UNITED STATES SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 15177 / December 5, 1996 SECURITIES AND EXCHANGE COMMISSION v. GERALD P. HIRSCH, et al., 96 Civ. 9121, U.S.D.C., S.D.N.Y. (CBM) The Securities and Exchange Commission ("Commission") announced that, on December 4, 1996, The Honorable Constance Baker Motley, United States District Court Judge for the Southern District of New York, granted the Commission's application for a Temporary Restraining Order ordering Gerald P. Hirsch ("Hirsch") and Churchill Securities, Inc. ("Churchill") to comply immediately with the Commission Order issued against them on May 24, 1996. In granting the Commission's application, Judge Motley also appointed Patrick J. Monaghan, Jr. as Churchill's Temporary Receiver, and scheduled a hearing for December 14, 1996, to consider the Commission's application for a Preliminary Injunction. The Commission made its application in connection with its Complaint, filed on December 4, 1996 in the United States District Court for the Southern District of New York. As detailed in the Complaint, defendant Hirsch currently claims to own, and is in possession of, Churchill, a registered broker-dealer. As a result, Hirsch and Churchill have been violating an order of the Commission ("Commission Order") which was issued in connection with the settlement of a prior civil action, United States Securities & Exchange Commission v. Churchill Securities, Inc., Churchill Mortgage Investment Corp. and Gerald P. Hirsch, 93 Civ. 7486 (CBM) (S.D.N.Y. November 1, 1993), and a related administrative proceeding, In the Matter of Churchill Securities, Inc. and Gerald P. Hirsch, A.P. File No. 3-9012 (May 24, 1996). The Commission Order provided that, among other things, Hirsch was suspended for twelve months from association with any broker, dealer, investment adviser, investment company or municipal securities dealer commencing June 3, 1996. The Commission Order also provided that Churchill was ordered to comply with the terms of certain remedial undertakings, including the hiring of a consultant to undertake a review of the firm's procedures. By virtue of the conduct alleged in the present Complaint, both Hirsch and Churchill have been in violation of the Commission Order. For further information, see Litigation Release No. 15176.