UNITED STATES SECURITIES AND EXCHANGE COMMISSION

     LITIGATION RELEASE NO.  15665 / March 10, 1998

     SECURITIES AND EXCHANGE COMMISSION v. GERALD A. DOBBINS and FIDELITY
     SECURED DEPOSIT CORPORATION, Civ. Action No. 98-229 (USDA C.D. Ca./Southern
     Division at Santa Ana)

          The Commission announced today that it obtained a second federal court
     order prohibiting the fraudulent sale of bonds, purportedly backed by gold,
     issued in the 19th century by now defunct railroads.  The emergency
     restraining order, issued March 9, 1998, by Judge Gary L. Taylor, prohibits
     Gerald A. Dobbins ( Dobbins ) and Fidelity Secured Deposit Corp. ( FSDC )
     both of Orange County, California, from preparing and disseminating
     fraudulent authentication and valuation documents relating to bonds
     including those issued by the Chicago, Saginaw and Canada Railroad Co.
     (Saginaw) in 1873 and by the East Alabama & Cincinnati Railroad ( EA&C ) in
     1870.  According to the complaint, these bonds are worthless as
     investments, having value only as historical memorabilia, but have been
     offered and sold to investors at prices up to $40,000 each.  Judge Taylor s
     order also included a freeze of assets and an accounting against Dobbins
     and FSDC. 

          The Commission's complaint alleged that since at least October 1995,
     Dobbins, through FSDC, has prepared documents purporting to authenticate
     and value Saginaw and EA&C bonds stating, among other things, that the
     bonds were worth between $100 and $400 million, Dobbins was the  Master
     Curator for the State and the Historical Document Society,  and the bonds
     were valid or guaranteed by the State of Alabama.  The complaint further
     alleged that in fact, the bonds were virtually worthless, Dobbins is not
     the master curator for any state, the Historical Document Society does not
     exist, and the issuers of the bonds had gone into receivership and several
     foreclosure sales had been held. The Commission alleged that through their
     false and misleading statements, Dobbins and FSDC violated the antifraud
     provisions, Section 17(a) of the Securities Act of 1933 and Section 10(b)
     of the Securities and Exchange Act of 1934 and Rule 10b-5 thereunder.  

          This is the second civil injunctive action filed by the Commission s
     Central Regional Office in connection with the fraudulent offer and sale of
     Saginaw bonds.  In the first action, the U.S. District Court for the
     District of Wyoming entered a preliminary injunction on February 13, 1998
     including an asset freeze against defendant Daniel E. Schneider
     ( Schneider ) and related entities.  The Commission s complaint alleged,
     among other things, that Schneider offered and sold Saginaw bonds to
     investors at $40,000 per bond through various misrepresentations, including
     that the bonds were worth $100 million.  SEC v. Daniel E. Schneider et al.,
     Civ. No. 98-CV-14-D (D. Wyo. Feb. 13, 1998).

          Various law enforcement agencies worked closely with the Commission in
     obtaining emergency relief, including the Securities Division of the
     Wyoming Secretary of State's Office, which the Commission wishes to thank
     for their assistance in this matter.  

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