SECURITIES AND EXCHANGE COMMISSION

     Litigation Release No.  15639 / February 10, 1998

     Securities and Exchange Commission v. First Zurich National U.S. A, LLC, et
     al., Civil Action No. 98-CV-29D  (USDC Wy.) 

          The Commission today filed an amended complaint and obtained emergency
     relief in a pending action involving an affinity fraud largely targeting
     African Americans.  The Commission alleges that the defendants are offering
     and selling stock in Compunics 139, Inc. ("Compunomics") and First Zurich
     National USA, LLC ("First Zurich") and making false claims to investors
     about the potential value of Compunomics' stock, as well as failing to
     disclose that First Zurich cannot legally operate as a bank.  Judge William
     F. Downes issued a temporary restraining order and other relief against
     Paul D. Catchings ("Catchings"), who is the president and chief executive
     officer of Compunomics, and who was added as a defendant in the amended
     complaint.  This civil action was originally filed by the Commission on
     February 2, 1998 in the United States District Court for the District of
     Wyoming [See, Litigation Release No. 15634, February 3, 1998].  

          The amended complaint alleges that in soliciting persons to purchase
     Compunomics' stock, Catchings and Compunomics are falsely representing to
     investors (some of whom have purchased Compunomics' stock for as low as
     $0.32 per share) that they will reap enormous profits when the stock begins
     publicly trading in the near future at $10.00 per share.  The complaint
     also alleges that they are falsely representing to investors that
     Compunomics will soon be profitably operating a bank.    

          The amended complaint alleges that in soliciting persons to acquire
     stock in First Zurich, a Wyoming limited liability company and Compunomics
     subsidiary (which Compunomics claims to be a "global internet bank"),
     Catchings and the two companies are failing to disclose to investors that
     First Zurich cannot legally operate as a bank.  The Office of the
     Comptroller of the Currency has not granted a national bank charter to
     First Zurich nor has the Wyoming State Banking Board authorized First
     Zurich to conduct banking operations.  Moreover, First Zurich, as a Wyoming
     limited liability company, is not permitted under Wyoming corporate law to
     conduct banking operations.  

          The amended complaint further alleges that Catchings, Compunomics and
     First Zurich have, since approximately April 1995 to the present, sold
     between $4 million and $5 million of Compunomics and First Zurich stock. 
     Between 1,000 and 2,000 persons have purchased Compunomics' stock and at
     least 400 persons have purchased First Zurich stock.  Sales and promotional
     activities have been largely directed towards African Americans.  Public
     sales meetings were held on a regular basis at Los Angeles area restaurants
     from approximately April 1995 to April 1997 where the false claims were
     made.  In July 1997, Compunomics' former vice chairman and chief operating
     officer addressed approximately 30,000 persons attending the Full Gospel
     Baptist Fellowship conference in New Orleans.  Written materials approved
     and authorized by Catchings repeating the false claims were disseminated

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     during the convention.  Also, sales materials containing false and
     misleading information concerning Compunomics have been and, continue to be
     posted on the internet.  
          The amended complaint charges that the defendants have violated the
     antifraud provisions of the federal securities laws -- Section 17(a) of the
     Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of
     1934 and Rule 10b-5 thereunder. 
          The Commission has received substantial assistance in this case from
     the California Department of Corporations, the Wyoming State Securities
     Division and the Cheyenne, Wyoming office of the United States Postal
     Inspection Service.










































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