UNITED STATES SECURITIES AND EXCHANGE COMMISSION

  LITIGATION RELEASE NO. 16089 \ March 17, 1999

  SECURITIES AND EXCHANGE COMMISSION v. BENJAMIN FRANKLIN COOK,
  individually and dba DENNEL FINANCE LIMITED, GERALD LEE PATE, ELLSWORTH
  WAYNE McLAWS and ALAN CLAGG, et al., 3:99CV0571-X,  USDC, ND/TX
  (Dallas Division)

       On March 16, 1999, Judge Jerry Buchmeyer, United States District
  Judge for the Northern District of  Texas, granted the Commission's
  request for a temporary restraining order to halt a fraudulent scheme
  to offer and sell unregistered "prime bank" securities throughout the
  United States. In connection with the scheme, approximately $30 million
  has been raised from more than 100 investors nationwide. The fraudulent
  trading program was developed by Benjamin Franklin Cook ("Cook") and
  his company, Dennel Finance Ltd ("Dennel"), and marketed to investors
  chiefly by Gerald Lee Pate ("Pate"), Ellsworth Wayne McLaws, ("McLaws")
  and Alan Clagg ("Clagg"), all named as defendants in this matter.

       According to the Commission's complaint, the defendants targeted
  religious and charitable groups and persons investing retirement funds.
  To induce investment in the scheme, the defendants misrepresented the
  use and safety of investor funds.   Defendants represent, for example,
  that investor funds will be transferred to a London bank, secured by a
  bank guarantee and used as collateral to trade financial instruments
  with top 50 European banks.  This trading activity, investors are told,
  will provide them with annual returns of 24 to 60 percent.  In reality,
  the prime bank program marketed to investors does not exist.  Dennel
  has not sent any funds to Europe for use in a trading program and funds
  have not been secured by any type of guarantee.  Rather, defendants
  have misappropriated investment funds for personal and unauthorized
  uses, including making Ponzi payments to existing investors with funds
  provided by new investors.

       The Court also entered an order freezing the assets of the
  defendants as well as  FPC-1 Limited Partnership, Samuel Limited
  Partnership, Alliance Investments Corp., Cornerstone Management LLC,
  International Business Consultants Limited, Highlander Limited
  Partnership, and C. Kelly Olsen (collectively "relief defendants"),
  named as defendants solely for relief purposes, and ordered the
  defendants and relief defendants to account for investor monies and to
  repatriate any funds not subject to the jurisdiction of the Court.
  Additionally, the Court ordered the appointment of a receiver to take
  control of the assets of the defendants and relief defendants for the
  benefit of investors.

       The Commission is seeking preliminary and permanent injunctions
  enjoining Cook, Dennel, Pate, McLaws and Clagg from future violations
  of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, and
  Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act")
  and Rule 10b-5 thereunder, and Pate, McLaws, and Clagg from future
  violations of Section 15(a)(1) of the Exchange Act. The Commission also
  seeks disgorgement of funds and benefits the defendants obtained
  illegally as a result of the violations alleged, and civil penalties,
  as well as disgorgement from the relief defendants of illegally
  obtained investors funds they received from the defendants.

       This matter was jointly investigated by the Commission, the
  Securities Division of the Arizona Corporation Commission, and the
  Arizona Attorney General's office. The Commission appreciates their
  valuable assistance in bringing this case to litigation.