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             U.S. SECURITIES AND EXCHANGE COMMISSION


Litigation Release No. 15059 / September 20, 1996

Securities and Exchange Commission v. Boston Acceptance
Corporation f/k/a First Boston Acceptance Corporation, d/b/a
First Lenders Indemnity Company, Jonathan P. Boston f/k/a John R.
Marsella and James A. Cunningham, Civil Action No. SA CV 96-901
GLT (EEx) (C.D. Cal.)

     The Securities and Exchange Commission filed a Complaint on
September 19, 1996, in federal court in Los Angeles, California
against Boston Acceptance Corporation d/b/a First Lenders
Indemnity Company ("FLIC"), of Irvine, California, Jonathan P.
Boston f/k/a John R. Marsella ("Boston"), of Newport Beach,
California and James A. Cunningham ("Cunningham"), of Costa Mesa,
California, alleging that the defendants fraudulently sold $19
million of unregistered nine-month promissory notes ("Notes")
from April 1993 to December 1994.  FLIC's investors were located
nationwide, including in California, Texas and Florida.

     According to the Commission's Complaint, FLIC's various
prospectuses and offering materials misrepresented and/or failed
to disclose material facts concerning: (a) the existence and
extent of FLIC's insurance coverage; (b) the status, identity and
duties of trustee(s) assigned to FLIC's Note program; (c) details
regarding Boston's prior felony conviction for bank fraud; (d)
Boston's undisclosed receipt of fees through JP Boston, a sole
proprietorship that acted as a loan finder for FLIC; and (e) a
Commission "No-Action" position that was never, in fact, issued. 

     Simultaneously, FLIC, Boston and Cunningham, without
admitting or denying the allegations in the complaint, each
consented to the entry of a Final Judgment (a) permanently
enjoining them from future violations of Sections 5(a), 5(c) and
17(a) of the Securities Act of 1933 and Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 thereunder; and
(b) ordering them to pay civil penalties in the following
amounts: (i) FLIC - $25,000, (ii) Boston - $50,000 and       
(iii) Cunningham - $10,000.