redemptions for his customers as part
     of a "ponzi" scheme.[Securities and Exchange Commission v.
     Robert C. Cowan, et al., 5:96-CV-0224-C, USDC, ND/TX] 
     (LR-     )



PHILLIP W. OFFILL, JR.
Trial Counsel
Fort Worth District Office
817/978-6450