UNITED STATES SECURITIES AND EXCHANGE COMMISSION

 Litigation Release No. 15028 / September 3, 1996

SECURITIES AND EXCHANGE COMMISSION v. NORTON et al. 95 Civ. 4451 (SHS)

The Securities and Exchange Commission ("Commission") announced that, on March 22, 1996, Judge Sidney H. Stein, of the U.S. District Court for the Southern District of New York, signed a Final Judgment of Permanent Injunction and Other Equitable Relief against Jeffrey S. Norton ( Norton ).  The injunction enjoins Norton from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and requires Norton to pay $824,198.94 in disgorgement and prejudgment interest.  The judgment waived payment of disgorgement and prejudgment interest and did not impose civil penalties based on Norton s demonstrated inability to pay.  Norton consented to the entry of the injunction against him without admitting or denying the allegations of the complaint.  Norton, a 34 year old resident of Salt Lake City, Utah, holds himself out as the Managing Director of Sabre Investment Trust and the President and sole officer of Sabre Credit Corporation ("Sabre Credit Corp.").  Both are entities which appear to be nothing other than alter-egos of Norton. The Commission s complaint against Norton, Donald C. Reynolds ( Reynolds ), Edward T. Menster ( Menster ), and John A. Tartaglia, which was filed on June 14, 1995, alleged that Norton promoted a fraudulent "prime bank" scheme which resulted in investors losing approximately $890,000.

In addition, the Commission announced that, on February 14, 1996, Judge Stein granted the Commission's motion for a default judgment against Reynolds for his failure to respond to the complaint. Also, on January 22, 1996, Judge Stein signed a Partial Final Judgment of Permanent Injunction against Menster enjoining Menster from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and ordering him to pay disgorgement and civil penalties in an amount to be determined later.  Menster consented to the entry of the injunction against him without admitting or denying the allegations of the complaint.

 The Commission s complaint alleged that the defendants raised funds from investors by falsely promising them extraordinary profits and a risk-free investment if they deposited funds in an escrow account at a law firm.  The investors were told that their funds would be used to facilitate Norton's purchase and sale of instruments supposedly issued by the top banks in the world and known as prime bank notes, letters of credit, bank debentures and other prime bank instruments.  In fact, as alleged in the Complaint, the investors' funds were misappropriated.  For further information see LR-14529.  [SEC v. Jeffrey S. Norton, Donald C. Reynolds, John A. Tartaglia, and Edward T. Menster, USDC, S.D.N.Y., Civil Action File No. 95 Civ. 4451].