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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 15118 / October 11, 1996

Securities and Exchange Commission v. James W. Adams, Civil
Action No. CV-S-96-910-PMP (D. Nev.)

     The Securities and Exchange Commission ("Commission")
announced that on October 2, 1996, James W. Adams ("Adams") was
permanently enjoined by consent from future violations of Section
17(a)(1) of the Securities Exchange Act of 1934 and Rules 17a-
3(a)(1) and 17a-4(b)(4) thereunder.  Commission Rule 17a-3(a)(1)
requires a broker-dealer to prepare the blotter and other records
of original entry containing an itemized daily record of all
purchases and sales of securities, including the name of the
purchaser.  Commission Rule 17a-4(b)(4) requires a broker-dealer
to maintain for three years originals of all communications
received and copies of all communications sent relating to the
broker-dealer's business.

     The Complaint, filed September 30, 1996, alleges that in
November 1988, Adams, then the principal of Adams Securities, a
Las Vegas registered broker-dealer, committed the violations
incident to his participation in a penny stock "box job" scheme
conducted by Las Vegas attorney Carl Lovell and southern
California stock promoter Philip Sindler ("Sindler").  Adams
omitted Sindler's name as the true purchaser of the securites of
Omni USA, Inc. (formerly known as Triste Corporation) from the
blotter and other records of original entry of Adams Securities. 
The Complaint further alleges that Adams failed to maintain for
the requisite period the original memorandum of instructions he
received from Sindler concerning the purchase of the Omni USA,
Inc. securities, a document relating to the business of Adams
Securities.