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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 14989 \ July 23, 1996            

SECURITIES AND EXCHANGE COMMISSION V. JOHN A. PREVOST AND
PATRICIA O'CONNELL, Case No. 1:96CV176-T (W.D.N.C.)

     The Securities and Commission today announced that on July
19, 1996, it filed a complaint in the United States District
Court for the Western District of North Carolina alleging that
John A. Prevost and Patricia O'Connell violated Section 10(b) of
the Securities Exchange Act of 1934 ("Exchange Act") and Rule
10b-5 thereunder by engaging in insider trading of the common
stock of Wellco Enterprises, Inc. ("Wellco") prior to the
company's public announcement on September 14, 1993 of a
substantial dividend.  In its Complaint, the Commission seeks
permanent injunctions against Prevost and O'Connell, disgorgement
of trading profits plus prejudgment interest thereon, and civil
penalties.  

     Simultaneously, and without admitting or denying the
allegations of the Complaint, Prevost and O'Connell both
consented to the entry of a Final Judgment of Permanent
Injunction, permanently enjoining them from future violations of
Section 10(b) and Rule 10b-5.  The Final Judgment also orders
both Prevost and O'Connell to pay a civil money penalty of
$3,387.50, and orders Prevost to pay disgorgement of $3,387.50,
plus prejudgment interest of $782.38.

     According to the Complaint, in 1993 Prevost was a director
of Wellco, a Waynesville, North Carolina company that
manufactures boots for the U.S. military and other specialty
markets.  The Complaint alleges that, through his position as a
director of Wellco, Prevost learned that Wellco management would
recommend to the board of directors at a September 14, 1993,
meeting that Wellco declare a $6 per share dividend.  The
Complaint alleges that, prior to this information becoming
public, Prevost told O'Connell, his long-time business partner,
that Wellco would declare the dividend.  The Complaint further
alleges that, while in possession of this material, non-public
information, O'Connell bought 500 shares of Wellco common stock
and that these shares appreciated immediately after the dividend
was publicly announced.