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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 14795 / January 25, 1996       

SEC v. Basic Energy & Affiliated Resources, et al.,  
Case No. 94-74434 (E.D. MI)  


     The Securities and Exchange Commission announced that on
     January 18, 1996, the Honorable Horace Gilmore, U.S.
     District Court Judge for the Eastern District of Michigan,
     ordered Defendant Sarah Delaney to assign her redemption
     rights in her foreclosed home and execute a quitclaim deed
     to the Conservator appointed in the litigation or be
     incarcerated until such action is taken.  The Commission had
     filed a Contempt motion against Delaney on January 8, 1996,
     alleging that Delaney had misrepresented the value of her
     home by claiming that it was in foreclosure and that there
     was no equity in the home.  The Commission staff learned
     that in fact the home has equity valued at over $100,000 and
     requested that the Court order Delaney to assign her
     redemption rights in her home to the Conservator, so that
     the asset would not be lost.  Additionally, Delaney was
     ordered to execute a quitclaim deed for the home so that the
     Conservator can sell the home for the benefit of investors. 
     Previously, Delaney had been ordered to pay disgorgement and
     prejudgment interest in the amount of $323,196.50.  Pursuant
     to a previous Contempt motion by the Commission, Delaney had
     turned over her cash assets of approximately $1000 and
     claimed she had no other assets from which to pay
     disgorgement.