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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 15041 / September 12, 1996


Securities and Exchange Commission v. William R. Palmer and
Financial Services of America, Inc. 
(E.D. Pa., Civil Action No. 96-6088)

     The Securities and Exchange Commission ("Commission")
announced that on September 12, 1996, the Honorable Marvin Katz
of the United States District Court for the Eastern District of
Pennsylvania entered an Order of Permanent Injunction against
William R. Palmer ("Palmer"), a resident of Yardley,
Pennsylvania, and Financial Services of America, Inc. ("FSA"), a
Yardley-based company.  

     The Order enjoins Palmer and FSA from future violations of
the antifraud provisions of the federal securities laws and
enjoins them from acting as unregistered investment advisers. 
The Order further requires Palmer and FSA to provide the
Commission with an accounting of investor proceeds, and continues
in place a freeze of assets against both defendants.  The Order
further requires Palmer and FSA to pay disgorgement (with
prejudgment interest) and civil penalties in an amount to be
determined based upon the required accounting and agreement of
the parties.

     On September 5, 1996, the Commission filed this case as an
emergency action seeking to stop an allegedly ongoing 
Ponzi scheme directed by Palmer through FSA, a company that he
controls.  On the same date, Judge Katz entered an order:
temporarily restraining Palmer and FSA from future violations of
the charged provisions, freezing their assets an ordering an
accounting of investor proceeds.  (Commission Litigation Release
No. 15034) 

     The Commission's Complaint alleges that FSA offers its
clients estate planning and investment advisory services even
though it is not registered with the Commission as an investment
adviser.  The Complaint further alleges that since December 1992,
Palmer has raised at least $1.6 million through the fraudulent
offer and sale of FSA securities to investors located in Eastern
Pennsylvania and New Jersey.  The Complaint alleges that Palmer
sold these securities to FSA clients, the majority of whom
initially came to FSA for estate planning services.  The
Complaint further alleges that Palmer falsely tells investors
that their money will be used to purchase publicly-traded
securities and/or to expand FSA's highly profitable business,
which, in turn, will generate income for the investors. The
Complaint alleges that, in reality, Palmer uses investor money to
pay his personal expenses and to pay the promised high rates of
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return to investors.  


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     Furthermore, Palmer allegedly misleads investors about the
safety of their investments by falsely claiming that their funds
are insured and/or collateralized and by failing to disclose
material information concerning FSA's financial status. 

     Palmer and FSA consented to the Order of Permanent
injunction without admitting or denying the allegations of the
Commission's Complaint.