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             U.S. SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 15344 / April 22, 1997

SECURITIES AND EXCHANGE COMMISSION V. STEPHEN J. MURPHY
Civil Action No. CV 97-2719 JMI (CWx) (C.D. Cal.)

     The Securities and Exchange Commission ("Commission")
announced that on April 21, 1997, it filed an emergency lawsuit
in federal court to halt a fraudulent securities scheme involving
investments in a limited partnership perpetrated by Stephen J.
Murphy a.k.a. Jack Davis ("Murphy"), a repeat securities law
violator.  In response to the Commission's action, on April 21,
1997, the Honorable James M. Ideman, United States District
Judge, placed a freeze on Murphy's assets pending a hearing to
determine if the assets should remain frozen pending final
resolution of the Commission's action.  To further protect
investor funds, the Court additionally ordered Murphy to provide
a detailed accounting of his assets and enjoined him from
dissipating any assets and from destroying any documents related
to the fraudulent scheme.

     In its Complaint, the Commission alleges that since at least
June 1996, Murphy has offered and sold limited partnership
interests through a company doing business as ATM Global, Inc.
("ATM Global").  The limited partnership was to raise $2.8
million from investors and then acquire, own and operate
automated teller machines ("ATMs") nationwide.  ATMs generate
revenue through transaction fees charged to customers who use
them.  The written offering materials state that the projected
return to investors would be over 176% in the first year and 203%
annually in the second through seventh years.  Murphy designed
the limited partnership program and led the promotional and sales
efforts.  To date, Murphy himself has raised at least $277,500
from investors.

     The Complaint also alleges that, in offering and selling the
limited partnership interests to investors, Murphy misrepresented
his identity by using the alias "Jack Davis."  Furthermore,
Murphy failed to disclose the entry of, and the terms of, a 1994
Final Judgment entered against him in an earlier Commission
action enjoining him from future violations of the registration
and antifraud provisions of the federal securities laws.  SEC v.
American Capital Investments, et al., Civil Case No. CV-93-5280
CBM (JRx)(C.D. Cal.)(Lit Rel. No. 14185).  Murphy also failed to
disclose that in 1994 the Commission had revoked his registration
as an investment adviser and barred him from association with any
broker, dealer, municipal securities dealer, investment company
or investment adviser.  Murphy further failed to disclose that
another company he owned and managed, American Capital
Investments, Inc., was placed into receivership.
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     The Complaint alleges that Murphy violated Section 17(a) of
the Securities Act of 1933, Section 10(b) of the Securities
Exchange Act of 1934 and Rule 10b-5 thereunder seeks preliminary
and permanent injunctions, and other relief, including
disgorgement and civil penalties, against Murphy for his latest
violations of the antifraud provisions of the federal securities
laws.