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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 15148 / November 5, 1996

SECURITIES AND EXCHANGE COMMISSION v. GEORGE J. HANDGIS, Civil
Action No. 94 Civ.7114 (MBM)

The Commission announced today that, on November 4, 1996, an
Order was issued against George J. Handgis ("Handgis"), the
former President and Chief Executive Officer of HQ Office
Supplies Warehouses, Inc. ("HQOS") and HQ Office International,
Inc. ("HQOI"), and a member of the Board of Directors of HQOS,
HQOI, AG Automotive Warehouse, Inc. ("Auto Giant") and Auto
Depot, Inc. ("Auto Depot"), by the U.S. District Court for the
Southern District of New York, to which Handgis consented,
permanently enjoining him from violations of the antifraud,
issuer reporting, and books and records provisions of the federal
securities laws.  

In a Complaint filed by the Commission on September 30, 1994,
Handgis was charged with orchestrating a complex scheme to
defraud investors by using the proceeds of securities offerings
by HQOS, HQOI, Auto Giant and Auto Depot, totalling approximately
$78 million, to finance the operations of affiliated companies
and the companies' primary underwriter and market maker, Global
America, Inc. ("Global America"), rather than for the stated
purpose of funding the issuers' operations.  After Global America
ceased doing business, each of the companies ceased operations
and the value of the shareholders' investments was wiped out. 
Also charged were the companies' former Chairman of the Board,
Robert J. McNulty ("McNulty"), two individuals who acted as
officers and directors of HQOS, HQOI, Auto Giant and Auto Depot,
and a business associate of McNulty's.  

In connection with this scheme, Handgis and the other defendants
caused false and misleading registration statements and annual
and quarterly reports to be filed with the Commission, and caused
the companies' books and records to be false.  The Commission's
Complaint, amended following discovery, sought a permanent
injunction against Handgis and sought an Order requiring Handgis
to pay civil penalties pursuant to the Securities Enforcement
Remedies and Penny Stock Reform Act of 1990.  The Court's Order
permanently enjoins Handgis from violations of Section 17(a) of
the Securities Act of 1933 ("Securities Act") and Sections 10(b),
13(a) and 13(b) of the Securities Exchange Act of 1934 ("Exchange
Act") and Rules 10b-5, 12b-20, 13a-1, 13a-13 and 13b2-1
promulgated thereunder.  The Court also ordered Handgis to pay
civil penalties in the amount of $35,000 pursuant to Section
20(d) of the Securities Act and Section 21(d) of the Exchange
Act.  In consenting to the Order, Handgis neither admitted nor
denied the Commission's allegations, and he agreed to withdraw
his previously filed answer and to cooperate with the Commission
in all future proceedings in this matter.  For further
information, see SEC Litigation Release Numbers 14274 (Sep. 30,
1994), 14339 (Nov. 29, 1994), 14413 (Feb. 16, 1995), 14641 (Sep.
19, 1995), and 14696 (Oct. 20, 1995).