Release:#3958-96

For Release:October 16, 1996

CFTC FILES CIVIL COMPLAINT AGAINST KENT ALLEN AHRENS OF YORK,
    PENNSYLVANIA, ALLEGING FRAUD UNDER THE COMMODITY EXCHANGE ACT

CFTC Also Has Pending Before the Court a Consent Order of Permanent
    Injunction Against Ahrens, to Enjoin Him from Violating Federal Commodity
    Law, to Bar Him from Registering with the CFTC, and to Order the Payment of
    $182,000 in Restitution

WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced
    the filing on October 15, 1996, of a civil injunctive complaint in the U.S.
    District Court for the Middle District of Pennsylvania against Kent
    Ahrens of York, Pennsylvania, alleging fraud, recordkeeping and
    registration violations under the Commodity Exchange Act (CEA) and CFTC
    regulations. Ahrens is not registered with the CFTC in any capacity.

Specifically, the CFTC complaint charges Ahrens with committing fraud by
    engaging in futures and options transactions contrary to clients'
    authorization, and misrepresenting the profits and losses from his
    trading.

The CFTC complaint alleges that while Ahrens was employed by First
    Capital Strategists, of York, Pennsylvania, he traded an "index arbitrage
    strategy" for clients of the firm, principally, The Common Fund, a
    not-for-profit membership organization which manages investments of
    university endowment funds.

The complaint alleges that Ahrens's method of trading, including
    extensive "day trading" of futures, "increased the risks in the arbitrage
    program significantly." The Complaint also alleges that Ahrens, after
    experiencing a loss due to an unhedged position sometime in, or about, 1992
    decided to attempt to recoup the loss by assuming a substantial,
    speculative position in S&P 500 futures contracts, or the equivalent in
    options or securities.

Losses Totalling $137 Million Accumulated by June 1995, the Complaint
    Alleges

The complaint further alleges that Ahrens thought the S&P Index
    would decline, and so he placed a directional bet for The Common Fund's
    account on the short side of the market. Over an approximately three-year
    period, according to the Complaint, Ahrens increased the size of his "short
    position" to the equivalent of more than 2,500 S&P futures contracts,
    which, as the S&P Index increased almost continuously, resulted in
    losses totalling about $137 million by June 1995.

The complaint states that Ahrens funded the short position through the
    sale of The Common Fund's securities. The complaint also alleges that
    Ahrens was able to conceal the loss largely because he was responsible for
    accounting for his trading results, and he thus reported to First Capital
    Strategists significant profits in the arbitrage strategy, which First
    Capital Strategists reported to The Common Fund in monthly statements.

Simultaneously with the filing of the CFTC's complaint, the CFTC has
    requested that the court enter a consent order of permanent injunction
    against Ahrens, which would permanently enjoin him from violating the CEA
    and CFTC regulations, as charged, and would prohibit Ahrens from ever
    seeking registration with the CFTC and order him to pay restitution in the
    amount of $182,000. This request is pending before the court.

U.S. Attorney's Office and the SEC Also File Charges Against
    Ahrens

In addition to the CFTC's action, the United States Attorney's Office
    for the Middle District (Harrisburg, Pennsylvania) filed criminal charges
    against Ahrens, and the Securities and Exchange Commission filed an
    injunctive action against Ahrens alleging violations of the securities
    laws.

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