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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 14936 / June 6, 1996
AcCCOUNTING AND AUDITING RELEASE NO. 790

SEC v College Bound, Inc., et al., Civil Action No. 92-0979 (D.
D.C.)

     The Commission announced that on May 24, 1996, Honorable
Norman C. Roettger, Jr. Chief Judge for the United States
District Court for the Southern District of Florida, sentenced D.
George Ronkin ("Ronkin"), the former chief executive officer of
College Bound, Inc. ("College Bound"), to 72 months in jail. 
Ronkin had pled guilty to a six-count information, charging him
with, among other things, conspiring to commit securities fraud
and obstructing an SEC investigation.  In addition to the jail
sentence, Judge Roettger ordered restitution in the amount of $42
million.  Ronkin is scheduled to report for jail on July 31,
1996.  Previously, on March 11, 1996, Judge Roettger sentenced
Ronkin's wife, Janet Ronkin, College Bound's former president, to
twelve months in prison, and ordered a $20,000 fine and 300 hours
of community service, based on her guilty plea to obstructing an
SEC investigation. 

     Previously, on April 20, 1992, the Commission suspended
over-the-counter trading of the securities of College Bound for a
ten-day period.  Thereafter, on April 23, 1992, the Commission
filed a complaint against College Bound, a Plantation, Florida-
based public company, and the Ronkins.  The Commission also filed
emergency motions, including a motion for temporary restraining
order, against the three defendants.  SEC v. College Bound, Inc.,
et al., Civil Action No. 92-0979 (D. D.C.).  That day, the Court
entered an order temporarily retraining the defendants from
further violations of Section 17(a) of the Securities Act of
1933, Section 10(b) of the Securities Exchange Act of 1934
("Exchange Act") and Rules 10b-5 and 13b2-1, thereunder.  The
Order also temporarily restrained College Bound from violating
and the Ronkins from aiding and abetting violations of Sections
13(a) and 13(b)(2)(A) and (B) of the Exchange Act and Rules 13a-
1, 13a-13 and 12b-20, thereunder.

     In its complaint, the Commission alleged, among other
things, that the defendants materially overstated College Bound's
earnings in financial statements contained in periodic reports
filed with the Commission.  Specifically, the complaint alleged
that as a result of College Bound's overstatements in the third
and fourth quarters of fiscal 1991, its annual pretax income of
approximately $8.7 million for fiscal 1991 was overstated by at
least $5.2 million, i.e., by 149%.  The complaint further alleged
that the overstatements apparently arose from improper
recognition as revenue of millions of dollars of College Bound's
own funds that were transferred in circular fashion from an
account at College Bound's headquarters to bank accounts at
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College Bound's field offices, and then back to the headquarter's
account.