SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 14718 / November 14, 1995

SEC v. Robert Cord Beatty, et al., Civil Action No. 2:95CV 0886S (USDC UT).

     The Securities and Exchange Commission announced that on      November 2, 1995, the Honorable Judge David Sam,   U.S. District

Court Judge, District of Utah, entered Judgments of Permanent Injunction against Robert Cord Beatty, Leroy Max Campbell, Lyle John Boss,

and Thelma Mae Cannon Caliebe.  The defendants were enjoined from further violations of registration and antifraud provisions of the federal

securities laws by their offer and sale of nonexistent "risk free" prime bank instruments.  The defendants consented to the entry of the Judgments

of Permanent Injunction without admitting or denying the Commission's allegations.  The court waived disgorgement and determined not to impose

civil penalties based on the demonstrated inability of the defendants to pay.

     The Commission's September 25, 1995 Complaint alleged that from February 1992 until February 1993, the defendants, individually and through

various entity names, offered and sold a fraudulent investment for which funds were raised from investors purportedly to buy and sell putative

"prime bank" instruments such as documentary letters of credit, standby letters of credit, prime bank notes, or prime bank guarantees issued from

the "top 100 world banks."  The Complaint also alleged that in connection with the offer and sale of these instruments, the defendants falsely

represented that the transactions were "risk free" and would earn a return of 10 percent to 25 percent monthly.  According to the Complaint, the

defendants diverted most of the $2 million raised from investors to their own uses without informing the investors.