SECURITIES AND EXCHANGE COMMISSION


          LITIGATION RELEASE NO.  15930 / October 5, 1998

          SECURITIES AND EXCHANGE COMMISSION v. JOHN M. TOAL (United States
          District Court for the District of Connecticut, Civ. No. B-87-
          338-WWE)

               The Commission announced that Judge Warren Eginton issued an
          Order of Civil Contempt holding defendant John M. Toal, a
          resident of Old Greenwich, Connecticut, in civil contempt of a
          previously-entered permanent injunction.  The injunction enjoined
          Toal from "free riding," or purchasing securities with the
          proceeds from the sale of those same securities, in violation of
          Exchange Act Section 7(f) and Federal Reserve Board Regulations T
          and X.  The Contempt Order bars Toal from trading securities
          through brokerage accounts known as delivery-vs.-payment ("DVP")
          and receipt-vs.-payment ("RVP") accounts.  In his DVP and RVP
          accounts, Toal used a bank as an intermediary to settle
          securities transactions rather than deal directly with brokerage
          firms.  By using DVP and RVP accounts, Toal was able to trade
          securities in amounts that greatly exceeded the amount of money
          he had.  Toal consented to the entry of the Order of Civil
          Contempt, which was entered on September 25, 1998.

               The Commission's Motion for an Order holding Toal in
          contempt alleged that Toal formed a partnership to trade in
          securities shortly after he was permanently enjoined, in 1987,
          from free riding.  That partnership, called St. Paul Management,
          regularly traded millions of dollars of securities each month.
          St. Paul Management frequently sold stock through different
          brokers than the ones used to purchase that stock, and used banks
          as intermediaries to settle stock trades.