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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION


LITIGATION RELEASE NO. 14836 / March 6, 1996

SECURITIES AND EXCHANGE COMMISSION v. GARY S. WILLIKY AND JAMES
J.ROMANO, USDC, ND/TX [Dallas Division], 3:94-CV-2088-G

     The Securities and Exchange Commission announced that on
February 21, 1996, in United States District Court for the
Northern District of Texas, Dallas Division, a Final Judgment of
Permanent Injunction and Other Equitable Relief was entered
against defendant James J. Romano ("Romano") enjoining him from
future violations of the antifraud provisions of the federal
securities laws. The Final Judgment also orders Romano pay
disgorgement in the amount of $357,623, plus pre-judgment
interest thereon of $88,111, provided, however, that, based on
his demonstrated financial inability to pay, the disgorgement
amount plus pre-judgment interest is waived. Romano consented to
the entry of the Final Judgment without admitting or denying the
allegations in the Commission's complaint. Also on February 21,
1996, a Final Judgment was entered against Gary S. Williky
("Williky") ordering him to pay disgorgement in the amount of
$1,000,000, plus pre-judgment interest of $286,298.25, provided,
however, that all but $100,000 of the disgorgement amount and
pre-judgment interest is waived based on his demonstrated
financial inability to pay the full amount. The Court did not
order Romano or Williky to pay civil penalties based on their
financial condition. 

     The Complaint alleged that Williky, while chairman of the
board and registered principal of Chelsea Street Securities Inc.
("Chelsea"), a now defunct broker-dealer, and Romano, while vice-
president of sales for Chelsea, engaged in the fraudulent offer
and sale of the securities of four speculative companies though
Chelsea, and engaged in undisclosed manipulative sales practices,
including "matched" trading and "wash" purchase and sales
transactions.