UNITED STATES SECURITIES AND EXCHANGE COMMISSION

     LITIGATION RELEASE NO. 15539 / October 23, 1997

     SECURITIES AND EXCHANGE COMMISSION V. MEDCO, INC., ET. AL., Case No. 97-
     7246-CIV-RYSKAMP (S.D. Fla.)        

          The Securities and Exchange Commission announced that on October 17,
     1997, the Honorable Kenneth L. Ryskamp, United States District Judge for
     the Southern District of Florida, preliminarily enjoined defendants Medco,
     Inc. ("Medco") and its president, Mark R. Blacher ("Blacher"), from
     offering or selling promissory notes in what the SEC alleges to be an
     elaborate Ponzi scheme.  The preliminary injunction enjoins the defendants
     from violating the registration and anti-fraud provisions of the federal
     securities laws, namely Sections 5(a), 5(c) and 17(a) of the Securities Act
     of 1933 and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange
     Act") and Rule 10b-5 thereunder.  The Orders of Preliminary Injunction also
     continue the freeze of defendants' assets.  The defendants consented to the
     Court's actions.

          On October 8, 1997, the Commission filed a complaint against Medco and
     Blacher, among others, seeking emergency relief.  On October 9, 1997, the
     Court entered a temporary restraining order and asset freeze against the
     defendants.  The Court also appointed a receiver who immediately secured
     Medco's premises and is now in possession of Medco's office and its books
     and records.

          According to the SEC's complaint, the defendants made material
     misrepresentations and omissions in connection with their sale of at least
     $16 million in promissory notes to the investing public.  The notes
     promised investors returns of between 12% to 16% annually, depending upon
     the amount of the investment and maturity of the note.  The complaint
     further alleges that Medco represented to investors that the notes were
     collateralized by used medical equipment which Medco purchased and then
     leased out to end-users such as doctors and clinics.  According to the
     SEC's allegations, Medco is leasing only a fraction of the medical
     equipment it has claimed to be leasing.  In fact, the SEC contends that one
     lessee, which purportedly was leasing medical equipment securing $1.6
     million of investor funds, was a fictitious entity created by Blacher that
     had no leases, office space or real business.  The SEC also contends that
     Medco significantly over-valued the medical equipment purportedly
     collateralizing investor funds.  The SEC's complaint further alleges that
     Blacher lied about his professional background and that of Medco's.  The
     SEC also alleges that Medco wired at least $250,000 of investor funds to an
     off-shore bank account in Luxembourg.      

          In addition to a permanent injunction, the SEC's action also seeks
     disgorgement of ill-gotten profits against the defendants and money
     penalties against Blacher.


          Named as relief defendants in the Commission's lawsuit were The Hi
     Lily Company and Nationwide Health Services, Inc.  The relief defendants
     consented to a continuation of the freeze of their assets.




























































                              ======END OF PAGE 2======