==========================================START OF PAGE 1======

                SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 15027 / August 29, 1996

United States Securities and Exchange Commission v. James
Zimmerman and Old Naples Securities, Inc., Case No. 96-304-CIV-
FTM-17D (M.D. Fla.)

     On August 28, 1996, the United States Securities and
Exchange Commission ("Commission") filed a complaint against
James Zimmerman ("Zimmerman") of Naples, Florida, and Old Naples
Securities, Inc. ("Old Naples"), a Florida corporation located in
Naples, Florida, seeking injunctive relief, disgorgement and
civil penalties based on:  (a) Old Naples' and Zimmerman's
violations of Section 17(a) of the Securities Act of 1933, and
Section 10(b) of the Securities Exchange Act of 1934 ("Exchange
Act") and Rule 10b-5 thereunder; and (b) Old Naples' violations
of Sections 17(a) and 15(c) of the Exchange Act and Rules 17a-3,
17a-5 and 15c3-1 thereunder.  Old Naples is registered with the
Commission as both a broker-dealer and an investment adviser.   

     The complaint alleged that Zimmerman and Old Naples, during
the period from in or about July 1992 to in or about August 5,
1996:  (a) received in excess of $3.5 million dollars from
investors by misrepresenting to prospective investors and
investors that the funds received for investments had been or
were to be used to purchase securities, when, in fact, no
securities were purchased and the funds had been misappropriated
and/or used to pay previous investors and personal expenses; and
(b) created and distributed to investors fictitious periodic
account statements misrepresenting the financial condition of the
customers' accounts in order to create the appearance that the
purported investments were increasing in value.  The complaint
also alleged that Old Naples, during the period from in or about
July 1992 to in or about August 5, 1996: (a) failed to create
accurate books and records with respect to (i) its net capital
computation, and (ii) its blotters or other records of original
entry; (b) filed Part IIA of Form X-17A-5, with the National
Association of Securities Dealers, Inc., which contained
inaccurate net capital computations; and (c) effected
transactions in, or induced or attempted to induce the purchase
and sale of securities at a time when Old Naples did not have and
did not maintain the required minimum net capital to legally
transact a securities business.  

     The Commission's action was combined with an application for
a protective decree by the Securities Investor Protection
Corporation ("SIPC") and the appointment of a SIPC Trustee for
Old Naples pursuant to Sections 5(b)(1) and 5(b)(3) of the
Securities Investor Protection Act of 1970.