UNITED STATES SECURITIES AND EXCHANGE COMMISSION

     LITIGATION RELEASE NO. 15524 / October 2, 1997

     SECURITIES AND EXCHANGE COMMISSION V. GERARD BURNS, ET. AL., Case No. 97-
     3111-CIV-MOORE  (S.D. Fla.)

          The Securities and Exchange Commission ("SEC") announced that,
     effective September 30, 1997, the Honorable Kevin Michael Moore, United
     States District Judge for the Southern District of Florida, permanently
     enjoined a Miami, Florida investment firm and its president from recklessly
     offering or selling securities and from acting as unregistered broker-
     dealers.  The SEC entered an administrative order the same day barring the
     firm and president from participating in any penny stock offering, and
     barring the president from the securities industry.

          The consent decree and administrative order arose out of the SEC's
     action, filed on September 29, 1997, in the U.S. District Court for the
     Southern District of Florida against a Florida promoter and his companies
     for alleging defrauding Spanish citizens and for filing false financial
     information with the SEC.  The action alleged that the Miami, Florida
     investment firm and its president recklessly offered and sold stock without
     being registered as broker-dealers.

          Named in the SEC's Complaint were:

          Gerard Burns, 48 years of age, resides in Heathrow, Florida, and was
     the president, chief executive officer, and majority shareholder of
     defendant VDS Enterprises, Inc.  The SEC alleges that Burns is a repeat
     securities violator previously criminally convicted in Arizona for fraud in
     connection with the sale of unregistered securities.

          All American Environmental Funding Corporation was a privately-held
     corporation in the environmental clean-up business Burns formed in November
     1993.  It is currently in bankruptcy.

          VDS Enterprises, Inc. was a shell corporation incorporated in Delaware
     in 1985 that later merged with VDS; the SEC alleges that it and VDS were
     effectively the same entity.

          Diversified Capital Resources, Inc., was an investment banking
     business headquartered in Miami, Florida.

          Angel Lorie, 54 years of age, resides in Miami, Florida, and was
     Diversified's president and sole stockholder.

          According to the SEC's complaint, Burns, VDS and All American offered
     and sold $2.7 million worth of VDS stock to citizens of Spain by
     disseminating fraudulent information, and filed false and misleading
     financial information with the SEC.  The SEC alleges that investors were
     told that VDS/All American: (a) had acquired a solid waste collection and
     disposal business in Venezuela; (b) had anticipated combined annual
     revenues of $45 to $50 million; (c) held assets of $16,343,371 and
     shareholder equity of $14,751,412; and (d) held service contracts for $100
     million worth of environmental clean-up work.  According to the SEC's

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     Complaint, none of this was true.  Among other things alleged in the
     Complaint, the solid waste collection and disposal business was never
     acquired, the anticipated revenues were baseless,  and VDS and All
     American's assets were overstated by at least 300% and its service
     contracts by at least 800%.  In addition, the Complaint alleges that Burns'
     background was misrepresented and that his criminal conviction was not
     disclosed to investors.  The Complaint seeks a permanent injunction against
     Burns, VDS and All American, as well as disgorgement of ill-gotten profits,
     civil money penalties and an officer and director bar against Burns.

          The SEC's Complaint also alleges that Diversified and Lorie recklessly
     sold VDS stock to the public without being registered as a broker-dealer
     with the SEC.  On September 30, 1997, the Honorable Kevin Michael Moore,
     United States District Judge for the Southern District of Florida, entered
     a consent final judgment against  Diversified and Lorie, permanently
     enjoining them from recklessly offering or selling securities in violation
     of Sections 17(a)(2) and  17(a)(3) of the Securities Act of 1933
     ("Securities Act") and from acting as unregistered broker-dealers in
     violation of Section 15(a)(1) of the Securities Exchange Act of 1934
     ("Exchange Act").  Disgorgement was waived and money penalties were not
     imposed due to Diversified's and Lorie's demonstrated financial inability
     to pay.

          On the same day as the consent final judgment was entered, September
     30, 1997, the SEC entered an administrative order against Diversified and
     Lorie, by consent, pursuant to which they agreed to be barred from
     participating in any penny stock offering.  Lorie also agreed to be
     permanently barred from the securities industry.

          The Complaint charges Burns, VDS and All American with violations of
     Section 17(a) of the Securities Act, and Sections 10(b) (and Rule 10b-5
     thereunder), 13(a), 13(b)(2)(a) and 13(b)(5) of the Exchange Act and seeks
     a permanent injunction against them.  The SEC's action also seeks
     disgorgement of ill-gotten profits, civil money penalties and an officer
     and director bar against Burns.





















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