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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 14707 / November 1, 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 that
on October 27, 1995 the United States District Court for the
Western District of Missouri, in Kansas City, entered an Order of
Permanent Injunction (Order) against Lee F. Sutliffe (Sutliffe). 
The Order enjoins Sutliffe from future violations of Sections
17(a)(1), 17(a)(2) and 17(a)(3) of the Securities Act of 1933,
Section 10(b) of the Securities Exchange Act of 1934 and Rule
10b-5 thereunder.  Sutliffe consented to the entry of the Order
without admitting or denying the allegations in the Commission's
Complaint.

     The Commission's Complaint, filed on September 27, 1995,
alleged, 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 alleged 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 alleged 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 alleged 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.