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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 15034 / September 5, 1996


Securities and Exchange Commission v. William R. Palmer and
Financial Services of America, Inc. (E.D. Pa., 96-CV-6088 (MK))

     The Securities and Exchange Commission ("Commission")
announced the filing of a Complaint on September 5, 1996, in the
United States District Court for the Eastern District of
Pennsylvania against William R. Palmer ("Palmer") and Financial
Services of America, Inc. ("FSA"), both residents of Bucks
County, Pennsylvania.  

     This emergency action seeks to stop an allegedly ongoing 
Ponzi scheme directed by Palmer through FSA, a company that he
controls.  The Complaint alleges that FSA offers its clients
estate planning and investment advisory services even though it
is not registered with the Commission as an investment adviser. 
Since December 1992, Palmer has raised at least $1.6 million
through the fraudulent offer and sale of FSA securities to
investors located in Eastern Pennsylvania and New Jersey.  The
Complaint alleges that Palmer sold these securities to FSA
clients, the majority of whom initially came to FSA for estate
planning services.  The Complaint further alleges that Palmer
falsely tells investors that their money will be used to purchase
publicly-traded securities and/or to expand FSA's highly
profitable business, which, in turn, will generate income for the
investors. The Complaint alleges that, in reality, Palmer uses
investor money to pay his personal expenses and to pay the
promised high rates of return to investors.  Furthermore, Palmer
allegedly misleads investors about the safety of their
investments by falsely claiming that their funds are insured
and/or collateralized and by failing to disclose material
information concerning FSA's financial status. 

     The Complaint alleges that Palmer and FSA violated Section
17(a) of the Securities Act of 1933 ("Securities Act"), Section
10(b) of the Securities Exchange Act of 1934 ("Exchange Act"),
and Rule 10b-5 thereunder, and Sections 203(a) and 206(1) and (2)
of the Investment Advisers Act of 1940 ("Advisers Act").  The
Complaint seeks a temporary restraining order, preliminary and
permanent injunctive relief, disgorgement of all profits,
together with prejudgment interest thereon, and the imposition of
civil penalties against Palmer and FSA.