UNITED STATES SECURITIES AND EXCHANGE COMMISSION

     LITIGATION RELEASE NO. 15605 / December 23, 1997

     SECURITIES AND EXCHANGE COMMISSION v. EMANUEL PINEZ, Civil Action No. 97-
     10353 (PBS) (D. Massachusetts, filed February 14, 1997).

          The Securities and Exchange Commission announced that the Honorable
     Patti B. Saris of the U.S. District Court for the District of Massachusetts
     granted the Commission's motion to continue the freeze of the assets of
     Emanuel Pinez ("Pinez"), the former chief executive officer of Centennial
     Technologies, Inc. ("Centennial"), including the profits from his illegal
     options trading currently held by relief defendant Lehman Brothers, Inc.
     ("Lehman").  The Commission previously had amended its Complaint against
     Pinez by adding Lehman as a relief defendant.

          Lehman had asserted a claim against the proceeds, seeking repayment
     for margin loans that Lehman made to Pinez under a margin agreement.  The
     Commission sought to freeze Pinez's assets for disgorgement to investors
     who were defrauded by Pinez's alleged insider trading.  The preliminary
     injunction prohibits Lehman from asserting its claim over the $4.69 million
     of illicit profits.  The Court found that Lehman had "actual knowledge of
     highly suspicious circumstances" relating to Pinez's trades, and therefore
     was not a "bona fide" purchaser entitled to the proceeds of those
     transactions.  In support of its decision, the Court noted that Lehman was
     aware of several suspicious circumstances which required them to make a
     reasonable inquiry into the trading.

          The Court held, "[t]he SEC has produced strong credible evidence to
     establish that Lehman was not acting in good faith when it purchased and
     sold 5400 option securities for Pinez's margin account on February 7, 1997. 
     At that time, Lehman had actual knowledge of facts, which upon reasonable
     inquiry, would have clearly revealed Pinez's violation of the securities
     laws... With so much money at stake, Lehman disregarded suspicious
     circumstances and played ostrich to protect the collectibility of its ever
     growing margin indebtedness.  Centennial was just a phone call, e-mail, or
     fax away."

          The Court declined to preliminarily enjoin Pinez from future
     securities laws violations, but did not foreclose the Commission from
     seeking a permanent injunction against Pinez at the conclusion of the
     Commission's suit against him.  In choosing not to grant a preliminary
     injunction, the Court reasoned that Pinez's "current circumstances," as an
     "ousted" Centennial officer and board member who is awaiting trial in an
     institution where non-privileged calls are recorded, make it very unlikely
     that Pinez can trade in Centennial securities on the basis of inside
     information, "at least prior to trial."  "In any event," the Court
     concluded, "the asset freeze prohibits Pinez from 





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     trading through any offshore or nominee accounts he controls directly or
     indirectly."

          The investigation in this matter is continuing.
           
     (For further information, See Litigation Release Nos. 15258, 15295, 15399,
     15405 and 15548.)  














































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