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              UNITED STATES SECURITIES AND EXCHANGE

LITIGATION RELEASE NO. 14781 / January 16, 1996

SECURITIES AND EXCHANGE COMMISSION v. WAYNE T. DRINKWINE, 
96 Civ. 0182 (JH) (MO), (E.D.N.Y.)

NEW YORK -- The Securities and Exchange Commission ("Commission")
announced the filing of a Complaint today in the United States
District Court for the Eastern District of New York against
financial adviser Wayne T. Drinkwine ("Drinkwine"), age 44, of
Eastport, New York, alleging fraud in violation of the federal
securities laws.  

The Commission's Complaint alleges as follows:

          From March 1990 through March 1995, Drinkwine, while
     working as a financial adviser and registered
     representative, fraudulently solicited at least five of his
     school teacher clients to invest an aggregate of
     approximately $450,000 in non-existent securities he
     described as "unit trusts."  Drinkwine's clients were
     current and retired school teachers from Long Island who
     maintained investment accounts that contained their
     retirement funds.  Drinkwine made various material
     misrepresentations and omissions concerning the "unit
     trust," including:  (a) falsely guaranteeing investors a 10%
     annual return on their investments in the "unit trust;"  (b)

     falsely representing that all principal invested in the
     "unit trust" was guaranteed and not at risk; and (c) falsely
     representing that the "unit trust" would invest in real
     estate.  Instead of investing his clients' funds as
     promised, Drinkwine secretly diverted approximately $420,000
     into his personal bank accounts and misappropriated such
     funds for his personal benefit.  

          In furtherance of his scheme, Drinkwine sent his
     clients:  (a) letters purporting to confirm their
     investments in the "unit trust," which also contained false
     promises to pay 10% annual interest and to repay all
     principal; and (b) written account statements which
     purported to reflect the investments in the "unit trust." 
     In addition, Drinkwine used approximately $30,000 of
     investors funds to make sporadic interest payments to his
     victims in order to conceal and perpetuate his fraudulent
     scheme. 

     The Complaint alleges that Drinkwine violated Section 17(a)
of the Securities Act of 1933, Section 10(b) of the Securities
Exchange Act of 1934, and Rule 10b-5 thereunder and seeks to
enjoin him from future violations of these provisions.  The
Complaint also seeks disgorgement plus prejudgment interest,
civil penalties, and an accounting.