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                SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.

Litigation Release No. 14847 / March 20, 1996

SECURITIES AND EXCHANGE COMMISSION v. JOHN DANKOVICH AND LINDA
DANKOVICH, United States District Court for the District of
Columbia, Civil Action No. 96-CV00550 (LFO).

     The Securities and Exchange Commission ("Commission")
announced the filing today of a Complaint in the United States
District Court for the District of Columbia against John and
Linda Dankovich, residents of Miramar, Florida.  The Complaint
alleges that the Dankoviches pretended to be securities brokers
and in telephone solicitations offered to sell specific
securities to investors at a discount.  According to the
Complaint, however, the Dankoviches actually used the
approximately $44,000 they obtained from investors for their own
personal expenses.  The Complaint also alleges that John
Dankovich separately caused a brokerage firm to purchase
securities for which he never intended to pay.  The Complaint
charges both Dankoviches with violating Section 17(a) of the
Securities Act of 1933 ("Securities Act") and Sections 10(b),
15(a) and 15(c) of the Securities Exchange Act of 1934 ("Exchange
Act"), and Rules 10b-5, 15b1-1 and 15c1-2 thereunder, and John
Dankovich with also violating Sections 7(f) of the Exchange Act
and Regulation X promulgated by the Board of Governors of the
Federal Reserve System ("Regulation X") in connection with these
activities.

     Specifically, the Complaint alleges that from in or about
July 1994 through in or about April 1995, defendant John
Dankovich contacted potential investors and claimed to be an
employee of the securities brokerage firm of T. Morgan &
Associates.  The Complaint alleges that Dankovich used high
pressure sales tactics to convince investors to purchase various
"featured" securities, which were actually listed securities that
Dankovich claimed to be able to sell for a below market price. 
The Complaint alleges that T. Morgan was not a registered
securities broker, but was Linda Dankovich's sole proprietorship,
and that she used funds investors sent to T. Morgan for personal
expenses.  The Complaint alleges that investors paid at least
$43,877 to T. Morgan during this time period.

     The Complaint also alleges in a separate count that in
November 1994, John Dankovich opened a cash account at an
established brokerage firm in the name of "T. Morgan & Associates
Investment Club."  According to the Complaint, Dankovich falsely
represented that the club, which did not actually exist, had
funds at a different brokerage firm which he intended to wire to
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the newly opened investment club account.  The Complaint alleges
that shortly after the account was opened, and after falsely
stating that he was wiring money into the new cash account,
Dankovich directed the brokerage firm to purchase a specified
stock for the account.  The Complaint further alleges that
Dankovich did not intend to pay for the securities, or intended
to pay for them solely with the proceeds from their sale.  The
Complaint alleges that the brokerage firm incurred a loss of
approximately $3,964 when the value of stock declined and
Dankovich refused to pay for stock purchase he had directed.

     Simultaneously with the filing of the Complaint, the
Dankoviches, without admitting or denying any of the allegations
in the Complaint, consented to the entry of an order enjoining
them from violating the relevant provisions of the securities
laws, and requiring them to pay $51,653, an amount representing
the disgorgement of their illegal profits plus prejudgment
interest.  The Dankoviches also agreed to settle a related
administrative proceeding by consenting to the issuance of a
Commission order barring them from association with any broker,
dealer, investment advisor, investment company or municipal
securities dealer.