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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 14696 / October 20, 1995
          
Accounting And Auditing Enforcement Release No. 733

SECURITIES AND EXCHANGE COMMISSION v. ROBERT J. MCNULTY, et al.,
Civil Action No. 94 Civ.7114 (MBM)

The Commission announced today that on October 10, 1995, an Order
was issued against Robert J. McNulty ("McNulty"), the former
Chairman of the Board of HQ Office Supplies Warehouses, Inc.
("HQOS"), HQ Office International, Inc. ("HQOI"), AG Automotive
Warehouse, Inc. ("Auto Giant") and Auto Depot, Inc. ("Auto
Depot"), by the U.S. District Court for the Southern District of
New York, to which McNulty consented, permanently enjoining him
from violations of the antifraud, issuer reporting, books and
records, and beneficial ownership provisions of the federal
securities laws, and the provision prohibiting misrepresentations
to auditors.  In a complaint filed by the Commission on September
30, 1994, McNulty was charged with orchestrating a complex scheme
to defraud investors by using the proceeds of securities
offerings by HQOS, HQOI, Auto Giant and Auto Depot to finance the
operations of affiliated companies and the companies' underwriter
and market maker, Global America, Inc., rather than for the
stated purpose of funding the issuers' operations.  Also charged
were three individuals who acted as officers and directors of
HQOS, HQOI, Auto Giant and Auto Depot and a business associate of
McNulty's.  In connection with this scheme, McNulty and the other
defendants caused false and misleading registration statements
and annual and quarterly reports to be filed with the Commission,
caused the companies' books and records to be false, and made
false statements to the companies' auditors with respect to
certain intercompany loans, transfers and advances.  McNulty also
failed to file required reports with the Commission concerning
his beneficial ownership of securities issued by Auto Depot.  The
Court also ordered McNulty to disgorge ill-gotten gains of
$70,000.00, and to pay prejudgment interest, but waived payment
based upon McNulty's demonstrated inability to pay, and noted the
appropriateness of civil penalties, but did not impose them for
the same reason.  In consenting to the order, McNulty neither
admitted nor denied the Commission's allegations, and he agreed
to cooperate with the Commission in all future proceedings in
this matter.  For further information, see SEC Litigation Release
Numbers 14274 (Sep. 30, 1994), 14413 (Feb. 16, 1995), and 14641
(Sep. 19, 1995).