UNITED STATES SECURITIES AND EXCHANGE COMMISSION

          Securities and Exchange Act of 1934
          Release No.  39312 / November 7, 1997

          Accounting and Auditing Enforcement
          Release No.    982 / November 7, 1997

          Administrative Proceeding File No. 3-9484

          PUBLIC ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS INSTITUTED
          AGAINST RUSSO SECURITIES, INC., PATRICK RUSSO AND KIMBERLY KENT  

          On November 7, 1997, the Commission instituted public administrative
          and cease-and-desist proceedings pursuant to Sections 15(b), 19(h) and
          21C of the Securities Exchange Act of 1934 ("Exchange Act") against
          Russo Securities, Inc., ("Russo"), Patrick Russo ("P. Russo"), and
          Kimberly Kent ("Kent").

          In the order instituting proceedings ("Order"), the Commission's
          Division of Enforcement alleges that on December 29, 1995, January 31,
          1996, February 29, 1996 and March 22, 1996, Russo, a broker-dealer
          registered with the Commission, and a member of the New York Stock
          Exchange, Inc. and the National Association of Securities Dealers,
          Inc., willfully violated Section 15(c)(3) of the Exchange Act and Rule
          15c3-1 in that it effected transactions in customer accounts without
          maintaining the required minimum net capital.  The Commission's
          Division of Enforcement also alleges that Russo willfully violated
          Section 17(a)(1) of the Exchange Act and Rules 17a-3(a)(2), 17a-
          3(a)(11), 17a-5(a) and 17a-11 in that Russo made inaccurate records
          and filed inaccurate reports of its assets and net capital
          computations, and failed to provide the Commission with the required
          notices of its net capital and books and records deficiencies.  Last,
          the Commission's Division of Enforcement alleges that P. Russo, one of
          the firm's owners and its president, and Kent, the firm's financial
          and operations principal and chief financial officer, each willfully
          aided and abetted, and was a cause of, Russo's violations described
          above.

          [In re Russo Securities, Inc. Admin. Proc. File No. 3-9484]