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                SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.


Litigation Release No. 15000 / August 6, 1996

SECURITIES AND EXCHANGE COMMISSION v. JERRY B. SILVER, United
States District Court for the District of New Jersey.
   
     The Securities and Exchange Commission today announced the
filing of a civil injunctive action in the U.S. District Court
for the District of New Jersey in Newark against Jerry B. Silver,
the former president, chief executive officer and chairman of the
board of Davstar Industries, Ltd. ("Davstar").  The Commission's
Complaint alleges that between May 1991 and November 1992, Silver
approved or failed to correct a series of materially false and
misleading public statements made by or on behalf of Davstar
concerning, among other things, the distribution and
marketability of the company's proprietary medical products, and
that he knew or was reckless in not knowing that Davstar's
business and profit projections had no reasonable basis in fact. 
During this period, the price of Davstar common stock rose from
approximately $1.00 per share to a high of $13.75 per share in
November 1992.

     The Complaint alleges that Silver participated in preparing
or reviewed and approved several public statements concerning
Davstar that he knew or was reckless in not knowing contained
materially false and misleading information.  Specifically,
Silver is alleged to have reviewed and approved several Davstar
press releases prepared by a consultant, as well as certain
promotional pieces prepared and disseminated by an investment
newsletter publisher, and a research report that an Arizona
stockbroker prepared and disseminated to his retail customers. 
Each of these publications contained materially false and
misleading information concerning Davstar, its products and
financial prospects.  Moreover, according to the Complaint,
Davstar issued stock or warrants to purchase Davstar stock to the
consultant, the newsletter publisher and the stockbroker during
the period when each promoted Davstar to the investing public.

     Finally, the Complaint alleges that Silver signed Davstar's
1992 Annual Report filed with the Commission which included a
false and misleading statement.

     Silver simultaneously consented to entry of a proposed Final
Judgment, without admitting or denying the Commission's
allegations, that would enjoin him from future violations of the
antifraud provisions, Section 10(b) of the Securities Exchange
Act of 1934 and Rule 10b-5 thereunder, and impose a $25,000 civil
penalty.  The Commission has submitted the proposed Judgment for
approval and entry by the Court.
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