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U.S. Securities and Exchange Commission

Litigation Release No. 14662 / September 29, 1995 

SEC v. Calvin L. Word, et al., Civil Action No.1:95-CV-2470-GET
(N.D. Ga.).

     The Securities and Exchange Commission announced that on
September 28, 1995, it filed a complaint in the United States
District Court for the Northern District of Georgia seeking a
permanent injunction against Calvin L. Word, Dawn Dailey Word,
Thomas J. Word, and Richard Anders, and alleging that each of
them violated the antifraud provisions of the federal securities
laws while associated with First Alliance Securities, Inc.
("First Alliance"), a now-defunct, Atlanta-based penny stock
broker-dealer.  

     The complaint alleges that Calvin Word was the vice
president and co-owner of First Alliance, and that Dawn Word,
Thomas Word, and Richard Anders were members of the First
Alliance sales force, which sold worthless penny stocks to
unsophisticated investors through high pressure telephone sales
tactics.  Specifically, the complaint alleges that the defendants
lied to First Alliance customers about the liquidity,
suitability, and level of risk of stocks promoted by First
Alliance, the current available market prices for those stocks,
and the operations, financial condition, and prospects of the
purported issuers of those stocks.  The complaint also alleges
that the defendants fraudulently failed to tell First Alliance
customers that the firm had a policy prohibiting net-selling. 

     Dawn Word and Thomas Word settled the injunctive action,
without admitting or denying the Commission's allegations, by
consenting to the issuance of a permanent injunction against
future violations, which the court entered on the same day. 

     Following a grand jury investigation led by a member of the
Commission's staff detailed to the Department of Justice, a
federal jury convicted the defendants, on October 27, 1994, of
violating the antifraud provisions of the federal securities
laws.  All of the defendants are currently serving sentences in
federal prison.