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                SECURITIES AND EXCHANGE COMMISSION


LITIGATION RELEASE NO.  15290 / March 13, 1997

UNITED STATES OF AMERICA v. BARRY L. KING, CR. No. 95-10220NMG,
USDC. (D. MA)
         
     The Securities and Exchange Commission ("Commission")
announced that, on March 4, 1997, Barry L. King ("King"),
formerly of Wellesley, Massachusetts and presently residing in
Boca Raton, Florida, pleaded guilty to 32 counts of mail fraud
relating to a Ponzi scheme and one count of bankruptcy fraud for
concealing his assets in a bankruptcy proceeding.  The indictment
alleged that, between late 1986 and 1989, King solicited over $11
million from former clients, many of whom were elderly, to invest
their monies in secured mortgages in return for guaranteed
interest payments.  According to the indictment, and contrary to
his representations, King pooled the investor funds and loaned
their money to non-creditworthy borrowers on distressed
properties.  The indictment also alleged that King kept his
mortgage investment scheme afloat by using funds provided by new
investors to repay principal and to make interest payments to
existing investors.  According to the indictment, King used the
remaining investor funds to support his lavish lifestyle and to
pay for gambling debts, family airline tickets, his daughter's
wedding expenses, and interior design bills for his residence in
Boca Raton, Florida and his summer house rental in the Hamptons,
New York.

     The indictment further alleged that, in late 1989, as King's
scheme began to collapse, King sent lulling letters to investors
falsely reassuring them that their investments were safe.  King
also pleaded guilty to bankruptcy fraud for concealing from a
bankruptcy trustee that he received over $100,000 in federal tax
refunds and other assets after the filing of his 1991 bankruptcy
petition.  King's sentencing has been scheduled for June 3, 1997.

     On September 28, 1990, the Commission filed an injunctive
action alleging that King violated various registration and
antifraud provisions of the Securities Act, Exchange Act and
Advisers Act in connection with the scheme set forth in the
indictment.  King was enjoined in December 1990 from further
violations of all provisions alleged in the complaint, ordered to
comply with the terms of a 1986 Commission bar order and ordered
to make restitution to investors.  In addition, investor monies
and assets were transferred to a special agent appointed by the
Court for purposes of liquidation and the return of all available
funds to investors.  On March 8, 1991, the court granted the
Commission's further application for an Order permanently
prohibiting King from transferring or disposing of assets in
excess of ordinary and necessary living expenses and, upon
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application of the special agent, ordered Wellesley Mortgage
Corporation, an entity formerly controlled by Barry King, to file
for bankruptcy.

     The Commission staff assisted the New England Bank Fraud
Task Force of the Department of Justice in its criminal
investigation of King.

     For further information, see Exchange Act Release Nos. 23862
and 33167, and Litigation Release Nos. 12670, 12738, 12808 and
14574.