UNITED STATES SECURITIES AND EXCHANGE COMMISSION


              Litigation Release No. 15815/July 17. 1998

              Securities and Exchange Commission v. Norman Greg Cornelius, et
              al., 4:97CV379, USDC, ND/TX, Fort Worth

                   The Securities and Exchange Commission ("Commission")
              announced on that on March 9, 1998, a Final Judgment was entered
              against Norman Greg Cornelius in United States District Court,
              Fort Worth, Texas. Without admitting or denying the allegations in
              the Commission's complaint, Cornelius consented to be permanently
              enjoined 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, and Rule 10b-5 thereunder.

                   The Commission's complaint alleged, among other things, that
              Cornelius, doing business as Avalon Custom Homes, Inc., raised
              approximately $12 million from more than 400 investors, primarily
              through the sale of unregistered promissory notes.  The complaint
              also alleged that Cornelius misrepresented to investors that all
              of their funds would be invested in separate companies, for the
              most part limited liability companies, to build residential
              housing; and that such investments were low risk.  Instead,
              according to the complaint, at least $653,917 of the amount was
              misapplied by Cornelius, additional amounts were commingled
              between and among the limited liability companies, and the
              investments were, in fact, high risk ventures unsuitable for many
              of the elderly investors to whom they were sold.

                   The Final Judgment ordered Cornelius to pay disgorgement in
              the amount of  $653,917, plus prejudgment interest; however,
              payment was waived based on Cornelius' demonstrated financial
              inability to pay. Also, the Court did not impose a civil money
              penalty based on Cornelius' poor financial condition.


              NORMAN G. CORNELIUS PERMANENTLY ENJOINED

                   The Commission announced on that on March 9, 1998, a Final
                   Judgment was entered against Norman Greg Cornelius in United
                   States District Court, Fort Worth, Texas. Without admitting
                   or denying the allegations in the Commission's complaint,
                   Cornelius consented to be permanently enjoined 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, and Rule 10b-5 thereunder.

                   The Commission's complaint alleged, among other things, that
                   Cornelius, doing business as Avalon Custom Homes, Inc.,
                   raised approximately $12 million from more than 400
                   investors, primarily through the sale of unregistered
                   promissory notes.  The complaint also alleged that Cornelius
                   misrepresented to investors that all of their funds would be
                   invested in separate companies, for the most part limited
                   liability companies, to build residential housing; and that
                   such investments were low risk.  Instead, according to the
                   complaint, at least $653,917 of the amount was misapplied by
                   Cornelius, additional amounts were commingled between and
                   among the limited liability companies, and the investments
                   were, in fact, high risk ventures unsuitable for many of the
                   elderly investors to whom they were sold.
                   [Securities and Exchange Commission v. Norman Greg Cornelius,
                   et al., 4:97CV379, USDC, ND/TX, Fort Worth] (LR-15815)


                   T. Christopher Browne
                   Trial Counsel
                   Fort Worth District Office
                   817/978-6464