UNITED STATES SECURITIES AND EXCHANGE COMMISSION 


Litigation Release No. 15308 / March 28, 1997

SECURITIES AND EXCHANGE COMMISSION v. CHURCHILL SECURITIES, INC.,
CHURCHILL MORTGAGE INVESTMENT CORP., and GERALD P. HIRSCH, 93
Civ. 7486, U.S.D.C., S.D.N.Y. (CBM)

The Securities and Exchange Commission ("Commission") announced
that, on March 25, 1997, the Honorable Thomas P. Griesa, United
States District Court Judge for the Southern District of New
York, entered a stipulation and order on consent finding
defendants Gerald P. Hirsch ("Hirsch") and Churchill Mortgage
Investment Corp. ("CMIC") in contempt of the Court's Final
Judgment Of Permanent Injunction And Other Relief By Consent
Against Gerald P. Hirsch, and Final Judgment Of Permanent
Injunction And Other Relief By Consent Against Churchill Mortgage
Investment Corp., both of which were entered by the Court on
April 16, 1996 ("The Court's Orders of Permanent Injunction"). 
The stipulation and order also appointed Howard H. Heiss, Esq.,
as receiver over all assets and entities owned or controlled by
Hirsch, enjoined the destruction of documents, and ordered an
assets freeze, an accounting, and expedited discovery.

The Complaint, which was filed on November 1, 1993, alleged that
from June 1987 to approximately November 1993, Hirsch and CMIC,
as well as Churchill Securities, Inc. ("CSI"), participated in
the distribution of unregistered securities, in the form of
fractional interests in mortgages as evidenced by notes
("Mortgage Participation Notes") by offering and selling at least
1,030 such Mortgage Participation Notes to at least 520 investors
in numerous states through a public distribution, raising
approximately $15 million.  The Complaint further alleged that in
connection with the offers and sales of these unregistered
securities, Hirsch, CMIC and CSI misrepresented material facts to
investors.  The Court's Orders of Permanent Injunction enjoined
Hirsch, CMIC and CSI from further violating Sections 5(a) and
5(c) of the Securities Act of 1933 ("Securities Act"), 15 U.S.C.
 77e(a) and (c), Section 17(a) of the Securities Act, 15 U.S.C.
 77q(a), and Section 10(b) of the Securities Exchange Act of
1934 ("Exchange Act"), and Rule 10b-5 thereunder.  The
stipulation and order entered by the Court found that, in
contempt of the Court's Orders of Permanent Injunction, from on
or about April 1996 through at least January 1997, Hirsch and CSI
continued to offer and sell unregistered securities to investors
in the form of new Mortgage Participation notes, continued to
renew existing investments when the terms of the original notes
expired, offered and sold other unregistered securities issued by
a Hirsch-controlled entity known as CD Investment Groups ("CD
Investment Groups Instruments"), and made material
misrepresentations and omitted to disclose material facts to
investors in connection with the offer and sale of the Mortgage
Participation Notes and the CD Investment Groups Instruments by
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failing to disclose to investors the existence and terms of the
Court's Orders of Permanent Injunction.