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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.

Litigation Release No. 14655 / September 28, 1995        

SEC v. NICHOLAS CROCE, FRANK CROCE, FRANK SANITATE, JEFF GODINO,
RICHARD A. HAIK, ALPHONSE MERCURIO, and BOB M. HUISENGA, Civil
Action No. 95-Civ. 8314 (KMW) (S.D.N.Y. September 28, 1995)

     The Securities and Exchange Commission today filed an action
against seven defendants alleging that they committed insider
trading by purchasing the securities of Grumman Corporation, or
by tipping others so that they could purchase Grumman securities,
shortly before the March 7, 1994 announcement of a tender offer
by Martin Marietta Corporation for Grumman's outstanding shares. 
The Complaint filed in the action also alleges that the
defendants were responsible for trading by seven other
individuals, and seeks disgorgement of all profits, as well as
penalties and other relief.

     The complaint alleges that Nicholas Croce, a Grumman
employee directly involved in due diligence meetings in
preparation for the merger, tipped his brother Frank Croce, also
a Grumman employee, and that Frank Croce then tipped their cousin
Frank Sanitate, who purchased Grumman securities himself and
tipped defendants Jeff Godino, Richard A. Haik, Alphonse Mercurio
and Bob M. Huisenga, as well as Lawrence M. Mathe, who was a
defendant in an earlier Commission action.  The complaint alleges
that Frank Sanitate, his five tippees, and six other people to
whom these tippees recommended Grumman securities, all of whom
were in the apparel industry, realized gains totalling more than
$640,000.

     The Commission filed suit in the United States District
Court for the Southern District of New York alleging that the
defendants violated Sections 10(b) and 14(e) of the Securities
Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder. 
Simultaneously with the commencement of the action, the
defendants consented, without admitting or denying the
allegations of the Complaint, to the entry of final judgments
permanently enjoining them from violating Sections 10(b) and
14(e) and Rules 10b-5 and 14e-3.  Mercurio agreed to pay $52,672,
representing disgorgement of $24,937, prejudgment interest of
$2,798 and a civil penalty of $24,937; Haik agreed to pay
$88,142, representing disgorgement of $79,250 and prejudgment
interest of $8,892; Huisenga agreed to pay $63,400, representing
disgorgement of $42,875, prejudgment interest of $5,525 and a
civil penalty of $15,000; Godino agreed to pay disgorgement of
$25,000; Sanitate agreed to pay disgorgement of $36,000; Frank
Croce agreed to pay disgorgement of $10,000; and Nick Croce
agreed to pay disgorgement of $20,000.

     Previously, the Commission brought an action, by consent,
against Lawrence M. Mathe based on his trading in and
recommendation of Grumman securities.  Mathe agreed to pay
$265,313, representing profits from the transactions complained
of, $14,172 in prejudgment interest, and $30,000 as a civil
penalty.  SEC v. Lawrence M. Mathe, No. 94 Civ. 9129 (S.D.N.Y.
December 21, 1994)

     The Commission acknowledges the assistance of the Chicago
Board Options Exchange in investigating this matter.