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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 14797 / January 26, 1996

SEC v. Basic Energy & Affiliated Resources, Inc., et al., Case
No. 94 CV 74434 (E.D. MI) 

     The Securities and Exchange Commission announced that an
     Order of Permanent Injunction by Consent was entered against
     Robert Vecchioni on December 22, 1995 in federal District
     Court, Eastern District of Michigan.  The Injunction
     prohibits Vecchioni from violating the antifraud and
     registration provisions of the federal securities laws. 
     Additionally, the Court ordered Vecchioni to pay
     disgorgement in the amount of $7,947,247 and prejudgment
     interest.  Vecchioni is turning over cash, securities and
     other assets valued at approximately $2.9 million and, based
     upon his financial condition, the Court waived the payment
     of the remainder of disgorgement and prejudgment interest. 
     The Court did not impose a civil penalty on Vecchioni based
     on his demonstrated inability to pay.

     Previously, the Commission had filed a complaint against
     Vecchioni and others in which it alleged the defendants
     fraudulently sold unregistered securities offered by Basic
     Energy & Affiliated Resources, Inc. (BEAR).  The complaint
     alleged that Vecchioni headed the sales force for BEAR
     securities, which were sold through a multi-level marketing
     structure consisting of at least 150 marketers.  BEAR
     securities were sold to at least 1000 investors and such
     sales raised at least $27 million.  Vecchioni received
     $7,947,247 in commissions for his participation in the sale
     of BEAR securities.  The complaint also alleged that
     Vecchioni willfully violated the antifraud provisions of the
     securities laws in the sale of BEAR securities in that he
     made misrepresentations and omissions of material facts
     concerning the risks associated with investing in BEAR
     programs, the financial condition of BEAR, the use of
     investor funds, and the estimated oil and gas reserves of
     properties leased or owned by BEAR.