SECURITIES AND EXCHANGE COMMISSION
                                 Washington, D.C.


          LITIGATION RELEASE NO.  15873 / September 9, 1998

          ACCOUNTING AND AUDITING ENFORCEMENT
          RELEASE NO.  1074 / September 9, 1998

          SECURITIES AND EXCHANGE COMMISSION v. STEVEN M. SCARANO,  No.
          98 Civ. 6350 (LAP)  (S.D.N.Y.  filed  Sept. 9, 1998)

             STEVEN M. SCARANO, CPA, CONSENTS TO CEASE-AND-DESIST AND
             BAR ORDER AND TO FINAL JUDGMENT IMPOSING A CIVIL PENALTY

          The  Securities  and  Exchange Commission ("Commission") today
          filed a complaint in the  United States District Court for the
          Southern District of New York  against  Steven M. Scarano, CPA
          for  violations of the securities registration  provisions  of
          the federal  securities  laws.   Scarano was formerly with the
          accounting firm of Scarano & Lipton,  P.C.  ("S&L"),  auditors
          for Visual Cybernetics Corp., a start-up, microcap company.

          The complaint alleges that Scarano improperly offered and sold
          Visual   Cybernetics   securities   registered   on  Form  S-8
          registration statements to public investors through  a  Visual
          Cybernetics employee nominee.  Because the securities were not
          registered  for sale to the public, Scarano willfully violated
          Sections  5(a)   and  5(c)  of  the  Securities  Act  of  1933
          ("Securities Act").

          Without admitting or denying any of the allegations in the
          complaint, except as to jurisdiction, Scarano consented to the
          entry of a final judgment.  The final judgment against Scarano
          orders him to pay a civil penalty of $5,000.

          The Commission also  instituted  an  administrative proceeding
          against Scarano today.  The administrative order finds that as
          a  result  of  his  actions  in  offering and  selling  Visual
          Cybernetics securities, Scarano was engaged in the business of
          effecting  transactions  in securities  for  the  accounts  of
          others.  Because neither he  nor his accounting firm, S&L, was
          registered as a broker with the  Commission  at  that time, he
          willfully  violated  Section 15(a) of the Securities  Exchange
          Act of 1934 ("Exchange Act").

           In addition, the administrative order finds that, as a result
          of offering and selling  Visual  Cybernetics securities, while
          auditing  Visual  Cybernetics' financial  statements,  Scarano
          willfully violated, and willfully aided and abetted and caused
          S&L's violation of, the Commission's independence requirements
          in connection with  that  audit.   The  order  also finds that
          Scarano  willfully violated, and willfully aided  and  abetted
          and  caused   S&L's   violation  of,  Section  210.2-02(b)  of
          Regulation  S-X  by issuing  an  audit  report  containing  an
          unqualified   opinion   on   Visual   Cybernetics'   financial
          statements which  stated  falsely that the audit was performed
          in  accordance  with  generally  accepted  auditing  standards
          ("GAAS")  when,  in fact,  the  audit  was  not  performed  in
          accordance with GAAS  because  the firm was not independent at
          the time of the audit.

          Without  admitting  or denying any  of  the  findings  in  the
          administrative  order,  except  as  to  jurisdiction,  Scarano
          consented to the  entry  of  an order that (a) requires him to
          cease and desist from committing  or  causing  violations, and
          future violations, of Sections 5(a) and 5(c) of the Securities
          Act,  Section  15(a) of the Exchange Act, and Regulation  S-X,
          and (b) denies him  the  privilege  of appearing or practicing
          before  the Commission as an accountant,  with  the  right  to
          apply for reinstatement after two years.

          The Commission also brought enforcement actions against Visual
          Cybernetics'  principal  officers  and  directors  and outside
          counsel,  and  the  other member of the accounting firm,  S&L.
          See Litigation Release  No.  15874 (Sept. 9, 1998) and Release
          No. 33-7573 (Sept. 9, 1998).

          This  Enforcement action is part  of  the  Commission's  four-
          pronged  approach  to minimizing Microcap fraud:  enforcement,
          inspections,  investor  education  and  regulation.  For  more
          information about  the SEC's response to Microcap fraud, visit
          the    SEC's   Microcap   Fraud    Information    Center    at
          http://www.sec.gov/news/extra/microcap.htm.