U.S. Securities and Exchange Commission


Litigation Release No. 15757 / May 27, 1998

SECURITIES AND EXCHANGE COMMISSION v. EQUISURE, INC.  United States
District Court for the District of Columbia  98 Cv. 01298 (TFH) (D.C.)

The Securities and Exchange Commission announced today the filing of a
Complaint in the United States District Court for the District of Columbia
against Equisure, Inc. ( Equisure ) of Southpoint Office Center, 1650
West 82nd Street, Minneapolis, Minnesota 55431.  Equisure is purportedly
engaged in the business of providing reinsurance though its wholly-owned
Belgian subsidiary Equihot Herverzekering N.V.  The Commission has alleged
that Equisure repeatedly failed to fulfill its obligations as a public
company to file reports with the Commission that disclose important
information about Equisure and its subsidiaries to public investors.

According to the Complaint, on October 16, 1997, Equisure s public
accountants withdrew their audit opinion on the financial statements
in Equisure's December 31, 1996 10-K and resigned as Equisure's auditors.

Since that time, Equisure has failed to replace the audit
opinion withdrawn by its outside auditor.  The Complaint also alleges
that Equisure (1) failed to file an Annual Report on Form 10-K for its
fiscal year ended December 31, 1997; (2) filed its Quarterly Reports on
Form 10-Q for its fiscal quarters ended June 30, 1997 and September 30,
1997
nearly five months late; (3) failed to file a Current Report on Form 8-K
disclosing the resignation of Equisure s auditors; and (4) failed to file
a Notification of Late Filing on Form 12b-25 with respect to its Annual
Report for its fiscal year ended December 31, 1997 and Quarterly Report
for its fiscal quarter ended September 30, 1997.

The Commission seeks a permanent injunction prohibiting Equisure from
continuing to fail to file correct and timely Annual, Quarterly,
Current Reports, and Notifications of Late Filing with the Commission
and an order compelling Equisure to file complete and accurate
(1) Annual Reports on Form 10-K for its fiscal years ended December 31,
1996
and December 31, 1997; and (2) a Current Report on Form 8-K disclosing
the resignation of its public accountants.