UNITED STATES SECURITIES AND EXCHANGE COMMISSION

          Litigation Release No. 16084 \ March 11, 1999


          SECURITIES AND EXCHANGE COMMISSION v. CHESTER HOLDINGS, LTD.,
          formerly named AQUA BUOY CORPORATION, JOSEPH PIGNATIELLO,
          CONSTANCE PIGNATIELLO, and CHRISTOPHER WERNER, 97 Civ. 1654
          (D.N.J.) (MTB)


          The Commission announced that the United States District Court
          for the District of New Jersey issued a final judgment against
          defendants Joseph and Constance Pignatiello (the "Pignatiellos")
          and:  (1) permanently enjoined the Pignatiellos from violating
          the federal securities laws; (2) ordered the Pignatiellos to pay
          disgorgement of $2,106,185.14 and to pay prejudgment interest of
          $1,398,641.98; (3) permanently enjoined Joseph Pignatiello from
          serving as an officer or director of a public company; and (4)
          enjoined Constance Pignatiello from serving as an officer or
          director of a public company for five years.  Judgment was
          entered on February 22, 1999, after the Court granted the
          Commission’s motion for summary judgment.

          In the complaint, the Commission alleged that Chester Holdings,
          Ltd., formerly named Aqua Buoy Corporation (the "Company" or
          "Aqua Buoy"), and the Pignatiellos and Christopher Werner
          ("Werner"), three of Aqua Buoy’s former officers and directors,
          made false public statements concerning the Company’s financial
          condition and sold their own Aqua Buoy stock at inflated prices.
          Between March 1991 and October 1992, the Pignatiellos made
          materially false and misleading statements in press releases and
          Commission filings concerning five significant acquisitions by
          Aqua Buoy.  Through their false and misleading statements, the
          Pignatiellos overstated the value of the consideration paid by
          Aqua Buoy for the acquisitions and overstated Aqua Buoy's assets
          and shareholders' equity in its financial statements.  For
          example, the Pignatiellos overstated the value of Lord Jeff
          Knitting Company, Ltd., one of Aqua Buoy’s acquisitions, by
          $9,188,000.  The Pignatiellos obtained over $2.1 million in
          illicit profits when they sold 1,320,107 shares of Aqua Buoy
          stock that they owned while misleading the investing public about
          Aqua Buoy’s true financial condition.

          The Court found that the Pignatiellos violated Section 17(a) of
          the Securities Act of 1933, Section 10(b) of the Securities
          Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder,
          and Section 20(a) of the Exchange Act.  Previously, on August 8,
          1997, the Court entered a final judgment by consent against Aqua
          Buoy, which consented to the entry of the judgment without
          admitting or denying the allegations in the complaint and was
          permanently enjoined from violating the antifraud provisions,
          Section 10(b) of the Exchange Act and Rule 10b-5, and Section
          13(a) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11, and
          13a-13.  Also, on October 8, 1998, the Court entered a final
          judgment by consent against Werner, who consented to the entry of
          the judgment without admitting or denying the allegations in the
          complaint and was permanently enjoined from violating the
          antifraud provisions, Section 10(b) of the Exchange Act and Rule
          10b-5, Section 20(a) of the Exchange Act, and Section 17(a) of
          the Securities Act, and ordered to disgorge $74,625.00 and pay
          $43,020.42 in prejudgment interest.  Payment of the disgorgement
          and prejudgment interest was waived, and the Court did not impose
          civil penalties, based on Werner’s demonstrated inability to pay.

          Joseph Pignatiello, age 52, and Constance Pignatiello, age 42,
          are residents of Coral Springs, Florida.

          For further information, see Litigation Release No. 15312 (Apr.
          2, 1997).