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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 15110 / October 4, 1996 

Accounting and Auditing Enforcement
Release No. 841 / October 4, 1996

Securities and Exchange Commission v. Anthony Sarivola, et al.
(U.S.D.C. - S.D.N.Y.)  95 Civ. 9270 (RPP)

     The Securities and Exchange Commission ("Commission")
announced the entry on September 26, 1996 of final judgments on
consent against Anthony Sarivola and Donna Sarivola.  The
defendants neither admitted nor denied the allegations in the
Commission's Complaint, which was filed on October 31, 1995. 
Both defendants were permanently enjoined from future violations
of certain antifraud, corporate reporting, and books and records
provisions of the federal securities laws.  Anthony Sarivola also
was enjoined from violating the registration provisions of the
Securities Act of 1933 ("Securities Act") and the credit
extension provisions of the Securities Exchange Act of 1934
("Exchange Act").  Anthony Sarivola was ordered to disgorge
$1,685,000 plus prejudgment interest thereon, representing gains
from the conduct alleged in the Commission's Complaint, and was
ordered to pay civil penalties in the amount of $600,000 pursuant
to the Securities Enforcement Remedies and Penny Stock Reform Act
of 1990 ("Remedies Act").  No civil penalties pursuant to the
Remedies Act were assessed against Donna Sarivola based on her
demonstrated inability to pay.  Both defendants were barred from
serving as officers or directors of a public company.

     The Commission's Complaint alleged as follows:  Beginning in
or about October 1991 and continuing until at least July 1992,
Anthony Sarivola masterminded a scheme to inflate artificially
the reported assets of Leona Enterprises, Inc. and other related
corporations which were secretly under his control (collectively
"the Sarivola Companies").  Anthony Sarivola also concealed his
control of the companies in order to avoid disclosing his prior
record of securities violations and criminal fraud charges.  In
furtherance of the scheme, Anthony Sarivola and Donna Sarivola
falsified books and records of the Sarivola Companies and
provided fraudulent documents to an independent auditor.  The
scheme enabled Anthony Sarivola and others to profit from the
unlawful offer and sale of securities of the Sarivola Companies. 

     Anthony Sarivola and Donna Sarivola were both permanently
enjoined from future violations of Section 17(a) of the
Securities Act, Sections 10(b), 13(b)(2), 13(d) and 15(d) of the
Exchange Act and Rules 10b-5, 12b-20, 13b2-1, 13b2-2, 13d-1, 15d-
1, and 15d-11 thereunder.  Anthony Sarivola was also permanently
enjoined from future violations of Section 5 of the Securities
Act, Section 7(f) of the Exchange Act and Regulation X
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promulgated by the Board of Governors of the Federal Reserve
System.

     On September 30, 1996, in an administrative proceeding
pursuant to Section 15(b)(6) of the Exchange Act, Anthony
Sarivola consented to the issuance of an Order Instituting
Proceedings, Making Findings, and Imposing Remedial Sanctions
("Order") without admitting or denying the Commission's findings.

The Order makes findings that, during the relevant period, the
price of Leona common stock was less than five dollars per share,
and Leona did not have net tangible assets in excess of $2
million or average revenue of $6 million for a three-year period.

The Order bars Anthony Sarivola from participating in any
offering of penny stock.