FOR IMMEDIATE RELEASE                             2001-25


    SEC, U.S. ATTORNEY, FBI, NY ATTORNEY GENERAL ANNOUNCE
     CHARGES IN BOILER-ROOM CASE WHICH INCLUDES ALLEGED
                ASSOCIATES OF ORGANIZED CRIME
                              

     Washington, DC, March 8, 2001 - The Securities and
Exchange Commission today charged 18 individuals in an
enforcement action as part of its continuing battle against
boiler-room fraud in the market for microcap securities.
The Commission's administrative order instituting
proceedings (Order) alleges that the respondents conducted a
fraudulent scheme while associated with a Long Island broker-
dealer, First United Equities Corporation, that is now
defunct.  The Order alleges that the respondents reaped
millions of dollars in illicit profits from the scheme.

     In a related criminal prosecution, the U.S. Attorney
for the Eastern District of New York, the Federal Bureau of
Investigation and the New York State Attorney General
simultaneously announced the indictment of 20 defendants.
The criminal indictments allege that two of the persons
charged are associates of the Gambino organized crime
family.

     SEC Director of Enforcement Richard H. Walker said,
"Today's charges involve a classic boiler-room operation,
carried out by individuals who were willing to tell any lie
- no matter how brazen - in order to get their hands on the
public's hard-earned money.  These cases demonstrate our
continuing commitment to rooting out fraud in the microcap
market.  Finally, for those who would contemplate engaging
in this kind of activity, including members of organized
crime, the most daunting news about today's action is that
it is the result of outstanding coordination among the SEC,
the U.S. Attorney for the Eastern District of New York, the
FBI and the New York State Attorney General."

     The Commission's Order alleges as follows:

     From August 1995 through at least October 1997,
operating through First United, the respondents fraudulently
marketed the stock of National Medical Financial Services,
Inc. ("NMFS") and Ashton Technology Group, Inc. ("Ashton")
to unsuspecting investors.  After underwriting initial
public offerings for both of these companies, First United
and its principals maintained control over large blocks of
the stock.  Thereafter, registered representatives employed
by First United used high-pressure sales tactics and a
variety of misrepresentations to induce investors to
purchase this stock.  In addition to misrepresenting the
prospects for NMFS and Ashton stock, certain of the
respondents falsely told investors that no customer of First
United had ever lost money and that the firm would reimburse
customers for any losses on NMFS or Ashton.

     First United filled customers' buy orders with NMFS and
Ashton stock that either was held in First United
proprietary accounts, or that came from nominee accounts
secretly controlled by the principals of First United.  The
respondents amassed unlawful profits totaling millions of
dollars from this activity.

     Once a customer purchased NMFS or Ashton stock through
First United, the respondents employed various illicit
methods to prevent that investor from selling the stock.
Respondents either bullied investors into abandoning their
attempts to sell the stock, or simply failed to execute sell
orders.  Respondents also effected unauthorized purchases of
NMFS and Ashton stock in the accounts of certain First
United customers, including on at least one occasion a
purchase in the account of a customer who was deceased.

     The respondents named in the Commission's Order are as
follows:

Principals at First United

Hunter Adams, age 33, of Atlantic Beach, New York, a former
de facto control person of First United;

Jason A. Cohen, age 48, of Albertson, New York, formerly
Chairman of First United;

Steven M. Cohen, age 43, of Port Washington, New York,
formerly a registered principal of First United;

David Hirsch, age 38, of Jericho, New York, a former de
facto control person of First United;

Jonathan D. Winston, age 35, of Locust Valley, New York,
formerly Vice Chairman of First United;

First United Trader

John J. Gremmo, III, age 44, of West Gilgo Beach, Babylon,
New York;

First United Registered Representatives

James L. Bila, age 30, of Holbrook, New York;

Christian W. Blake, age 30, of Brooklyn, New York;

Louis R. Facchini, Jr., age 34, of Parkland, Florida;

Roberto A. Mangiarano, age 27, of La Jolla, California;

Joseph P. Mannino, age 27, of Lindenhurst, New York;

David M. Margules, age 44, of Hackensack, New Jersey;

James J. Pellizzi, age 33, of Melville, New York;

David M. Pesso, age 32, of Bell Harbor, New York;

Michael Pugliese, age 30, of New York, New York;

Christopher J. Russo, age 34, of Woodmere, New York;

Howard I. Weinstein, age 51, Port Washington, New York; and

Robert J. Winston, age 33, of New York, New York.

     The respondents are all charged with violating or
causing others to violate Section 17(a) of the Securities
Act of 1933, Section 10(b) of the Securities Exchange Act of
1934, and Rule 10b-5 thereunder.

     The Commission acknowledges the assistance of the U.S.
Attorney for the Eastern District of New York, the FBI and
the New York State Attorney General in this matter.

     For further information, contact Wayne M. Carlin at 212-
748-8035 or Robert Knuts at 212-748-8192.


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