UNITED STATES SECURITIES AND EXCHANGE COMMISSION


LITIGATION RELEASE NO. 15012 / August 12, 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 August 1, 1996, a Final Judgment of Permanent
Injunction was entered against William B. Sellin, II ("Sellin"),
and two corporations he controls, Zaitech Holdings, Inc. and
Baccaratt Holdings, Inc. (collectively, "Defendants") by the
United States District Court for the Southern District of
Florida.  The Defendants consented to the entry of the permanent
injunction without admitting or denying the Commission's
allegations.   
  
     The Commission's Complaint and other papers filed with the
Court on July 24, 1996, alleged that Sellin, a convicted felon
and repeat securities law violator, conducted 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 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, offered promissory notes which he claimed
were secured and collateralized by U.S. Government securities and
other assets.  Sellin represented that he could deliver
"guaranteed" returns of anywhere from 12% to 22% annually. 
Sellin also offered an investment opportunity to make "$150,000
annually, tax free."  The Commission's papers alleged that these
representations were false and misleading in that the investment
was not secured or collateralized by U.S. Government securities;
that Sellin failed to disclose his long record of regulatory
sanctions and criminal convictions, including a Florida felony
conviction for grand larceny; and that Sellin failed to disclose
the material risks associated with the investment.

     The Final Judgment permanently enjoins the Defendants from
future violations of 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.
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     On July 25, 1996, the Court entered an order temporarily
restraining the Defendants from further violations of the
antifraud provisions of the federal securities laws.   The order
also froze the Defendants' assets and ordered that Defendants
preserve records and account for proceeds they received from
their fraudulent scheme.