United  States Securities and Exchange Commission

         Litigation Release No. 15675  / March 19, 1998

         SECURITIES AND EXCHANGE COMMISSION v. CITY SERVICES CORP.,
         et al., 98 Civ. 1867 (RPP), U.S.D.C., S.D.N.Y.

         NEW YORK -- The Securities and Exchange Commission
         ("Commission") announced that, on March 16, 1998, the United
         States District Court for the Southern District of New York
         issued a temporary restraining order against City Services
         Corp. ("City Services") and Joseph Burgio ("Burgio").  The
         order freezes the defendants assets, temporarily restrains
         the defendants from violating the antifraud provisions of
         the securities laws, and temporarily restrains Burgio from
         violating antifraud provisions applicable to broker-dealers
         and from violating the broker-dealer registration
         provisions.  The Order arises from a Complaint filed on
         March 16, 1998, in which the Commission alleges that City
         Services and Burgio fraudulently offered and sold City
         Services stock and that Burgio also was acting as an
         unregistered broker-dealer.

              The defendants are described in the Complaint as
         follows:

              JOSEPH BURGIO, age 29, is a resident of Brooklyn, New
              York.  He has held himself out to be the president,
              corporate secretary, and chairman of City Services'
              board of directors. .  Between January and March 1,
              1998, Burgio was associated as a registered
              representative with Three Arrows Capital Corp. ("Three
              Arrows"), a registered broker-dealer that employed
              Burgio in an office located in New York, New York.
              Burgio was not separately registered with the
              Commission.

              CITY SERVICES CORP. is a Delaware corporation.
              According to a private placement memorandum for the
              City Services stock offering it purports to have
              offices at 29 John Street, New York City.  That
              location is a mail drop only.  Since its inception in
              May 1997, City Services has not generated any revenue
              or engaged in any operations.  City Services stock is
              not publicly traded.

              The Complaint alleges as follows:

              Since early January 1998, City Services and Burgio have
              fraudulently offered and sold City Services stock and
              have raised at least $350,000 from at least 33
              investors nationwide.

              City Services, Burgio and others working with them made
              telephonic "cold calls," and offered and sold the City
              Services stock to investors by means of a variety of
              false and misleading representations, including false
              claims that: (a) City Services would hold an initial
              public offering in the near future that would enable
              investors to more than double their money; (b) City
              Services was in the check cashing business; and (c) the
              funds raised in the offering would be held in escrow
              until the offering closed.  While soliciting investors,
              Burgio held himself out to be a registered
              representative of Three Arrows.  Burgio failed to
              disclose to at least some of the investors that he was
              also an officer of City Services.

              Burgio continued to solicit investors to purchase City
              Services after his association with Three Arrows
              terminated.  During the period he was associated with
              Three Arrows, he solicited investors without the
              authorization of Three Arrows.

              In its Complaint, the Commission seeks from both
              defendants an accounting and disgorgement of their
              unjust enrichment plus prejudgment interest, as well as
              civil penalties from Burgio.  The Commission also seeks
              preliminary and permanent injunctive relief against (1)
              both defendants from violating the antifraud provisions
              of the securities laws, Sections 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 (2) against Burgio from
              violating the broker-dealer antifraud provisions,
              Section 15(c)(1) of the Exchange Act and Rules 15c1-2
              and 15c1-5 thereunder, and from violating the broker-
              dealer registration provisions, Section 15(a)(1) of the
              Exchange Act.

              The litigation is pending.