SECURITIES AND EXCHANGE COMMISSION
                         WASHINGTON D.C.

Litigation Release No. 15199  / December 26, 1996 

SECURITIES AND EXCHANGE COMMISSION V. RICHARD M. SIMONSON, 96
Civ. 9695, U.S.D.C., S.D.N.Y.

On December 26, 1996, the Securities and Exchange Commission
charged Richard M. Simonson with violations of the antifraud
provisions of the federal securities laws for falsely promising
high returns on fictitious investments known as "prime bank"
securities, as well as for making other material
misrepresentations and omissions to potential investors.  

Named in the Complaint filed today in the United States District
Court for the Southern District of New York is:

     Richard M. Simonson, a resident of New York, New York.

     The Complaint alleges that, from approximately June 1995
through October 1995, Simonson violated Section 17(a) of the
Securities Act of 1933 ("Securities Act") and was about to
violate Section 10(b) of the Securities Exchange Act of 1934
("Exchange Act") and Rule 10b-5 thereunder by fraudulently
offering to sell fictitious securities to members of the public.

     The Complaint alleges that Simonson solicited at least four
individuals in an attempt to convince them to invest
approximately $10 million each in his "Bank Instrument Purchase
Program," an elaborate scheme involving the purported purchases
and sales of non-existent securities in the form of notes which
were purportedly issued by high quality European banks, referred
to as "prime banks."  The Complaint alleges that, in connection
with the offer of these securities, Simonson made numerous
misrepresentations and omissions of material fact, including,
among other things, the use of investors' funds, the risks
associated with the investments, the ability to pay the promised
interest rates, and the existence of the "prime bank"
instruments.  

     The Complaint seeks an Order which permanently enjoins
Simonson against future violations of the antifraud provisions of
the Securities Act and the Exchange Act, and which orders the
payment of civil penalties, as well as other equitable relief.