UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 14893 / April 25, 1996

SECURITIES & EXCHANGE COMMISSION v. LAZARE INDUSTRIES, INC.,
RICHARD J. HARLEY and JACQUELINE M. KUBE (Relief Defendant)
(United States District Court for the Middle District of
Pennsylvania, Civil Action No. 3:CV-96-705)

     The Securities and Exchange Commission ("Commission")
announced that on April 25, 1996, the Honorable Thomas I.
Vanaskie, District Judge, United States District Court for the
Middle District of Pennsylvania, signed an Order temporarily
restraining Lazare Industries, Inc. ("Lazare") and its principal,
Richard J. Harley ("Harley") from violating Sections 5(a), 5(c)
and 17(a) of the Securities Act of 1933 ("Securities Act"),
Section 10(b) the Securities Exchange Act of 1934 ("Exchange
Act") and Rule 10b-5 thereunder.  The Order also imposes an asset
freeze against Lazare, Harley and Jacqueline M. Kube ("Kube"), a
relief defendant.  Previously, on April 22, 1996, the Commission
filed its Complaint in this matter under seal.  The complaint
seeks a permanent injunction, disgorgement and prejudgment
interest, and civil penalties against Lazare and Harley; and
disgorgement from Kube, alleging that she personally benefitted
from funds raised from investors by Lazare and Harley.  The
complaint does not allege that Kube violated any of the
provisions of the federal securities laws.

     The Complaint alleges that, from at least January 1989
through the present, Lazare and Harley engaged in a scheme to
defraud at least 72 investors by making fraudulent
representations and omissions in connection with the offer and
sale of at least $1.4 million of subscriptions for the
unregistered stock of Lazare, and improperly converting investor
funds to their own use.

     The alleged misrepresentations and omissions concern an
ozone/oxygen therapy offered by Lazare and Harley which they
claim, among other things, (1) has undergone extensive testing
which has proven it to be effective in the treatment of Acquired
Immune Deficiency Syndrome ("AIDS") and other diseases; and (2)
is patented.  In fact, the therapy is not patented and has not
been proven to be effective in the treatment of AIDS.  Moreover,
the Complaint alleges that Lazare and Harley failed to disclose
to investors that (1) they lacked approval from the FDA either to
conduct clinical testing or to administer the therapy to
patients; and (2) the FDA had previously determined that Harley's
promotion and administration of the therapy was in violation of
the Food, Drug and Cosmetic Act.

     Finally, the Complaint alleges that Lazare and Harley are in
violation of an October 18, 1995 Order by the Pennsylvania
Securities Commission to cease and desist from violations of the
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antifraud and registration provisions of the Pennsylvania
Securities Act of 1972, which Order was based upon the same
conduct alleged in the Commission's Complaint.  

     The Commission acknowledges the cooperation and assistance
of the staff of the Pennsylvania Securities Commission in the
investigation of this matter.