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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 14966 / June 27, 1996 

Securities and Exchange Commission v. First Financial Acceptance
Company, Inc., et. al. (W.D. Michigan, S. Div., Civil Action 
No. 1:94-CV-228, filed April 13, 1994)

     The Securities and Exchange Commission announced that on
April 13, 1994, it filed a Complaint, along with a Consent and
Stipulation of all defendants, in the United States District
Court for the Western District of Michigan, seeking to enjoin:
(i) First Financial Acceptance Company, Inc. (First Financial),
Richard W. Brown (Brown), and Robert I. Wilson (Wilson) from
violations of Section 17(a) of the Securities Act of 1933 (the
Securities Act) and Section 10(b) of the Securities Exchange Act
of 1934 (the Exchange Act) and Rule 10b-5 thereunder; and (ii)
First Financial Investment Co., Inc. (First Financial Investment)
and Custodial Services, Inc. (Custodial) from violations of
Section 15C(a)(1) of the Exchange Act and against Brown and
Wilson for aiding and abetting those violations.  The Complaint
also seeks civil penalties pursuant to the Penny Stock Reform Act
of 1990.

     The Complaint alleges that from at least November 1991 until
at least August 1992, First Financial, Brown, and Wilson offered
and sold $17,000 worth of unregistered corporate notes (the
Corporate Notes) of First Financial, by the use of advertisements
in major newspapers, the telephone, and an offering memorandum.
The Complaint alleges that First Financial, Brown, and Wilson
made material misrepresentations and omissions to the offerees of
the Corporate Notes.  The misrepresentations included a guarantee
that investors' funds were secured by the interest stream from
U.S. Treasury Bonds, when in fact, First Financial did not own
any U.S. Treasury Bonds to pledge as a guarantee.  Furthermore,
First Financial, Brown, and Wilson misrepresented the assets of
First Financial and the use of funds.  Finally, First Financial,
Brown and Wilson omitted to tell investors that a principal of
First Financial and the architect for the Corporate Notes program
was currently incarcerated for criminal fraud, had been
previously convicted of mail fraud, wire fraud, counterfeiting,
and transporting stolen securities, and had been previously
enjoined in an action brought by the Securities and Exchange
Commission.

     The Complaint also alleged that from at least May 1992
through at least April 1993, First Financial Investment and
Custodial offered and sold government securities for the accounts
of others without being registered with the Securities and
Exchange Commission in any capacity.  The Complaint further
alleges that Brown and Wilson aided and abetted these violations.

Brown and Wilson owned and operated these two companies, spoke to
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investors, chose what Treasury Notes to purchase for the 
investors, and opened and maintained the bank and brokerage

                              - 2 -

accounts of behalf of these companies.  


     The defendants consented to the entry of orders of permanent
injunction against each of them, and Brown and Wilson agreed to
pay a civil penalty in the amount of $17,000.  On April 20, 1994,
Judge Benjamin F. Gibson entered an Order of Permanent Injunction
against the defendants.