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SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE No. 14703 / October 30, 1995

SECURITIES AND EXCHANGE COMMISSION v. NORMAN L. BROOKS, FINANCIAL
ADVISORS, INC. (d.b.a. "AMERICAN FINANCIAL ADVISORS"), AMERICAN
CAPITAL FUNDING, INC., FW ADVISORS, INC., WILLIAM F. KANE, JAMES
PAPATOLA, VICTOR G. CAMPANA, JAMES BROOKS (a.k.a. "David
Gertzinger"), KEN BOGANNAM, ADAMS FINANCIAL SERVICES, INC., ADAMS
FINANCIAL GROUP, INC., MICHAEL W. ADAMS, RONNIE LEE AWTRY, KARL
DON MILSTEAD, DONALD H. STRINGER, DAVID M. STOVER, and SAINT
CLAIR AINSLEY KNIGHT, JR. (United States District Court for the
District of New Hampshire, C.A. No. C-94-167-JD)

     The Securities and Exchange Commission ("Commission") 
announced that, on October 17, 1995, the Honorable Joseph A.
DiClerico, Chief Judge, U.S. District Court for the District of
New Hampshire, entered Final Judgments of Permanent Injunction,
Disgorgement and Civil Monetary Penalties ("Final Judgments") 
against James Papatola of Salem, New Hampshire; Victor G. Campana
of Lexington, Massachusetts; Ken Bogannam of Tewksbury,
Massachusetts; Adams Financial Services, Inc., Adams Financial
Group, Inc. and Michael W. Adams of Arlington, Texas; Ronnie Lee
Awtry and Karl Don Milstead of Wichita Falls, Texas; Donald H.
Stringer of Denton, Texas; David M. Stover of Athens, Texas; and
Saint Clair Ainsley Knight, Jr. of Garden City, South Carolina. 
The Final Judgments were entered by consent on a neither admit
nor deny basis.  

     The Final Judgments enjoin each of the defendants from
violating the antifraud, securities registration and broker-
dealer registration provisions of the federal securities laws --
 i.e., Sections 5(a) and (c) and 17(a) of the Securities Act of
1933 and Sections 10(b) and 15(a) of the Securities Exchange of
1934 and Rule 10b-5 thereunder.  The Final Judgments also require
each of the defendants to disgorge their ill-gotten gain except
to the extent they have demonstrated a financial inability to pay
such relief.  The Final Judgments order the defendants to pay
approximately $80,000 in disgorgement and prejudgment interest.
Penalties were not imposed based upon the defendants'
demonstrated inability to pay.

     In its Complaint filed on April 5, 1994, the Commission
alleged that the defendants engaged in a fraudulent "boiler-
room" offering of unregistered securities that raised more than
$3.5 million from more than 100 investors in 25 states.  The
Commission alleged that the scheme involved employing
telemarketers to solicit tens or hundreds of thousands of
potential investors nationwide by reading sales scripts over the
telephone.  The Commission further alleged that the defendants
made false statements and material omissions to potential
investors, including representations that the proceeds of the
sales of the securities would be used to make automobile loans
the repayment of which was "insured," when, in fact, most of the
proceeds of the securities sales were converted to the personal
benefit of the defendants.

     The Commission's action is continuing as to Norman L. Brooks
("Brooks"), formerly of Bedford, New Hampshire, James Brooks
(a.k.a. "David Gertzinger") ("J. Brooks"), of Manchester, New
Hampshire, William F. Kane ("Kane") of Lowell, Massachusetts and
Brooks' companies, Financial Advisors, Inc. (d.b.a. "American
Financial Advisors") ("FA"), American Capital Funding Corporation
("ACF"), F.W. Advisors, Inc. ("FWA").  The Commission has

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obtained partial summary or default judgments against each of
those defendants on all issues except the amounts of
disgorgement, prejudgment interest and civil monetary penalties
they will be required to pay.  The assets of those defendants are
subject to a freeze order entered by the court, and FA, ACF and
FWA are in receivership.  As of August 31, 1995, the assets under
the control of the receiver include at least $605,000 cash plus
accounts receivable in the form of 51 active automobile loans. 
The receiver also is pursuing a number of possible causes of
action to recover additional assets on behalf of FA, ACF and
FWA.

      On February 6, 1995, Brooks pled guilty to one count of
conspiracy to commit securities, mail and wire fraud, one count
of racketeering, two counts of money laundering and one count of
failing to file a tax return in a separate criminal action based
on substantially the same facts alleged in the Commission's civil
action.  In addition, on November 4, 1994, J. Brooks pled guilty
to one count of conspiracy to commit wire and mail fraud arising
from a related investment scheme and one count of perjury arising
from a false affidavit that he had filed in the Commission's
enforcement action.  Also, on October 24, 1995, Kane pled guilty
to one count of conspiracy to commit wire and securities fraud
based upon the same conduct alleged in the Commission's
Complaint.  Brooks is being held without bail pending his
sentencing in the criminal case.  J. Brooks is serving a sentence
of ten months incarceration, two additional months in a half-way
house and three years supervised probation.  Kane is free on bail
pending his sentencing which is scheduled for January 22, 1996.

     See prior Litigation Release Nos. 14048, 14055, 14076,
14142, 14235, 14324 and 14410.