UNITED STATES SECURITIES AND EXCHANGE COMMISSION

   LITIGATION RELEASE NO.   16011 / December 29, 1998

COURT ORDERS DISTRIBUTION OF SEIZED PROPERTY AND CASH TO CHARITY

Securities and Exchange Commission v. First Zurich National USA,
LLC,  Compunomics  139, Inc. and Paul Douglas Catchings, Civil
Action No. 98-CV-29D (USDC WY)

   On December 22, 1998, the United States District Court for
the District of Wyoming entered an order distributing one half of
the remaining cash seized from the defendants to the Salvation
Army in Cheyenne, Wyoming and one half to the Salvation Army in
New Orleans, Louisiana. The Honorable William F. Downes directed
that such funds be used by those organizations for feeding
homeless persons. It is believed that the total cash that will be
distributed pursuant to the order totals approximately $20,193.

   In an earlier Order of October 27, 1998, Judge Downes
directed that computer equipment seized from the defendants be
donated to the Pasadena, California Unified School District with
the condition that the property be used in schools within the
district. The October 27, 1998, Order also provided that various
miscellaneous property seized from the defendants be given to the
Salvation Army in Pasadena, California.

   Judge Downes distributed the equipment and cash as set forth
above after finding that because there were approximately two
thousand defrauded investors in this matter, it was not practical
to attempt to make any distribution to individual investors.

   On August 14, 1998 Judge Downes entered an order requiring
the defendants First Zurich National USA, LLC ("First Zurich"),
Compunomics  139, Inc. (" Compunomics" ), and Douglas Paul
Catchings ("Catchings") to jointly and severally disgorge
$4,370,425 plus prejudgment and postjudgment interest to be
determined later. The Order also requires defendant Cathings to
pay a civil penalty of $100,000. To date the Commission has not
located sufficient funds or property to make any distribution to
investors.

   Previously Judge Downes had entered temporary restraining
orders, permanent injunctions, an asset freeze, and appointed a
Special Officer to take possession of the property of the
defendants. Judge Downes has also issued a warrant for the arrest
of defendant Catchings based on the Court's finding him to be in
contempt of various orders. That arrest warrant remains in effect
and Catchings has not as of this date been located.

   The Commission alleged that First Zurich, a Wyoming limited
liability company and  Compunomics, a Belizean corporation based
in Pasadena, California and the corporate parent of First Zurich,
and Douglas Paul Catchings, controlling person of Compunomics and
First Zurich fraudulently raised more than $4 million from
approximately 2,000 investors through the sale of stock in
Compunomics and First Zurich. Defendants had falsely claimed that
they were operating a bank, when, the Commission has alleged, no
bank in fact existed. This was an affinity fraud largely
targeting African-Americans.

   Investors in this fraudulent scheme who wish to obtain
further information are encouraged to contact the Commission's
Denver office by writing to 1801 California Street, Suite 4800,
Denver, Colorado 80202 or by telephone at (303) 844-1000.

   For further information see Litigation Releases 15634
(February 3, 1998), 15639 (February 10, 1998), and 15645
(February 18, 1998), 15848 (August 14, 1998).