UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 15004 / August 7, 1996       

SECURITIES AND EXCHANGE COMMISSION V. WILLIAM B. SELLIN, II,
ZAITECH HOLDINGS, INC. AND BACCARATT HOLDINGS, INC., Case No. 96-
6825-CIV-Ungaro (S.D. Fla.)

     The Securities and Exchange Commission ("Commission")
announced that on July 25, 1996, the United States District Court
for the Southern District of Florida entered a Temporary
Restraining Order ("TRO") against Fort Lauderdale, Florida
resident William B. Sellin, II ("Sellin"), and two corporations
he controls, Zaitech Holdings, Inc. and Baccaratt Holdings, Inc.
(collectively, "Defendants").  The Order stems from a Complaint
filed by the Commission on July 24, 1996 charging violations of
the antifraud provisions of the federal securities laws. 
  
     The Commission's papers filed with the Court allege that
Sellin, a convicted felon and repeat securities law violator, is
conducting an ongoing, fraudulent offering of securities through
newsgroup bulletin board postings on the Internet, and through
advertisements placed on CompuServe, an Internet access provider
and a world-wide, subscriber-based electronic communications
service.  Since October 1995, Sellin has solicited investments
through at least 43 advertisements in at least 21 newsgroups on
the Internet.  The Internet provides promoters, such as Sellin,
with direct access to millions of prospective investors worldwide
with great speed and ease, minimal expense and virtual anonymity.

No allegation of any wrongdoing has been made in this case
against CompuServe or any other Internet access provider.

     According to the Commission's papers, Sellin, through
Zaitech and Baccaratt, is offering promissory notes which he
claims are secured and collateralized by U.S. Government
securities and other assets.  Sellin represents that he can
deliver "guaranteed" returns of anywhere from 12% to 22%
annually.  Sellin is currently offering an investment opportunity
to make "$150,000 annually, tax free."  The Commission's papers
allege that these representations are false and misleading in
that the investment is not secured or collateralized by U.S.
Government securities; that Sellin fails to disclose his long
record of regulatory sanctions and criminal convictions,
including a Florida felony conviction for grand larceny; and that
Sellin fails to disclose the material risks associated with the
investment.

     The TRO restrains Defendants from violating the antifraud
provisions of the federal securities laws -- Section 17(a) of the
Securities Act of 1933 and Section 10(b) of the Securities
Exchange Act of 1934 and Rule 10b-5 thereunder.  The TRO also
freezes Defendants' assets and orders that Defendants preserve
records and account for proceeds they received from their
fraudulent scheme.  The Commission also seeks preliminary and
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permanent injunctions, disgorgement of any ill-gotten gains and a
money penalty against Defendants.  The Court ordered that a
hearing on the Commission's motion for preliminary injunction be
held on August 2, 1996.

     The Commission acknowledges the assistance of the Texas
State Securities Board and the National Association of Securities
Dealers, Inc. in this matter.