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SECURITIES AND EXCHANGE COMMISSION
Washington D.C.


Litigation Release No. 14744 / December 5, 1995

Accounting and Auditing Enforcement
Release No. 738

SECURITIES AND EXCHANGE COMMISSION v. PIERCE LOWREY, JR. AND
RICHARD ESTRIN, 95 CiV 10242 (SHS) (S.D.N.Y. Dec. 5, 1995)

     NEW YORK -- The Securities and Exchange Commission announced
today that it filed a civil injunctive action in the United
States District Court for the Southern District of New York
charging two former corporate officers with engaging in a
fraudulent revenue recognition scheme to overstate materially the
company's accounts receivable, sales revenue and net income.

Named in the complaint were: 

Pierce Lowrey, Jr. ("Lowrey"), who was the chief executive
officer ("CEO") and chairman of the board of Information
Management Technologies Corp. ("IMTECH") and the president of
IMTECH's wholly-owned subsidiary, INSCI Corp. ("INSCI") during
the time of transactions and events alleged in the complaint.  In
November 1991, Lowrey resigned as IMTECH's CEO and chairman and
as INSCI's president. 

Richard Estrin ("Estrin"), who was assistant controller of IMTECH
from in or about September 1987 until September 1990, at which
time he became general business manager of INSCI.  Estrin's
employment with INSCI was terminated in November 1991.

The Commission's complaint alleges that, during the period April
1990 through October 1991, Lowrey and Estrin (collectively,
"Defendants") fraudulently inflated by material amounts the
accounts receivable, sales revenue and net income of IMTECH and
INSCI in financial statements for the year ended March 31, 1991
and the quarter ended June 30, 1991.  These financial statements
were included in the following documents filed with the
Commission and disseminated to the public:  IMTECH's annual
report and its quarterly report; a registration statement filed
by IMTECH; and a registration statement filed by INSCI.  The
Defendants allegedly each knowingly or recklessly participated in
this fraudulent revenue recognition scheme by recording sales
revenue prematurely and by recording revenue from fictitious
sales.  In addition, the Defendants allegedly prepared, or
directed others to prepare, fictitious shipping documents and
presented these documents to IMTECH's outside auditors as support
for the fraudulent accounts receivable and sales revenue
recorded.

According to the Commission's complaint, as a result of the
fraudulent accounting scheme:   (1) for its year ended March 31,
1991, IMTECH reported in its filings with the Commission accounts
receivable of $2.05 million, which was overstated by $278,000,
and a net loss of $784,000, which was understated by $180,000;
(2) for its quarter ended June 30, 1991, IMTECH reported in its
filings with the Commission accounts receivable of $3.6 million
and sales revenue of $5.4 million, which were overstated by $1.3
million and $1.01 million, respectively, and reported net income
of $207,000, when, in fact, IMTECH incurred a net loss of
$601,000.

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In the complaint, the Commission seeks a final judgment
permanently enjoining Lowrey from violating Section 17(a) of the
Securities Act of 1933 ("Securities Act"), and Sections 10(b) and
13(a) of the Securities Exchange Act of 1934 ("Exchange Act") and
Rules 10b-5, 12b-20, 13a-1, 13a-13, 13b2-1 and 13b2-2.  In
addition, the Commission seeks the imposition of civil penalties
on Lowrey and an order that he be permanently barred from acting
as an officer or director of any issuer that has a class of
securities registered pursuant to Section 12 of the Exchange Act,
or that is required to file reports pursuant to Section 15(d) of
the Exchange Act.  The Commission also seeks a final judgment
permanently enjoining Estrin from violating Section 17(a) of the
Securities Act, and Section 10(b) of the Exchange Act and Rules
10b-5 and 13b2-1 and the imposition of civil penalties.  

Simultaneous with the filing of the complaint, Estrin consented,
without admitting or denying the allegations in the complaint, to
the entry of a final judgment permanently enjoining him from
violations of Section 17(a) of the Securities Act, Section 10(b)
of the Exchange Act, and Rules 10b-5 and 13b2-1 thereunder. 
Estrin also consented to pay a civil penalty of $25,000.00.

On October 1, 1992, the Commission filed a complaint against
IMTECH and INSCI alleging that they violated the securities laws
as a result of the fraudulent revenue recognition scheme alleged
in the complaint filed today.  Also on October 1, 1992, IMTECH
and INSCI were permanently enjoined, on consent, from violating
Section 17(a) of the Securities Act, and Sections 10(b), 13(a)
and 13(b)(2) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, 
13a-13 and 13b2-1.  [See SEC v. Information Management
Technologies Corp. and INSCI Corp., 92 Civ. 7108 (LAP) (S.D.N.Y.
1992), LR 13398, AAER 427]

The litigation is pending against Lowrey.