SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17158 / September 27, 2001.

SECURITIES AND EXCHANGE COMMISSION v. JAMES S. SALTZMAN

(United States District Court for the Eastern District of Pennsylvania,
Civil Action No. 00 CV 2468)

   James S. Saltzman, of Ambler, Pennsylvania, the former chairman of the
   board, assistant secretary, and treasurer of Madison Monroe, Inc., an
   investment adviser registered with the Commission, and the former
   managing general partner and investment adviser of Saltzman Partners,
   L.P. ("Saltzman Partners"), a Pennsylvania limited partnership,
   consented, without admitting or denying the allegations of the
   Commission's Complaint filed in the United States District Court for
   the Eastern District of Pennsylvania, to the entry of a Final Judgment
   and Order in the case. The Order permanently enjoins him from
   violating Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933
   and Section 206(2) of the Investment Advisers Act of 1940, and
   requires him to pay disgorgement plus prejudgment interest in the
   amount of $1,920,340, and a civil penalty in the amount of $50,000.
   The Order was entered on September 19, 2001, by the Honorable Anita B.
   Brody.

   Also on January 31, 2001, the Commission instituted and simultaneously
   settled an Administrative Proceeding against Saltzman pursuant to
   Section 203(f) of the Advisers Act. Without admitting or denying the
   Commission's findings, Saltzman consented to the entry of an Order
   suspending him from association with any investment adviser for a
   period of twelve months. The basis for the Administrative Proceeding
   against Saltzman and the Commission's findings was the entry of the
   Final Judgment and Order in the District Court action.

   The Commission's Complaint in the District Court action alleged that
   from at least 1994 through February 4, 2000, Saltzman, as investment
   adviser to Saltzman Partners, violated the securities laws at issue by
   failing to disclose material information relating to loans to him by
   Saltzman Partners in annual financial statements of Saltzman Partners
   that were sent to the limited partners, namely, that he had taken out
   approximately $1.78 million in loans from Saltzman Partners, that by
   1999 the loans amounted to approximately 20% of Saltzman Partners'
   assets, and that the loans violated specific terms of the loan
   provisions in the governing Partnership Agreement and Private
   Placement Memorandum. Prior to the entry of the Final Judgment and
   Order, Saltzman fully repaid with interest the loans he had taken from
   Saltzman Partners, thus satisfying the Order of disgorgement by the
   District Court.