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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 14658 / September 28, 1995           

SECURITIES AND EXCHANGE COMMISSION v. LEE F. SUTLIFFE, (United
States District Court for the Western District of Missouri, Civil
Action No. 95-0867-CV-W-BD, filed September 27, 1995)

     The Securities and Exchange Commission today announced the
filing of a Complaint on September 27, 1995, in the United States
District Court for the Western District of Missouri, in Kansas
City, seeking an order of permanent injunction against Lee F.
Sutliffe (Sutliffe).  The Commission's Complaint alleges that
Sutliffe, by participating in the preparation of false and
misleading municipal bond offering circulars, violated the
antifraud provisions of the Securities Act of 1933 and the
Securities Exchange Act of 1934.

     The Complaint alleges, among other things, that during the
years 1984 through 1989, Sutliffe was the undisclosed promoter
and control person of two not-for-profit corporations, First
Humanics Corp. (First Humanics) and its successor, International
Elderly Care, Inc. (IEC), which participated in 26 public
offerings of municipal and corporate bonds raising over $107
million.  The purpose of these offerings was to acquire, renovate
and operate nursing homes.  

     The Complaint further alleges that, in connection with two
such offerings, First Humanics' 1987 offering to acquire the
Medicos Recovery Care Center nursing home in Detroit, Michigan
(Medicos) and IEC's 1988 offering to acquire the Colonial Gardens
Convalescent Center in Boonville, Missouri (Colonial Gardens),
Sutliffe promoted the offerings and participated in the
preparation of false and misleading offering circulars. 
Specifically, the Complaint alleges that the Medicos offering
circular contained material misrepresentations and omissions
concerning:  Sutliffe's role as a promoter of the offering;
Sutliffe's control over First Humanics as well as his regulatory
history and numerous prior bond and business failures; the
commingling of revenues from existing First Humanics nursing
homes and the resulting financial interdependence of all First
Humanics nursing homes; and First Humanics' ongoing ponzi scheme.

In addition, the Complaint alleges that the Colonial Gardens
offering circular contained material misrepresentations and
omissions concerning:  Sutliffe's role in the offering and his
control over IEC as well as his background; the nexus between IEC
and First Humanics; and First Humanics' prior bond defaults.