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U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 14668 / October 2, 1995

SECURITIES AND EXCHANGE COMMISSION v. LIFE PARTNERS, INC. and
BRIAN D. PARDO, Civil Action No. 94-1861 (D.D.C.)

     On September 29, 1995, Judge Royce C. Lamberth denied the
defendants' motion for a stay of the preliminary injunction
issued against them on August 30, 1995.  (See Lit. Rel. No.
14623).  Noting the defendants' argument that they had modified
their procedures so as to take their operations outside the
securities laws, the Court held that it was "not at all clear"
that the steps they had taken had accomplished that goal and
that, therefore, they had failed to make a "proper showing" that
the preliminary injunction should be lifted on that basis. 
Responding to the defendants' claim that, in adopting their new
procedures, they had done "all that can be expected of them prior
to an appellate ruling," the Court stated that "[i]n essence,
defendants seek to create a judicially sanctioned substitute for
proper securities laws," and held that their proposals "cannot
supplant the registration requirements Congress has chosen to
adopt."  Finally the Court expressed its disagreement with the
defendants' contention that they were likely to succeed on the
merits of their appeal.  The Court ordered the defendants, within
twenty days of the order, to submit a report and a sworn
affidavit from defendant Pardo stating what steps they have taken
to bring their operations into compliance with the securities
laws, and gave the Commission ten days thereafter to respond.