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                SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.

LITIGATION RELEASE NO. 14791 / January 23, 1996   

SECURITIES AND EXCHANGE COMMISSION V. GREGORY LEE MILLER, CAPITAL
RESOURCE SPECIALISTS, INC., AND TELEFUND PARTNERS
Civil Action No. C-96-0336 MHP 

     The Securities and Exchange Commission (the "Commission")
today announced the filing of a Complaint in the United States
District Court for the Northern District of California against
Gregory Lee Miller, Capital Resource Specialists, Inc. ("CRS"),
and Telefund Partners ("Telefund") alleging that Miller, CRS, and
Telefund violated Sections 5 and 17(a) of the Securities Act of
1933 and Sections 10(b) and 15(a) of the Securities Exchange Act
of 1934, and Rule 10b-5 thereunder, in connection with the sale
of general partnership units in a 900 telephone line venture.  In
the Complaint, the Commission seeks a permanent injunction
against each of the defendants for violations of the foregoing
provisions of the federal securities laws in connection with the
offer and sale to the public of unregistered securities of
Telefund.  The Complaint also seeks disgorgement of investor
funds.  

     Simultaneously with the filing of the Complaint, and without
admitting or denying the allegations made against them, Miller,
CRS, and Telefund consented to the entry of a Final Judgment of
Permanent Injunction and Other Relief permanently enjoining them
from future violations of Sections 5 and 17(a) of the Securities
Act of 1933 and Sections 10(b) and 15(a) of the Securities
Exchange Act of 1934 and Rule 10b-5 thereunder.  In addition, the
Final Judgment against the defendants will order them to disgorge
$269,435.00, jointly and severally.  Miller, individually, agreed
to the entry of a judgment against him in the amount of
$65,869.53.  However, Miller's disgorgement is waived based upon
his sworn Statement of Financial Condition and contingent upon
the accuracy and completeness of that statement.
  
     According to the Complaint, beginning in or about November
1994, the defendants began to offer and sell to the public
securities designated as "general partnership units" in Telefund,
a partnership formed by defendant Miller under the laws of the
State of California.  The Complaint charges that the partnership
units met the definition of a security and, therefore, should
have been registered. 
 
     According to the Complaint, defendant CRS contracted with
Independent Sales Organizations to solicit prospective investors
to purchase Telefund securities.  The Commission further alleges
that these solicitations were carried out through telephone calls
to prospective investors throughout the United States by multiple
boiler room sales organizations.  Ultimately, Telefund received a
total of $1,180,000, substantial amounts of which were used to
pay 
                               - 2-


sales commissions and other initial start up costs, according to
the Complaint.

     The Complaint alleges that the defendants made material
misrepresentations falsely stating in the offering materials and
in telephone solicitations, that among other things, prospective

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investors could receive between a 24 percent return for a four
month period to a 203 percent return for a sixteen month period
on their investment in Telefund.  The Complaint alleges that
Telefund's projections of extraordinarily high returns to
investors were without basis in fact, and were made without any
independent research into the financial feasibility of operating
a 900 telephone line number business.  Additionally, the
Complaint charges that the defendants violated Section 15(a) of
the Exchange Act by operating as unregistered broker dealers.

     The Commission's investigation in this matter is continuing.