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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 15039 / September 12, 1996

SECURITIES AND EXCHANGE COMMISSION v. KINLAW SECURITIES CORP., et
al., 3:93-CV-2010-T, USDC, ND/TX (Dallas Division)

     The Securities and Exchange Commission ("Commission")
announced that on August 28, 1996, a final judgment of permanent
injunction and other equitable relief was entered in United
States District Court in Dallas, Texas, against Stephen R. Parker
("Parker").  Without admitting or denying the allegations in the
Commission's complaint, Parker consented to be permanently
enjoined from future violations of the securities registration
and anti-fraud provisions of the federal securities laws. The
court also ordered Parker to pay disgorgement in the amount of
$1,545,227, plus prejudgment interest of $262,072; however, the
payment of all disgorgement and prejudgment interest was waived
based on Parker's demonstrated financial inability to pay.
Additionally, the court did not impose a civil penalty because of
Parker's poor financial condition.

     The Commission's first amended complaint alleged that the
defendants, including Parker, engaged in the offer, purchase and
sale of securities in the form of investment contracts involving
interests in oil and gas drilling ventures in violation of the
registration and antifraud provisions of the federal securities
laws. The first amended complaint further alleged that in
connection with the offer, purchase and sale of these securities,
the defendants made material misrepresentations and omissions of
material fact concerning, among other things, the risks and
expected returns associated with the oil and gas investments, the
costs to drill and complete oil and gas wells, and the success of
prior oil and gas wells.
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PERMANENT INJUNCTION ENTERED AGAINST STEPHEN R. PARKER

     The Commission announced that on August 28, 1996, a final
     judgment of permanent injunction and other equitable relief
     was entered in United States District Court in Dallas,
     Texas, against Stephen R. Parker (Parker).  Without
     admitting or denying the allegations in the Commission's
     complaint, Parker consented to be permanently enjoined from
     future violations of the securities registration and anti-
     fraud provisions of the federal securities laws. The court
     also ordered Parker to pay disgorgement in the amount of
     $1,545,227, plus prejudgment interest of $262,072; however,
     the payment of all disgorgement and prejudgment interest was
     waived based on Parker's demonstrated financial inability to
     pay.

     The Commission's first amended complaint alleged that the
     defendants, including Parker, engaged in the offer, purchase
     and sale of securities in the form of investment contracts
     involving interests in oil and gas drilling ventures in
     violation of the registration and antifraud provisions of
     the federal securities laws. The first amended complaint
     further alleged that in connection with the offer, purchase
     and sale of these securities, the defendants made material
     misrepresentations and omissions of material fact
     concerning, among other things, the risks and expected
     returns associated with the oil and gas investments, the
     costs to drill and complete oil and gas wells, and the
     success of prior oil and gas wells.[Securities and Exchange
     Commission v. Kinlaw Securities Corp., et al., 3:93-CV-2010-
     T, USDC, ND/TX]
     (LR-     )

Stephen Webster
District Trial Counsel
Fort Worth District Office
817/978-6459