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             U.S. Securities and Exchange Commission

Litigation Release No. 14805 / January 31, 1996 

SEC v. Victor Strevel, Civil Action No. 1:95-CV-2097 (N.D. Ga.).

     The Securities and Exchange Commission announced that on
January 25, 1996, a Final Judgment was entered in the United
States District Court for the Northern District of Georgia
against Victor H. Strevel ("Strevel"), permanently enjoining
Strevel 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.  Strevel was associated as trading
department liaison with First Alliance Securities, Inc. ("First
Alliance"), a now-defunct, Atlanta-based penny stock broker-
dealer.  Strevel consented to the entry of the Final Judgment
without admitting or denying the allegations of the Commission's
complaint.  

     The Commission's complaint, filed on August 22, 1995,
alleged that Strevel, without registration, acted as a de facto
principal, and that in that role, coached the First Alliance
sales staff in high pressure sales tactics, assisted in setting
fraudulent, arbitrary prices for the securities First Alliance
sold, enforced the firm's policy prohibiting net selling, and
caused First Alliance brokers to make unauthorized purchases in
customer accounts.  

     In addition, the complaint alleged that Strevel caused the
First Alliance sales staff to make misrepresentations to
customers about the liquidity, suitability, and level of risk of
stocks promoted by First Alliance, the current available market
prices for those stocks, the reasons for increases or decreases
in the prices of those stocks, the operations, financial
condition, and prospects of the purported issuers of those
stocks, the cost of executing trades through First Alliance, and
the prospects that the stocks promoted by First Alliance would be
listed on a stock exchange and would be profitable.  

     The complaint further alleged that Strevel caused the sales
staff to fraudulently fail to tell First Alliance customers that
the firm was manipulating the prices of stocks it promoted and
that the firm had a policy prohibiting net-selling, effectively
preventing investors from withdrawing their funds from the firm.