November 29, 19951

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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No.  14741 / November 28, 1995

SEC v. Basic Energy & Affiliated Resources, et al.,
Case No. 94-74434 (E.D. MI)


     The Securities and Exchange Commission announced that on
     November 27, 1995, the Honorable Horace Gilmore, U.S.
     District Court Judge for the Eastern District of Michigan,
     ordered Defendants Michael Schouman and Sarah Delaney to be
     incarcerated for their failure to turn over certain assets
     as partial payment for disgorgement.  Earlier, on April 25,
     1995, Schouman and Delaney had agreed to the entry of an
     Order of Permanent Injunction and Other Equitable Relief
     which included ordering Schouman and Delaney to pay
     disgorgement and prejudgment interest of $291,250.86 and
     $323,196.50, respectively, by May 24, 1995.  After
     Defendants failed to pay disgorgement or prejudgment
     interest, on October 2, 1995, the Commission filed a
     Contempt Motion against Schouman and Delaney.  On November
     9, 1995, the Court entered an Order requiring Schouman and
     Delaney to turn over certain assets by November 20, 1995.
     On November 27, 1995, the Court held a hearing to determine
     if Schouman and Delaney had complied with the November 9th
     Order.  After determining that there had not been
     compliance, Judge Gilmore entered an Order of Civil Contempt
     and had Schouman and Delaney incarcerated until full
     compliance with the November 9th Order.