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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 14750 / December 7, 1995       

SEC v. Mark Shelby, Christopher Cooper, Medical Financial
Services, Inc., and Physicians Financial, Inc., (N.D Ga., Civil
Action No. 1:94-CV-1075, filed October 3, 1995).  

     The Commission announced that on October 3, 1995, the
Honorable G. Ernest Tidwell, United States District Judge for the
Northern District of Georgia, entered a permanent injunction
enjoining Mark Shelby ("Shelby"), Christopher Cooper ("Cooper"),
and Physicians Financial, Inc. ("PFI"), a Utah corporation, from
violating 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
("Exchange Act") and Rule 10b-5 thereunder.  Cooper was also
enjoined from violating Section 15(a)(1) of the Exchange Act. 
The defendants consented to the relief without admitting or
denying the allegations in a complaint previously filed by the
Commission on April 20, 1994.  The court also ordered the payment
of disgorgement, including prejudgment interest, in the amount of
$2,460,793.90 by Shelby and Cooper, jointly and severally, and in
the amount of $34,116.91 by PFI.  However, payment of
disgorgement by the defendants was waived based on their
demonstrated inability to pay.

     The Commission had previously alleged in its complaint that
the defendants offered and sold $2.5 million in  securities
issued by Medical financial Services, Inc. ("MFS"), an Idaho
corporation engaged in the business of factoring medical accounts
receivable, making various misrepresentations and omitting to
state material facts concerning, among other things, the
financial condition of MFS and the use of an independent, bonded
escrow agent.  On October 11, 1994, MFS, which has ceased
operations, consented to a permanent injunction, the appointment
of a receiver, the payment of disgorgement, and the imposition of
civil penalties in amounts to be subsequently determined.
 
     Shelby and Cooper subsequently created an entity similar to
MFS, PFI, and began an unregistered, fraudulent offering of $6.5
million in PFI promissory notes.  PFI's offering memorandum was
misleading with respect to, among other things, the recent
financial condition of MFS, and legal actions pertaining to the
fraudulent offering of the securities of MFS.  PFI has also
ceased operations.

     On October 26, 1994, a voluntary petition under Chapter 11
of the Bankruptcy Code was filed by the appointed receiver on
behalf of MFS.  Payment of disgorgement and civil penalties by
MFS is pending the disposition of this action.  The Commission
gratefully acknowledges the assistance of the Office of the
Secretary of State of South Carolina, Securities Division.