UNITED STATES SECURITIES AND EXCHANGE COMMISSION


     LITIGATION RELEASE NO. 15655 / February 26, 1998

     SECURITIES AND EXCHANGE COMMISSION v. ROBERT TOMMASSELLO and R.T.& A.
     FINANCIAL MANAGEMENT, LTD., DEFENDANTS, and JEAN M. TOMMASSELLO, RELIEF
     DEFENDANT (United States District Court for the Middle District of
     Pennsylvania, Civil Action No. 3:98-CV-322)

          On February 26, 1998, the Securities and Exchange Commission
     ("Commission") filed an emergency civil action against Robert Tommassello
     ("Tommassello") and R.T.& A. Financial Management, Ltd. ("R.T.& A.).  The
     Commission seeks the issuance of a temporary restraining order, a freeze of
     assets, an accounting and other emergency relief.  The Commission also
     seeks preliminary and permanent injunctions, disgorgement, prejudgment
     interest and civil penalties.  The Complaint also names Jean M.
     Tommassello, Tommassello s wife, as a relief defendant solely for the
     purpose of disgorgement because as a joint accountholder with Tommassello
     she received funds resulting from the unlawful activity described below. 
     The Complaint alleges that Tommassello and R.T.& A. violated the antifraud
     provisions of Section 17(a) of the Securities Act of 1933, and Section
     10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

          The Complaint alleges that from at least November 1995 through the
     present, Tommassello, a registered principal who operates a branch office
     of First Colonial Securities Group, Inc., a registered broker-dealer, in
     Hazleton, Pennsylvania, has been perpetrating a fraudulent scheme through
     R.T.& A., a private corporation which he controls.  Tommassello has engaged
     in a scheme to misappropriate money from investors by fraudulently
     soliciting individuals to purchase mutual funds or variable annuities. 
     Rather than purchasing the securities as promised, Tommassello has
     deposited at least $1 million of investor funds directly into bank accounts
     controlled by him, and has used these funds to pay for various personal and
     business expenses.  

          The Complaint further alleges that Tommassello and R.T.& A have
     concealed the scheme and lulled defrauded investors by making false
     assurances, creating fictitious account statements, and making false and
     misleading statements to investors and to staff members of the Pennsylvania
     Securities Commission and the Commission.  In order to further conceal his
     scheme, Tommassello has made payments to investors which he has represented
     to be distributions from their investments when, in fact, those funds have
     come from other investors.  In some cases, in order to placate investors
     who have demanded proof of their investments, Tommassello has used new
     investor funds to belatedly purchase the mutual fund or variable annuity on
     behalf of the investor making the inquiry. 


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          The Commission acknowledges the assistance of the Pennsylvania

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     Securities Commission in this matter.




















































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