UNITED STATES SECURITIES AND EXCHANGE COMMISSION

             LITIGATION RELEASE NO.  15841 / August 12, 1998

             SECURITIES AND EXCHANGE COMMISSION v. MICHAEL D. JENKINS,
             LAWRENCE A. PETERSEN, JAMIE T. TSUTSUI AND MICHAEL L.
             KINNEY
             3: 98 CV 1892-X, USDC, ND/TX.

             The Securities and Exchange Commission ("Commission")
             announced today that it filed a Complaint in the United
             States District Court in Dallas, Texas, against Michael D.
             Jenkins, Lawrence A. Petersen, Jamie T. Tsutsui and Michael
             L. Kinney.  Jenkins was the founder of Absolute Resource
             Corporation (ARC), a privately-held Texas corporation that
             purportedly engaged in mining operations in Missouri.
             Peterson and Tsutsui are former licensed securities
             salesmen and Kinney is a former employee of a registered
             broker-dealer.

             The Complaint alleges that between 1992 and 1996, ARC
             conducted at least two unregistered securities offerings
             that raised approximately $4.6 million from the sale of
             promissory notes to at least 150 investors in fifteen
             states.  It is further alleged that Jenkins misappropriated
             at least $1.5 million of investor funds from both note
             offerings.  The stated purpose of the first note offering
             was to develop a sand mine located in Pemiscot County,
             Missouri.  In connection with the first offering the
             Complaint alleges the defendants made numerous
             misstatements and omissions of material facts concerning,
             among other things, ARC's purported ownership of the sand
             mine, the use of investor funds, the safety of the
             investment, the compensation paid to the defendants, the
             financial condition of ARC, and the risks associated with
             the investment.  The Complaint also alleges that after a
             Missouri court ruled that ARC had no ownership interest in
             the sand mine, defendant Jenkins conducted a second
             fraudulent note offering involving a Missouri rock quarry.
             In April 1996, ARC filed for bankruptcy and defaulted on
             over $4.4 million in investor notes.  In May 1998, Jenkins
             was indicted by a federal grand jury on numerous counts of
             securities fraud, wire fraud, and money laundering, based
             on his activities described in the Commission's Complaint
             (Criminal No. 398-CR-177-G, N.D/TX, Dallas Division).

             The Commission's Complaint alleges that each defendant
             violated the securities registration and antifraud
             provisions found in Sections 5(a), 5(c) and 17(a) of the
             Securities Act of 1933, and Section 10(b) of the Securities
             Exchange Act of 1934. Additionally, defendants Petersen,
             Tsutsui and Kinney are charged with acting as unregistered
             broker-dealers in violation of Section 15(a) of the
             Exchange Act.  The Complaint seeks a permanent injunction
             against each defendant, as well as an accounting,
             disgorgement and civil penalties.
             COMPLAINT FILED AGAINST MICHAEL D. JENKINS, LAWRENCE A.
             PETERSEN, JAMIE T. TSUTSUI AND MICHAEL L. KINNEY


The  Commission  announced  that  on  August  10 it filed a Complaint in
Dallas, Texas, against Michael D. Jenkins, Lawrence  A.  Petersen, Jamie
T. Tsutsui and Michael L. Kinney.  Jenkins was the founder  of  Absolute
Resource  Corporation  (ARC),  a  privately-held  Texas corporation that
purportedly  engaged  in  mining operations in Missouri.   Petersen  and
Tsutsui are former licensed  securities  salesmen and Kinney is a former
employee of a registered broker-dealer.

The Complaint alleges that between 1992 and 1996, ARC conducted at least
two  unregistered securities offerings that  raised  approximately  $4.6
million  from  the sale of promissory notes to at least 150 investors in
fifteen states.   It  is further alleged that Jenkins misappropriated at
least $1.5 million of investor  funds  from  both  note  offerings.  The
stated  purpose  of the first note offering was to develop a  sand  mine
located in Pemiscot  County,  Missouri.   In  connection  with the first
offering   the   Complaint   alleges   the   defendants   made  numerous
misstatements  and  omissions of material facts concerning, among  other
things, ARC's purported  ownership of the sand mine, the use of investor
funds,  the  safety of the investment,  the  compensation  paid  to  the
defendants, the  financial  condition  of  ARC, and the risks associated
with the investment.  The Complaint also alleges  that  after a Missouri
court  ruled  that  ARC  had  no  ownership  interest in the sand  mine,
defendant Jenkins conducted a second fraudulent  note offering involving
a  Missouri rock quarry.  In April 1996, ARC filed  for  bankruptcy  and
defaulted  on over $4.4 million in investor notes.  In May 1998, Jenkins
was indicted  by  a  federal grand jury on numerous counts of securities
fraud,  wire  fraud, and  money  laundering,  based  on  his  activities
described in the Commission's Complaint.

The Commission's  Complaint  alleges  that  each  defendant violated the
securities registration and antifraud provisions found in Sections 5(a),
5(c) and 17(a) of the Securities Act of 1933, and Section  10(b)  of the
Securities  Exchange  Act  of  1934   Additionally, defendants Petersen,
Tsutsui  and  Kinney  are charged with acting  as  unregistered  broker-
dealers  in  violation of  Section  15(a)  of  the  Exchange  Act.   The
Complaint seeks  a  permanent injunction against each defendant, as well
as an accounting, disgorgement  and  civil  penalties.   [SEC v. Michael
Jenkins, et. al., USDC ND/TX, 3:98 CV1892-X (LR-).


             STEPHEN WEBSTER, Senior Special Counsel
             Fort Worth District Office
             817/978-6459