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                SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 15092  / September 30, 1996

SECURITIES AND EXCHANGE COMMISSION v. SEABOARD INVESTMENT
ADVISERS, INC., AND EUGENE W. HANSEN (United States District
Court for the Eastern District of Virginia, Norfolk Division,
Civil Action No. 2:96-CV-950)

     On September 30, 1996, the Securities and Exchange
Commission ("Commission") filed a complaint in the U.S. District
Court for the Eastern District of Virginia against Seaboard
Investment Advisers, Inc. ("Seaboard"), and Eugene W. Hansen
("Hansen"), Seaboard's chief executive officer and controlling
shareholder.  In the complaint, the Commission seeks a permanent
injunction and civil penalties against the defendants for
violations of the antifraud provisions of the Investment Advisers
Act of 1940 ("Advisers Act").  In addition, the Commission seeks
a court order to enforce compliance with an Order Making Findings
and Imposing Remedial Sanctions and Cease-and-Desist Order
entered by the Commission in August 1994.  As part of this
relief, the Commission requests additional civil penalties
pursuant to Section 209(e)(4), the Special Provision Relating to
a Violation of a Cease-and-Desist Order.

     According to the Commission's complaint, from January 1995
through July 1995, Seaboard, aided and abetted by Hansen, engaged
in a scheme to defraud Seaboard's investment advisory clients by
sending them false and misleading advertisements.  These
advertisements, which were in the form of letters that reviewed
each client's investment portfolio, falsely represented that
Seaboard's accounts had outperformed various well-known market
indices, including the Lipper Analytical Services, Standard &
Poors 500 and Lehman Brothers Government/Corporate Bond indices. 
At the time that this conduct occurred, both Seaboard and Hansen
were subject to a prior administrative order entered by the
Commission on August 3, 1994, less than six months prior to the
conduct at issue.  In accordance with the terms of that order,
Seaboard and Hansen were required, among other things, to cease
and desist from committing or causing any future violations of
certain antifraud provisions of the Advisers Act.  The complaint
alleges that, by engaging in the present conduct, Seaboard and
Hansen have violated the terms of the Commission's order as well
as other antifraud provisions of the Advisers Act.

     The complaint further alleges that, in accomplishing the
scheme, Hansen deliberately circumvented Seaboard's internal
procedures regarding the use of advertisements.  These
procedures, which were implemented pursuant to certain
requirements of the August 3, 1994 administrative order, were
designed to prevent the dissemination of false and misleading
advertisements.  Among other things, the procedures required that
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all advertising materials be reviewed and approved by Seaboard's
Vice President of Compliance.

     The complaint charges Seaboard with committing, and Hansen
with aiding and abetting, violations of Sections 206(1), 206(2)
and 206(4) of the Advisers Act and Rule 206(4)-1(a)(5),
thereunder.  The complaint also charges the defendants with
violating the terms of the August 3, 1994 administrative order.

     The prior administrative order contained findings that
Seaboard and Hansen had violated the antifraud provisions of the
Advisers Act by publishing, circulating and distributing
advertisements, which contained false and misleading performance
figures for the period from 1984 though 1991.  The Order also
contained findings that Seaboard had falsely advertised that its
performance results were audited, and had violated certain
recordkeeping requirements of the Advisers Act.  Seaboard and
Hansen consented to issuance of the prior Commission order
without admitting or denying the findings.  In addition, Seaboard
agreed to pay $1 million in civil penalties.  In the Matter of
Seaboard Investment Advisers, Inc., Eugene W. Hansen and Stewart
M. Powers, Jr.  Investment Advisers Act Rel. No. 1431.