FOR IMMEDIATE RELEASE                             98-92

        SEC Charges 41 People in 13 Actions Involving
           More Than $25 Million in Microcap Fraud
                              
       Fight Against Microcap Fraud "Paying Dividends"

     Washington, DC, September 24, 1998 -- The Securities
and Exchange Commission announced today the filing of
thirteen enforcement actions against forty-one defendants
across the country for their involvement in fraudulent
microcap schemes that bilked investors of more than $25
million.  Some of the fraudulent schemes involved bogus
medical "breakthroughs," sham hotel renovations, phony stock
certificates and the stock manipulation of on-line
department store Shopping.com.

     In nine injunctive actions and two administrative
proceedings the SEC alleges that the defendants violated the
antifraud provisions of the federal securities laws by
manipulating thirteen microcap stocks.  In many of these
cases the defendants engaged in "pump and dump" schemes and
manipulated the stock price of microcap companies by
disseminating materially false and misleading information
about the financial condition, business relationships and
future stock price of those companies, among other things.

     SEC Director of Enforcement Richard H. Walker said, "We
are dedicated to ferreting out and prosecuting those who
prey on innocent investors.  Our actions against the scam
artists charged in today's actions, who issue and sell these
phony investments, demonstrate that the Commission's
coordinated attack against microcap fraud is paying
dividends."

     The defendants in these cases profited from the fraud,
often by selling cheap insider stock after pumping up the
stock price, receiving a total of approximately
$25 million in ill-gotten gains.  Among the schemes:

     *   A Florida company allegedly in the business of building
       golf practice facilities instead taught its investors an
       expensive lesson.  The company was really running a Ponzi
       scheme, cheating more than 350 investors in 16 states out of
       approximately $15 million. (SEC v. James T. Staples, et al.)

     *   A Utah company claimed to have developed a new data
       transmission technology called "Digital Wave Modulation,"
       and the company's stock soared from $3.50 to more than $40 a
       share.  Prices collapsed when the company failed to produce
       a promised prototype, but not before the company's chairman
       and his children sold approximately $3 million worth of
       their shares in this  classic "pump and dump" scheme. (SEC
       v. International Automated Systems, Inc., et al.)

     *   A biotech firm in Las Vegas falsely claimed the company
       had an exclusive license to market "breakthrough" medical
       devices.  The company also lied about its efforts to market
       a new line of nutritional supplements. (SEC v. Bio-Tech
       Industries, Inc., et al.)
     
     *   Con artists in South Florida sold unregistered shares
       in bogus hotel renovation and condominium projects.  In
       fact, they printed the certificates themselves and kept the
       money from their sale.  (SEC v. VII Visionary Investments,
       Inc., et al.)

     *   A Los Angeles area broker-dealer racked up more than $4
       million for itself by rigging the market for shares of an on-
       line retailer, Shopping.com.  (SEC v. Waldron & Co., Inc.)
     
     *   The Commission charged three defendants with publishing
       purportedly "independent" news reports about 50 microcap
       companies that paid the defendants almost $400,000 in stock
       and cash to promote them.  The newsletter was sent to
       approximately 60,000 readers each month. (SEC v. Hall, et
       al.)

     SEC Chairman Arthur Levitt said, "Putting microcap
fraudsters out of business is a top priority of this
Commission, and I am pleased with the progress we've made.
Investors can help this effort and protect themselves by
asking tough questions, not giving their money to strangers
and reporting suspicious behavior.  While securities fraud
may never become extinct, we are working to put microcap
fraudsters on the endangered species list."
                              

     Prior to charging the defendants in these actions, the
Commission had suspended trading in the stock of eight of
the issuers involved in the pump and dump schemes for a
single, ten-day period based on the dissemination of false
and misleading information about the companies.  The
Commission's suspension of trading stopped the ongoing
manipulations and placed an additional burden on broker-
dealers to update their files with accurate information
about the companies, pursuant to Rule 15c2-11 under the
Securities Exchange Act of 1934, before they resumed or
began quoting the securities.

Preventing Microcap Fraud

     The SEC encourages investors to get the facts before
they invest.  They should call the SEC or their state's
securities regulator to find out whether the investment is
registered.  They should also ask their state's securities
regulator whether the broker and the firm are licensed to do
business in the state and whether either has a history of
complaints.

     Investors should avoid being swept away by a sales
pitch, especially one that promises spectacular returns or
emphasizes unproven products in development.  They should
learn as much as they can about the company, including how
long it has been in business, what its products or services
are, and whether it has made money for investors in the
past.  If the investment is touted by broadcast or print
media or on the Internet, investors should ask whether
payments have been made to promote the investment.

     For more tips on how to invest wisely and protect
against investment fraud, investors should call the SEC toll-
free at (800) SEC-0330 or visit the SEC's website at
www.sec.gov.

     These enforcement actions are part of the Commission's
four-pronged approach to attacking microcap fraud:
enforcement, inspections, investor education and regulation.
For more information about the SEC's response to Microcap
fraud and the litigation releases for each of these cases,
visit the SEC's Microcap Fraud Information Center at
http://www.sec.gov/news/extra/microcap.htm.

     The SEC acknowledges the valuable assistance of the
staff of the National Association of Securities Dealers
Regulation, Inc. in referring a number of these matters.

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