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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO.  14826 / February 27, 1996

SEC V. DANIEL RAE MORRIS AND SCOTT FRAISER THENEN
Civil Action No. 95-2807-Civ-Moreno (S.D. Fla.)

          The   Securities   and   Exchange  Commission   ("SEC")
announced  that on  February 1,  1996 the United  States District
Court for  the Southern  District of  Florida issued  a permanent
injunction against Daniel Rae Morris ("Morris") and Scott Fraiser
Thenen enjoining them from violations of Sections 5(a),  5(c) and
17(a) of  the Securities  Act of  1933 and  Section 10(b)  of the
Securities  Exchange  Act  of  1934 and  Rule  10b-5  promulgated
thereunder.   Morris and Scott  Thenen consented to  the entry of
the injunction.   This action  is related to  an earlier  lawsuit
filed  by the  SEC  against Premium  Sales Corporation  ("Premium
Sales") and Kenneth Thenen,  who is related to Scott  Thenen (see
SEC Litigation release No. 13668 dated June  9, 1993).  The SEC's
earlier complaint alleged that  Premium Sales fraudulently raised
over  $500,000,000   through  a  grocery   diverting  scheme  and
defrauded investors with promises of up to 60% annualized returns
on their investments. 

     The SEC's complaint against  Morris and Scott Thenen alleged
that they played a major role in the operation of  Premium Sales,
a  Ponzi scheme  that operated  from North Miami  Beach, Florida.
Premium Sales, Morris  and Scott Thenen told  investors they were
in the business of  grocery "diverting".  Grocery  diverters take
advantage of differences in prices for wholesale grocery products
among different regions of the country.  In a  form of arbitrage,
diverters  purchase lower-priced  groceries  in  one  region  and
resell them for a small profit in another region where prices are
higher.   Unfortunately for  investors of Premium  Sales, most of
the diverting transactions made by Premium Sales were fictitious.


     Morris   and  Scott   Thenen  are   alleged  to   have  made
misrepresentations  to  investors  and misappropriate  investors'
funds.  Morris was a director  and President of Lone Star Trading
Company ("Lone Star"), Premium Sales' parent company.  Morris was
also  a director, Secretary, and a fifty percent owner of Premium
Sales.   Morris allegedly  bribed persons  to confirm  and verify
fictitious grocery  diverting transactions.   Scott Thenen  was a
Director and the Chief Financial Officer of Premium Sales.  Scott
Thenen allegedly prepared fraudulent books and records to support
the fictitious sales.

     In  a related  development, on  December  5, 1995  the Court
permanently  barred Kenneth Thenen from  serving as an officer or
director of any publicly held company.