SECURITIES AND EXCHANGE COMMISSION

          LITIGATION RELEASE NO.  15926 / October 2, 1998

          UNITED STATES OF AMERICA v. SANJAY SAXENA, Criminal Action No.
          98cr10298-WGY (D. MA., filed September 29, 1998)

                         BARRED INVESTMENT ADVISER INDICTED

               The Securities and Exchange Commission ("Commission") and
          the United States Attorney for the District of Massachusetts
          announced that, on September 29, 1998, Sanjay Saxena, of Cary,
          North Carolina, a former registered investment adviser and
          newsletter publisher, was indicted by a federal grand jury for
          securities fraud and mail fraud.  The 52-count indictment charges
          Saxena with failing to register securities that he publicly
          offered in an investment pool, failing to invest a large portion
          of investor funds, delivering false monthly account statements to
          investors that stated that the invested funds were making profits
          when they were actually losing money, and using a portion of
          investor funds to purchase a home in North Carolina.  The
          indictment also alleges that, while Saxena was being investigated
          by the Commission, he agreed to repay original investors, but
          concealed from the Commission the identity of 45 investors, who
          he transferred into a separate investment pool, using their funds
          to repay the original investors.

               In a complaint filed in the United States District Court for
          the District of Massachusetts on December 7, 1994 arising out of
          the same conduct, the Commission alleged that Saxena violated the
          antifraud and registration provisions of the federal securities
          laws.  On February 25, 1995, Saxena consented to the entry of a
          final judgment of permanent injunction restraining him from
          further violations and an order to disgorge $703,000
          (representing all monies owed to investors), and to pay
          prejudgment and postjudgment interest.  On February 28, 1995, the
          Commission entered an order permanently barring Saxena from the
          securities industry.

               On September 18, 1998, the Commission filed a second civil
          injunctive action against Saxena, which also included his wife,
          Mumtaz Saxena, as a defendant.  The complaint alleges that the
          Saxenas violated the antifraud and registration provisions of the
          federal securities laws, and that Saxena violated the
          Commission's February 28, 1995 order permanently barring him from
          the securities industry.  The complaint alleges that Saxena's
          role in the formation and operation of an investment adviser and
          two investment companies violated the Commission's bar order, and
          that Saxena used his wife as a front to create the appearance
          that he had not violated the order.  That action is pending.

          [See prior Litigation Release Nos. 14348, 14419, and 15889].