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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Litigation Release 15287 / March 13, 1997  

SEC v. Jerome E. Pinckney, Richard L. Arnold, Donald E. Elder,
Fernando Cruz, Shaun K.R. Maxwell, Anthony Bukovich, Jr., and Six
Capital Corporation (E.D.N.C., Civil Action No. 7:95-CV-122-BR-1)

     The Securities and Exchange Commission ("Commission")
announced today that on February 28, 1997, the Honorable W. Earl
Britt, United States District Judge for the Eastern District of
North Carolina, entered a judgment against Fernando Cruz ("Cruz")
pursuant to  Rule 37(d) of the Federal Rules of Civil Procedure,
for failure to appear for a scheduled deposition.  The Court
ordered Cruz permanently enjoined from further violations of
Section 17(a) of the Securities Act of 1933.  The Court found
that the imposition of civil penalties would be considered at a
later date upon motion by the Commission.

     Cruz has failed to respond to the allegations set forth in
the complaint filed by the Commission on August 23, 1995.  The
complaint alleged that Cruz, along with his co-defendants,
violated the securities antifraud statute by offering for sale
investment contracts which were part of a prime bank scheme.  As
part of the scheme, Cruz attempted to obtain funds from investors
by misrepresenting or failing to disclose material facts in
connection with the sale of prime bank notes.  Among other
misrepresentations, Cruz falsely represented that the investments
were risk-free and that contractual guarantees of payment were
being given by a major United States Bank.

     On October 18, 1996, the Commission arranged to take Cruz's
deposition at a location near his residence in Linden, New
Jersey.  Cruz did not appear for the deposition and he did not
contact the Commission to make any other arrangements.  On
December 20, 1996, the Commission requested the Court to enter a
judgment against Cruz as a sanction for his failure to appear at
the deposition.  On February 28, 1997, the Court granted the
request.