UNITED STATES SECURITIES AND EXCHANGE COMMISSION

 Litigation Release 15287 / March 13, 1997

SEC v. Jerome E. Pinckney, Richard L. Arnold, Donald E. Elder, Fernando Cruz, Shaun K.R. Maxwell, Anthony Bukovich, Jr., and Six Capital Corporation (E.D.N.C., Civil Action No. 7:95-CV-122-BR-1)

 The Securities and Exchange Commission ("Commission") announced today that on February 28, 1997, the Honorable W. Earl Britt, United States District Judge for the Eastern District of North Carolina, entered a judgment against Fernando Cruz ("Cruz") pursuant to Rule 37(d) of the Federal Rules of Civil Procedure, for failure to appear for a scheduled deposition. The Court ordered Cruz permanently enjoined from further violations of Section 17(a) of the Securities Act of 1933. The Court found that the imposition of civil penalties would be considered at a later date upon motion by the Commission.

 Cruz has failed to respond to the allegations set forth in the complaint filed by the Commission on August 23, 1995. The complaint alleged that Cruz, along with his co-defendants, violated the securities antifraud statute by offering for sale investment contracts which were part of a prime bank scheme. As part of the scheme, Cruz attempted to obtain funds from investors by misrepresenting or failing to disclose material facts in connection with the sale of prime bank notes. Among other misrepresentations, Cruz falsely represented that the investments were risk-free and that contractual guarantees of payment were being given by a major United States Bank.

 On October 18, 1996, the Commission arranged to take Cruz's deposition at a location near his residence in Linden, New Jersey. Cruz did not appear for the deposition and he did not contact the Commission to make any other arrangements. On December 20, 1996, the Commission requested the Court to enter a judgment against Cruz as a sanction for his failure to appear at the deposition. On February 28, 1997, the Court granted the request.