SECURITIES AND EXCHANGE COMMISSION

     LITIGATION RELEASE No. 15554 / November 7, 1997

     SECURITIES AND EXCHANGE COMMISSION v. NORMAN L. BROOKS, FINANCIAL ADVISORS,
     INC. (d.b.a. "AMERICAN FINANCIAL ADVISORS"), AMERICAN CAPITAL FUNDING,
     INC., FW ADVISORS, INC., WILLIAM F. KANE, JAMES PAPATOLA, VICTOR G.
     CAMPANA, JAMES BROOKS (a.k.a. "David Gertzinger"), KEN BOGANNAM, ADAMS
     FINANCIAL SERVICES, INC., ADAMS FINANCIAL GROUP, INC., MICHAEL W. ADAMS,
     RONNIE LEE AWTRY, KARL DON MILSTEAD, DONALD H. STRINGER, DAVID M. STOVER,
     and SAINT CLAIR AINSLEY KNIGHT, JR. (United States District Court for the
     District of New Hampshire, C.A. No. C-94-167-JD)

          The Securities and Exchange Commission announced the entry on October
     28, 1997, of a final judgment holding Financial Advisors, Inc., American
     Capital Funding, Inc., and FW Advisors, Inc., jointly and severally liable
     for disgorgement of $3.625 million.  In its Complaint, which it filed on
     April 5, 1994, the Commission alleged that the three entities and thirteen
     other defendants raised that amount from more than 100 investors in 25
     states through a fraudulent "boiler-room" offering of unregistered
     securities.  The Commission further alleged that each of the defendants
     made false statements and omissions of material fact to potential
     investors, including representations that the proceeds of the sales of the
     securities would be used to make automobile loans the repayment of which
     was "insured," when, in fact, most of the proceeds of the securities sales
     were converted to the personal benefit of the defendants.  The Commission
     charged the defendants with violations of the antifraud and securities and
     broker-dealer registration provisions of the federal securities laws.  The
     three entities consented to the entry of the final judgment without
     admitting or denying any of the Commission s substantive allegations.

          The three entities  disgorgement liability will be partially satisfied
     by the immediate deposit into the court registry of approximately $730,000
     held by the three entities under the terms of an asset freeze order issued
     by the court at the outset of the case. The remainder of the disgorgement
     liability will be paid as the entities  assets are marshaled and liquidated
     by a receiver in whose control the three entities were placed pursuant to
     prior order of the court.  Upon dissolution, the three entities will be
     required to pay all of their remaining assets to the registry of the court
     in satisfaction of their disgorgement liability and any unsatisfied
     disgorgement liability will be waived based upon financial inability to
     pay.  Civil monetary penalties were not imposed based upon a demonstrated
     inability to pay.  The three entities previously were enjoined permanently
     by default from further violating the provisions of the federal securities
     laws the Commission alleged they had violated.

          The Commission now has obtained complete relief against fourteen of
     the sixteen defendants in this case.  The only issues

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     remaining are the amounts of monetary relief the principal promoter of the

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     scheme, Norman L. Brooks, and his son, James Brooks (a.k.a.  David
     Gertzinger ), will be required to pay.  The Commission anticipates that it
     will submit for court approval a plan for distributing to defrauded
     investors the funds disgorged by Financial Advisors, Inc., American Capital
     Funding, Inc., and FW Advisors, Inc., along with those funds disgorged by
     the other defendants in the case. 

          In addition, six of the defendants in the Commission s action,
     including N. Brooks, J. Brooks, have been convicted of various federal and
     state criminal offenses on the basis of their involvement in the scheme.  

          For more information, see prior Litigation Release Nos. 15443, 14048,
     14055, 14076, 14142, 14235, 14324, 14410 and 14703.








































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