SECURITIES AND EXCHANGE COMMISSION


           Litigation Release No. 16096 / March 26, 1996

          SECURITIES  AND  EXCHANGE  COMMISSION v. JAMES MICHAEL COGLEY, et
          al., S.D. OH; No. C2-98-802

             UPON EMERGENCY MOTION OF THE COMMISSION, COURT FINDS JAMES
             MICHAEL COGLEY IN CIVIL CONTEMPT FOR VIOLATING PRELIMINARY
                                  INJUNCTION ORDER

               The Commission announced that on March 5, 1999, the United
          States District Court for the Southern District of Ohio found
          James Michael Cogley (Cogley) in civil contempt for violating
          provisions of an Order of Preliminary Injunction entered against
          him by consent on August 18, 1998.

               On August 11, 1998, the Commission first filed its complaint
          against Cogley and the Ohio Estate Group (OEG) alleging
          violations of, among other things, the anti-fraud provisions of
          the federal securities laws (Complaint).  The Complaint alleged
          that from at least August 1997 until the Commission filed its
          complaint, Cogley and OEG engaged in a scheme to defraud
          investors by misrepresenting facts relating to the use of
          invested funds, the safety of those funds, and the return on the
          investments.  Cogley and OEG received approximately $2,400,000
          from at least forty-four primarily elderly and retired investors.
          The Complaint also alleged that less than 10% of the funds
          received were actually invested, while the majority of the funds
          were actually used to pay Cogley’s personal expenses, OEG’s
          business expenses and principal and interest payments to earlier
          investors.  On August 18, 1998, the district court entered the
          Preliminary Injunction against Cogley and OEG.

                On February 24, 1999, the Commission filed an Emergency
          Motion for an Order to Show Cause why Cogley should not be held
          in civil contempt for violating a provision of the Preliminary
          Injunction specifically prohibiting Cogley from receiving,
          directly or indirectly, any funds from individuals or entities
          for the purpose of investment.  The court ordered a civil
          contempt hearing for March 5, 1999.

               During the civil contempt hearing, evidence was put on that
          Cogley received approximately $60,000 from two elderly investors
          for investment in a company known as Shannon Road Development,
          Ltd., an entity that is owned, in part, by Cogley’s wife.  The
          court found, by clear and convincing evidence, that, among other
          things, Cogley gave investment advice and received funds from