U.S. Securities and Exchange Commission

Litigation Release No. 15022 / August 22, 1996

SECURITIES AND EXCHANGE COMMISSION v. LAURENCE M. BROWN, 94 Civ.
7112, U.S.D.C., S.D.N.Y. (DAB)

NEW YORK -- The Securities and Exchange Commission ("Commission")
announced that, on July 26, 1996, Judge Deborah A. Batts of the
United States District Court, Southern District of New York,
issued a permanent injunction against Laurence M. Brown ("Brown")
enjoining him from violating Section 17(a) of the Securities Act
of 1933 and Sections 10(b), 15(a), 15C(a)(1)(A) and 15C(e)(1) of
the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. 
The Court also ordered Brown to disgorge $1,702,031, representing
his gains from the conduct alleged in the Complaint filed by the
Commission, plus prejudgment interest in the amount of
$2,014,892, for a total amount of $3,716,923.

The Permanent Injunction stems from a Complaint filed by the
Commission against Brown on September 30, 1994, seeking, among
other things, injunctive relief and disgorgement.  The
Commission's Complaint in this matter alleged that Brown, a
resident of Chappaqua, New York, is the President, Chief
Executive Officer, and sole owner of Phoenix Capital Group, Inc.
("Phoenix"), which was operating as an unregistered government
securities broker-dealer.  In addition, the Complaint alleges
that, from in or about January 1986 to in or about December 1989,
Brown violated the antifraud provisions of the federal securities
laws by inducing customers to invest a total of $2,694,681 with
Phoenix, falsely representing to the customers that their monies
would be used to purchase government securities.  Instead, Brown
misappropriated approximately $1,702,031 of the monies raised
from investors.  The Complaint further alleges that Brown, as a
controlling person of Phoenix, operated Phoenix as an
unregistered government securities broker-dealer and as an
unregistered broker-dealer from July 1987 until at least December
1989.

Brown consented to the entry of the injunction without admitting
or denying the allegations in the Commission's Complaint.  Brown
has also been convicted on criminal charges arising from the
foregoing activities, and, in connection with his criminal
conviction, has been ordered to comply with the disgorgement
order in this matter.

For further information, see Lit. Rel. No. 14271.