UNITED STATES SECURITIES AND EXCHANGE COMMISSION
     LITIGATION RELEASE NO. 15622 / January 21, 1998

     SECURITIES AND EXCHANGE COMMISSION v. Daniel E. Schneider, et al.,  et.
     al., Civil Action No. 98-CV-0014-D (USDC Wyo.)

          The Commission announced today that it obtained an emergency
     restraining order prohibiting the illegal sale of bonds, purportedly backed
     by gold, issued in the 19th century by the now defunct Chicago, Saginaw and
     Canada Railroad Co. (Saginaw).  These bonds, according to the complaint,
     are worthless as investments, having value only as historical memorabilia. 
     The order also prohibited the fraudulent sale of interests in a prime bank-
     type trading program.  Judge William F. Downes entered his temporary
     restraining order on January 20, 1998, against Daniel E. Schneider
     (Schneider), a resident of Worland, Wyoming, and related entities Global
     American Prosperity Foundation (GAPF) and Financial Sovereign Acquisition
     Trust (FAST).  The Order also granted a freeze of assets held by Schneider,
     GAPF and FAST, an accounting and repatriation of assets.  The Commission's
     complaint alleged that during 1997, Schneider, GAPF and FAST raised a total
     of at least $2 million from six, and possibly more than 30, investors
     nationwide through the sale of Saginaw bonds and through a bank debenture
     trading program in which the Saginaw bonds or other assets purportedly
     could be used to generate substantial returns.

          Schneider, GAPF and FAST represented that the Saginaw bonds, which
     were offered at $40,000 each, were backed by gold bullion and worth up to
     $100 million each and that investors would receive at least a 30 percent
     return on their investment.  In offering interests in the  trading program,
     Schneider, GAPF and FAST represented that "top" world bank debentures
     existed and traded in a legitimate market, investors would receive returns
     of at least 15 percent per month, and investor funds would be invested in a
     trading program.  Schneider, GAPF and FAST misrepresented, among other
     things, the value of the Saginaw bonds, which in fact have only nominal
     value as historical memorabilia.  Schneider, GAPF and FAST also
     misrepresented the existence of prime bank-type securities, rates of return
     investors were to receive, and the use of investor proceeds.  Schneider
     diverted more than $196,000 of investor funds to purchase real estate or
     for other personal uses.  The Commission alleged that through their false
     and misleading statements, Schneider, GAPF and FAST violated the antifraud
     provisions, Section 17(a) of the Securities Act of 1933 and Section 10(b)
     of the Securities and Exchange Act of 1934 and Rule 10b-5 thereunder.  

          In the temporary restraining order, Judge Downes also ordered two
     named relief defendants, California resident Norman Fadel (Fadel) and Utah
     resident Ken Karlson (Karlson) to freeze assets derived from the fraud of
     Schneider, GAPF and FAST.  Fadel and Karlson received approximately $96,000
     and $354,000, respectively, from Schneider, GAPF and FAST.  The Commission
     requested the 

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     emergency action to prevent Schneider, GAPF, FAST, Fadel and Karlson from
     transferring or liquidating any funds.

          This fraud was uncovered initially by the Securities Division of the
     Wyoming Secretary of State's Office which worked closely with the
     Commission in obtaining emergency relief.  The Commission wishes to thank
     the Wyoming Secretary of State's Securities Division for its assistance in
     this matter.  













































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