==========================================START OF PAGE 1======

U.S. Securities and Exchange Commission

Litigation Release No   15247 / February 6, 1997. 

Securities and Exchange Commission v. Ronald J. Mitchellette and
Robert Hardy, (U.S.D.C,  S.D. Fla., Civil
Action No. 97-8064-CIV-HURLEY, Complaint filed January 30, 1997)

         The Securities and Exchange Commission announced that on
January 30, 1997, it filed a complaint in the United States
District Court for the Southern District of Florida against
Ronald J. Mitchellette ("Mitchellette"), age 60, formerly of Palm
Beach, Florida, and Robert Hardy ("Hardy"), age 63, of Palm
Beach, Florida.  Mitchellette was the former CEO and chairman of
the board of Carlisle-Asher Management Company ("CAMC"), a now
defunct investment advisory firm which operated from Palm Beach,
Florida during 1992 and 1993.  Hardy, during 1993, served as CAMC
s president, chief operating officer and a director.  

     In its complaint the Commission alleges that, in connection
with a private offering of debt securities by CAMC, Mitchellette
and Hardy, by jointly preparing and using a fraudulent offering
document, engaged in securities fraud. The Commission further
alleges that the defendants  fraud caused approximately $1
million in losses to investors. According to the Commission s
complaint, CAMC's offering document was false and misleading,
containing material misrepresentations and omissions consisting
of the following: 1) The inflation of the value of CAMC's
advisory portfolio--an exaggeration calculated to attribute to
CAMC an unrealistic fee-generating capacity. It was represented
that CAMC managed more than $140 million when, in fact, the firm
managed approximately $5 million; 2) The false characterization
of the status of negotiations for the acquisition by CAMC of
another advisory company with $45 million under management. It
was represented that CAMC had entered into a purchase agreement
with a firm closing date when, in fact, the two parties were
involved in only preliminary discussions; 3) The inclusion of
misleading financial statements which materially overstated
CAMC's net worth by at least $298,000; 4) The misrepresentation
of the brokerage commission paid in connection with sales of
CAMC's securities as 8% when, in fact, the commission was 12%;
and 5) The fraudulent concealment from CAMC's investors that two
of the firm's officers and/or directors had resigned.

         In its complaint the Commission further alleges that
Mitchellette misappropriated more than $258,000 of CAMC's
offering proceeds to purchase, through an elaborate scheme, newly
issued shares of common stock of a Palm Beach, Florida holding
company, Governors Bank Corp. In the complaint it is alleged that
Mitchellette utilized a nominee company to carry out this portion
of the scheme.

         The Commission alleges that the defendants  preparation
and use of the fraudulent offering document, together with
Mitchellette s misappropriation of offering proceeds, was in 
violation of Section 17(a) of the Securities Act of 1933 (
Securities Act ), as well as Section 10(b) of the Securities
Exchange Act of 1934 ( Exchange Act ) and Rule 10b-5 thereunder.
The Commission seeks in its lawsuit permanent injunctions against
Mitchellette and Hardy, disgorgement of their ill-gotten profits
and monetary penalties.