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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 15086 / September 27, 1996

SEC v. Alvis B. Rutland, Scofield Berthelot, Wiliam D. Cornett,
Howard W. Jones, and Gerard A. Spataro(S.D. MS, Civil Action No.
1:93-CV-94 BrR)

     The Securities and Exchange Commission announced today that,
on August 16, 1996, the Commission filed an application for an
order to show cause why Gerard A. Spataro ("Spataro") should not
be held in contempt for failing to pay civil penalties in the
amount of $63,000, as previously ordered by the Court on
September 23, 1994.  The Court's order required Spataro to pay
the civil penalties within 30 days of the date of the order.

     On March 10, 1993, the Commission filed its complaint in
this action.  The Commission alleged that Spataro participated in
a scheme to mislead investors by representing to the investors
that he and the other defendants had obtained agreements with the
Peruvian government and at least two international banks to
encash or purchase 1847 Peruvian bonds.  In fact, no such
agreements existed since the bonds were considered unredeemable
by the Peruvian government.

     On June 17, 1994, the Court entered an Order of Disgorgment
and Other Relief as to Spataro, on summary judgment.  That Order
determined that Spataro's ill-gotten gains from the scheme
amounted to $63,000 and that his violations involved "fraud,
deceit, manipulation and deliberate or reckless disregard of a
regulatory requirement and resulted in substantial loss and
created significant risk of substantial losses to other persons."

The Court further found that civil penalties were appropriate as
to Spataro and would be set upon motion by the Commission.

     On September 23, 1994, the Court granted the Commission's
Motion To Set Amount of Civil Penalties and ordered Spataro to
pay civil penalties in the amount of $63,000.  The Court ordered
payment by Spataro within 30 days of the date of the Order.  No
payments have been made on the fine.

     See also, L.R. 13601 (April 14, 1993), L.R. 13692 (July 1,
1993), L.R. 14332 (November 15, 1994) and L.R. 14957 (June 20,
1996).