SECURITIES AND EXCHANGE COMMISSION

     Litigation Release No. 15645 / February 18, 1998

     Securities and Exchange Commission v. First Zurich National USA, LLC,
     Compunomics 139, Inc. and Paul Douglas Catchings, Civil Action No. 98-CV-
     29D (USDC WY)

          On February 13, 1998, the United States District Court for the
     District of Wyoming issued an order for civil contempt and arrest against
     Paul Douglas Catchings ("Catchings") individually, and as president and
     Chief Executive Officer of Compunomics 139, Inc. ("Compunomics"), for
     violating the Court's temporary restraining orders of February 10, 1998
     [See Litigation Release No. 15639, February 10, 1998], and February 3,
     1998.  [See Litigation Release No. 15634, February 3, 1998]  The Court also
     issued a preliminary injunction against First Zurich National USA, LLC
     ("First Zurich"), Compunomics and Catchings in an action involving an
     affinity fraud largely targeting African Americans.  The Court enjoined
     each from violating the antifraud provisions of the Securities Act of 1933
     and the Securities Exchange Act of 1934.  The Court also continued the
     asset freeze of, and ordered an accounting of assets from, each defendant. 
     Finally, the Court appointed a special officer to take control of the
     assets, accounts and property of First Zurich, Compunomics and Catchings. 
     This civil action was originally filed by the Commission on February 2,
     1998, in the United States District Court for the District of Wyoming
     against First Zurich and Compunomics.  The Commission filed an amended
     complaint adding Catchings as an individual defendant on February 10, 1998.

          The preliminary injunction was based on the Commission's February 10,
     1998, amended complaint, which alleges that in soliciting persons to
     purchase Compunomics' stock, Catchings and Compunomics are falsely
     representing to investors (some of whom have purchased Compunomics' stock
     for as low as $0.32 per share) that they will reap enormous profits when
     the stock begins publicly trading in the near future at $10.00 per share. 
     The complaint also alleges that they are falsely representing to investors
     that Compunomics will soon be profitably operating a bank.    

          The amended complaint alleges that in soliciting persons to acquire
     stock in First Zurich, a Wyoming limited liability company and Compunomics
     subsidiary (which Compunomics claims to be a "global internet bank"),
     Catchings and the two companies are failing to disclose to investors that
     First Zurich cannot legally operate as a bank.  The Office of the
     Comptroller of the Currency has not granted a national bank charter to
     First Zurich nor has the Wyoming State Banking Board authorized First
     Zurich to conduct banking operations.  Moreover, First Zurich, as a Wyoming
     limited liability company, is not permitted under Wyoming corporate law to
     conduct banking operations.  

          The amended complaint further alleges that Catchings, Compunomics and
     First Zurich have, since approximately April 1995 to the present, sold

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     between $4 million and $5 million of Compunomics and First Zurich stock. 
     Between 1,000 and 2,000 persons have purchased Compunomics' stock and at
     least 400 persons have purchased First Zurich stock.  Sales and promotional
     activities have been largely directed towards African Americans.  Public
     sales meetings were held on a regular basis at Los Angeles area restaurants
     from approximately April 1995 to April 1997 where the false claims were
     made.  In July 1997, Compunomics' former vice chairman and chief operating
     officer addressed approximately 30,000 persons attending the Full Gospel
     Baptist Fellowship conference in New Orleans.  Written materials approved
     and authorized by Catchings repeating the false claims were disseminated
     during the convention.  Also, sales materials containing false and
     misleading information concerning Compunomics have been, and continue to
     be, posted on the internet.  

          The amended complaint charges that the defendants have violated the
     antifraud provisions of the federal securities laws -- Section 17(a) of the
     Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of
     1934 and Rule 10b-5 thereunder. 

          The Commission has received substantial assistance in this case from
     the California Department of Corporations, the Wyoming State Securities
     Division and the Cheyenne, Wyoming office of the United States Postal
     Inspection Service.






























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