SECURITIES AND EXCHANGE COMMISSION



  Litigation Release No.  15940 / October 19, 1998

  Securities and Exchange Commission v. Members Service
  Corporation, et al., Civil Action No. 97 CV 01146 (HHK)
  (D.D.C.)


  SEC Announces Settlements with Four Defendants

      The United States Securities and Exchange Commission
  announced that it entered into settlements with defendants
  Union Securities, Ltd., John R. Silseth, II, David Gilbert
  and Kenneth O'Neal in the action it initiated last May
  against Members Service Corporation and nine other
  defendants.  The Commission's Complaint alleges violations
  of the securities registration, reporting and antifraud
  provisions of federal securities laws in connection with
  alleged abuses of Regulation S in the offer and sale of
  unregistered securities of Members Service Corporation (LR-
  15371, May 21, 1997).

       Without admitting or denying the alleged violations,
  Union Securities, a Canadian broker dealer, consented to the
  entry of a Final Judgment which permanently enjoins it from
  violating Sections 5(a), 5(c) and 17(a)(2) and (3) of the
  Securities Act of 1933 and requires it to disgorge $140,105
  plus $71,676 in prejudgment interest.

       Without admitting or denying the alleged violations,
  Silseth, a former owner of a now defunct Florida based
  broker dealer, consented to the entry of a Final Judgment
  which permanently enjoins him from violating Sections 5(a),
  5(c) and 17(a) of the Securities Act and Section 10(b) and
  Rule 10b-5 of the Securities Exchange Act of 1934.  In
  addition, Silseth was ordered to disgorge $627,221 plus
  prejudgment interest of $371,509, payment of which was
  waived based upon his inability to pay.

      Without admitting or denying the alleged violations,
  Gilbert, a former stock broker in Union's Vancouver office,
  consented to the enter of a Final Judgment which permanently
  enjoins him from violating Sections 5(a), 5(c) and 17(a) of
  the Securities Act and Section 10(b) and Rule 10b-5 of the
  Exchange Act.  In addition, Gilbert was ordered to disgorge
  $50,000, payment of all but $20,408 was waived based upon
  his inability to pay a greater amount.

       Without admitting or denying the alleged violations,
  O'Neal, an accountant, consented to the entry of a Final
  Judgment which permanently enjoins him from violating
  Sections 10(b) and Rule 10b-5 of the Exchange Act.