SECURITIES AND EXCHANGE COMMISSION
                                   Washington, D.C 

     SECURITIES AND EXCHANGE COMMISSION v. ANDREW S. PITT, CONECTISYS CORP.,
     DEVON INVESTMENT ADVISORS, INC., B & M CAPITAL CORP., MIKE ZAMAN, and
     SMITH, BENTON & HUGHES, INC., United States District Court for the Central
     District of California, Civil Action No. 96-4164 (MRP) (ANx)

     Litigation Rel. No.15446/ August 18, 1997

          The Securities and Exchange Commission ("Commission") announced that
     on August 12, 1997, the United States District Court for the Central
     District of California issued an order finding that Andrew S. Pitt
     ("Pitt"), Conectisys Corporation ("Conectisys"), Mike Zaman ("Zaman"), B&M
     Capital Corp. ("B&M"), and Smith Benton & Hughes, Inc. ("Smith Benton")
     committed fraud.  The Court also found that Pitt, Conectisys, and Devon
     Investment Advisors, Inc. ("Devon") had sold securities that should have
     been registered.  The Court directed the Commission to file proposed
     findings of fact and conclusions of law by September 8, gave defendants
     until September 29 to file objections thereto, and stated that it would
     address remedies to be granted after it had settled the findings and
     conclusions.    

          The Commission had alleged that in late November 1994, while Pitt was
     an Assistant United States Attorney, he purchased a controlling share of
     Conectisys (then named "Coastal Financial Corp.") and operated it as BDR
     Industries, Inc.  On August 7, 1995, Pitt purported to sell his controlling
     interest in the Company for $10.00.  The Commission also had alleged that
     Pitt, in fact, retained control of the Company and participated with
     Conectisys in drafting a business plan containing detailed financial and
     product information regarding Conectisys which contained numerous false and
     misleading statements concerning the Company, and that Zaman and Smith
     Benton used the business plan in selling shares of Conectisys stock to the
     public.  In addition, the Commission alleged that on or about April 25,
     1995, Pitt caused the Company to issue 64,000 shares of unregistered common
     stock to Devon, a company under his control and that Devon subsequently
     sold those shares to Zaman and Smith Benton, who then sold those shares to
     the public in furtherance of a manipulative scheme.  

          The Commission further alleged that from February 14, 1996 through at
     least May 28, 1996, through prearranged trading and other manipulative
     activities, defendants Zaman, B&M, and Smith Benton, with the cooperation
     of other broker-dealers, caused the price of Conectisys stock to soar from
     $6 1/4 per share on February 14, 1996 to $22 per share on May 9, 1996; and
     that thereafter, the stock continued trading at high prices, ranging from
     approximately $17 to $22 per share, as a result of defendants' manipulative
     trading practices.  From February 14 through May 28, 1996, defendants'
     manipulative activities resulted in deceptively high trading volumes in
     Conectisys securities: average weekly trading volumes were approximately
     2,200 percent higher than during the previous three month period.  The
     Commission alleged that these dramatic increases in the price and trading
     volume of Conectisys shares were a result of defendants' illegal conduct

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     and not indicative of genuine market interest.  

     See also Litigation Release Nos. 14947 and 15272.






















































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