U. S. Securities and Exchange Commission

     Litigation Release No. 15656 / March 3, 1998

     Securities and Exchange Commission v. Hurst Capital Corporation, et al.,
     Case No. 98-8090-CIV-HURLEY (USDC/SD FL) 

          The Securities and Exchange Commission ("SEC") announced that on
     February 27, 1998, the Honorable Daniel T.K. Hurley, United States District
     Judge for the Southern District of Florida continued the emergency Orders
     he had entered on February 18, 1998 against Hurst Capital Corp. ("HCC"), a
     West Palm Beach company that sells interests in accounts receivable. 
     Specifically, Judge Hurley preliminarily enjoined defendants HCC, James F.
     Hurst and E. William Clifton from violating the securities laws, froze
     their assets and those of four corporations they control, and authorized
     the previously appointed Receiver for HCC, Kenneth A. Welt, to continue to
     marshal assets.  All defendants either consented or did not object to the
     entry of these orders.  At the hearing before Judge Hurley, the SEC
     announced that it had frozen approximately $16.5 million in funds.

          In its Complaint and application to the Court for a temporary
     restraining order, asset freeze and appointment of a receiver, all of which
     the Court granted on February 18, 1998 and extended on February 27, 1998,
     the SEC alleged that HCC had raised $49 million from 1300 investors across
     the nation to buy accounts receivable but that it had only purchased
     approximately $625,000 worth of receivables.

          According to the SEC's complaint, HCC, Hurst and Clifton have been
     offering investors across the nation worthless interests in non-existent
     accounts receivable.  HCC's own records establish, the SEC alleges, that is
     has raised $49 million from investors but purchased only $625,000 worth of
     receivables.  According to the SEC's complaint, millions of dollars have
     been misappropriated by Defendants or transferred to corporations they
     control.  For example, the SEC alleges that Defendant Hurst diverted at
     least $10 million in investor funds to his personal account and spent this
     money on a luxury home, on personal investments, and on cars and boats.

          The Complaint charges violations of Sections 5(a), 5(c) and 17(a) of
     the Securities Act of 1933 and Section 10(b) and Rule 10b-5 thereunder of
     the Securities Exchange Act of 1934.  In addition to a permanent
     injunction, the SEC is also seeking disgorgement of ill-gotten profits and
     money penalties.










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