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                SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.

Securities Act of 1933 
Release No. 7265 / February 22, 1996

Securities Exchange Act of 1934 
Release No. 36873 / February 22, 1996

Administrative Proceeding File No. 3-8957              

In the Matter of Eugene Konev

     The Securities and Exchange Commission today announced that
the Commission issued an Order Instituting Proceedings pursuant
to Section 8A of the Securities Act of 1933 and Section 21C of
the Securities Exchange Act of 1934 against Eugene Konev to
determine whether Konev violated Section 17(a) of the Securities
Act and Section 15(a) of the Exchange Act.  Konev lives in
Metuchen, New Jersey.

     The Order alleges that, during the period from approximately
1992 through mid-1994, Konev, acting pursuant to an informal
agreement with others, offered non-existent prime bank securities
for sale to numerous investors.  The Order additionally alleges
that Konev attempted to sell the securities through the use of
documents and oral statements containing representations that he
knew, or was reckless in not knowing, were false, including,
among other things, the representations that prime bank
securities were legitimate and tradable investments; that
investors would obtain substantial profits from the investments;
and that the non-existent securities were being offered at a
"discount" of up to 21 percent of the face value of the
instruments.  The Order further alleges that such conduct
violated Section 17(a) of the Securities Act prohibiting fraud in
connection with the offer and sale of securities and Section
15(a) of the Exchange Act, which prohibits making use of the
mails to induce transactions in securities without being
registered as a broker or dealer.