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             U.S. Securities and Exchange Commission


Litigation Release No.  14799 / January 29, 1996  

SECURITIES AND EXCHANGE COMMISSION v. CALVIN L. WORD, et al.,
Civil Action No. 1:95-CV-2470-GET (N.D. Ga.)

     The Securities and Exchange Commission announced that on
January 22, 1996, a Final Judgment By Default was entered in the
U.S. District Court for the Northern District of Georgia, against
Calvin L. Word ("Word").  Word was permanently enjoined from
violating Section 17(a) of the Securities Act of 1933 and Section
10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
thereunder.  Word was associated as co-owner and vice president
with First Alliance Securities, Inc. ("First Alliance"), a now
defunct penny stock broker-dealer headquartered in Atlanta,
Georgia.
   
     In the Final Judgment, Word is deemed to have admitted the
allegations in the Commission's complaint.  The complaint alleged
that First Alliance operated as a penny stock boiler room selling
to unsophisticated investors through high pressure sales tactics,
misrepresentations and omissions.  The complaint alleged that
Word frequently led meetings of the First Alliance sales staff to
instruct them in using such means and methods to sell stocks
promoted by First Alliance.  Specifically, the complaint alleged
that Word, directly and through others, made misrepresentations
to customers concerning the business of the companies whose stock
First Alliance sold, and failed to disclose material facts
regarding the prevailing market price for those stocks, the fact
that First Alliance was manipulating the price of the stocks and
the fact that First Alliance principals had undisclosed interests
in the stocks. 

     The Commission's complaint also alleged that Word
participated in determining the prices which First Alliance would
arbitrarily set for the stocks it promoted, and that those prices
contained excessive markups designed to provide high commissions
to First Alliance stockbrokers and profits to First Alliance and
its insiders. 

     The Commission's complaint further alleged that Word,
directly and through others, failed to disclose to First Alliance
customers the firm's policy prohibiting net selling, which
effectively prevented investors from withdrawing their funds from
the firm.