U.S. Securities and Exchange Commission

Litigation Release No. 15176 / December 4, 1996

SECURITIES AND EXCHANGE COMMISSION v. GERALD P. HIRSCH, et al.,
96 Civ. 9121, U.S.D.C., S.D.N.Y. (CBM)

The Securities and Exchange Commission ("Commission") announced
that it filed a complaint on December 4, 1996, in the United
States District Court, Southern District of New York, against
Gerald P. Hirsch ("Hirsch") and Churchill Securities, Inc.
("Churchill"), alleging that Hirsch and Churchill had violated a
Commission Order issued on May 24, 1996.  The Commission also
made an application to the court for a Temporary Restraining
Order ordering Hirsch and Churchill to comply immediately with
the Commission order issued against them.  The Commission's
application also seeks the appointment of a Temporary Receiver
for Churchill, and that the court schedule a hearing to consider
the Commission's application for a Preliminary Injunction.

Named in the Complaint, filed today in the United States District
Court for the Southern District of New York, were:

     GERALD P. HIRSCH, age 58, who resides in Croton-on-Hudson,
     New York.  Hirsch is the President of Churchill Mortgage
     Investment Corp. ("CMIC") and, along with his children, owns
     70 percent of the company.  Hirsch also claims to currently
     own Churchill.

     CHURCHILL SECURITIES, INC., a corporation duly incorporated
     under the laws of the State of New York and located in
     Suffern, New York, has been registered with the Commission
     as a broker-dealer, pursuant to Section 15(b) of the
     Exchange Act, since 1982. 

As detailed in the complaint, defendant Hirsch currently claims
to own, and is in possession of, Churchill, a registered broker-
dealer.  As a result, Hirsch and Churchill are violating an order
of the Commission which was issued in connection with the
settlement of a prior civil action, United States Securities &
Exchange Commission v. Churchill Securities, Inc., Churchill
Mortgage Investment Corp. and Gerald P. Hirsch, 93 Civ. 7486
(CBM) (S.D.N.Y. November 1, 1993), and a related administrative
proceeding, In the Matter of Churchill Securities, Inc. and
Gerald P. Hirsch, A.P. File No. 3-9012 (May 24, 1996).  The prior
proceedings charged Hirsch and Churchill with numerous violations
of the registration and antifraud provisions of the federal
securities laws in connection with the offer and sale of
securities to members of the investing public.

Pursuant to the settlement of the prior proceedings, Hirsch and
Churchill consented to the entry of an Order Instituting Public
Administrative Proceedings, Making Findings and Imposing Remedial
Sanctions, which was issued by the Commission on May 24, 1996
("Commission Order").  The Commission Order provided that, among
other things, Hirsch was suspended for twelve months from
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association with any broker, dealer, investment adviser,
investment company or municipal securities dealer commencing June
3, 1996.  The Commission Order also provided that Churchill was
ordered to comply with the terms of certain remedial
undertakings, including the hiring of a consultant to undertake a
review of the firm's procedures.

Hirsch is now flagrantly violating the Commission Order by, among
other things, continuing to assert ownership of Churchill, a
registered broker-dealer; mailing written materials to members of
the public in which Hirsch holds himself out as being affiliated
with Churchill and in which he recommends securities
transactions; soliciting securities transactions with public
investors without disclosing the Injunction or the Commission
Order; and placing customers' orders for the purchase and sale of
securities with Churchill's clearing broker.  Churchill is
violating the Commission Order by failing to implement a review
of its policies, procedures and practices.

The Commission's complaint against Hirsch and Churchill seeks an
order appointing a Temporary Receiver for Churchill, as well as
preliminary and permanent injunctive relief from further
violations of the Commission's Order, disgorgement of ill-gotten
gains, including prejudgment interest, and other ancillary
relief.